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Home My WebLink AboutPR 24353: PURCHASE OF VACANT LAND CONSISTING OF TWO TRACTS P.R. No. 24353 05/21/25 ht RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO PURCHASE APPROXIMATELY 3.80 ACRES OF VACANT LAND, CONSISTING OF TWO TRACTS LOCATED ADJACENT TO THE CITY'S PARKS AND RECREATION DEPARTMENT AT 1308 9TH AVENUE, FROM THE PORT ARTHUR HOUSING AUTHORITY, IN THE TOTAL AMOUNT OF $240,500.00; FUNDING FOR THIS PURCHASE IS AVAILABLE IN THE FOLLOWING: $215,000.00 FROM PARKS AND RECREATION ACCOUNT NO. 001-25-065-8511-00-20-000 AND $25,500.00 FROM CAPITAL IMPROVEMENT ACCOUNT NO. 307- 25-065-8511-00-20-000 WHEREAS, on April 23, 2024, the City Council made a motion authorizing the City Manager and City Attorney to negotiate with the Port Arthur Housing Authority to purchase 3.80 acres of vacant land (consisting of two tracts) located adjacent to the City's Parks and Recreational Department at 1308 9th Avenue; and WHEREAS, the City obtained an appraisal valuing the land at $216,000.00 (Exhibit "A"), while the Port Arthur Housing Authority obtained a separate appraisal valuing the same land at $265,000.00 (Exhibit"B"); and WHEREAS, following negotiations, the City and the Housing Authority have agreed upon a fair market value of$240,500.00 for the property, with both parties agreeing to split the closing costs; and WHEREAS, the City intends to utilize the property to expand the adjacent Recreation and Senior Center, thereby enhancing its ability to serve the needs and welfare of the community; and WHEREAS, the City Council finds it to be in the best interest of the City to authorize the City Manager and City Attorney to proceed with the acquisition and finalize the purchase of the property. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That the facts and recitals in the preamble are true and correct. Section 2. That the City Council hereby authorizes the City Manager and City Attorney to proceed with the acquisition of the approximately 3.80 acres of vacant land (consisting of two tracts) located adjacent to the City's Parks and Recreational Department at 1308 9th Avenue, from the Port Arthur Housing Authority, contingent upon clear title, for the fair s.pr24353 market value amount of $240,500.00, with closing costs to be divided between the parties as provided in Exhibit"C". Section 3. That the City Manager and the City Attorney shall be authorized to execute the necessary closing documents as it relates to the purchase. Section 5. 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 A.D. 2025, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following votes: AYES: Mayor: Councilmembers: • NOES: CITY OF PORT ARTHUR: Thurman Bill Bartle, Mayor ATTEST: Sherri Bellard, TMRC City Secretary APPROVED TO FORM: Roxann Pais Cotroneo, City Attorney s.pr24353 APPROVED FOR ADMINISTRATION: &kV Ronald B on, CP City Manager APPROVED AS TO AVAILABILITY OF FUNDS: Ly da"Lyn"Bosewell, M.A., ICMA-CM Director of Finance s.pr24353 Exhibit "A" (City's Appraisal Report) s.pr24353 Appraisal of: PIDN 73304 and 73303 on 9th Avenue, Port Arthur, Jefferson County, Texas Prepared For: CITY OF PORT ARTHUR Ms. Chandra Alpough, MA, CPRP Director of Parks and Recreation City of Port Arthur PO Box 1089 Port Arthur, TX 77641 As of: November 2, 2023 By: COOK & ASSOCIATES, INC. Mr. W. Burnell Cook, MAI, SRA 2640 McFaddin Beaumont, Texas 77702 COOK & ASSOCIATES, INC. COOK & ASSOCIATES, INC. Real Estate Appraisers 2640 McFaddin • Beaumont,Texas 77702 • (409)835-1430 • Fax (409)835-7314 • Tax ID #76 0325476 W. Burnell Cook, MAI, SRA, CPA cookappr@gmail.com Stephen F. Peyton Lucas G. Cook November 13, 2023 Ms. Chandra Alpough, MA, CPRP Director of Parks and Recreation City of Port Arthur PO Box 1089 Port Arthur, TX 77641 RE: Appraisal of PIDN 73304 and 73303 on 9th Avenue, Port Arthur, Jefferson County, Texas Dear Ms. Alpough: In compliance with your request, I have personally inspected and analyzed the above captioned property for the purpose of developing an opinion of the Market Value in Fee Simple Interest. As a result of my investigation and analysis, my opinion of the Market Value of the sub- ject property, as of November 2, 2023, is: TWO HUNDRED SIXTEEN THOUSAND ($216,000) DOLLARS This transmittal letter is followed by the certification of the appraisal and the APPRAISAL REPORT containing pages further describing the subject property and containing the reasoning and pertinent data leading to the developed value opinion. Your attention is directed to the "General Underlying Assumptions" and "Limiting Condi- tions" which are considered usual for this type of assignment and have been included in the Addenda of the report. The appraiser is aware of the potential impact on real estate markets in general as a result of the recent Covid-19 virus pandemic, as well as the Russia-Ukraine conflict. As of the effective date of this appraisal, sufficient data to measure such impact is not available. Although local commer- cial/industrial brokers indicate significant recent increases in market activity in the Beau- mont/Port Arthur/Orange market area, any quantifiable direct or indirect effect of the Covid-19 virus pandemic and the Russia-Ukraine conflict remains unknown at this time. Thus, the ap- praiser's conclusions herein are based on currently available data with no representation as to the effect of these events on the subject property. Respectfully submitted, COOK & ASSOCIATES W. Burnell Cook, MAI, SRA Texas State Certified TX 1320838 — G CERTIFICATION 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 assump- tions 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 performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three year period immediately preced- ing the agreement to perform this assignment. -- I have no bias with respect to the property that is the subject of this report or to the par- ties involved with this assignment. -- my engagement on 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 occur- rence of a subsequent event directly related to the intended use of this appraisal. -- I, W. Burnell Cook have made a personal inspection of the property that is the subject of this report. -- no one provided significant real property appraisal assistance to the person or persons signing this certification. -- 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 Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. -- the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. -- as of the date of this report, I have completed the requirements under the continuing ed- ucation program of the Appraisal Institute. -- the appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. *—% .* November 13, 2023 W. Burnell Cook, MAI, SRA Date Texas State Certified General TX 1320838-G COOK & ASSOCIATES, INC. TABLE OF CONTENTS PIDN 73304, 73303 on 9th Avenue Port Arthur, Texas Introduction Letter of Transmittal Certification Summary of Salient Facts and Conclusions 1 General Information Intended Use/User 2 Client/Scope of Work 2 Subject Identification 2 Value Definition and Interest Valued 4 Exposure Time 4 Effective Date 4 Legal Description 5 Area/Property Analyses Area Analysis 5 Neighborhood Analysis 8 Property Description 10 Highest and Best Use 11 Valuation Analysis Sales Comparison Analysis 12 Reconciliation and Concluded Value 23 Addenda Subject Photos 24 Maps and Plats 29 Metes and Bounds JCAD Detail General Limiting Conditions Qualifications and License PO #22400403 COOK & ASSOCIATES, INC. 1 SUMMARY OF SALIENT FACTS AND CONCLUSIONS 1. Appraisal Type/Scope: Sales Comparison Approach 2. Report Format: Narrative 3. Property Type: Vacant Land 4. Location: Ninth Avenue, east side, just north of Thomas Boulevard, Port Arthur, Texas 5. Owner: Port Arthur Housing Authority 6. Site: 3.808 Acres or 165,876 SF, per deed 7. Improvements: Asphalt parking (± 9,000 SF), fence 8. Zoning: CR, Commercial Retail District 9. Highest and Best Use As Vacant: Commercial As Improved: N/A 10. Value Indication: Sales Comparison Approach: $216,000 11. Date of Inspection: November 2, 2023 12. Date of Value Estimate: November 2, 2023 13. Date of Report: November 13, 2023 14. Property Rights Appraised: Fee Simple 15. Final Opinion of Market Value: $216,000 COOK & ASSOCIATES, INC. 2 APPRAISAL REPORT CLIENT: Ms. Chandra Alpough, MA, CPRP Director of Parks and Recreation City of Port Arthur PO Box 1089 Port Arthur, TX 77641 APPRAISER: W. Burnell Cook, MAI, SRA Cook & Associates, Inc. 2640 McFaddin Beaumont, Texas 77702 SUBJECT: PIDN 73304 and 73303 on 9th Avenue, Port Arthur, Jefferson County, Texas INTENDED USE OF REPORT: For the sole purpose of assisting the client in evaluating the subject property for potential purchase. This report is intended for use by Chandra Alpough, Director of Parks and Recreation, and the City of Port Arthur. Other uses or us- ers are not intended by the appraiser. SCOPE OF WORK AND REPORTING PROCESS: This is an Appraisal Report which is intended to comply with the reporting requirements set forth under Rule 2 of the Uniform Standards of Professional Appraisal Practice for an Appraisal Report. As such, it presents relevant discussions of the data reasoning and analysis that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analysis is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated above. The appraiser is not responsible for unauthorized use of this report. As the subject is essentially vacant land, the appraiser did not use the Cost and Income Approaches to value which are not considered necessary to develop a credible opinion of value. The appraiser believes the only applicable approach to value is the Sales Compari- son Approach. Subject property identification: Identification of the subject property was provided by the client in the form of a physical location description and appraisal district property account reference. Subject property observation and physical data collection: The appraiser visited the subject property on November 2, 2023. All photographs of the subject site were taken on this date. Data collection and research: The subject property data such as size, physical features, location, quality and zoning are considered and presented in this report. Market data, in- cluding comparable vacant land sales and supply and demand are among the items re- searched and analyzed. The data is used to estimate the highest and best use of the sub- ject property and its market value. COOK & ASSOCIATES, INC. 3 Extent of analysis: The documentation necessary to arrive at the opinion of value is considered in this appraisal report. The market data has been collected, confirmed and analyzed. Comparable sales were chosen for their similar highest and best uses as out- lined within the report. All sales were analyzed and compared to the subject property based on their similarities and dissimilarities. The applicable approaches were considered and reconciled in developing a final opinion of market value. Disclosures: Texas is a non-disclosure state in regards to details of sales transactions. Thus, our knowledge of sales data is not all-inclusive. Our data sources include Beau- mont, Mid-County and Orange County Multiple Listing Service, Commercial Gateway (HAR), local real estate brokers, as well as grantees, grantors, lessees and lessors. Ter- minology and definitions utilized are in accordance with banking regulations and the Dic- tionary of Real Estate Appraisal, Seventh Edition, (copyright 2022), by the Appraisal Insti- tute, or most recent revision. This appraisal is intended to comply with the requirements of the Appraisal Institute as well as the current Uniform Standards of Professional Appraisal Practice. COMPETENCY STATEMENT: Both USPAP and FIRREA minimum appraisal standards require that an appraiser have the knowledge and experience to complete an assignment competently. Additionally, FIRREA requires a competency statement. W. Burnell Cook, MAI, SRA has 39 years of commercial property appraisal experience. The appraiser has appraised properties similar to the subject in the Southeast Texas marketing area. This practical experience coupled with classroom training through the Appraisal Institute and other organizations complies with the Competency requirements of USPAP. The appraiser is a state certified general real estate appraiser. A complete qualifications statement and a copy of the certification for the appraiser is included in the Addenda. ENVIRONMENTAL DISCLAIMER: The appraiser is not an expert in determining the presence or absence of hazardous substances, defined as all hazardous or toxic materi- als, waste, pollutants or contaminants, including but not limited to asbestos, PCB, UFFI, or other raw materials or chemicals used in construction or otherwise present on the proper- ty. The appraiser assumes no responsibility for studies or analyses which would be re- quired to conclude the presence or absences of such substances or loss as a result of the presence of such substances. The client is urged to retain an expert in this field, if desired. The personal surface site inspection by the appraiser did not indicate the presence of hazardous materials or contaminants. Therefore, the value opinion herein is based on the assumption that the subject conforms to applicable environmental regulations and is subject to that condition. PURPOSE OF THE APPRAISAL: To estimate market value as referenced in Section 12, C.F.R. Part 34. COOK & ASSOCIATES, INC. 4 Market Value as reported herein, is defined as: 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 pass- ing 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 con- sider their own best interests; 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 terms of financial ar- rangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffect- ed by special or creative financing or sales concessions granted by anyone associated with the sale. INTEREST VALUED: Fee Simple Interest, as defined in Real Estate Terminology, is: An absolute fee; a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power, and taxation. An in- heritable estate. SALES HISTORY: The subject property is currently owned by the Port Arthur Housing Authority and has not changed ownership in an open market transaction within the past three years. A purchase by the City of Port Arthur is being considered, however a price has not been determined. ESTIMATED EXPOSURE TIME: The exposure time estimate provided precedes the ef- fective date of this report. In estimating an exposure time for the subject property the ap- praiser has considered some or all of the following: • Current supply and demand factors • Current cost information • Analysis of historical sales information • Analysis of future income expectancy In the case of the subject property, an exposure time of 12 to 24 months is thought rea- sonable. EFFECTIVE DATE OF VALUE: November 2, 2023 DATE OF INSPECTION: November 2, 2023 PROPERTY TAXES: Assessed value is $16,054 in two accounts. The property is tax ex- empt. (See appraisal district and tax account information in the Addenda.) COOK & ASSOCIATES, INC. 5 DESCRIPTION OF REAL ESTATE APPRAISED: LEGAL DESCRIPTION: The subject property is legally described a part of Lot 4, Block 3, Range H, PALCO, City of Port Arthur, Jefferson County, Texas. See metes and bounds legal description in the Addenda. AREA ANALYSIS: The subject area is known as the "Sabine-Neches Industrial area" or the "Golden Triangle" and is comprised of Hardin, Jefferson, Orange and Newton Coun- ties in Southeast Texas. The three major cities are Beaumont, Port Arthur and Orange. The cities are virtually contiguous as result of continuous development along their con- necting highways. Beaumont, the largest city and the county seat of Jefferson County, has a population of 115,282 per the 2020 census, down 2.6% from 118,296 in 2010. The pop- ulation of the four county area is 412,870 per the 2020 census, up 9,676 or 2.4% since 2010. Area city services, public utilities, schools and health facilities are considered to be good. The area climate is favorable with warm summers and mild winters. Area transportation resources include railroads, some deep water ports located in Port Ar- thur, Beaumont and Orange, four airports as well as good highway access. Jefferson County Airport, located adjacent to and west of Nederland, provides daily connector flights to Dallas. Medical facilities, located in Beaumont, Port Arthur, Groves, Nederland and Or- ange include eight major hospitals as well as a variety of facilities providing specialized and emergency care services. Major industries include shipping, petroleum and agriculture. In the early 1990's major federal, state and local prison complexes between Beaumont and Port Arthur in Mid- County were established. The area economy is primarily based on petrochemical refining and production related industries and has been since the Spindletop Oil discovery in 1901. A number of major petrochemical plants are located in this portion of the upper Texas Gulf Coast, typically along the Neches River and Sabine River in south Jefferson County and south Orange County. Many individuals from the three county area find employment in these area petrochemical complexes. Major plants located in the area include Motiva, Valero, DuPont, Total, Huntsman, Chevron, Mobil-Exxon and Goodyear. Economic conditions have been favorable in recent years, as area industrial plants have continued to expand. However, unemployment for the Beaumont/Port Arthur MSA is at 6.7% (August, 2023), up from 6.1% one year ago. Unemployment for the State of Texas is 4.1% for August, 2023, up from 3.7% in August, 2022, unchanged from 4.1 a month ago. Local MSA employment is 159,600, up 3.0% since August, 2022, and unchanged from last month. The economic forecast for the Golden Triangle area, including Beaumont, Port Arthur and Orange, remains relatively positive as renovations, additions and upgrades to existing oil, gas and petroleum facilities, primarily in mid and south Jefferson County continue. The na- tional economic downturn in late 2008 and 2009 and decline in oil prices caused some COOK & ASSOCIATES, INC. 6 concern, with some projects being delayed, cancelled or put on hold. However, the Total, Motiva and the Valero expansions remained on track and are now complete. The five year, 10 billion dollar Motiva expansion was the largest single expansion in the United States in four decades. Cheniere Energy is building a 10 billion dollar LNG export facility adjacent to their new Sabine Pass gas import terminal in Cameron Parish, LA (just east of Sabine Pass, TX), now in operation. The expansion is projected to be substantially complete in 2022. Gold- en Pass Products has also announced authorization from the U.S. Department of Energy to export LNG, and began construction (March, 2019) of a 10 billion expansion for such purpose, projected to be complete in 2024. Final approval for investment in a $13 billion LNG facility in Sabine Pass was announced by Sempra on March 20, 2023. The Jefferson Energy Terminal, owned by JCP Energy Partners in Orange County on the Neches River across from the Port of Beaumont, was recently completed at a cost of ± $50 million. The state of the art facility is now operating and shipping its first shipments of ethanol internationally. The Gulf Coast Project section of the controversial Keystone Pipeline project has recently been completed extending 487 miles from Cushing, OK to Nederland Texas. The pipeline project is planned to ultimately extend from Canada transporting crude oil to Texas Gulf Coast refineries. However, the project has recently encountered political/environmental obstacles. The ultimate outcome is unknown. In November, 2013, Natgasoline LLC, a subsidiary of Orascom Construction Industries (OCI) announced a 1.9 billion dollar methanol plant project to be located on 514 acres on SH 347 just south of Beaumont, which broke ground in March, 2014. The plant, completed in 2018, is one of the nation's largest methanol plants. Ground breaking for a $1 billion expansion to build a "blue" ammonia plant was December 7, 2022. Completion is antici- pated for 2025 with 1000 construction jobs and 100 permanent jobs anticipated. Additional expansion for a renewable fuels facility and a fertilizer plant is planned. Exxon-Mobil is nearing completion of a $1.2 billion expansion of their plant on US 90, just west of Beaumont. Construction of a 1.7 billion dollar ethylene production unit at the Total plant site in Port Arthur is also nearly complete. A 748 million dollar project to deepen and widen the Neches River portion of the Sabine Neches Ship Channel, as part of the Water Resources Reform and Development Act of 2013, was signed into law by President Obama. Initial funding of $18 million for fiscal year 2019 was reported in the Beaumont Enterprise on November 26, 2018. Initial phases of construction began in late 2019. $169.2 million in capital improvement is planned by the Port of Beaumont, to be funded in part by $85 million in bonds, with voter approval ob- tained November 7, 2017. The U. S. Army Corps of Engineers, in their recently announced 2021 Work Plan, allocated $68.5 million for the Sabine-Neches project underway. This project, in conjunction with completion of the Panama Canal expansion, completed in 2016, is expected to have a significant positive economic impact on Texas Gulf Coast ports and the Beaumont-Port Arthur MSA in general. COOK & ASSOCIATES, INC. 7 In March, 2023, the 1,215 megawatt Orange County Advanced Power Station near Bridge City was approved by the Public Utility Commission. Entergy Texas, Inc. estimates the plant construction, now underway to be competed in 2026, potentially powering 230,000 homes. The Power Station is projected to cost $1.2 billion and create 7,000 construction jobs along with 27 permanent jobs. Currently, land has been acquired and initial construction begun for a new Chevron- Phillips/Qatar Energy facility near Texas 87 and FM 1006 in Orange; announced on No- vember 16, 2022, to be an $8.58 billion dollar project with 4,500 construction jobs and 500 full time jobs. A plant expansion currently underway at the Exxon-Mobil Beaumont refinery will employ 1,850 in construction jobs, with 40 to 60 permanent jobs, and increase crude refining capacity by two thirds, making it one of the nation's largest refineries. The Golden Triangle area, as does the Gulf Coast in general, experiences occasional hur- ricanes and tropical storms. Tropical Storm Harvey struck the area on August 30, 2017, with record rainfall and widespread flooding. Tropical Storm Imelda struck the area on September 19, 2019, also with widespread flooding and road closures, but to a lesser de- gree than experienced during Tropical Storm Harvey. Most flooding occurred in the west- erly portion of Jefferson County and easterly portion of Chambers County. A fairly rapid recovery was completed with minimal long term adverse effect. Most recently, the area in general suffered relatively minor damage from Hurricane Laura which struck the Camer- on/Lake Charles, Louisiana area, just to the east, on August 27, 2020. Damage in the Or- ange area was more extensive, being closer in proximity to landfall. Damage in the Lake Charles area was severe. Tropical Storm Beta, which struck the area on September 22, 2020, caused minimal damage. Hurricane Delta, which struck Lake Charles on October 9, 2020, caused moderate damage in the Beaumont, Port Arthur and Orange area. In response to the threat of hurricane damage, the US Corps of Engineers is constructing a coastal storm barrier system known as the Sabine to Galveston or Texas Coastal Spine Project. The project will extend 27 miles through Orange County coastal area, as well as coastal area of Jefferson County and the Bolivar Peninsula to Galveston. The project ini- tially began in Orange County in 2020 and is expected to be complete in 2031. The entire project is projected to take 20 years or more to complete with design and environmental studies for some areas not yet complete. Prices paid for existing real estate in general are increasing. Brokers are optimistic with increases in market activity related to continued petrochemical expansion anticipated over the next twelve months. Currently smaller office/shop/warehouse space is in short supply with new construction anticipated. However, as previously discussed, the adverse economic impact of COVID-19, as well as the Russia-Ukrainian conflict, is undetermined at this time, thus not specifically considered herein. Most projects are remaining on track with oil prices increasing. An area map is included in the Addenda. COOK & ASSOCIATES, INC. 8 NEIGHBORHOOD ANALYSIS: The objective of a Neighborhood Analysis is to de- scribe and analyze observable and/or quantifiable data that indicates discernible patterns of urban growth, structure and changes that detract from or enhance property values. A neighborhood is a portion of a larger community in which there is a homogeneous grouping of inhabitants, buildings or business enterprises. Neighborhood boundaries may consist of well-defined natural or man-made barriers, or they may be, more or less, well- defined by a distinct change in land values or in the character of the inhabitants. The subject property is located south of Gulfway Drive and north of Thomas Boulevard, on 9th Avenue in Port Arthur. The subject neighborhood is generally considered to be the area south of Highway 73, west of Duff Drive, east of Memorial Drive and Woodworth Boule- vard and north of the Intracoastal Canal within the City of Port Arthur. The northeastern most portion of the neighborhood adjoins the City of Groves. The neighborhood is deline- ated on the Neighborhood Map presented in the Addenda. This is an older well-established residential area with ample residential support facilities located along major traffic arteries. The properties located within this area are thought to have the greatest economic impact on the subject property. Highway 69/96/287 (known as Memorial Drive and Woodworth Boulevard within the City of Port Arthur) is a major commercial traffic artery connecting the cities in south and mid- Jefferson County with Beaumont, the County Seat. It intersects with IH-10 in southwest Beaumont. Memorial Drive (Highway 69/96/287) from Highway 73 to Gulfway Drive is a four lane asphalt paved thoroughfare with a center turning lane. Woodworth Boulevard (Highway 69/96/287) from Gulfway Drive south to Lakeshore Drive is a divided four lane asphalt paved thoroughfare concrete curbs and gutters and a center grass median. Twin City Highway (State Highway 347) is a major four lane artery running north/south parallel and east of U.S. 69/96/287, connecting with it just south of Beaumont. Ninth Avenue is a supplemental north/south thoroughfare through the area, extending north across Highway 73 to the Central Mall area and south to Gulfway Drive. Highway 73 is also a primary traf- fic artery connecting Port Arthur to Orange on the east and to Interstate 10 on the west at Winnie. From that point, IH-10 provides direct access to Houston. Highway 73 is four-lane asphalt paved divided highway from the Neches River to IH-10. These arteries provide the neighborhood with excellent access to all areas of the tri-county area and the Houston metroplex. The subject neighborhood is predominantly residential in nature. However, as previously noted, the neighborhood has extensive commercial development along the major traffic arteries including Memorial Highway, Twin City Highway, Gulfway Drive and portions of 9th Avenue and Highway 73. This development consists of apartment complexes, profession- al offices, convenience stores, motels, restaurants, automotive dealerships, service gar- ages, service stations, retail stores, shopping centers and hospitals. Ninth Avenue in- cludes mixed, secondary commercial development, as well as residential uses. Schools and churches are conveniently located within the neighborhood. COOK & ASSOCIATES, INC. 9 Saint Mary's Hospital, located on 9th Avenue just north of Gulfway Drive, closed several years ago and has been razed. Park Place Hospital, located on Memorial Drive at 39th Street, closed in April of 2005 and was subsequently torn down. Only a few medical pro- fessional office buildings remain. Many doctors have relocated to the new hospital and medical center complex located off Highway 69/96/287 on Jimmy Johnson Boulevard near Central Mall. The terrain within the neighborhood is generally level with elevations ranging from approx- imately 5 to 10 feet above mean sea level. For the most part, the neighborhood falls within the Federal Emergency Management Agency designated Flood Zone B, a flood hazard area between the limits of the 100 year and 500 year flood plains. However, it is located within a hurricane flood plain area, protected partially by a hurricane levee which was complete in 1981 by the U.S. Corps of Engineers. The city enacted an ordinance requiring new construction is to be at four feet or above maximum ponding level. This action, along with the construction of numerous drainage canals and other precautions has made the area eligible for flood insurance at government subsidized rates. Since completion of the Flood Protection Project, the area has generally had a reputation for adequate drainage. However, there was widespread flooding associated with Tropical Storm Harvey on or about August 30, 2017. Electricity, gas and telephone services are provided by privately owned corporations and serve the entire neighborhood. The city provides sewer and water utilities throughout the neighborhood. All of these services have a reputation of providing adequate service. Zoning classifications throughout the area are primarily SF (Single Family), 2F (Two Fami- ly) or MF (Multi-Family) with some areas along major thoroughfares being LC (Light Com- mercial). Thus, land uses conform to the zoning classification and property compatibility is considered to be good. During the mid-1980's, the neighborhood experienced an economic decline. This was due, in part, to the depressed oil related economy of the entire area. Significantly compounding the problem was a trend begun in the early 1980's toward the relocation of retail business- es to the New Town In Town area and Central Mall located 6.5 miles northwest of the sub- ject at the intersection of Highway 69 and FM 365. This area quickly became the major retail center in the city of Port Arthur. Thus, the Central Business District has suffered de- cline. However, in recent years there has been renewed interest in commercial develop- ment along Gulfway Drive as is evidenced by a number of new small strip centers, free standing retail buildings and renovation of existing commercial buildings. Also, extensive renovation of two older, vacant office buildings now underway, with subsequent occupancy by Motiva, is expected to have a positive impact. In recent years, the local economy in general has remained relatively stable. Several area refineries have completed major expansions to their facilities with continued petrochemical expansion anticipated. Manufacturing and light industrial uses continue to be viable. In conclusion, the subject neighborhood is expected to retain its present characteristics and development/redevelopment is expected to continue along prevailing lines at a slow pace. COOK & ASSOCIATES, INC. 10 A Neighborhood Map is presented in the Addenda. PROPERTY DESCRIPTION: Location/ Access: The subject tract is located on the east side of 9th Avenue, just north of Thomas Boulevard and approximately four blocks south of Gulfway Drive. Tract Size: 3.808 Acres or 165,876, per deed records Configuration: Irregular Topography/ Elevation: The subject tract is cleared and level. Elevation is approximately five feet above mean sea level. Flood Zone: Zone B, area within the 500 year flood plain, but outside the 100 year flood plain, or area protected by hurricane levee, as determined by FEMA. Zoning: CR, Commercial Retail District Utilities: All public utilities are available. Existing Improvements: Residual asphalt (± 9,000 SF), fence Surrounding Uses: Adjacent to the north are commercial buildings. Adjacent to the south is a funeral home and a convent. To the east across an alley and west across 9th Avenue are single family residences. Easements/ Encumbrances: Standard utility easements were noted. An electrical utility ROW crosses the central portion of the tract, running from northwest to southeast. The characteristics of the subject tract generally conform to those of surrounding proper- ties and those discussed in the Neighborhood Analysis are considered applicable. The subject is of sufficient size and utility for a variety of commercial or residential uses, such as are typical of the immediate area. The subject is presently vacant. Presented in the Addenda are an Aerial Photo, Plat Map, Topographical Map, Zoning Map and a Flood Plain Map. COOK & ASSOCIATES, INC. 11 HIGHEST AND BEST USE: Highest and Best Use "As Vacant": The subject enjoys good exposure and access from 9th Avenue. The subject is of sufficient size and adequate utility for a variety of com- mercial or residential uses. The tract is zoned CR, Commercial Retail District, a classification allowing a variety of commercial uses. Commercial demand is thought sufficient to justify development costs. Consequently, the Highest and Best Use of the subject, as vacant, would be Commercial. COOK & ASSOCIATES, INC. 12 SUMMARY OF THE SALES COMPARISON ANALYSIS: This is an appraisal technique in which the Market Value estimate is based on prices paid in actual market transactions. The approach involves gathering data of sales of comparable properties and analyzing the nature and condition of each sale, comparing with the subject property, making logical ad- justments for characteristics dissimilar to the subject property. The direct sales compari- son approach is based upon the principle of substitution and is a good indicator of value when sales of highly similar properties are available. The principle of substitution is de- fined in The Dictionary of Real Estate Appraisal, p. 296 as "The appraisal principle that states that when several similar or commensurate commodities, goods or services are available, the one with the lowest price will attract the greatest demand and widest distri- bution." The reliability of this approach is dependent upon the following factors: • The degree of similarity of the comparable property to the property being appraised as to location, size, and utility. • The time of the sale. • The verification of the market data. • The absence of unusual conditions affecting the sales price. The appraiser has made a diligent search of available sources in an attempt to obtain data on the sales of similar vacant properties. Also contacted were several area real estate brokers. The Sales Comparison Approach is applied in the study of prices paid for compa- rable tract to indicate the price at which the subject tract should sell after adjustments are applied for the factors that tend to affect price, i.e., sale date, tract size, locational quality, etc. The "market" for similar properties has been active in recent years, thereby providing sales data from which a comparative analysis can be made for a value indication. Presented on the following pages is the data on the sales which were deemed most com- parable and provided the most reliable indicators of value as well as a map showing the location of each sale in relation to the subject, followed by a Sales Summary. The square foot unit has been used in the analysis as the market tends to quote vacant land prices in this unit. The Market Adjustment Chart, showing the pertinent data on each sale and the adjustments follows the Sales Summary. After the adjustment chart is a brief explanation of the adjustments and the concluded value estimate for the subject tract. COOK & ASSOCIATES, INC. 13 Land Sale No. 1 Property Identification Record ID 1439 Property Type Vacant Land Address 7200 9th Avenue, Port Arthur, Jefferson County, Texas 77642 Location East side, adjacent to golf course, just north of Lake Arthur Dr., south of 75th Tax ID PIDN: 256353 Legal Desc. Lots 4 & 5, Block 11, Range 11, Port Arthur Land Company Sale Data Grantor Sabra Texas Holdings, L.P. Grantee Khalil Packard, Inc. Sale Date January 08, 2020 Deed Book/Page 2020001106 Property Rights Fee Verification Broker: J.M. Prewitt Sale Price $1 ,100,000 Cash Equivalent $1,100,000 Land Data Zoning PD, Planned Development Topography Level Utilities All available Shape Rectangular Flood Info Zone AH, within 100-year floodplain Land Size Information Gross Land Size 9.095 Acres or 396,178 SF Front Footage 675 ft 9th Avenue Indicators Sale Price/Gross Acre $120,946 Sale Price/Gross SF $2.78 Remarks Substantial improvements were razed. COOK & ASSOCIATES, INC. 14 Land Sale No. 2 Property Identification Record ID 1171 Property Type Vacant Land Address Main Avenue, Groves, Jefferson County, Texas 77619 Location SEC Main Avenue and Washington Boulevard Tax ID PID #416847 Legal Desc. Pat of Lot 1, Uno Family Partnership, Ltd, No. 1, Jef- ferson County Texas Sale Data Grantor Uno Family Partnership, Ltd Grantee Texas 5 Star Group, LLC Sale Date December 17, 2020 Deed Book/Page FC #2020038722 Property Rights Fee Financing Cash to Seller Verification Grantee; Other sources: Jefferson CAD records Sale Price $127,000 Cash Equivalent $127,000 Land Data Zoning C-2, General Light Commercial Topography Level, Cleared Utilities All public utilities available Shape L-shaped Flood Info Zone - C Land Size Information Gross Land Size 0.740 Acres or 32,243 SF Front Footage 125 ft Main Avenue; 189 ft Washington Street Indicators Sale Price/Gross Acre $171,575 Sale Price/Gross SF $3.94 Remarks Corner tract purchased by adjoining land owner for shopping center develop- ment. COOK & ASSOCIATES, INC. 15 Land Sale No. 3 Property Identification Record ID 1348 Property Type Vacant Land Address 510 Stadium Road, Port Arthur, Jefferson County, Texas 77642 Location Stadium @ 5th St. (NEC) Tax ID PIDN: 54605 Legal Desc. Lots 23 - 29 Block 7, Lakeview MSA Beaumont-Port Arthur-Orange Sale Data Grantor Jonathan M Barnett Grantee David Alvarez Sale Date November 08, 2021 Deed Book/Page 2021039495 Property Rights Fee Financing Cash Verification J. Sanders/SETX Properties; MLS #202823 Sale Price $33,000 Cash Equivalent $33,000 Land Data Zoning LC Light Commercial, Light Commercial Topography Level, Cleared Utilities All Available Shape Rectangular Flood Info Zone B Land Size Information Gross Land Size 0.434 Acres or 18,900 SF Front Footage 189 ft Stadium Rd; 100 ft 5th Indicators Sale Price/Gross Acre $76,057 Sale Price/Gross SF $1.75 Remarks List Price: $34,900 DOM: 907 COOK & ASSOCIATES, INC. 16 Land Sale No. 4 Property Identification Record ID 1347 Property Type Vacant Land Address 2900 Nall Street, Port Neches, Jefferson County, Texas 77651 Location North side, east of Van Ave, East of SH 347, access road below elevated main lanes Tax ID PIDN: 108969 Legal Desc. Lot 1, Block 1, Tract 12 Van Oostrom MSA Beaumont-Port Arthur-Orange Sale Data Grantor Prosperity Building Group LLC Grantee Griffin Property Holdings LLC Sale Date April 14, 2022 Deed Book/Page 2022013317 Property Rights Fee Simple Financing Cash Verification Broker: Kay DeCuir; MLS # 224446 Sale Price $200,000 Cash Equivalent $200,000 Land Data Zoning B-M, Business Medium, B-M (Business-Medium) Topography Level, Cleared Utilities All available Shape Rectangular Flood Info Zone C Land Size Information Gross Land Size 0.981 Acres or 42,745 SF Front Footage 241 ft Nall St. Indicators Sale Price/Gross Acre $203,813 Sale Price/Gross SF $4.68 Remarks List Price: $224,000 DOM: 155 COOK & ASSOCIATES, INC. 17 Land Sale No. 5 Property Identification Record ID 1388 Property Type Vacant Land Address 2000 9th Avenue, Port Arthur, Jefferson County, Texas Location East side, 2 blocks north of Gulfway Drive Tax ID PDIN: 73349 Legal Desc. Part of Lot 4 Block 4 H PALCO 5.034 AC Sale Data Grantor Christus Health Southeast Texas Grantee SM Investment Firm, LLC Sale Date August 10, 2022 Deed Book/Page 2022029549 Property Rights Fee Verification Broker/JM Prewitt Sale Price $235,000 Cash Equivalent $235,000 Land Data Zoning PD, Planned Development Topography Level and cleared Shape Rectangular Flood Info Zone B, within 500 year floodplain Land Size Information Gross Land Size 4.990 Acres or 217,364 SF Front Footage 725 ft 9th Avenue Indicators Sale Price/Gross Acre $47,094 Sale Price/Gross SF $1.08 COOK & ASSOCIATES, INC. 18 Land Sale No. 6 Property Identification Record ID 1401 Property Type Commercial Vacant Land Address Highway 365, Port Arthur, Jefferson County, Texas Location North side, west of Medical Center Blvd Tax ID PIDN: 420723 Legal Desc. Tract III, Bayou Grove Park, Jefferson County, Texas Sale Data Grantor CRV-PA 1, LLC Grantee Campbell Oil Company Sale Date November 03, 2022 Deed Book/Page 2022037341 Property Rights Fee Verification Broker- JM Prewitt Sale Price $1 ,013,554 Cash Equivalent $1,013,554 Land Data Zoning PD, Planned Development Topography Mostly cleared Utilities All available Shape Rectangular Flood Info Zone AH, within 100-year floodplain Land Size Information Gross Land Size 5.440 Acres or 236,966 SF Front Footage 1,117 ft Hwy 365 Indicators Sale Price/Gross Acre $186,315 Sale Price/Gross SF $4.28 COOK & ASSOCIATES, INC. 19 Land Sale No. 7 Property Identification Record ID 1399 Property Type Commercial Vacant Land Address 4501 Highway 73, Port Arthur, Jefferson County, Texas Location South side, just west of SH 347 Tax ID PIDN: 73222 Legal Desc. Lots 3 &4, Block 7, Range G, PALCO MSA Beaumont-Port Arthur-Orange Sale Data Grantor SAI Port Arthur, LLC Grantee Texas PWSK Enterprises, LLC Sale Date November 23, 2022 Deed Book/Page 2022039110 Property Rights Fee Verification Broker, Ben Rodriguez Sale Price $350,000 Cash Equivalent $350,000 Land Data Zoning PD, Planned Development Topography Level, Cleared Utilities All Available Shape Rectangular Flood Info Zone B Land Size Information Gross Land Size 5.580 Acres or 243,065 SF Front Footage 835 ft Indicators Sale Price/Gross Acre $62,724 Sale Price/Gross SF $1.44 Remarks Tract has an average depth of +/- 280 ' with frontage of +/-280 on the east bound Hwy 73 service road. Partnership dissolution resulted in a below market sale per broker. COOK Si ASSOCIATES, INC. 20 DELORME DeLorme Street Atlas USA®2013 f Bird Y r I!or d F Ben zi .c �' I# 'Neches .. y,,z- 1-, r 4 - 4-I Neches ®. f:" F,$366 h. i ' I.:,_.; I , River OP 7-' t L jr�1, a sh L -4-- T l *ir'� Ac'cc SALE 4' i — FH 3� -9. ® J F s — F-M 366 "'Py sy °rs , Hwy• .' --, SALE 2 `.1 ��' ,,., �� , s Groves sa , ‘,,, .?.. ,,,.k.,,r ,. ,,,,i N. aB 4.,14. Ailloi.;: i yll \"SALE 1 f' s SALE 7 + V� f r \y r r4 \ j r ,Arthur. c� •{`�� r,��C. 1ff)� "40,4 /PO < / `� � eview \�y ' SUBJECT / au\' ' , si ems , PL44rt O h, , , - v ce „ , - - � i ,,a +" . � , o G /\/ N.,.,,.. /*,, LAND SALES MAP sin"k�C Data use subject to license == N mi ©DeLorme DeLorme Street Atlas USA®2013 p 1/21 1'/z 2 www delorme corn 61N(0 8°E) Data Zoom 11-5 COOK & ASSOCIATES, INC. 21 SUMMARY OF SALES COMPARISON ANALYSIS: Summary of Subject Subject Location Size/Acre* 9th Avenue, just north of Thomas Blvd. 3.808 * 165,876 SF Land Sales Summary Sale Date Location Size/SF Unit Price/SF 1 1/2020 7200 9th Avenue 9.095 $2.78 2 12/2020 Main Avenue @ Washington .740 $3.94 3 11/2021 510 Stadium @ 5th .434 $1.75 4 4/2022 2900 Nall .981 $4.68 5 8/2022 2000 9th Avenue 4.990 $1 .08 6 11/2022 FM 365, west of Medical Center 5.440 $4.28 7 11/2022 4501 Hwy 73 5.580 $1.44 Market Adjustment Grid - Land Sales Sale SP/SF Fin. Time Size Loca- Phys. Net Adj. Unit # tion Char. Adj. Value 1 $2.78 0 0 +10% -50% 0 -40% $1.67 2 $3.94 0 0 -20% -50% -10% -80% $.79 3 $1.75 0 0 -30% 0 -10% -40% $1.05 4 $4.68 0 0 -20% -50% 0 -70% $1 .40 5 $1.08 0 0 0 0 0 0 $1.08 6 $4.28 0 0 0 -60% 0 -60% $1.71 7 $1.44 0 0 0 -20% 0 -20% $1.15 COOK & ASSOCIATES, INC. 22 Limited Explanation of Adjustments: Financing: All sales were for cash to seller or financing equivalent to cash, therefore, no financing adjustments were necessary. Time: All sales are fairly current transactions; therefore, no market condition ad- justments were necessary. Size: Typically smaller tracts generate relatively higher unit sales prices. Sales #2, #3 and #4 were smaller than the subject and therefore warrant various nega- tive adjustments for this factor. Sale #1, somewhat larger, is positively ad- justed. Adjustments applied range from -30% to +10%. Location: Sales #1, #2, #4, #6 and #7 are thought somewhat superior to the subject with regard to access/exposure and/or proximity to development and are negatively adjusted 20% to 60%. Sale #6, on FM 365 just west of Medical Center Drive, warranted the larger adjustment. Utility: Sales #2 and #3, corner tracts, are thought superior in utility to the subject and are negatively adjusted 10%. All sales are located in the subject's general market area and are considered to provide reliable indicators of value for the subject site. After adjustments the sales indicated a val- ue range from $.79/SF to $1.71/SF. The mean value indicated for the subject tract is $1.26/SF. The median value is $1.15/SF. Sales #4, #5, #6 and #7, the most recent sales, indicate a unit value of $1.34/SF. Based on this analysis, a unit value of$1.30/SF is considered reasonable and when ap- plied to the subject site indicates the following: 165,876 SF @ $1.30/SF = $215,639 Rounded to: $216,000 COOK & ASSOCIATES, INC. 23 RECONCILIATION OF FINAL VALUE ESTIMATE: The sales selected for analysis are in the subject marketing area and have a reliable degree of comparability to the subject property. The adjustments for variances between the comparable properties and the sub- ject property are thought consistent with the opinions and attitudes of prudent purchasers. As previously discussed, there were no significant improvements which preclude the use of the Cost Approach and there was no income stream to be evaluated which precludes the use of the Income Approach. In view of these facts, primary consideration is given to the Sales Comparison Approach in developing an opinion of the Market Value of the sub- ject property. CONCLUDED PROPERTY VALUE: Considering all of the data presented in the forego- ing analyses, it is the appraiser's opinion that, as of the date of inspection, the Market Val- ue of the subject property is: TWO HUNDRED SIXTEEN THOUSAND ($216,000) DOLLARS COOK & ASSOCIATES, INC. ADDENDA COOK & ASSOCIATES, INC. 24 • ba.` VIEW ALONG 9TH AVENUE LOOKING SOUTHEAST 1 rt- c yr.°. +s •., 4 VIEW ALONG 9TH AVENUE LOOKING NORTHWEST COOK & ASSOCIATES, INC. 25 t VIEW FROM SUBJECT NWC LOOKING EAST .7 VOW • NORTHWEST ELEVATION OF PAVED FRONTAGE AREA COOK & ASSOCIATES, INC. 26 a VIEW FROM NEC OF PAVED AREA LOOKING EAST +" r VIEW FROM SUBJECT NORTH LINE AT BISECTING UTILITY ROW LOOKING EAST COOK & ASSOCIATES, INC. 27 f$ A e , 1 • A pt bt s. 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S 590%? 3 73304 '733019 _pst > SS, O91,p N S s9i 73299 �o 9 O SS 0 _ h 0 0 S. r 0h h S9 0 h , 6S9 0h cb ,� �" N 7667 3 p SS99 e : sS9 98sr ..F ,' c ou R T \, 6 S9 t0 sS 86% 4 _, 6S PLAT MAP / AERIAL COOK & ASSOCIATES, INC. 33 -,.....„),,,,&\.#. 1 y . . r ."*-• ‘,....c ,•,•:: ' N -''' N.--4,' N.. -„ ‘. ' z Jf , •--,,,, , ....., .., :::..\...,.1. N'".;,.,,,t;.:. ./Y.N......:(:7 NII: 'N.,....\ Nv"N., :"./‘.. '",, '-\:}cf.'''''N't. • • 0,,,,........V.y. ,y / -S, AIN*• r x �.- J am ,,•♦P{} ,i ,' >_ 4 x\>4t, ,;\f ),.„.. , / ,,,, ,.„ '" , , ,:• ',„,„,,, / , t,,,, ,' ..1' .. loop, #''''.\Sf.•i o N'p k iv ' ' t /44.‘e.it' \\*'/ :s'N' .. /''I.\/.,/*'.\, mo' r,o• : : / ',' _. : •isi �� .� �� I TOPOGRAPHICAL MAP COOK & ASSOCIATES, INC. 34 Griffing Park PA Zoning2023 Official = CR-Commercial Retail District tp MDR,Medium Densty Resdential District High Density Res dental District i.DR,Low Dens ty Residential District C P. NS,Neighborhood Services Distr HI,Heavy industrial Distr ct CG,Commercial General District ® U,Ugh lndustrel District MH,Manufactured Home Distract hi A.Agricu tural District kb Other rthur Pr ZONING MAP COOK & ASSOCIATES, INC. 35 EXHIBIT"A" BEING 3.808 acres of land out of and a part of Lot 4,Block 3,Range"H",Port Arthur Land Company Subdivision,City of Port Arthur,recorded in Volume 1,Page 22,Map Records, Jefferson County,Texas;being the same land conveyed to D&R Garden Center,Inc.,recorded in File No.2000016233,Official Public Records of Real Property,Jefferson County,Texas;said 3.808 acre tract being more fully described by metes and bounds as follows,to wit: COMMENCING at a point being the Southwest corner of said Lot 4,Block 3,Range"N",Port Arthur Land Company Subdivision;said point being the intersection of the centerline of a dedicated road named 9th Avenue with the centerline of a dedicated road named Lewis Drive; THENCE,North 48 deg.,47 min.,00 sec.,West,on the centerline of said 9th Avenue,same being the West line of said Lot 4,a distance of 470.00'to a point; THENCE,North 41 deg., 13 min.,00 sec.,East,a distance of 30.00'to a'/:"steel rod found bent on the East right of way line of said 9th Avenue for the POINT OF BEGINNING;said %"steel rod being the most Westerly Southwest corner of the herein described tract; THENCE,North 48 deg.,47 min.,00 sec.,West,on the East right of way line of said 9th Avenue,a distance of 190.02'to a'A"steel rod set,capped,and marked"SOUI'EX" for the Northwest corner of the herein described tract,same being the Southwest corner of a tract of land conveyed to Hy Van Nguyen,recorded in File No.2005034623,Official Public Records of Real Property,Jefferson County,Texas;from which a'/:"steel rod found for the intersection of the East right of way line said 9th Avenue with the South right of way line of a dedicated road named 15th Street bears North 48 deg.,47 min.,00 sec.,West,a distance of 1022.21'; THENCE,North 41 deg., 12 min.,21 sec.,East,on the South line of said By Van Nguyen tract,a distance of(Called 300.00')passing the Southeast corner of said Hy Van Nguyen tract and continuing for a total distance of 630.02'to a'/s"steel rod set,capped,and marked"SOUTEX" on the West line of a SO'wide railroad right of way; from which a GSU Monument found for the intersection of the West line of said railroad right of way with the South right of way line of said 15th Street bears North 48 deg.,47 min.,00 sec.,West,a distance of 1022,21';said 1/:"steel rod being the Northeast corner of the herein described tract; THENCE,South 48 deg.,47 min,00 sec.,East,on the West line of said 50'wide railroad right of way,a distance of 330.03'to a ''A"steel rod set,capped,and marked"SOUTEX"for the Northeast corner of a tract of land conveyed to Reginald W.Savoie,recorded in File No.2000001497, Official Public Records of Real Property,Jefferson County,Texas;said h"steel rod being the Southeast corner of the herein described tract; THENCE,South 41 deg., 12 min.,15 sec.,West,on the North line of said Reginald W.Savoie tract and the North line of a tract of land conveyed to Mac H.Hannah,Jr.,recorded in Film Cods 103-99-0860,Official Public Records of Real Property,Jefferson County,Texas,a distance of 330.03'to a h"steel rod set,capped,and marked"SOUTEX"for the Northwest corner of said Mac H.Hannah,Jr.tract;said h"steel rod being the most Southerly Southwest corner of the COOK & ASSOCIATES, INC. 36 herein described tract; THENCE,North 48 deg.,46 min., 17 sec.,West,a distance of 140.01'to a %"steel rod set, capped,and marked "SOUTEX"for an interior corner of the herein described tract; THENCE, South 41 deg., 12 min.,21 sec.,West,a distance of 300.03'to the POINT OF BEGINNING and containing 3.808 acres of land, more or less. COOK & ASSOCIATES, INC. 37 Prepared for Cook&Associates InterFlood by a la mode 9TH AVE PORT ARTHUR,TX 77640 gu B „., j •PO �;4Alle iGiij' :WL!' • / sr44 r a¢`r�i dVr ;re y , - . ,, . , , ... Q- •:44* 9te i A -♦"' 1'vr .c ` - .' , . '% 'i. �, ,,4 .r r; r° . *, `Iglesia Pr ntecost l,Unida ` : ° . . Hispana de-Port=Rrthuf .• r:,... g„ Lakeview Elementary kecteat or} •F. P/ s f �e. �¢. 1 �. ab r of '_�� N' 'iglesia Nueva"Espr 4*V ''' 44C, - 'I, #.4- *' .fir.r •kc‘ - r r Port ArthuriT x F # ' Chnstiail_ 4f .t . .. ', .' ►„4 ,'� t • ` vod .' 'Fello'w,` p Church Catholic Chu h , ,.- 4 Th, v ,4' * , .4,: '',.*-v4L.' •' „ % • tIS ', I' 'IN ' ' =. , - .qik.. .f ', it - e _ _ . /iv :� • 4 Bre-at s, oaf life AAire t; ♦ '- t ti4 , :,'. �.. - � ili yardk� _c- , yam .t%: ,jjt , ; - q. �µ2 MAP DATA MAP LEGEND Pa ve ea ei GorcLoy�3 FEMA Special Flood Hazard Area No I Areas inundated by 500-year flooding 0 Protected Areas Map Number 4854990035E Zone B _ Areas inundated by 100-year flooding .0 Roadway Map Date April 17,1984 r Velocity Hazard Subject Area FIFS 48245 COOK & ASSOCIATES, INC. 11/1/23, 12:00 PM about:blank !1 Property Details Account Property ID: 73303 Geographic ID: 049400-000-032200- 00000 Type: Real Zoning: LC Property Use: CC VACANT CITY PROPERTY Condo: Location Situs Address: PORT ARTHUR, TX 77642 Map ID: 0 Mapsco: 109-62 Legal Description: TR 4 L4 B3 RG H PALCO Abstract/Subdivision: 049400-000 - PALCO - P.A. Neighborhood: Owner Owner ID: 223754 Name: PORT ARTHUR HOUSING AUTHORITY Agent: Mailing Address: PO BOX 2295 PORT ARTHUR, TX 77643-2295 % Ownership: 100.0% Exemptions: EX-XV - Other Exemptions (including public property, religious organizations, charitable organizations, and other property not reported elsewhere) For privacy reasons not all exemptions are shown online. 11 Property Values Improvement Homesite Value: $0 (+) Improvement Non-Homesite Value: $0 (+) Land Homesite Value: $0 (+) Land Non-Homesite Value: $6,250 (+) Agricultural Market Valuation: $0 (+) about:blank 1/4 11/1/23, 12:00 PM about:blank Market Value: $6,250 (=) Agricultural Value Loss:0 $0 (-) Appraised Value: $6,250 (=) Homestead Cap Loss: 0 $0 (-) Assessed Value: $6,250 Ag Use Value: $0 DISCLAIMER Information provided for research purposes only. Legal descriptions and acreage amounts are for appraisal district use only and should be verified prior to using for legal purpose and or documents. Please contact the Appraisal District to verify all information for accuracy. A Property Taxing Jurisdiction Owner: PORT ARTHUR HOUSING AUTHORITY %Ownership: 100.0% Entity Description Tax Rate Market Taxable Estimated Freeze Value Value Tax Ceiling 109 PORT ARTHUR ISD 1.326300 $6,250 $0 $0.00 235 CITY OF PORT ARTHUR 0.648641 $6,250 $0 $0.00 343 PORT OF PORT ARTHUR 0.178531 $6,250 $0 $0.00 755 SABINE NECHES NAV DIST 0.088000 $6,250 $0 $0.00 851 DRAINAGE DISTRICT #7 0.320573 $6,250 $0 $0.00 901 JEFFERSON COUNTY 0.359000 $6,250 $0 $0.00 A59 FARM AND LATERAL ROAD 0.000000 $6,250 $0 $0.00 CAD JEFFERSON CO 0.000000 $6,250 $0 $0.00 APPRAISAL DISTRICT Total Tax Rate: 2.921045 Estimated Taxes With Exemptions: $0.00 Estimated Taxes Without Exemptions: $182.57 about:blank 2/4 11/1/23,12:00 PM about:blank P1 Property Land Type Description Acreage Sqft Eff Front Eff Depth Market Value Prod. Value Al Acres Style Type 2.5000 108,900.00 0.00 0.00 $6,250 $0 about:blank 3/4 11/1/23,12:00 PM about:blank PI Property Roll Value History Year Improvements Land Market Ag Valuation Appraised HS Cap Loss Assessed 2024 N/A N/A N/A N/A N/A N/A 2023 $0 $6,250 $0 $6,250 $0 $6,250 2022 $0 $6,250 $0 $6,250 $0 $6,250 2021 $0 $6,250 $0 $6,250 $0 $6,250 2020 $0 $6,250 $0 $6,250 $0 $6,250 2019 $0 $6,250 $0 $6,250 $0 $6,250 2018 $0 $6,250 $0 $6,250 $0 $6,250 2017 $0 $6,250 $0 $6,250 $0 $6,250 2016 $0 $6,250 $0 $6,250 $0 $6,250 2015 $0 $6,250 $0 $6,250 $0 $6,250 2014 $0 $6,250 $0 $6,250 $0 $6,250 2013 $0 $6,250 $0 $6,250 $0 $6,250 PR Property Deed History Deed Date Type Description Grantor Grantee Volume Page Number 10/22/2010 WD WARRANTY TRAN TONY TRAN TONY & 2010039102 DEED RACHEL NGA 4/21/2009 WD WARRANTY TRAN TRAN TONY & 2009023582 DEED INVESTMENTS RACHEL NGA INC 7/17/2007 WD WARRANTY ALSTON TRAN 2007028990 DEED NORMAN & INVESTMENTS VIRGINIA INC 4/28/2000 WD WARRANTY D & R GARDEN 2000016233 DEED CENTER INC about:blank 4/4 11/1/23, 12:02 PM about:blank A Property Details Account Property ID: 73304 Geographic ID: 049400-000-032300- 00000 Type: Real Zoning: LC Property Use: CC VACANT CITY PROPERTY Condo: Location Situs Address: 1248 9TH AVE PORT ARTHUR, TX 77642 Map ID: 0 Mapsco: 109-62 Legal Description: TR 5 L4 B3 RG H PALCO Abstract/Subdivision: 049400-000 - PALCO - P.A. Neighborhood: Owner Owner ID: 223754 Name: PORT ARTHUR HOUSING AUTHORITY Agent: Mailing Address: PO BOX 2295 PORT ARTHUR, TX 77643-2295 % Ownership: 100.0% Exemptions: EX-XV - Other Exemptions (including public property, religious organizations, charitable organizations, and other property not reported elsewhere) For privacy reasons not all exemptions are shown online. 11 Property Values Improvement Homesite Value: $0 (+) Improvement Non-Homesite Value: $0 (+) Land Homesite Value: $0 (+) Land Non-Homesite Value: $9,804 (+) Agricultural Market Valuation: $0 (+) about:blank 1/4 11/1/23, 12:02 PM about:blank Market Value: $9,804 (_) Agricultural Value Loss:0 $0 (-) Appraised Value: $9,804 (=) Homestead Cap Loss: 0 $0 (-) Assessed Value: $9,804 Ag Use Value: $0 DISCLAIMER Information provided for research purposes only. Legal descriptions and acreage amounts are for appraisal district use only and should be verified prior to using for legal purpose and or documents. Please contact the Appraisal District to verify all information for accuracy. 11 Property Taxing Jurisdiction Owner: PORT ARTHUR HOUSING AUTHORITY %Ownership: 100.0% Entity Description Tax Rate Market Taxable Estimated Freeze Value Value Tax Ceiling 109 PORT ARTHUR ISD 1.326300 $9,804 $0 $0.00 235 CITY OF PORT ARTHUR 0.648641 $9,804 $0 $0.00 343 PORT OF PORT ARTHUR 0.178531 $9,804 $0 $0.00 755 SABINE NECHES NAV DIST 0.088000 $9,804 $0 $0.00 851 DRAINAGE DISTRICT #7 0.320573 $9,804 $0 $0.00 901 JEFFERSON COUNTY 0.359000 $9,804 $0 $0.00 A59 FARM AND LATERAL ROAD 0.000000 $9,804 $0 $0.00 CAD JEFFERSON CO 0.000000 $9,804 $0 $0.00 APPRAISAL DISTRICT Total Tax Rate: 2.921045 Estimated Taxes With Exemptions: $0.00 Estimated Taxes Without Exemptions: $286.38 about:blank 2/4 11/1/23, 12:02 PM about:blank 11 Property Land Type Description Acreage Sqft Eff Front Eff Depth Market Value Prod. Value COM40 COM40 1.3085 57,000.00 190.00 300.00 $9,804 $0 about:blank 3/4 11/1/23,12:02 PM about:blank 11 Property Roll Value History Year Improvements Land Market Ag Valuation Appraised HS Cap Loss Assessed 2024 N/A N/A N/A N/A N/A N/A 2023 $0 $9,804 $0 $9,804 $0 $9,804 2022 $0 $9,804 $0 $9,804 $0 $9,804 2021 $0 $9,804 $0 $9,804 $0 $9,804 2020 $0 $9,804 $0 $9,804 $0 $9,804 2019 $0 $9,800 $0 $9,800 $0 $9,800 2018 $0 $9,800 $0 $9,800 $0 $9,800 2017 $0 $9,800 $0 $9,800 $0 $9,800 2016 $0 $9,800 $0 $9,800 $0 $9,800 2015 $0 $9,800 $0 $9,800 $0 $9,800 2014 $0 $9,800 $0 $9,800 $0 $9,800 2013 $0 $9,800 $0 $9,800 $0 $9,800 PI Property Deed History Deed Date Type Description Grantor Grantee Volume Page Number 10/22/2010 WD WARRANTY TRAN TONY PORT ARTHUR 2010039102 DEED HOUSING AUTHORITY 4/21/2009 WD WARRANTY TRAN TRAN TONY & 2009023582 DEED INVESTMENTS RACHEL NGA INC 7/17/2007 WD WARRANTY ALSTON TRAN 2007028990 DEED NORMAN & INVESTMENTS VIRGINIA INC 6/6/2006 WD WARRANTY D & R NURSERY ALSTON 2006022013 DEED INC NORMAN W & VIRGINIA H 4/28/2000 WD WARRANTY D & R GARDEN 2000016233 DEED CENTER INC about:blank 4/4 GENERAL UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report and the letter of transmittal are made expressly subject to the follow- ing assumptions and limiting conditions: General Underlying Assumptions Legal Matters: The legal description used in this report is assumed to be correct, but it may not necessari- ly have been confirmed by survey. No responsibility is assumed in connection with a sur- vey or for encroachments or overlapping or other discrepancies that might be revealed thereby. Any sketches included in the report are only for the purpose of aiding the reader in visualizing the property and are not necessarily a result of a survey. No responsibility is assumed for an opinion of legal nature, such as to ownership of the property or condition of title. Unless otherwise stated, the subject property appraised is the surface estate only, with no consideration of mineral interests. The appraiser assumes the title to the property to be marketable and unrestricted;that, un- less stated to the contrary, the property is appraised as an unencumbered fee which is not used in violation of acceptable ordinances, statutes or other governmental regulations. Unapparent Conditions: The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable than otherwise compara- ble property. The appraiser is not an expert in determining the presence or absence of hazardous substance, defined as all hazardous or toxic materials,waste, pollutants or con- taminants (including, but not limited to, asbestos, PCB, UFFI, or other raw materials or chemicals) used in construction or otherwise present on the property. The appraiser assumes no responsibility for the studies or analysis which would be re- quired to conclude the presence or absence of such substances or for loss as a result of the presence of such substances. The client is urged to retain an expert in this field, if de- sired. The value estimate is based on the assumption that the subject property is not so affected. The site being appraised appears firm unless otherwise noted, however, soils common to the area have a high shrink-swell potential and may exert unusual pressure on foundations. The appraiser does not warrant against this condition or the occurrence of problems arising therefrom. Information and Data: Information, estimates and opinions furnished to the appraiser and contained in the report, were obtained from sources considered reliable and believed to be true and correct. How- ever, no responsibility for accuracy of such items furnished the appraiser can be assumed by the appraiser. All mortgages, liens, encumbrances and servitudes have been disregarded unless so specified within the appraisal report. The subject property is appraised as though under responsible owner- ship and competent management. Zoning and Licenses: It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconforming use has been stated, defined and considered in the valuation. It is assumed that the subject property complies with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and consid- ered in the valuation. It is assumed that the information relating to the location of or existence of public utilities that has been obtained through a verbal inquiry from the appropriate utility authority, or has been ascertained from visual evidence is correct. No warranty has been made regarding the exact location or capacities of public utility systems. It is assumed that all licenses, consents or other legislative or administrative authority from local, state or national governmental or private entity or organization have been, or can be, obtained or renewed for any use on which the value estimate contained in the valuation re- port is based. The appraiser will not be required to give testimony or appear in court due to preparing the appraisal with reference to the subject property in question, unless prior arrangements have been made. Possession of the report does not carry with it the right of publication. Out-of-context quot- ing from or partial reprinting of this appraisal report is not authorized. Further, neither all nor any part of this appraisal report shall be disseminated to the general public by the use of media for public communication, nor used for any purpose by any but the intended user, without the prior written consent of the appraiser signing this appraisal report. This appraisal is to be used only in its entirety and no part is to be used without the whole report. All conclusions and opinions concerning the analysis are set forth in the report were prepared by the appraiser(s)whose signature(s) appear on the appraisal report. No change of any item in the report shall be made by anyone other than the appraiser and/or owner of the firm. The appraiser and firm shall have no responsibility if any such unauthor- ized change is made. Disclosure of the contents of this report is governed by the By-Laws and Regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers or the firm with which they are con- nected, or any reference to the Appraisal Institute or to the appraisal designations)shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication without the prior written consent and approval of the author. The distribution of the total valuation in this report, between land and improvements, is ap- plicable only as a part of the whole property. The land value, or the separate value of the improvements, must not be used in conjunction with any other appraisal or estimate and is invalid if so used. An appraisal related to an estate in land that is less than the whole fee simple estate ap- plies only to the fractional interest involved. The value of this fractional interest plus the value of all other fractional interests may or may not equal the value of the entire fee sim- ple estate considered as a whole. The appraisal is subject to any proposed improvements or additions being completed as set forth in the plans, specifications, and representations referred to in the report, and all work being performed in a good and workmanlike manner. The appraisal is further subject to the proposed improvements or additions being constructed in accordance with the regu- lations of the local, county and state authorities. The plans, specifications and representa- tions referred to are an integral part of the appraisal report when new construction or new additions, renovations, refurbishing or remodeling applies. If this appraisal is used for mortgage loan purposes, the appraiser invites attention to the fact that (1) the equity cash requirements of the sponsor have not been analyzed, (2) the loan ratio has not been suggested, and (3) the amortization method and term have not been suggested. The function of this report is not for use in conjunction with a syndication of real property. This report cannot be used for said purposes and, therefore, any use of this report relating to syndication activities is strictly prohibited and unauthorized. If such an unauthorized use of this report takes place, it is understood and agreed that the appraiser has no liability to the client and/or third parties. The appraiser reserves the right to alter the opinion of value on the basis of any infor- mation withheld or not discovered in the normal course of a diligent investigation. There is no accountability, obligation or liability to any third party. The appraiser assumes no responsibility for any costs incurred to discover or correct any deficiencies present in the property. The Americans with Disabilities Act("ADA") became effective January 26, 1992. The ap- praiser has not made a specific compliance survey and analysis of this property to deter- mine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the ap- praiser has no direct evidence relating to this issue, the appraiser did not consider possible noncompliance with the requirements of ADA in estimating the value of the property. Acceptance of and/or use of this appraisal report constitutes acceptance of the foregoing General Underlying Assumptions and General Limiting Conditions. The appraiser's duties, pursuant to the employment to make the appraisal, are complete upon delivery and ac- ceptance of the appraisal report. However, any corrections or errors should be called to the attention of the appraisers within 60 days of the delivery of the report. QUALIFICATIONS OF W. BURNELL COOK, MAI, SRA President, Cook & Associates Professional Affiliations and Activities MAI and SRA Member of Appraisal Institute, Houston Chapter Southeast Texas Chapter of CPA's Texas Society of CPA's National Association of Realtors Texas Association of Realtors Beaumont Board of Realtors Educational Background Graduated from Forest Park High School, Beaumont, in 1972 Graduated from Lamar State University, Beaumont, in 1976 (BBA in Accounting) Recent Continuing Education Financial Analysis 9/2014 Analyzing Operating Expenses 1/2015 Forecasting Revenue 2/2015 Comparative Analysis 3/2017 Sales Comparison Approach Workshop 3/2017 Appraisal of Owner Occupied Commercial Prop. 1/2019 Appraisal of Self-Storage Facilities 1/2019 Land and Site Valuation 1/2019 National USPAP Update 9/2020 Appraisal of Industrial and Flex Buildings 11/2020 Introduction to Commercial Appraisal Review 1/2021 The Basics of Expert Witness for Commercial App. 1/2021 Business Practices and Ethics 11/2021 Realtor Code of Ethics Training 12/2021 Supervisor— Trainee Course for Texas 4/2022 National USPAP Update 2/2023 Commercial Land Valuation 3/2023 Appraisal of Fast Food Facilities 3/2023 Experience Work experience includes various accounting and financial management posi- tions from 1976-1984 with emphasis on real estate investments, and business acquisi- tions and divestitures as chief financial officer. In February 1984, I joined Cook & Associates and have been active in consulta- tion, expert witness testimony and appraisal of various real estate interests in the East Texas and Southwest Louisiana areas. Such interests include single family residential, agricultural and timberland, industrial properties, offices, retail centers, apartments, mo- tels, restaurants, R.O.W. acquisitions and various other commercial and special pur- pose properties. Licenses/Certification Licensed Certified Public Accountant (#22347) Texas State Certified General Appraiser - TX 1320838-G WILLIAM BURNELL COOK 2640 MCFADDEN BEAUMONT,TX 77702 Certified General TALCB Real Estate Appraiser TEXAS APPRAISER LICENSING• CERTIFICATION HOARD Appraiser: William Burnell Cook License #: TX 1320838 G License Expires: 05/31/2025 Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser Chelsea Buchholtz For additional information or to file a complaint please contact TALCB Commissioner at www.talcb.texas.gov. Exhibit "B" (PA Housing Authority's Appraisal Report) s.pr24353 cott Stephen kj & Associates, Inc. An Appraisal Report of +-3.8085 Acres V Landt Located a 1248of acant 9t" Avenue Port Arhtur, Jefferson County, Texas 77642 iq xi FOR On Behalf of Carrier Law Group : Port Arthur Housing Authority o- 505 Orleans Street, Suite 505 Beaumont, Texas 77701 t Attn: Ms. Melody Carrier Scott Stephens & Associates, Inc. As Is: November 19, 2023 15021 Bohemian Hall Rd. Crosby, Texas 77532 713-451-3600 713-451-3300 Fax w SSA Job No.: ww.scottstephensandassociates.com (2411-17943) 1 I SCOTT STEPHENS & ASSOCIATES,INC. Real Estate Appraisers—Consultants 15021 Bohemian Hall Road Crosby, Texas 77532 Phone: (713)451-3600 Fax: (713)451-3300 www.scottstephensandassociates.corn Institai Scott P.Stephens,MAI,AI-GRS,CEO Ryan Dagley,MAI,President November 20, 2024 Carrier Law Group—On Behalf of the Port Arthur Housing Authority 505 Orleans Street, Suite 505 Beaumont, Texas 77701 Attn: Ms. Melody Carrier Re: A real estate Appraisal Report of the approximately 3.8085 acres or 165,900 square feet of vacant land located along the north line of 9th Avenue; at 1248 9th Avenue, Port Arthur, Jefferson County, Texas 77642. Dear Ms. Carrier: A real estate Appraisal Report of the above referenced property has been conducted. The "as is" market value estimated for the fee simple estate as November 19, 2024 is estimated as follows: "As Is" as of November 19, 2024 $265,000 We are not qualified to detect the existence of hazardous materials, which may or may not be present on the subject property. Hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is not such material on or in the property that would cause a loss in value. No responsibility is assumed for such conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. THE OPINION OF VALUE STATED ABOVE, AS WELL AS EVERY OTHER ELEMENT OF THIS APPRAISAL REPORT, IS QUALIFIED IN ITS ENTIRETY BY THE GENERAL ASSUMPTIONS AND LIMITING CONDITIONS SET FORTH IN ANOTHER PART OF THIS REPORT AND WHICH ARE AN INTEGRAL PART OF THE 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 November 20, 2024 (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 I have 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 this assignment was not contingent upon developing or reporting predetermined results. (6) My compensation for completing this assignment was 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) My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. (8) I certify that, to the best of my knowledge and belief,the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Practice, the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, and the specific reporting requirements of the client. (9) Ryan Dale MAI and Clayton Stephens have made apersonal visit to the roe that Dagley, Yt p property rtY is the subject of this report. Scott P. Stephens, MAI, AI-GRS has reviewed the report and concurs with the analysis and conclusions. (10) No one has provided significant professional assistance to the persons signing this report. (11) I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. (12) As of the date of this report, Scott P. Stephens, MAI, AI-GRS and Ryan J. Dagley, MAI have completed the requirements of the continuing education program of the Appraisal Institute and the State of Texas. Clayton S. Stephens has completed the requirements of the continuing education program of the State of Texas. (13) The appraiser(s) have performed no services as an appraiser or in any other capacity, regarding the property that is the subject of this report within the previous three years immediately preceding acceptance of this assignment. The attached report is an explanation of the analysis and reasoning used to derive a market value estimate for the subject. The above values are based on a reasonable exposure period of 12 months. 3 November 20, 2024 The appraisal was conducted solely for the named client and is for the internal use of the client only. If you have any questions,please feel free to call. Sincerely, Scott Stephens & Associates, Inc. by Scott P. Stephens, MAI, AI-GRS, CEO State Certified General RE Appraiser Certificate No. TX-1320269-G by Ryan J. Dagley, MAI, President State Certified General RE Appraiser Certificate No. TX-1335208-G &it-W/ // 414/24/- by Clayton Stephens, Associate State Licensed RE Appraiser Certificate No. TX-1350171-L SPS/RJD/CSS/ym 4 EXECUTIVE SUMMARY Location: 1248 9th Avenue, Port Arthur, Jefferson County, Texas 77642 Property Type: Vacant Land—Zoned CR/Commercial Retail District Land Area: 3.8085 acres or 165,900 square feet Land Value: $1.60 psf @ $265,440 -Rounded to $265,000 Final Value Opinion: $265,000 Marketing Period: 12 months Valuation Date: November 19, 2024 Date of Report: November 20, 2024 Appraiser: Scott P. Stephens, MAI,AI-GRS, CEO Ryan J. Dagley, MAI, President Clayton S. Stephens, Associate Scott Stephens and Associates, Inc. All values stated above are subject to the assumptions and limiting conditions as set out in this narrative appraisal. 5 TABLE OF CONTENTS Title Page 1 Letter of Transmittal with Certificate 2 Executive Summary 5 Table of Contents 6 Assumptions and Limiting Conditions 7 Qualifications of the Appraisers 9 Area Map 17 Photos of Subject 18 DESCRIPTIONS,ANALYSES,AND CONCLUSIONS 21 Premise of the Appraisal 22 City Analysis 26 Site Data and Analysis 32 Aerial Photos 34 JCAD Tax Map 36 City of Port Arthur Zoning Map 37 Photo of Site 38 Flood Map 39 Highest and Best Use Analysis 40 LAND SALES COMPARISON APPROACH 42 Comparable Land Sales 43 Comparable Land Sales Map 49 Site Valuation 50 Land Adjustment Grid 53 ADDENDA 54 Engagement Letter 55 Tax Records 56 Metes&Bounds 64 6 GENERAL ASSUMPTIONS No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. Responsible ownership and competent management are assumed. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. The appraisal will interpret the FEMA map in the report. However, the reader is directed to the Caution Statement at the bottom of such map regarding the need to have the property evaluated by a qualified civil engineer or specialist to determine the floodplain status of the property. We are not experts in floodplain evaluation, nor is our interpretation warranted. All engineering studies are assumed to be correct. The plot plans and illustrative material in this report are included only to help the reader visualize the property. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless a nonconformity has been identified, described and considered in the appraisal. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. It is assumed that the utilization of the land and improvements is confined within the boundaries or property lines of the described property and that there is no encroachment or trespass unless noted within the report. Unless otherwise stated in this report, the existence of hazardous materials or wetlands, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials or condition on or in the property. The appraiser, however, is not qualified to detect such substances or areas. The presence of substances such as asbestos, urea-formaldehyde foam insulation, and other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumptions that there is no such materials on or in the property that would cause a loss in value. No responsibility is assumed for such conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 7 LIMITING CONDITIONS The opinion of value and every other element of this appraisal report are qualified and limited by all of the following conditions: 1. THIS REPORT WAS PREPARED FOR THE INTERNAL USE OF THE CLIENT AND INTENDED USER(S) NAMED WITHIN THIS REPORT. NO PERSON OR ENTITY OTHER THAN THE CLIENT AND INTENDED USER(S) HAS ANY RIGHT OR AUTHORITY TO RELY ON THIS REPORT OR ANYTHING CONTAINED IN IT OR IMPLIED FROM IT, UNLESS OTHERWISE STATED IN THE BODY OF THE REPORT. 2. The appraiser will not be required to give testimony or appear in court because of having made this appraisal, with reference to the property in question, unless arrangements have been previously made. 3. The appraiser, by reason of this appraisal, is not required to give further consultation or testimony or to be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. 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 are invalid if so used. 5. 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 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. 6. By acceptance of this report, the client acknowledges that the value opinion is the product of a professionally trained mind, but nevertheless is an opinion only, and not a provable fact. As a personal opinion, a valuation may vary between appraisers based on the same facts. 8 QUALIFICATIONS OF SCOTT P. STEPHENS, MAI,AI-GRS CEO of Scott Stephens and Associates, Inc. 15021 Bohemian Hall Road Crosby, TX Texas 77532 (713)451-3600 Fax 713-451-3300 www.scottstephensandassociates.com email:scottpstephens@,gmail.com Mission Statement: Scott Stephens and Associates, Inc. is committed to honesty, excellence, and professionalism. As we build lasting relationships with our clients, our constant goal is to provide a trustworthy "value-added"service that is indispensable in real estate lending and investment decisions. Scott Stephens & Associates, Inc has a staff of 9 including 2 members of the Appraisal Institute (MAI). Six appraisers specialize in commercial properties, 2 in residential and 1 support staff. Professional Affiliation: MAI -Designated Member of Appraisal Institute#7758 on March 3, 1988 AI-GRS - Designated Member of Appraisal Institute# 81916 on November 17, 2015 State Certified General Real Estate Appraiser(Certificate#TX-1320269-G), since 1991 Real Estate Broker: Texas License#328907, since 1986 Certification: Currently certified by the Appraisal Institute (12/26)and the State of Texas (3/25). Educational Background: Gatesville High School, Gatesville, Texas - May 1979 Bachelor of Science Degree - Texas A&M University; Agricultural Economics— 1982 Recent Continuing Education Completed: Business Practices and Ethics (5/20), Millennials are Changing Real Estate (6/20), Broker Responsibility (6/20), Texas Legal Update Parts 1 & 2 (6/20), A New Look at Contract Law (7/22), Texas Legal Update Parts 1 & 2 (7/22), Ethics in Age of Disruption (7/22), Preforming Quality BPO's (7/22), 2022-2023 7-hour National USPAP Update (1/23), Introduction to Commercial Appraisal Review (1/23), The Cost Approach (1/23), Land and Site Valuation (1/23), Texas Supervisor-Trainee Course (1/23) Property Types Appraised: Appraisal Reviews Day Care Facilities Mini Warehouse Restaurants Automotive Repair Eminent Domain Mobile Home Parks Single Family Box Retail Fire Stations Multifamily Shopping Centers Car Dealerships Hotel/Motels Office Buildings Subdivisions Churches Industrial Office Warehouses Vacant Land Convenience Stores Medical Office Ranches Various Other Expert Witness: Harris, Bexar, Fort Bend and Montgomery Counties Partial List of Clients: Banks: Austin, Bank of Houston, Capital, Chase, Comerica, Falcon, 1st Financial, 1st Liberty, 1" National, 1st Security, 1st State, Guaranty, Home, Independent, Moody, Origin, Plains Capital, Prosperity, Regions, South Trust, Stellar, Texas Citizens, Texan, Third Coast, Truist, Trustmark, Wallis, Woodforest and many others. Additional Clients: Community Resource CU, Eppraisal, Mobil CU, MCT CU, Shell FCU, Five Point CU, Security FCU, Quick Lending, Chambers County, Harris County, Cities of Baytown, Dayton, Houston, Beaumont, Mt Belvieu and Pasadena, as well various attorneys, corporations, credit unions, individuals, insurance companies, colleges, ports, school districts, and appraisal management companies. 9 Qualifications of Scott P. Stephens, MAI, AI-GRS continued: Memberships,Boards, Service: Houston Chapter of the Appraisal Institute Board of Directors 1994-6; Past Chair of Education Chairman of the Board 2005, Board of Directors 2001-6, Member 1990-2017 - North Channel Area Chamber of Commerce; Crosby-Huffman Chamber of Commerce 2017—present Member of San Jacinto College Foundation Board 2006- 2007 Member of the Rotary Club of North Shore - President 1998-1999 also served as President-Elect, Secretary, Treasurer and Sergeant at Arms in prior years Rotary District 5890 Assistant District Governor 1999-2000, 2009-2010; Chairman of Rotary District 5890 Polio Worldwide Eradication Committee(2001-2, 2004-6) Chairman of Live Auction for Northshore Rotary Catfish Fry & Crawfish Boil 2008-15 Have served as a special commissioner for Harris County Court at Law#3 &#4 Vice President of Harris County MUD#8, Former VP of Woodforest Professional Plaza President of Crosby Sports Association 2002-2004, Youth Baseball Coach 1995-2004 Past Member of Board of Directors of the former Brazos Valley Bank in College Station, Texas Member of First Baptist Church in Crosby, the National Association of Realtors and the Houston Board of REALTORS ®; Board of directors, former Chairman of the Board—Parent Heart Watch, Crosby Fair& Rodeo, Channelview FFA Fair, Sheldon FFA Fair—Auction Buyer Chaired and served on numerous other committees for Chamber of Commerce, Crosby Sports Association, Houston Chapter of Appraisal Institute, Church and other civic associations President of the Cody Stephens Go Big or Go Home Memorial Foundation which was awarded "Foundation of the Year"by the Crosby Huffman Chamber of Commerce—2014. Awards,Interests,Background Selected by the Houston Chronicle as a Houston Hero for 2015 Crosby Huffman Chamber of Commerce"Citizen of Year—2012" Rotary International: North Shore Rotary Club Rotarian of the Year 2010, Rotary International's "Four Avenues of Service Citation for Individual Rotarians" 2003-2004, Rotary International District 5890's "Rotary Foundation Supporter of Year" 2003-2004, Rotary International's Presidential Citation 1998-1999, "Co-President of the Year" for the Rotary International District 5890, 1998-1999, Rotary Foundation Paul Harris Fellowship Major Donor Houston Chapter of the Appraisal Institute 1992 and 1993 -Key Man Award Patriotic Employer—Office of the Secretary of Defense 2003 & 2012 North Channel Chamber of Commerce - Dedicated Service Award, 2007 Employers include Dominy, Ford McPherson & Teel 1983-7, Ted Whitmer & Associates 1987, Whitmer& Stephens, Inc. 1988. Scott Stephens& Associates, Inc since January 1989. While at Texas A&M University was a member of the Alpha Zeta Honor Society, Baptist Student Union, Baptist Home Mission Board Summer Missionary 1981, Dean's List, Student Housing Dorm Head Resident and graduated in 3.5 years. Have served as host family for exchange students and young professionals from Australia, Chile, Germany, Italy and Serbia. Born in Big Spring, Texas, 12/60. 3 children. Hobbies include reading, outdoor activities, assisting students with 4H and FFA livestock show projects, the pinnacle of which included my eldest son winning Reserve Grand Champion Steer at the HLS&R in 2006. Personal Note: My youngest son, Cody, died on May 6, 2012 at the age of 18. He was an athlete preparing for college football. I am now actively involved promoting heart screening in our youth throughout the state of Texas. I work with Texas school districts promoting the inclusion of heart screenings (ECG's) with their student physicals. In 2013, 2015, 2017 and 2019 bills were introduced in the Texas Legislature to make this a part of the student physicals at my request. The bill passed and became "Cody's Law" HB76 in September of 2019, making Texas the first state to have this law. The law has now passed in Pennsylvania and been introduced in many other states. For more information or go to www.codystephensfoundation.org or follow us on Facebook. 10 SCOTT PAUL STEPHENS 15021 BOHEMIAN HALL RD CROSBY,TX 77532 ,,,Z,N. N6. Certified General TALCB Real Estate Appraiser TEXAS APPRAISER LICENSING& CERTIFICATION BOARD Appraiser: Scott Paul Stephens License #: TX 1320269 G License Expires: 03/31/2025 Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser — -- Chelsea Buchholtz For additional information or to file a complaint please contact TALCB Commissioner at www.talcb.texas.gov. 11 QUALIFICATIONS OF THE HONORABLE RYAN JOSEPH DAGLEY,MAI, CHAMBERS COUNTY COMMISSIONER PCT 4 President of Scott Stephens and Associates, Inc. located at 15021 Bohemian Hall Road Crosby, Texas 77532 (713) 451-3600 Fax 713-451-3300 www.scottstephensandassociates.corn rvandagley(aigmail corn y jf Mission Statement: Scott Stephens and Associates, Inc. is committed to honesty, excellence, and professionalism. As we build lasting relationships with our clients, our constant goal is to provide a trustworthy "value-added" service that is indispensable in real estate lending and investment decisions. Professional Affiliations: MAI-Designated Member of the Appraisal Institute#442002 State Certified General Real Estate Appraiser License#TX-1335208-G Educational Background: North Shore High School-Houston, Texas May-1997 University of Houston- Houston, Texas - Graduate with Bachelor of Business Administration - Degree,May,2002 Recent Continuing Education Completed: Basic Hotel Appraising Limited Service Hotels (4/3/2019, Appraisal of Land subject to Ground Leases (4/8/2019), Appraisal of Fast food Facilities (4/1/2019), USPAP Update (4/24/2019), Residential Property Inspection for Appraisers(5/2017), Appraisal of Owner Occupied Properties (5/2017), Appraisal of REO Properties (5/2017), Business Practice and Ethics (5/2020), Residential Property Inspection (3/2023), Supporting Your Adjustments (3/2023), That's a Violation (3/2023), Complex Properties- The Odd Side of Appraisal (3/2023), and 2022-2023 USPAP Update(3/2023) 12 Qualifications of Ryan J. Dagley, MAI, continued: Current Employment: Scott Stephens&Associates,Inc.,Houston,Texas- Since 2002, Vice President Since January 2011 Named President in January 2020 Property Types Appraised: Apartments Farm and Ranch Mobile Home Parks Retail Centers Banks Hotels/Motels Office Buildings Single Family Boat/RV Storage Industrial Plants Office Service Single Tenant Retail Churches Light Industrial Office Warehouse Special Purpose Commercial Developments Medical Office Raw Land Subdivisions Condemnation Mini-warehouses Restaurants Various Other Expert Witness: Harris,Jefferson, and Galveston Counties Partial List of Clients: Banks: Allegiance, Amegy, Austin, Barbers Hill, BB&T, Capital, Community Bank of Texas, BBVA Compass, East Chambers, Eppraisal, Falcon, 1st Financial, 1st Liberty, 1st National, 1st State, Heritage, Independent, Integrity, Mainland, National United, Origin, Plains Capital, Prosperity, Regions, Spirit of Texas, South Trust, T Bank, Texas Citizens, Third Coast, Truist, Trustmark, Wallis St, Woodforest, Zions 1st National and many others. Additional Clients: Community Resource CU,Mobile CU, Shell FCU, Smart Federal CU, Five Point CU, Chambers County, Harris County, State of Texas, U.S. Army Corps of Engineers, Cities of Dayton, Houston, Beaumont, Mt Belvieu and Pasadena, as well various municipal utility districts, emergency service districts, attorneys, corporations, credit unions, individuals, insurance companies, colleges, school districts,and appraisal management companies. Biographical Background: Born in Baytown, Texas, May 1979. Completed primary and secondary education in Houston, Texas,May 1997. Attended Texas A&M University from 1997-1998, San Jacinto Junior College from 1998-1999, and the University of Houston from 1999-2002. May of 2002,earned bachelors degree in Business Administration. Married wife Isis in 6/2002 and have two children (Ryan Dagley Jr and Kayla Dagley). Have worked in the field of real estate appraisal since 2002, and now President of Scott Stephens & Associates, Inc. Became a Member of the Appraisal Institute in June 2015. Memberships,Boards,Service: Member of the Rotary Club of North Shore- Sergeant at Arms in 2008, Community Service Chairman 2009, 2013, 2014, 2015, 2016, Chairman of VIP Committee for Northshore Rotary Catfish Fry & Crawfish Boil 2007 til 2018, Multiple Paul Harris Fellow-Major Donor, North Shore Rotary Club Rotarian of the Year 2015, Board of Director for North Shore Rotary 2015-2018, Treasurer of the North Shore Rotary 2016-2017, Secretary of the North Shore Rotary Club 2017-2018, President-Elect of the North Shore Rotary Club 2018-2019, President of the North Shore Rotary Club 2019-2020, President of Greenbriar Estates HOA from 2008-2015, North Channel Area Chamber of Commerce member 2004-2012, West Chambers County Chamber of Commerce Member-2017-Present,North Channel Area Chamber of Commerce — 2011-2012, Board of Directors, Youth Baseball Coach 2010-2019, Board of Director for the Cody Stephens Go Big or Go Home Foundation, Lee College Education Foundation- Director, Alderman for Beach City 2019-2020, Mayor of Beach City, Texas 2020- 2022, Chambers County Commissioner Pct 4 2023-Present 13 RYAN JOSEPH DAGLEY 15021 BOHEMIAN HALL ROAD CROSBY,TX 77532 Certified General TALCB Real Estate Appraiser TEXAS APPRAISER LICENSING& CERTIFICATION BOARD Appraiser: RYAN JOSEPH DAGLEY License #: TX 1335208 G License Expires: 08/31/2025 Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser Chelsea Buchholtz For additional information or to file a complaint please contact TALCB Commissioner at www.talcb.texas.gov. 14 QUALIFICATIONS OF CLAYTON SCOTT STEPHENS A State of Texas Licensed Real Estate Appraiser at Scott Stephens and Associates, Inc. located at 15021 Bohemian Hall Road Crosby, Texas 77532 (713)-451-3600 Fax 713-451-3300 www.scottstephensandassociates.corn cseephens(a�,stephensappraisals.com claysteph6@gmail.com Professional Affiliations: Licensed: State Licensed Real Estate Appraiser—License#TX-1350171-L Educational Background: Crosby High School—Crosby, Texas May 2006 University of Houston- Houston, Texas-Graduate with Bachelor of Science—Degree, May, 2012 Recent Continuing Education Completed: Thats a Violation(12/11/2023) Residential Property Measurement and ANSIZ765 (12/12/2023) Market Disturbances-Appraisals in Atypical Conditions and Cycles (12/15/2023) Best Practices for Completing Bifurcated and Hybrid Appraisals (12/13/2023) 7-hour National USPAP Update Course (12/11/2023) Introduction to Expert Witness Testimony for Appraisers: To Do or Not to Do (12/12/2023) Current Employment: Scott Stephens and Associates, Inc., Houston, Texas— Since 2010, Licensed Real Estate Appraiser Property Types: Apartments Farm and Ranch Mobile Home Parks Retail Centers Banks Hotels/Motels Office Buildings Single Family Boat/RV Storage Industrial Plants Office Service Single Tenant Retail Churches Light Industrial Office Warehouse Special Purpose Medical Office Raw Land Subdivisions Condemnation Mini Warehouse Restaurants Various Other Ground Lease/Pad Sites Biographical Background: Born in Houston, Texas, October of 1987. Complete primary and secondary education in Crosby Independent School District. Upon graduation from Crosby High School, I attended Texas A&M University from the fall of 2006 through May of 2010 and then the University of Houston from the fall of 2010 to May of 2012.In May of 2012,I was awarded a bachelors degree in Interdisciplinary Studies. I began working at Scott Stephens and Associates, Inc as a real estate appraiser trainee in May of 2010. Became a State of Texas Licensed Appraiser on December 10, 2015. Married wife Michelle in September 2018. 15 CLAYTON SCOTT STEPHENS 15021 BOHEMIAN HALL RD CROSBY,TX 77532 Licensed Residential TALCB Real Estate Appraiser TEXAS APPRAISER LICENSING& CERTIFICATION BOARD Appraiser: CLAYTON SCOTT STEPHENS License #: TX 1350171 L License Expires: 12/31/2025 Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Licensed Residential Real Estate AppraiserQ �� ?Chelsea Buchholtz For additional information or to file a complaint please contact TALCB Executive Director at www.talcb.texas.gov. 16 File No. 17943 LOCATION MAP Borrower or Owner: Sub'ect Address: 1248 9th Ave Census Tract: 65.00 Ci : Port Arthur Count : Jefferson State: TX Zi• Code: 77642 Lender or Client: Lat: 29.905349 Lon.: -93.916622 - imm- 1 1 1 - , c.'--(--6: \, 4 ,\,.. 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'''..:',i,..1`,. 11* . �-.. _. 20 DESCRIPTIONS, ANALYSES AND CONCLUSIONS 21 PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the "as is" market value of the fee simple estate of the subject property described as follows: 3.8085 acres or 165,900 square feet of land being Tracts 4 and 5 of Lot 4, Block 3, Range H, PALCO,Jefferson County, Texas PROPERTY RIGHTS APPRAISED The property rights appraised are the fee simple estate of the subject property, subject to existing easements,restrictions, and prior encumbrances. DEFINITION OF MARKET VALUE Market value means 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: - Buyer and seller are typically motivated; - Both parties are well informed or well advised, and acting in what they consider their own best interests; - A reasonable time is allowed for exposure in the open market; - Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and - 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. Sources: OCC Regulations,No. 12-CFR-Subpart C-34.42(g) Title XI of the FIRREA Act of 1989,Interagency Appraisal and Evaluation Guidelines of December,2010. Please note that this appraisal considers the"as is"market value opinion of the subject. The "as is" market value is defined as "The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date." (The Dictionary of Real Estate Appraisal, 7th Edition). 22 Premise of the Appraisal MARKETING TIME AND EXPOSURE TIME The exposure time is the estimated length of time the property interest being appraised would have been offered on the market to the hypothetical consummation of a sale at market value on the effective date of the appraisal. The marketing time is an opinion of the amount of time it might take to sell the property interest being appraised at the concluded market value level during the period immediately after the effective date of an appraisal. In this case, the exposure time and marketing time are estimated to be approximately 12 months, which is based on interviews with market participants, analysis of the sales comparison approach and investor surveys. EFFECTIVE DATE OF APPRAISAL DATE OF THE REPORT The effective date of the appraisal for the "as is"value is November 19, 2024, the date of the site visit. The date of the report is November 20, 2024. INSTRUCTIONS TO THE APPRAISER AND DATA PROVIDED The appraisers were instructed by the client to conduct an "as is" market value appraisal report of the fee simple estate of the property. Dataprovided bythe client includes a p p subject legal description of the subject property, and specific appraisal guidelines. SCOPE OF THE APPRAISAL This is an Appraisal Report. It presents discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. The depth of discussion and analyses 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. The term "extent of the research" relates to the extent of the process of collecting, confirming, and recording data. All sources of information have been documented throughout the report and the appraisers relied on the accuracy of these sources. However, it is suggested by the appraiser that the client read and fully understand the assumptions and limiting conditions set forth within as to the extent of responsibility of the appraiser. The appraisal was conducted in conformity with the Ethics and Standards of The Appraisal Institute, the State of Texas, the Uniform Standards of Professional Appraisal Practice 23 Premise of the Appraisal (USPAP), and guidelines requested by the client. This appraisal considers the land sales comparison approach to value, but not the cost approach to value or the income approach to value, as the subject represents vacant land. The subject property is visually represented in the photograph section of this report. The research included the immediate subject market area for the land sales comparables. We viewed the site and the surrounding environment at the field visit to the property. The research included comparable sales of land with similar physical characteristics, occurring in the past three years within the subject area. All of the land sales included in this analysis were confirmed by Scott Stephens and Associates, Inc. Some of the items which were verified in the confirmation process include the sale prices, recording data, physical and income characteristics, and other vital information available from the grantor or grantee, and from actual deed records as reported by various reporting services or county agencies. The site visit to the subject property was conducted on November 19, 2024. As the property consists of an approximately 3.8085 acres or 165,900 square foot tract of vacant land, a property visit to the subject site and of the surrounding environment was conducted. The attached report presents all factual knowledge concerning the subject property to include its physical characteristics, characteristics of the general area, neighborhood and the immediate market. After presenting factual knowledge concerning the subject property and its market, all three approaches to value are analyzed and a final value estimate is reconciled and identified. COMPETENCY PROVISION It is presented that this report was completed by Scott P. Stephens, MAI, AI-GRS, Ryan Joseph Dagley, MAI, and Clayton Stephens. Scott Stephens and Ryan Dagley hold the MAI designation awarded by the Appraisal Institute and are currently certified under the continuing educational programs. Further,this designation is held by appraisers experienced in the valuation and evaluation of commercial, industrial, residential, and other types of properties; and who advise clients on real estate investment decisions. Ryan Dagley and Scott Stephens are State Certified General Real Estate Appraisers and are currently certified under the continuing educational programs. Clayton Stephens is a State Licensed Real Estate Appraiser and is currently under the continuing education programs of the State of Texas. The appraisers have completed numerous appraisal assignments on properties such as the subject and have the experience and ability to complete the appraisal in a competent manner. For a more detailed description of the appraiser's qualifications, refer to the introduction section of this appraisal. 24 Premise of the Appraisal INTENDED USER AND INTENDED USE OF THE APPRAISAL IDENTIFICATION OF THE CLIENT The intended use of the appraisal is for the internal use of the client (Carrier Law Group on behalf of the Port Arthur Housing Authority) for asset evaluation and analysis. The intended user of this appraisal is Carrier Law Group on behalf of the Port Arthur Housing Authority. HISTORY OF THE SUBJECT The subject property represents a vacant land tract containing approximately 3.8085 acres or 165,900 square feet of land, being situated along the north line of 9th Avenue, west of Lewis Drive/Thomas Boulevard and east of Gulfway Drive (SH 87),within the City of Port Arthur. According to the Jefferson County Appraisal District (JCAD), the subject is currently listed under the ownership of the Port Arthur Housing Authority, who has owned the subject for more than three years (since October 2010—Deed Recording No. 2010039102). The subject is not actively being marketed for sale. The current ownership has been approached by the City of Port Arthur in regards to a potential purchase. Currently, there is no earnest money contract or agreed upon purchase price. The purpose of this appraisal is to assist the Port Arthur Housing Authority in negotiating a potential purchase price for the subject. There have been no other known conveyances of title for the subject within the past three years. REAL ESTATE TAXES The subject is carried by the Jefferson County Appraisal District (JCAD) under the tax account numbers 049400-000-032300-00000 (Property Identification Number 73304) and 049400-000-032200-00000 (Property Identification Number 73303) with each account listed under the ownership of the Port Arthur Housing Authority. The JCAD tax data information pages are included in the Addenda section of this report. The current (2024) total assessed value for the subject is $18,505, of which 100% is attributed to the land. The appraiser notes that the subject's land is currently assessed at $0.11 per square foot ®, which is well below the market value noted herein. Although this land assessment is well below the value noted herein, it is in-line with similar size parcels along the 9th Avenue corridor and within the immediate vicinity of the subject. It is also noted that the subject is currently under the ownership of a public entity and is not subject to taxation. The taxing authorities for the subject include Port Arthur Independent School District, City of Port Arthur, Port of Port Arthur, Sabine-Neches Navigation District, Drainage District 25 Premise of the Appraisal #7, and Jefferson County. The current total tax rate per $100 in assessed valuation is $2.864412. If the subject were to become subject to taxation, the current tax liability would be $530.00 O. All taxes are assumed to be paid current. CITY ANALYSIS Introduction: The real estate market is affected by various supply and demand factors. For example, growth trends in population and number of households affect the general demand for housing, office space, retail space, warehouses, etc. Further, employment opportunities and unemployment levels influence the ability or desire to buy or rent and the quality/cost of the facilities sought. Demographics influence the types of units demanded and general economic conditions affect the attitudes of the populace towards the future. Location: The subject property is located within the City of Port Arthur, as a part of Jefferson County, Texas. As such, it is part of the Beaumont/Port Arthur/Orange Metropolitan Statistical Area. The Beaumont/Port Arthur/Orange MSA is located in southeast Texas and is bordered to the east by Louisiana and the south by the Gulf of Mexico. Major cities in the MSA include Beaumont, Port Arthur, Orange, and Lumberton. General: The three major cities located in the Beaumont/Port Arthur/Orange MSA are in fact Beaumont, Port Arthur and Orange. This area is often referred to as the Golden Triangle. The cities are almost all contiguous and are all along connecting highways. The City of Beaumont is the largest city and county seat of Jefferson County and has a population of approximately 118,296. The population of the entire three City area is approximately 390,000 per the 2010 census. Jefferson County: Jefferson County, on Interstate Highway 10 in the Coastal Plain or Gulf Prairie region of extreme southeastern Texas, is bounded by Orange County on the northeast, by Hardin County on the north, by Liberty and Chambers counties on the west, and by the Gulf of Mexico on the south. To the east the county line is formed by the Neches River, Sabine Lake, and Sabine Pass, and to the north by Pine Island Bayou. A series of lakes extends across the southern part of the county, and beaches overlook the Gulf The Port Arthur ship canal, on the west shore of Sabine Lake, connects with the Neches and Sabine rivers to provide deepwater ports at Beaumont, Port Arthur, Nederland, and Port Neches. Deepwater transportation and petrochemical industries are among the county's economic mainstays. Beef cattle and rice yield major farm income, and the majority of wage earners are employed in the petrochemical, shipbuilding, and rubber industries. The county comprises 937 square miles, mainly grassy plains, though a dense forest belt crosses the northwest part. The southern third of the county consists of marshy salt-grass terrain good for cattle raising, the middle third is coastal 26 Premise of the Appraisal prairie used for grazing and rice culture, and the northern third is heavily forested with hardwoods and southern yellow pine. The terrain is low and flat, with altitudes rising from sea level to about fifty feet. Beach sands and ocean sediments make up soils along the coast. The northern border is surfaced by light-colored, loamy soils over deep, reddish clayey or loamy subsoils with hardened calcium deposits, and the remainder of the county has light to dark loamy surfaces over clayey subsoils or gray to black, clayey soils. Geologically, the county is noted for its Beaumont Clay formation and the Spindletop and Big Hill salt domes, which contain sulfur and petroleum. The mean annual temperature is 69° F, and the average annual rainfall is fifty- three inches. The subtropical, humid climate features warm, moist summers tempered by Gulf breezes. The growing season averages 225 days a year. Vegetation includes pine, white oak, red oak, pin oak, ash, beech, magnolia, gum, cypress, bunchgrasses, marsh millet, seashore salt-grass and cordgrasses. Between 1 and 10 percent of the land is considered prime farmland. Among the principal streams are Taylor's, Hillebrandt, and Pine Island bayous. Lake B. A. Steinhagen and Sam Rayburn Reservoir provide water for municipal use and industry, and the bayous are used for irrigation by rice growers. Natural resources in the county include ceramic clays, industrial sand, oil and gas, sulfur, and pine and hardwood. Three railroads — the Kansas City Southern, the Southwest Electric Power Company, and the Union Pacific — serve the county, and the Neches River provides water transport. The county seat, Beaumont, an important shipping point, petrochemical producer, and hospital and nursing home center, is located on the Neches River at the county's approximate midpoint (at 30°05' N, 94°06' W). Incorporated towns include Beaumont, Bevil Oaks, China, Groves, Nederland, Nome, Port Arthur, and Port Neches. Beaumont, Port Arthur, and neighboring Orange, cities of the "Golden Triangle," have been the principal cities of the Sabine area and major manufacturing centers. Jefferson County's major cities are Beaumont (population, 118,180), Port Arthur (54,597), Groves (15,800), Nederland (17,483), and Port Neches (12,919). Other incorporated communities include Bevil Oaks (1,289), China(1,160) and Nome (587). The South Texas State Fair is held annually in Beaumont in October. Duck hunting and saltwater fishing attract sportsmen to the area, along with the J. D. Murphree Wildlife Refuge. Tourists visited a restored boomtown at Spindletop (Gladys City), a monument commemorating Richard Dowling's Confederate victory during the Civil War in Sabine Pass Battleground State Historical Park, and the Tex Ritter park and memorial at Nederland. Conventions and events centered around the Beaumont Civic Center Complex, Speedway 90 Stadium, Julie Rogers Theatre, Fairpark Coliseum, Harvest Club, and Port Arthur Civic Center. Other museums included the Museum of the Gulf Coast in Port Arthur and several museums in Beaumont, among them the McFaddin- Ward House, the Mildred (Babe) Zaharias Museum, and the Edison, Texas Energy, Fire Department, John J. French, and art museums. Annual events included the Heritage Festival at 27 Premise of the Appraisal Nederland (March), the Neches River Festival in Beaumont (April), the Beaumont Jazz Festival (July), Spindletop Boom Days at Beaumont (September), the South Texas Fair at Beaumont (October), the Saltwater Anglers Fishing Tourney at Port Arthur (May), and CavOlLcade at Port Arthur. 0 TEXAS Labor Market Beaumont-Port Arthur MSA -7ELIni u Newton Hardin Orange Jefferson Historical Unemployment Rates 18% 16% 14%1 12% 10%1 8% 6% 4% 88 �, 2%- eeammminmmmmmmmm s: mmmmmmrnrnrnmrnpoo000 ((��(�yy(��y(yNN c»wmM<nvaev N N N N `N N N N N N N N N N N $ m -' 7 m n' a o. ¢O u.¢ ¢opu.¢ �OS . ¢ • ■Texas•US Beaumont-Port Arthur Employment by Size Class(1st Quarter 2024) Wages by Industry(in millions)(1st Quarter 2024) QCEW Employment by Size Class data for MSA profiles will be available here in the first QCEW Wages by Industry data for MSA profiles will be available here in the first quarter of 2025. quarter of 2025. Current data and chart can be found in the QCEW tab of Popular Downloads at Current data and chart can be found in the QCEW tab of Popular Downloads at https://texaslmi.cont/Home/Popularpownloads. https://texaslmi.com/Home/Popularpownloads or the QCEW section of LMI by Category at https://texaslmi.com/LMIbyCategory/QCEW 28 Premise of the Appraisal August 2024 MSA Labor Force Statistics Aug-24 Jul-24 Aug-23 Yearly Change Civilian Labor Force 174,211 173,918 168,798 5,413 Employed 162,971 162,524 158,167 4,804 Unemployed 11,240 11,394 10,631 609 Unemployment Rate 6.5% 6.6% 6.3% 0.2% Texas Labor Force Statistics Aug-24 Jul-24 Aug-23 Yearly Change Civilian Labor Force 15,487,812 15,453,836 15,125,794 362,018 Employed 14,810,755 14,776,091 14,485,031 325,724 Unemployed 677,057 677,745 640,763 36,294 Unemployment Rate 4.4% 4.4% 4.2% 0.2% US Labor Force Statistics Aug-24 Jul-24 Aug-23 Yearly Change Civilian Labor Force 168,763,000 169,723,000 168,049,000 714,000 Employed 161,348,000 162,038,000 161,427,000 -79,000 Unemployed 7,415,000 7,685,000 6,623,000 792,000 Unemployment Rate 4.4% 4.5% 3.9% 0.5% Employment by Industry (August 2024) Current Month % Monthly %Yearly Industry Employment Change Change Total Nonfarm 165,600 0.8% 2.9°A) Mining, Logging and Construction 20,400 2.0% 8.5% Manufacturing 21,800 0.9% 3.8% Trade, Transportation, and Utilities 31,300 1.0% 0.0% Information 900 0.0% 0.0% Financial Activities 6,500 1.6% 3.2% Professional and Business Services 14,900 0.0% 0.7°A° Private Education and Health 22,600 0.9% 4.6% Services Leisure and Hospitality 16,800 0.0% 1.8% Other Services 5,800 0.0% 5.5% Government 24,600 0.4% 1.2°A° 29 Premise of the Appraisal Employment by Industry (August 2024) Mining, Logging Government 14.9% and Construction 12.3% Other Services 3.5% Leisure and Manufacturing 13.2% Hospitality 10.1 Private Education and Trade, Transportation, Health Services 13.6% and Utilities 18.9% Professional _ Information 0.5% and Business Services 9.0% L.. Financial Activities 3.9% NEIGHBORHOOD ANALYSIS A neighborhood is defined as "A group of complimentary land uses; a congruous grouping of inhabitants, buildings, or business enterprises." The Dictionary of Real Estate Appraisal, 7th Edition The purpose of the area and neighborhood analysis section of this report is to provide a background for the subject property in terms of its most immediate influences. This section delineates factual data according to the social, economic, governmental, and environmental forces that affect the inhabitants, and thus the value of the property in the general and immediate neighborhoods. Location/Area Description: The subject property and its corresponding neighborhood are in eastern Jefferson County. For purposes of this report, the subject's local market area is considered to be the Cities of Beaumont, Nederland, Port Arthur, Port Neches, and Groves, as well as the surrounding unincorporated parts of Jefferson County The subject property itself is located within the City of Port Arthur, being situated in the southeastern portion of the City of Port Arthur. Specifically, the subject property is situated along the north line of 9th Avenue, being just west of Lewis Drive/Thomas Boulevard and east of Gulfway Drive (State Highway 87/SH 87). Furthermore, the subject is located approximately 2.50 miles east of the intersection of the Memorial Freeway (Highway 69/96/287) and State 30 Premise of the Appraisal Highway 73 (SH 73) and approximately 16.75 miles southeast of Downtown Beaumont. Access/Traffic Arteries: Access to the subject and its corresponding neighborhood is good throughout southeast Texas and beyond. Memorial Freeway (Highway 69/96/287), Interstate 10 (East Freeway), and State Highway 73 (SH 73) are the primary traffic arteries for the local market area. The Memorial Freeway (Highway 69/96/287) provides direct access to the City of Port Arthur to the south and Beaumont to the north. Overall, access to the local market area is rated as good. The subject is easily accessed from all points of the subject market area. Political Jurisdictions/Public Services: All public services are available to the subject neighborhood including public water and sewer service available from the City of Beaumont, the City of Port Arthur, the City of Nederland, the City of Port Neches, the City of Groves, and various MUD's. In addition, police and fire protection, as well as emergency services are all provided to the subject neighborhood by the City of Port Arthur, the City of Nederland, the City of Beaumont, the City of Port Neches, and the City of Groves. Jefferson County provides these services to the unincorporated area. Public schools are available from the Beaumont Independent School District, Port Arthur Independent School District, the Nederland Independent School District, and the Port Neches- Groves Independent School District, of which each provides educational services through the high school level (Kindergarten through 12th grades). The subject property is within the jurisdiction of Port Arthur Independent School District. Legal Restrictions: The subject neighborhood is the City of Nederland, the City of Beaumont, the City of Port Neches, the City of Groves, and the City of Port Arthur, each being within Jefferson County, Texas. Jefferson County does not subscribe to zoning ordinances, however the Cities of Nederland,Beaumont, Port Neches, Groves,and Port Arthur do. Land Uses: Immediately surrounding the subject are various general commercial, retail, and office developments along the 9th Avenue corridor with strong residential are development scattered throughout, being both single and multi-family. The area has good back-up residential support, being both single family and multi-family residential housing. The residential properties within the area are generally located along secondary neighborhood roadways. In addition, the subject neighborhood has vacant land scattered throughout the area. Generally, primary neighborhood roadways are primarily commercial in nature with residential backup support being along more secondary roadways. Life Cycle/Trends/Major Industries: The local market area is exhibiting growth in the immediate vicinity of the subject due to the expansion and development of industrial facilities in and around the Beaumont and Port Arthur area. Overall, the local market area is expected to be stable, with growth over the foreseeable future. The appraiser notes that the Golden Pass LNG Terminal is located approximately 10.00 31 Premise of the Appraisal miles south of the subject, to which a $13-billion dollar plant expansion project received final approval in May of 2023. The initial site development of this construction has commenced, is expected to be completed in 5-7 years, and is anticipated to create in excess of 5,000 jobs during construction. Golden Pass LNG has already spent approximately $40 million on pre- construction items, which includes the relocation of an+-3.5 mile portion of State Highway 87. There are three areas of the Golden Triangles MSA and they include shipping, petroleum and agriculture. The area economy is similar to its much larger neighboring city to the west, Houston, in that it is primarily based on petrochemical refuting and production related industries. This has been the case since 1901 and the Sprindletop Oil discovery. There are a number of major petrochemical plants located in this portion of Southeast Texas and the upper Texas Gulf Coast. Some of the larger major petrochemical refining plants and production companies include Motiva, Valero, DuPont, Total, Huntsman, Chevron, Mobil-Exxon and Goodyear. The overall market has been stable with continued slow expansion from the petroleum and chemical plant industries. The economic forecast for the Beaumont/Port Arthur/Orange Metropolitan Statistical Area remains relatively positive and stable considering the continued expansion and renovations, as well as the upgrades to existing oil, gas and petroleum facilities. Conclusion: Development in the neighborhood includes retail, medical facilities, general commercial properties, light industrial, multifamily, as well as numerous single-family residential subdivisions. Overall, this area represents a well-rounded community from all standpoints. Population in the Beaumont/Port Arthur/Orange MSA has increased slower than the state of Texas since 1990. This population trend is projected to continue. Unemployment in the region has increased, similar to that across the state and nation. On a positive note, retail sales in the MSA increased at a compound annual rate generally above inflation from 1989 to present. The area is considered stable. SITE DATA AND ANALYSIS An analysis of the subject site is particularly important in determining its highest and best use. We have relied on the legal description of the site, JCAD tax map, and a thorough physical property visit of the subject. The following is a discussion of the most important facts. Legal Description: 3.8085 acres or 165,900 square feet of land being Tracts 4 and 5 of Lot 4, Block 3, Range H, PALCO, Jefferson County, Texas Location/Access: The subject property is located within the City of Port Arthur, Jefferson County, Texas. More specifically, the subject site is situated along the north line of 9th Avenue, being just west of Lewis Drive/Thomas Boulevard and east of Gulfway Drive (State 32 lor Premise of the Appraisal Highway 87/SH 87). Furthermore, the subject is located approximately 2.50 miles east of the intersection of the Memorial Freeway (Highway 69/96/287) and State Highway 73 (SH 73) and approximately 16.75 miles southeast of Downtown Beaumont. According to the JCAD tax records,the physical address of the subject is 1248 9th Avenue, Port Arthur, Texas 77642. The subject site is accessible from all portions of the neighborhood and the greater Golden Triangle Metropolitan area. Ingress/egress is good via the north line of 9th Avenue. Legal Restrictions: The subject property is located within the City of Port Arthur, Jefferson County, Texas. Jefferson County does not subscribe to zoning ordinances; however the City of Port Arthur does subscribe to zoning ordinances. The subject is zoned"CR—Commercial Retail District," which allows for a variety of commercial/retail/retail service uses. "According to the City of Port Arthur, the purpose of "CR — Commercial Retail District," is to provide a location for light commercial and retail activities. These locations are typically along major thoroughfares and highways."A zoning map of the subject is included below. Size/Shape/Frontage: The subject property is Flag and/or L-shaped. The site contains approximately 3.8085 acres or 165,900 square feet of land (per JCAD). The site has adequate frontage along the north line of 9th Avenue for commercial use. 9th Avenue at the point of the subject site is a four-lane concrete paved primary neighborhood roadway with drainage along the rights of way. For a visual illustration of the subject site, see the aerial photo and JCAD tax map below. Topography/Drainage: The site is basically flat and level. Drainage is via surface drainage leading to the bordering roadway right of ways. Drainage of the site appears adequate as evidenced by the surrounding improvements. Floodplain: According to the flood insurance rate map of the Federal Emergency Management Agency, revised April 17, 1984, FEMA Map No. 4854990035E, the site appears to be situated within FEMA Zone B, which is an area located inside the 500-year floodplain. A copy of the floodplain map follows this section. Please refer to the caution statement at the bottom of the floodplain map. Easements/Covenants: The subject property has typical utility easements, which are not considered to adversely affect the site. Other than standard utility easements and set back lines, which are common to all properties in the area, there appear to be no legal restrictions outside of zoning regulations. Utilities: The subject site has all public utilities available to the site including water and sewer services provided by the City of Port Arthur, electricity and natural gas is distributed by Entergy Texas, and telephone service is available from Verizon and other national providers. Cable television and internet services are also readily available through a variety of area providers. 33 Premise of the Appraisal Police and Fire Protection: Police and fire protection to the site are provided by the City of Port Arthur. Emergency services are provided by the City of Port Arthur as well. School District: The site is located within the Port Arthur Independent School District, which provides public education through the high school level. Environmental Hazards/Faults: Based upon the inspection and information available, there are no known environmental or geological hazards, however this should be referred to the appropriate professionals. Improvements: Please note that the subject site is improved with approximately 9,000 square feet of asphalt pavingalongthe 9th Avenue frontage, as well as chain link fencing, to q p which neither is considered to contribute value above and beyond land value. Conclusion: The subject property is easily accessible to all area roadways and all sectors of the greater Golden Metropolitan area with its location along 9th Avenue and close proximity to major thoroughfares. Based on an analysis of this immediate market area, economic conditions appear to be stable. Given the subject's location and the surrounding developments, as well as good residential support,the subject is well suited for commercial development as demand warrants. /IN., ;A:1,; -, 4fe AP d -a , „ .. - f (Sc; / / , _ J ti . ems\` { �S } 8x , Y. w� L 411tK #0, _ , - '',''i '',- k , y., I Aerial Photo of Subject Site-Boundaries are estimated by appraiser 34 i Premise of the :-11ppi ois'cil i iii _ if+ 444, ' # ,,,,,40'. , 41:::.. -. , . .1a../-(7.7' Baymont by Wyndham'4'1 4 ` A Port Arthur/Groves Area " . ,� ' werx a � r� �� La Vaquita Meat Market, 4 Y > PEAR,RIDGEdg %' �� 4 '' . � GRIPPING PARK , `y t a<�o /7): / 1 , y4 0 , ,. ", Boost Mobile - .. �� LAKEVIEW -,:t � v Sub 40- way r''J , ► �4,�� Saint Joseph 'N L� .Catholic Church , HEB 1R # ,1 r .: + :fi, ' Ai \ x or .- r �441410 , inn << a# ,itt : , i t.I..,,, ,y, / '4: Port Arthur `� P r; ., ' ' ' 0-1_:amajr State College * e Port Arthur � ,Museum of,r , 4 i , ' _ - �'* the_Guif Coast ,,;,, Broad Aerial Photo & Surrounding Area Development 35 Premise of the Appraisal i 1°b fb 411, s. �O 73307, f '� c • . 4y. 7-3303 `" ,u`* / /^ '`P 73305 , to K } 2 Y2h • ' 1':-V,'''':-C,'-ir* 4:1;-.''. 73304 y 4�- es � ,µ 7-3301 • tr ,., JCAD Tax Map of Parent—Property Identification No.'s 73304 & 73303 36 Premise of the Appraisal legend PortArthurParcels May2023 PA Zoning2023 Official CR-Commercial Retail District MDR.Medium Density Residential District I-DR,High Density Residential District LDR,Low Density Residential District NS,Neighborhood Services District HI.Heavy Industrial District CG,Commercial General District LI Light Industrial District MH,Manufactured Home District A.Agricultural District Other Search result 0 X 1248 9th Ave.Port Arthur TX,77842,USA Table 2-3. Equivalency Table Previous Zoning District Current Zoning District A, Agricultural AG, Agricultural District SF, Single-Family Residence LDR, Low Density Residential District 2F, Two-Family Residence MDR, Medium Density Residential District MF, Multiple-Family Residence HDR, High Density Residential District MH, Mobile Home MH, Manufactured Home District NS, Neighborhood Service NS, Neighborhood Services District LC, Light Commercial CR, Commercial Retail District City of Port Arthur Zoning Map & Equivalency Table— Subject is Zoned "CR- Commercial Retail District" 37 Premise of the Appraisal 111101* *, 1� ,_ . ',1 ..c.._.i. ' 1 g a -,-..; ..,. -,,,,,.-_-,.:4---,-,.--.---,-,",-;.-- '- - ,.'-. -"-- "'.- I. '.. -"::::..v''',4'',.'','''..:,---,',., • .. -- ,,. .:,i, ,. -......,..-' .., „,.;„.,:;,,,,,,,,:::::::;'... i �� ` � • `� �`� ' '� -- -. '. t 3 - ! )k `,A fr y a••' ) _ Subject as of November 19, 2024 38 File No. 17943 FLOOD MAP Borrower or Owner: Subject Address: 1248 9th Ave Census Tract: 65.00 City: Port Arthur County: Jefferson State: TX Zip Code: 77642 Lender or Client: Lat: 29.905349 Lon.: -93.916622 . . - ..- or . ,_ , %..•• -,.. .,„, . ,N\ %ev / ,:use:4 , c1111/ • 7. , ' •%4F,if V f/— . - - .°,, .... A • N 4 ,. 40, N 4 .' . • * ' • . 4 - . • li'; • .1* Af/4 At-fi '- , •.# I.* , 7 4N:tj_sy •N'. -; -ly/• -s.• / . ow ia . 4 1 e it, ,, . %.:.• Ne w, ., , ; - . • stfi. 4 • NT/d. NN*'14 , k4 4.4 / • ew.& ' -t.. . e. :.V ,:i 44: ... :,' .i +4,:k.s/::. :1„% , ./i.ri•,•/. ,s, I, • * '4 ' ,' •• / .% S ' 41.> I' .• 1 7 '' g/ & i `* • ,,o)... S‘: * . ,,407,,, iN '•• •• • \ il z4,',' .6P7., r 4s,.,/, N.,,;; //si>k, s • .N`./ 4 * -'s'A 7 / Vsli, s • %, ,, • ov S ' *.irg / */' ' •- '? S • q't''/G \ • N ,,' , ''' / , ,'" • 's\ 'S S / '',.., f.' 2 Ne . "<.,„. - 4 N: ‘ • ' I; ' •41,1t, iP / -.., ;"# A i #N ,.." N I . I • •, x= ,/ / \, . t / " • # • ' - , I ,,. -„ cente : ‘ €e f* I -'-' • I 'll'e •"' 1 Mil ; S ' 4 ' \ i/# `. - / , \,/' /• ',N ,,-4\ VIN,, ,i'‘-' •: . , \ GY ,:- , / N, •4v O' ÷„*.-* -%/ „ . 4, /' , /4* '''' / \4;''• / 4 . , ' 40/ -,,,„ • • ' / . ' 74-"i, N:'',4 . s„/ • A /': . ./iN • A"-* /• ,i . .. % / %,>/ -. .r.;;.•••• i 4:i : '.., - .•. , 6/4 , \ .,s, . :., , ; . • . . . '\ ''/ N ' , %. :II, • tv ,,. ,/ ,,/ % ' .• * % / 44 > „ S/ ' -'‘ '•', , ' r • , \Oh . ' :/ N‘t*,,/L 7 '64-7,, 4/.. •,/./ - / ' ' • •!_ ‘..-/..4...•:'-• _.,i A.---,,..'' ."' • •.-, ../ ''' • ;64,-. * , ' /-:. • Ilk \' FEMA Map No 4854990035E .*‘• •Y,..., •, % /ii, _ , -'‘ .10/z/ ‘ "-• . // -'r % . i FEMA Zone B ' • / % . . / '''' >, . % • ,// / A •.. , Effective Date 04/17/1984 500-Year o 2 Outside 500-Year \./I* •/ ,.'4; '1/4 41/4 , "jet• ' mv-n., 4.• _ ....... ._..S14:" Cooynaht 1994-20—I--..Pro Inc CAUTION: Tv,i:Zyc:ranflooforadzir arrdenehacsulld'ob:ne::ILI:tsedZ:171pen=rteor°rOitlyierFlood pohp7izaatredsbpeucinadlia:psriror:ay t cptrhgaesfe:eoerli:ZeZ,telin:e A property in the general Prepared by Scott Stephens&Associates,Inc using MapPro SernpMapPro Inc.,PO Box 37427,Houston,TX 77237 1-866-3MAPPRO Premise of the Appraisal HIGHEST AND BEST USE Highest and best use is defined as "the reasonably probable and legal use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity." (The Dictionary of Real Estate Appraisal, 7th Edition). The definitions of highest and best use indicate that there are two types of highest and best use. The first type is the highest and best use of land or a site as though vacant. The second is the highest and best use of a property as improved. Each type requires a separate analysis. Moreover, in each case, the existing use may or may not be different from the site's highest and best use. Legally Permissible: In all cases of highest and best use, the appraiser must determine the uses of the site, which are legally permissible. The subject property is located within the City of Port Arthur, Jefferson County, Texas. Jefferson County does not subscribe to zoning ordinances; however the City of Port Arthur does subscribe to zoning ordinances. The subject is zoned "CR— Commercial Retail District," which allows for a variety of commercial/retail/retail service uses. "According to the City of Port Arthur, the purpose of"CR — Commercial Retail District," is to provide a location for light commercial and retail activities. These locations are typically along major thoroughfares and highways." There are no known deed restrictions and only typical utility easements. Beyond building code requirements, there appear to be no legal impediments to the subject use or value. Physically Possible: Size, terrain, shape with respect to development, surrounding uses, and utility availability are generally considered the most important in determining uses to which the subject may be developed. Utilities (electricity, cable, phone, and gas) are available to the site and water and sewer are provided via the City of Port Arthur. The topographical characteristics of the property are considered to be typical of most tracts in the immediate area. The subject tract is of a size and shape that could accommodate a number of uses such as office or retail uses. Considering the size and location of the subject, the most likely physical uses would be for some type of retail development. Financially Feasible: From a financial perspective, any property use which is expected to produce a positive rate of return is regarded as being feasible. Factors that influence which property uses are feasible include those considered under the legally permissible and physically possible uses, as well as other factors such as location, access, adjacent property uses, and general neighborhood characteristics. These factors along with other market information help determine what returns could be expected from various property uses. Maximally Productive: In considering the maximally productive uses, the comparison of all uses determined to be physically possible, legally permissible, and financially feasible are 40 Premise of the Appraisal evaluated. The maximally productive use produces the highest rate of return or the highest value to the property. Generally, it is viewed as the ideal improvement. There are few if any uses which create a greater return to the land than commercial use. As Vacant: The subject immediate neighborhood is dominated by single-family homes and commercial businesses. Commercial use appears the most logical given the subject's location along 9th Avenue. Conclusion: As a result of the foregoing analysis, it is our opinion that the highest and best use is for commercial development as demand warrants. 41 SALES COMPARISON APPROACH The sales comparison approach is a set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, applying appropriate units of comparison, and making adjustments to the sales prices of the comparables based on the element of comparison. The sales comparison approach may be used to value improved properties, vacant land or land being considered as though vacant. The sales comparison approach is applicable when sufficient data on recent market transactions is available. Essential information on income-producing properties derived through sales comparison is used in the income capitalization and cost approaches. The procedure for applying the sales comparison approach includes the following: 1. Research the competitive market for information on properties that are similar to the subject property and that have recently sold, are listed for sale, or are under contract. Information on agreements of sale, options, listings, and bona fide offers may also be collected. The characteristics of the properties such as property type, date of sale, size, physical condition, location, and land use constraints should be considered. The goal is to find a set of comparable sales or other evidence such as property listings or contracts as similar as possible to the subject property to ensure they reflect the actions of similar buyers. Market analysis and highest and best use analysis set the stage for the selection of appropriate comparable sales. 2. Verify the information by confirming that the data obtained is factually accurate and that the transactions reflect arm's-length market considerations. Verification should elicit additional information about the property such as buyer motivation, economic characteristics (if the property is income- producing), value component allocations, and other significant factors as well as information about the market to ensure that comparisons are credible. 3. Select the most relevant units of comparison used by participants in the market (e.g., price per acre, price per square foot, price per front foot, price per dwelling unit) and develop a comparative analysis for each unit. The appraiser's goal is to define and identify a unit of comparison that explains market behavior. 4. Look for differences between the comparable sale properties and the subject property using all appropriate elements of comparison. Then adjust the price of each sale property, reflecting how it differs, to equate it to the subject property or eliminate that property as a comparable. This step typically involves using the most similar sale properties and then adjusting for any remaining differences. If a transaction does not reflect the actions of a buyer who would also be attracted to the subject property, the appraiser should be concerned about comparability. 5. Reconcile the various value indications produced from the analysis of comparables into a value conclusion. A value opinion can be expressed as a single point estimate, as a range of values, or in terms of relationship(e.g.,more or less than a given amount). There are 10 basic elements of comparison that should be considered in sales comparison analysis: 1) Real Property rights conveyed 2) Financing terms 3) Conditions of sale 4) Expenditures made immediately after the purchase 5) Market conditions(time) 6) Location 7)Physical characteristics—e.g., size, construction, quality, condition 8) Economic characteristics — e.g., expense ratios, lease provisions, management, tenant mix 9) Legal characteristics 10)Non-realty components of value (The Appraisal of Real Estate, 15th Edition,pg. 362). 42 Sale 1 Key Map: Reference No: 22843 PROPERTY IDENTIFICATION Property Type: Commercial Vacant Land Property Name: Port Arthur Land Property Address: 3635 39th St City, County, State: Port Arthur, Jefferson County, TX 77642 <; . SALE DATA Grantor: Ronald Joseph Nunez Grantee: Texas PWSK Enterprises LLC Sale Date: October 24, 2024 Financing: Cash to seller Property Rights: Fee Simple Recording Data: 2024-27970 Legal Description: Lots 18 -20 and 21-24 of Tract 1, Block 24, Rosemont, Jefferson County, TX SALE ANALYSIS Sales Price: $100,500 Adjusted Sales Price: $100,500 Land $4.81 PSF $209,363 Per Acre LAND INFORMATION Land Size: 0.480 Ac. 20,910 SF Frontage: SL 9th Ave& WL 39th St Floodplain: B (500-yr) Zoning: PD Panel No.: Encumbrances: None Panel Date: Environmental Issues: N/A UTILITIES Electricity: Yes Sewer: Public Gas: No Telephone: Yes Water: Public Road: 4-ln& 2-Ln COMMENTS 0.48 acre located at the southwest corner of 9th Ave and 39th St sold October 24,2024 for$100,500 or$4.81 psf-Confirmation via listing brokerage Advantage Real Estate - Ryan Abate (Beaumont MLS # 251441). Site is Zoned Planned Development District by the City of Port Arthur.The site is 100%FEMA Zone B(500-year Floodplain). 43 Sale 2 Key Map: Reference No: 22841 PROPERTY IDENTIFICATION Property Type: Commercial Vacant Land Property Name: Port Arthur Land Property Address: 7728 Friar Point Dr City, County, State: Port Arthur, Jefferson County, TX 77642 44, SALE DATA Grantor: JBA Home Construction LLC Grantee: Cinch Investments LLC Sale Date: October 9, 2024 Financing: Cash to seller Property Rights: Fee Simple Recording Data: 2024-26588 Legal Description: Reserve A, Replat of Lot 4 Reserve C, Stonegate Manor Section 4, Jefferson County, TX SALE ANALYSIS Sales Price: $215,000 Adjusted Sales Price: $215,000 Land $4.37 PSF $190,265 Per Acre LAND INFORMATION Land Size: 1.130 Ac. 49,226 SF Frontage: EL of Friar Point Dr Floodplain: AE 100-yr Zoning: CR Panel No.: Encumbrances: None Panel Date: Environmental Issues: N/A UTILITIES Electricity: Yes Sewer: Public Gas: No Telephone: Yes Water: Public Road: 4-lane COMMENTS 1.13 acres located along the east line of Friar Point Drive,north of 9th Ave and south of Honeywood Trail,sold October 2024 for $215,000 or$4.37 psf- Confirmation via listing brokerage Regency Real Estate Professionals. Site is Zoned CR- Commercial Retail District by the City of Port Arthur. The site is 100%FEMA Zone AE(100-year Floodplain). 44 or- Sale 3 Key Map: Reference No: 22844 PROPERTY IDENTIFICATION Property Type: Commercial Vacant Land Property Name: Vacant Land Property Address: 3315 Central Blvd City, County, State: Nederland Jefferson County, TX 77627 SALE DATA Grantor: Ann Blackwell Grantee: Daniel James Lynn and Norma Sale Date: June 16, 2023 Financing: Cash to seller Property Rights: Fee Simple Recording Data: 2023016882 Legal Description: Lots 4 and 5, Block 1, Central Gardens, Jefferson County, Texas SALE ANALYSIS Sales Price: $85,000 Adjusted Sales Price: $85,000 Land $1.45 PSF $63,291 Per Acre LAND INFORMATION Land Size: 1.343 Ac. 58,482 SF Frontage: SL Central Blvd Floodplain: No (Zone C) Zoning: N/A Panel No.: Encumbrances: None Panel Date: Environmental Issues: N/A UTILITIES Electricity: Yes Sewer: Public Gas: No Telephone: Yes Water: Public Road: 2-Ln COMMENTS +-1.343 acres located along the south line of Central Blvd sold June 16,2023 for$85,000 or$1.45 psf-Confirmation via listing brokerage ReMax One-Ryan Harrington(Beaumont MLS#234755). Site is located outside of the City of Nederland and is not subject to zoning.The site is 100%FEMA Zone C(Outside of Floodplans).Water/sewer is available via WCID#10 45 Sale 4 Key Map: Reference No: 22842 PROPERTY IDENTIFICATION Property Type: Commercial Vacant Land Property Name: Vacant Land Property Address: 4501 Highway 73 City, County, State: Port Arthur Jefferson County, TX 77642 SALE DATAPlo Grantor: SAI Port Arthur, LLC Grantee: Texas PWSK Enterprises LLC Sale Date: November 23, 2022 Financing: Cash to Seller Property Rights: Fee Simple Recording Data: 2022039110 Legal Description: Lots 3 and 4, Block 7, Range G, PALCO, Jefferson County, Texas SALE ANALYSIS Sales Price: $350,000 Adjusted Sales Price: $350,000 Land $1.44 PSF $62,724 Per Acre LAND INFORMATION Land Size: 5.580 Ac. 243,065 SF Frontage: EL of Highway 73 Floodplain: Zone B - 500 yr Zoning: PD Panel No.: Encumbrances: N/A Panel Date: Environmental Issues: N/A UTILITIES Electricity: Yes Sewer: Public Gas: No Telephone: Yes Water: Public Road: Hwy (Service/Access Rd) COMMENTS Confirmed by seller broker Ben Rodriguez. Site is Zoned PD (Planned Development) by the City of Port Arthur. All public utilities are available and the site is 100% B (500-year floodplain). According to the listing broker, the ownership/seller partnership was being divided and the site sold for below market. 46 Sale 5 Key Map: Reference No: 20763 PROPERTY IDENTIFICATIONs Property Type: Commercial Vacant Land .A Property Name: Vacant Land ' ; Ap Property Address: 2000 9th Ave Port Arthur Jefferson County, TX 77640u City,County, State: tY� SALE DATA Grantor: Christus Health Southeast Texas Grantee: SM Investment Firm LLC Sale Date: August 10, 2022 Financing: Cash to Seller Property Rights: Fee Simple Recording Data: N/A Legal Description: Lot 4, Block 4, Range "H" of Port Arthur Land Company Subdivision, Jefferson County, Texas SALE ANALYSIS Sales Price: $235,000 Adjusted Sales Price: $235,000 Land $1.08 PSF $47,066 Per Acre LAND INFORMATION Land Size: 4.993 Ac. 217,495 SF Frontage: NL of 9th Ave Floodplain: None Zoning: PD Panel No.: Encumbrances: N/A Panel Date: Environmental Issues: N/A UTILITIES Electricity: Yes Sewer: Public Gas: No Telephone: Yes Water: Public Road: Public COMMENTS Confirmed by seller broker J.M.Milt Prewitt. 47 Sale 6 Key Map: Reference No: 21420 PROPERTY IDENTIFICATION 49=1111Commercial Vacant Land Property Type: ,a � Property Name: Vacant Land Property Address: 2900 Nall St City,County,State: Port Neches Jefferson County, TX 77651 SALE DATA Grantor: Prosperity Building Group LLC Grantee: Griffin Property Holdings LLC Sale Date: April 14, 2022 Financing: Cash to seller Property Rights: Fee Simple Recording Data: 2022013317 Legal Description: Lot 1, Block 1, Tract 12, Van Oostrom Survey, Jefferson County, TX SALE ANALYSIS Sales Price: $200,000 Adjusted Sales Price: $200,000 Land $4.68 PSF $203,874 Per Acre LAND INFORMATION Land Size: 0.981 Ac. 42,745 SF Frontage: Nall St(Hwy 365) Floodplain: None (Zone C) Zoning: BM - Bus. Medium Panel No.: Encumbrances: None Panel Date: Environmental Issues: N/A UTILITIES Electricity: Yes Sewer: Public Gas: No Telephone: Yes Water: Public Road: 2-lane COMMENTS 0.981 acres located along Nall Street,just north of Van Avenue.Sold April of 2022 for$4.68 psf-confirmation via Kay DeCuir (Beaumont MLS#224446).Zoned BM(Business Medium)by the City of Port Neches. 48 File No. 17943 LOCATION MAP Borrower or Owner: Subject Address: 1248 9th Ave Census Tract: 65.00 City: Port Arthur County: Jefferson State: TX Zip Code: 77642 Lender or Client: Lat: 29.9053 Long: -93.9166 ':,,--miiikif' - .a Na yr ,,a° `. g GngsbY Ave. po Neches Ave � h ,� ,�„ 'ter - d`92 q� r l�11 r,A! j N �2 �;; Port Neches jePRd Hi.h a 36: ' 6ea�x� �2,>fh Q' Sr ac ' e z1 as d 'It,. Beauxart / E 1a� Gardens ` gad . \ � _ \� �� 2 , :i y� o ' _".yam � e , ` Groves ♦ Hicinwav 73 Highway 73 I - 0,1 'it, 41110, \,? �• �� , Ai . . - V, AP 'A/\...< . ..,` '\<'/- .> l r \ .�f lir � �' k WHighwa • � T 365 •2 f t m I /- \ _J .41 i, V av Y s, .4.,- ..\,,,'N... .'-',),". -::siort.,,,..c,2„-::›;, ,:::::::,-,-, ,, ;., , .-- :. .:,,•.• . 4 \N.� 0 075 15 „ \ ,r \ /,, ittk, . Corwriaht 1994- apPro Inc. CAUTION: The location of property arrows shown on this map are approximate only. Inaccuracies may exist on map such as missing,incorrectly drawn,or incorrectly addressed streets. Please report any such inaccuracy to MapPro,Inc.so that appropriate corrections can be made. i Prepared by Scott Stephens&Associates,Inc.using MapPro Ser49 MapPro Inc.,PO Box 37427,Houston,TX 77237 1-866-3MAPPRO. d SITE VALUATION The sales comparison approach utilizes sales transactions of area properties considered comparable to most characteristics of the subject site. The most basic requirement is that the comparable sales are located within proximity to the subject neighborhood and have occurred in the open market in the recent past. This analysis was conducted within the framework of the definition of market value, as described within the report. It requires a valuation of the site, "as vacant", as in its highest and best use. In order to develop a value estimate for the subject tract, the deed records of Jefferson County was searched through a deed reporting service, and the area was surveyed for sales of comparable tracts. Included within this section are six (6) comparable sales of vacant land tracts which are considered to be comparable to the subject. The sales included for comparison within this section are the most comparable sales to the subject property and are the most recent sales occurring within the immediate neighborhood. Based on the quality and quantity of the data, our confidence level in the land sales comparison approach is high. The sales are described in detail on the land sale comparable forms, which immediately precede this section. Additionally, a sales map is included in the preceding pages, and the sales map contains a representation of the size, shape, and location of each sale in relation to the subject property. When comparing these sales to the subject, the factors considered to be the most critical were time, location, size, and physical characteristics. Each sale was compared to the subject and adjusted on that basis. As evidenced by the number of transactions within the immediate subject market area, there is an indication of increased demand within the immediate subject neighborhood. The following is a discussion of the comparisons used in our analysis. Conditions of Sale: This adjustment takes into consideration unusual features of the transaction, such as unusual influences among the sale parties, existing improvements on the sales at the date of the transaction, or whether or not the sale took place under open market conditions. All of the sales included within this analysis are considered to be "arm's-length" sales and no adjustments are required for conditions of sale. Market Conditions (Time): The market condition (time) adjustment is considered and the lack of sales activity in some real estate sectors may point to the need for this adjustment. The comparable sales included within this analysis occurred during the previous 3.00 years, Scott Stephens &Associates, Inc. 50 Site Valuation having occurred between April of 2022 and October of 2024. The recent COVID-19 outbreak is considered; however, indications are the subject market segment that has remained steady. Sales 3, 4, 5, and 6 are adjusted upward for market conditions (time)as seen on the adjustment grid. Adjustment Factors: The methodology for this approach is the employment of an adjustment grid, a copy of which follows this section and also acts as a summary of the land sales and the basic subject information. No financial adjustments have been necessary. The following paragraphs discuss the adjustments and make the comparisons with the subject site. Size: The size adjustments are based upon 10% for each doubling or halving in size by comparison with the subject, negative if the sale property is smaller, positive if the sale property is larger. Since this is not a finite factor, it is rounded to the nearest 5%. The adjustments range from-30%to 0% as seen on the adjustment grid. Location: Location is a very important factor affecting property values in the subject area. Those properties having frontage along major or primary roadways are superior to those properties located on secondary roadways. This is primarily because of the greater visibility and accessibility from passing traffic. Location is a subjective factor and often difficult to quantify. All of the sales were taken from the subject neighborhood. We applied our best judgment estimate to derive the location adjustments after inspecting the subject property and all of the land sales. While the location adjustments may be somewhat subjective, they are based on an inspection of the subject and each of the sales and are believed to be reasonable. The location adjustments are based upon the physical inspections and conversations with area brokers and appraisers. Each of the land sales are generally similar with respect to location and all have a commercial highest and best use. We applied our best judgment estimate to arrive at the location adjustments after inspecting the subject property and all of the land sales. It will be recalled that the subject is located along the north line of 9th Avenue, being approximately 2.50 miles southeast of the intersection of the Memorial Freeway (Highway 69/96/287) and State Highway 73 (SH 73). Sales 1, 2, 4, and 6 are considered to be superior with respect to location as compared to the subject and each sale has been adjusted downward as seen on the adjustment grid. Sale 3 is considered to be inferior with respect to location and is adjusted upward. Floodplain: Floodplain designations affect the utilization of each tract, and thus affect value. Sale 2 is located within FEMA Zone AE (100-year floodplain), inferior as compared to the subject, and is adjusted upward. The subject is similar with respect to floodplain and no adjustments are warranted with respect to Sales 1, 3, 4, 5, and 6. Scott Stephens &Associates, Inc. 51 Site Valuation Physical Characteristics: The physical characteristics adjustment considers corner influence,utilities, detention, and shape with respect to development. Sale 1 is located at the hard corner of 39th Street and 9th Avenue, superior as compared to the subject, and is adjusted downward. Overall net adjustments are as seen on the grid. Conclusion: The adjusted sale prices range from $1.16 per square foot to $2.16 per square foot with a mean of$1.58 per square foot and a median of$1.59 per square foot. After considering the mean and median, it is thus our opinion that the subject site has a market value at the price of$1.60 per square foot or as follows: 3.8085 acres or 165,900 square feet @ $1.60 psf $265,440 Rounded to $265,000 Scott Stephens &Associates, Inc. 52 LAND SALES ADJUSTMENT GRID Sale# 1 2 3 4 5 Location 3635 39th 7728 Firar Point Dr 3315 Central Blvd 4501 Hwy 73 2000 9th Ave &9th Ave Date of Sale Oct-24 Oct-24 Jun-23 Nov-22 Aug-22 Size(Acres) 0.4800 1.1300 1.3430 5.5800 4.9930 Sale Price $100,500 $215,000 $85,000 $350,000 $235,000 Sale Price $4.81 $4.37 $1.45 $1.44 $1.08 $PSF Financing 0% 0% 0% 0% 0% Condition 0% 0% 0% 0% 0% of Sale A d CashAdj. $4.81 $4.37 $1.45 $1.44 $1.08 j Sale Price u s Market Conditions(Time) 0% 0% 4% 6% 7% t m TimeAdj. S4.8I $4.37 $1.51 $1.53 $1.16 e Sale Price n t Size -30% -15% -15% 0% 0% s Location -15% -50% 25% -20% 0% Floodplain 0% 5% 0% 0% 0% Physical Charactersitics -10% 0% 0% 0% 0% Net Adjmts. -55% -60% 10% -20% 0% Gross Adjmts. 55% 70% 44% 26% 7% Adjusted Price psf $2.16 $1.75 $1.66 $1.22 $1.16 Mean Adjusted Value: $1.58 psf Median Adjusted Value: $1.59 psf 53 ADDENDA 54 11/12/24, 10:42 AM Gmail-Fwd:PA Housing Authority 11111.1 Gmail clay Stephens <claysteph6@gmail.com> Fwd: PA Housing Authority 1 message Ryan Dagley <ryandagley@gmail.com> Tue, Nov 12, 2024 at 10:32 AM To: Clay Stephens <claysteph6@gmail.com> New job. See below. Please handle Ryan J. Dagley, MAI, President Chambers County Commissioner Pct 4 Scott Stephens &Associates, Inc 15021 Bohemian Hall Road Crosby,Texas 77532 Office 713-451-3600 Cell 281-685-1000 ryandagley@gmail.com Forwarded message From: Melody Carrier<mcarrier@caflawgroup.com> Date: Tue, Nov 12, 2024 at 9:31 AM Subject: RE: PA Housing Authority To: Ryan Dagley<ryandagley@gmail.com> CC: Joseph Guillory <joseph.guillory@pahousing.org>,Tracie Bullock<tracie@caflawgroup.com> Ryan, You may proceed with the appraisal. The cost of$2800 is approved with the approximate 2 week turn around. You may bill my office on behalf of the,Port Arthur Housing Authority; I have included the Executive Director, Joseph Guillory on this email if you need to contact him. Let me know if you have any questions or need anything else to proceed. Melody Carrier Carrier Law Group 505 Orleans Street, Suite 505 Beaumont, Texas 77701 (409)833-1119 Fax(409)271-3690 mcarrier@caflawgroup.com melodygcarrier@gmail.com www.caflawgroup.com 11/18/24,4:32 PM about:blank A Property Details Account Property ID: 73304 Geographic ID: 049400-000-032300- 00000 Type: R Zoning: LC Property Use: Condo: Location Situs Address: 1248 9TH AVE PORT ARTHUR, TX 77642 Map ID: 0 Mapsco: Legal Description: TR 5 L4 B3 RG H PALCO Abstract/Subdivision: 049400-000 Neighborhood: Owner Owner ID: 223754 Name: PORT ARTHUR HOUSING AUTHORITY Agent: Mailing Address: PO BOX 2295 PORT ARTHUR, TX 77643-2295 % Ownership: 100.0% Exemptions: EX-XV - For privacy reasons not all exemptions are shown online. A Property Values Improvement Homesite Value: $0 (+) Improvement Non-Homesite Value: $0 (+) Land Homesite Value: $0 (+) Land Non-Homesite Value: $12,255 (+) Agricultural Market Valuation: $0 (+) 56 about:blank 1/4 11/18/24,4:32 PM about:blank Market Value: $12,255 (=) Agricultural Value Loss:0 $0 (-) Appraised Value: $12,255 (_) HS Cap Loss: A $0 (-) Circuit Breaker: A $490 (-) Assessed Value: $11,765 Ag Use Value: $0 Information provided for research purposes only. Legal descriptions and acreage amounts are for Appraisal District use only and should be verified prior to using for legal purpose and or documents. Please contact the Appraisal District to verify all information for accuracy. A Property Taxing Jurisdiction Owner: PORT ARTHUR HOUSING AUTHORITY %Ownership: 100.0% Entity Description Market Taxable Estimated Freeze Value Value Tax Ceiling A59 FARM AND LATERAL ROAD $12,255 $0 $0.00 109 PORT ARTHUR ISD $12,255 $0 $0.00 235 CITY OF PORT ARTHUR $12,255 $0 $0.00 343 PORT OF PORT ARTHUR $12,255 $0 $0.00 755 SABINE NECHES NAV DIST $12,255 $0 $0.00 851 DRAINAGE DISTRICT#7 $12,255 $0 $0.00 901 JEFFERSON COUNTY $12,255 $0 $0.00 CAD JEFFERSON CO APPRAISAL $12,255 $0 $0.00 DISTRICT Total Tax Rate: 2.864412 Estimated Taxes With Exemptions: $0.00 Estimated Taxes Without Exemptions: $351.03 57 about:blank 2/4 11/18/24,4:32 PM about:blank A Property Land Type Description Acreage Sqft Eff Front Eff Depth Market Value Prod. Value COM50 COM50 1.31 57,000.00 190.00 300.00 $12,255 $0 58 about:blank 3/4 11/18/24,4:32 PM about:blank A Property Roll Value History Year Improvements Land Market Ag Valuation Appraised HS Cap Loss Assessed 2024 $0 $12,255 $0 $12,255 $0 $11,765 2023 $0 $9,804 $0 $9,804 $0 $9,804 2022 $0 $9,804 $0 $9,804 $0 $9,804 2021 $0 $9,804 $0 $9,804 $0 $9,804 2020 $0 $9,804 $0 $9,804 $0 $9,804 2019 $0 $9,800 $0 $9,800 $0 $9,800 2018 $0 $9,800 $0 $9,800 $0 $9,800 2017 $0 $9,800 $0 $9,800 $0 $9,800 2016 $0 $9,800 $0 $9,800 $0 $9,800 A Property Deed History Deed Date Type Description Grantor Grantee Volume Page Number 4/21/2009 WD WARRANTY TRAN TRAN TONY & 2009023582 DEED INVESTMENTS RACHEL NGA INC 4/28/2000 WD WARRANTY D & R GARDEN 2000016233 DEED CENTER INC 10/22/2010 WD WARRANTY TRAN TONY PORT ARTHUR 2010039102 DEED HOUSING AUTHORITY 7/17/2007 WD WARRANTY ALSTON TRAN 2007028990 DEED NORMAN & INVESTMENTS VIRGINIA INC 6/6/2006 WD WARRANTY D & R NURSERY ALSTON 2006022013 DEED INC NORMAN W & VIRGINIA H 59 about:blank 4/4 11/18/24,4:33 PM about:blank A Property Details Account Property ID: 73303 Geographic ID: 049400-000-032200- 00000 Type: R Zoning: LC Property Use: Condo: Location Situs Address: PORT ARTHUR, TX 77642 Map ID: 0 Mapsco: Legal Description: TR 4 L4 B3 RG H PALCO Abstract/Subdivision: 049400-000 Neighborhood: Owner Owner ID: 223754 Name: PORT ARTHUR HOUSING AUTHORITY Agent: Mailing Address: PO BOX 2295 PORT ARTHUR, TX 77643-2295 % Ownership: 100.0% Exemptions: EX-XV - For privacy reasons not all exemptions are shown online. Property Values Improvement Homesite Value: $0 (+) Improvement Non-Homesite Value: $0 (+) Land Homesite Value: $0 (+) Land Non-Homesite Value: $6,250 (+) Agricultural Market Valuation: $0 (+) 60 about:blank 1/4 11/18/24,4:33 PM about:blank Market Value: $6,250 (=) Agricultural Value Loss:0 $0 (-) Appraised Value: $6,250 (_) HS Cap Loss: 0 $0 (-) Circuit Breaker: 0 $0 (-) Assessed Value: $6,250 Ag Use Value: $0 Information provided for research purposes only. Legal descriptions and acreage amounts are for Appraisal District use only and should be verified prior to using for legal purpose and or documents. Please contact the Appraisal District to verify all information for accuracy. A Property Taxing Jurisdiction Owner: PORT ARTHUR HOUSING AUTHORITY %Ownership: 100.0% Entity Description Market Taxable Estimated Freeze Value Value Tax Ceiling A59 FARM AND LATERAL ROAD $6,250 $0 $0.00 109 PORT ARTHUR ISD $6,250 $0 $0.00 235 CITY OF PORT ARTHUR $6,250 $0 $0.00 343 PORT OF PORT ARTHUR $6,250 $0 $0.00 755 SABINE NECHES NAV DIST $6,250 $0 $0.00 851 DRAINAGE DISTRICT#7 $6,250 $0 $0.00 901 JEFFERSON COUNTY $6,250 $0 $0.00 CAD JEFFERSON CO APPRAISAL $6,250 $0 $0.00 DISTRICT Total Tax Rate: 2.864412 Estimated Taxes With Exemptions: $0.00 Estimated Taxes Without Exemptions: $179.02 61 about:blank 2/4 11/18/24,4:33 PM about:blank A Property Land Type Description Acreage Sqft Eff Front Eff Depth Market Value Prod. Value Al Acres Style Type 2.50 108,900.00 0.00 0.00 $6,250 $0 62 about:blank 3/4 11/18/24,4:33 PM about:blank A Property Roll Value History Year Improvements Land Market Ag Valuation Appraised HS Cap Loss Assessed 2024 $0 $6,250 $0 $6,250 $0 $6,250 2023 $0 $6,250 $0 $6,250 $0 $6,250 2022 $0 $6,250 $0 $6,250 $0 $6,250 2021 $0 $6,250 $0 $6,250 $0 $6,250 2020 $0 $6,250 $0 $6,250 $0 $6,250 2019 $0 $6,250 $0 $6,250 $0 $6,250 2018 $0 $6,250 $0 $6,250 $0 $6,250 2017 $0 $6,250 $0 $6,250 $0 $6,250 2016 $0 $6,250 $0 $6,250 $0 $6,250 A Property Deed History Deed Date Type Description Grantor Grantee Volume Page Number 7/17/2007 WD WARRANTY ALSTON TRAN 2007028990 DEED NORMAN & INVESTMENTS VIRGINIA INC 4/21/2009 WD WARRANTY TRAN TRAN TONY & 2009023582 DEED INVESTMENTS RACHEL NGA INC 4/28/2000 WD WARRANTY D & R GARDEN 2000016233 DEED CENTER INC 10/22/2010 WD WARRANTY TRAN TONY TRAN TONY & 2010039102 DEED RACHEL NGA 63 about:blank 4/4 EXHIBIT "A7 BEING 3.808 acres of land out of and a part of Lot 4,Block 3,Range "II", Port Arthur Land Company Subdivision, City of Port Arthur, recorded in Volume 1, Page 22, Map Records, Jefferson County, Texas; being the same land conveyed to D &R Garden Center, Inc., recorded in File No. 2000016233, Official Public Records of Real Property, Jefferson County, Texas; said 3.808 acre tract being more fully described by metes and bounds as follows, to wit. COMMENCING at.a point being the Southwest corner of said Lot 4,Block 3, Range "Hm, Port Arthur Land Company Subdivision; said point being the intersection of the centerline of a dedicated road named 9th Avenue with the centerline of a dedicated road named Lewis Drive; THENCE, North 48 deg., 47 min., 00 sec., West, on the centerline of said 9th Avenue, same being the West line of said Lot 4, a distance of 470.00' to a point; THENCE, North 41 deg., 13 min., 00 sec., East, a distance of 30.00' to a '/2" steel rod found bent on the East right of way line of said 9th Avenue for the POINT OF BEGINNING; said 'fa" steel rod being the most Westerly Southwest corner of the herein described tract; THENCE, North 48 deg., 47 min., 00 sec., West, on the East right of way line of said 9th Avenue, a distance of 190.02' to a 'A" steel rod set, capped, and marked "SOUTEX" for the Northwest corner of the herein described tract, same being the Southwest corner of a tract of land conveyed to Hy Van Nguyen, recorded in File No. 2005034623, Official Public Records of Real Property, Jefferson County, Texas; from which a 'A" steel rod found for the intersection of the East right of way line said 9th Avenue with the South right of way line of a dedicated road named 15th Street bears North 48 deg., 47 min., 00 sec., West, a distance of 1022.21'; THENCE, North 41 deg., 12 min., 21 sec., East, on the South line of said Hy Van Nguyen tract, a distance of(Called 300.00') passing the Southeast corner of said Hy Van Nguyen tract and continuing for a total distance of 630.02' to a 'A" steel rod set, capped, and marked "SOUTEX" on the West line of a 50' wide railroad right of way; from which a GSU Monument found for the intersection of the West line of said railroad right of way with the South right of way line of said 15th Street bears North 48 deg., 47 min., 00 sec., West, a distance of 1022.21; said 'A " steel rod being the Northeast corner of the herein described tract; THENCE, South 48 deg., 47 ruin, 00 see., East, on the West line of said 501 wide railroad right or way, a distance of 330.03' to a 'A" steel rod set, capped, and marked "SOUTEX" for the Northeast corner of a tract of land conveyed to Reginald W. Savoie, recorded in File No, 2000001497, Official Public Records of Real Property, Jefferson County, Texas; said 'A" steel rod being the Southeast corner of the herein described tract; THENCE, South 41 deg., 12 min,, 15 sec.,West, on the North line of said Reginald W. Savoie tract and the North line of a tract of land conveyed to Mac H. Hannah, Jr., recorded in Film Code 103-99-0860, Official Public Records of Real Property, Jefferson County, Texas, a distance of 330.03' to a h" steel rod set, capped, and marked "SOUTEX" for the Northwest corner of said Mac H. Hannah, Jr. tract; said h" steel rod being the most Southerly Southwest corner of the 64 Exhibit "C" (Contract) s.pr24353 PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is made between the PORT ARTHUR HOUSING AUTHORITY("PAHA"),and THE CITY OF PORT ARTHUR,TEXAS ("CITY"), and is effective as of the Effective Date(as defined below). In consideration of the mutual covenants and representations herein contained,the PAHA and the CITY agree as follows: 1. PURCHASE AND SALE 1.1. Purchase and Sale. Subject to the terms and conditions of this Agreement, the PAHA hereby agrees to sell and convey to the CITY,and the CITY hereby agrees to purchase from the PAHA,for the consideration hereinafter set forth (the "Consideration"), that certain real property consisting of the following(the"Property"): That certain 3.808 acres,more or less, parcel of land(collectively,the"Land") situated in Jefferson County, Texas, such parcel of land legally described as Tract Number Four(4) and Tract Number Five (5) in Block Number Three (3), Range H, PALCO, City of Port Arthur,Jefferson County,Texas,as the same appears upon the map or plat thereof,on file and of record in the Map Records of Jefferson County,Texas. It is understood and agreed that a final field note description of each of such tracts or parcels of land which comprise the Land, shall be prepared by the surveyor or engineer hereafter mentioned,and that such final field note descriptions, as so prepared by such surveyor or engineer, will be used on the final closing documents,and shall,upon completion,be deemed to be the correct description of the real property described herein as the"Land"for all purposes. 1.2. Rights and Appurtenances. All rights, privileges, and appurtenances pertaining to the foregoing, including, but, not limited to: (i) any right, title and interest of the PAHA in and to adjacent streets,roadways,alleys or rights-of-way; (ii)any mineral rights(including total surface control); (iii)any access rights; (iv) any sewer, water or other utility rights or capacity; and (v) any reversionary rights or rights by limitation or prescription, SAVE AND EXCEPT any rights or appurtenances expressly reserved to the PAHA by the terms and provisions of this Agreement(the"Rights and Appurtenances"). 2. PURCHASE PRICE; EARNEST MONEY DEPOSIT 2.1 Purchase Price. The Purchase Price to be paid by CITY to the PAHA for a sale of the Property shall be approximately TWO HUNDRED FORTY THOUSAND FIVE HUNDRED DOLLARS AND 00/100 DOLLARS ($240,500.00)(the"Purchase Price").The Purchase Price shall be paid by CITY to Texas Regional Title, LLC ("Title Company") in immediately collectible funds, for the account of the PAHA,at the Closing(as defined below). 2.2 Earnest Money Deposit. The parties have agreed to waive the Earnest Money Deposit requirement. 3. PROPERTY INFORMATION 3.1 Title Commitment.The Title Company shall provide,within five(5)business days after the Effective Date, a Commitment for Owner's Policy of Title Insurance(the"Title Commitment"), in the Purchase and Sale Agreement—Page 1 amount of the Purchase Price,issued by the Title Company and legible copies of any restrictive covenants, easements and other items listed in Schedule`B"of such Title commitment,as title exceptions therein. 3.2 Survey. On or before the expiration of fifteen (15) days from the Effective Date of this Agreement, CITY shall obtain and provide to the PAHA a survey of the Property (the "Survey"). CITY shall be responsible to pay such surveyor or engineer for the cost of such Survey. Such Survey shall be made"on-the-ground"by the selected surveyor,who shall also prepare new separate field note descriptions for both the Property, as above designated,which shall cover and describe the total acreage and number of gross square feet contained in the Land; Such Survey and all field note descriptions mentioned herein, shall be prepared, dated, bear the official seal of and be signed and certified as to all matters set forth in this paragraph by such selected surveyor or engineer. 3.3 Title and Survey Objections. CITY shall have until fifteen(15)days after the later of the receipt of the last of the above Title Commitment and Survey, each satisfying the terms hereof (the "Objection Date")within which to approve or disapprove all such items,including the information reflected therein,such approvals or disapprovals to be within CITY's sole discretion.If CITY fails to disapprove any of the Title Exceptions set forth on Schedule`B" of the Title Commitment or any matter reflected on the Survey,by written notice(an"Objection Notice")given to the PAHA by CITY within such fifteen(15)day period, then CITY shall be deemed to have accepted such title exceptions and the Survey in their then current form. If CITY disapproves any such title exception or matter reflected on the Survey by written notice to the PAHA during such period,then CITY may terminate this Agreement, unless the PAHA cures such objection to the satisfaction of CITY,on or before thirty(30)days after the date that the PAHA received such Objection Notice. The title exceptions to be listed in Schedule `B" of the Title Commitment, if and when approved by CITY,or deemed to be approved pursuant to this Section,together with any other matters affecting the title to the Property which are specifically set forth in this Agreement, are hereinafter called the"Permitted Exceptions." 4. REPRESENTATIONS,WARRANTIES AND COVENANTS 4.1 PAHA's Representations and Warranties. The PAHA represents and warrants to CITY as follows: 4.1.1 The PAHA has the right, power and authority to enter into this Agreement and to perform this Agreement. 4.1.2 The PAHA has performed or shall fully perform and observe all requirements of all contracts and agreements affecting the Property, including the Permitted Exceptions, and no third party shall have any claim which shall survive the Closing which shall in any manner relate to the Property other than the Permitted Exceptions. 4.1.3 Other than this Agreement and the Permitted Exceptions, there are no leases or other agreements for the use or occupancy of all or a part of the Property or contracts, maintenance agreements, or other agreements related to the use or occupancy of the Property, or other agreements or instruments which will be in force or effect on the Closing Date that grant to any person whomsoever or any entity whatsoever,any right,title, interest or benefit in or to all or any part of the Property or any right relating to the use,operation,management,maintenance or repair of all or any part of the Property. Purchase and Sale Agreement—Page 2 4.1.4 If, prior to Closing, CITY has actual, specific knowledge based on written notice from the PAHA to CITY of a breach by the PAHA of any representation or warranty in this Agreement and nonetheless elects to proceed to Closing, it shall be conclusively deemed to have waived such breach. 4.1.5 All of the foregoing representations and warranties expressly shall survive the Closing for six (6) months , and the PAHA shall have no liability for any alleged breach of any such representation or warranty unless it receives written notice describing such breach in reasonable detail prior to the expiration of such eighteen month period. 4.1.6 AS IS: EXCEPT AS SET FORTH HEREIN, CITY ACKNOWLEDGES THAT THE PAHA HAS NOT MADE,DOES NOT MAKE,AND SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, OF, AS TO, CONCERNING OR WITH RESPECT TO (i) THE VALUE, NATURE, QUALITY OR CONDITION OF THE PROPERTY OR THE PAHA'S INTEREST, INCLUDING, WITHOUT LIMITATION, THE WATER,SOIL AND GEOLOGY,EXCEPT FOR THE WARRANTIES OF TITLE CONTAINED IN THE DEED,(ii)THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH MAY BE CONDUCTED THEREON, (iii) THE COMPLIANCE OF OR BY THE PROPERTY WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (iv) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY,OR(v)ANY OTHER MATTER WITH RESPECT TO THE PROPERTY,AND SPECIFICALLY, THAT THE PAHA HAS NOT MADE, DOES NOT MAKE, AND SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS OR WARRANTIES REGARDING COMPLIANCE OF THE LAND USE WITH THE LAWS,RULES, REGULATIONS, ORDERS OR REQUIREMENTS, INCLUDING, WITHOUT LIMITATION, THOSE PERTAINING TO SOLID WASTE, AS DEFINED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F R., PART 261, OR THE DISPOSAL OR EXISTENCE IN OR ON THE PROPERTY OF ANY HAZARDOUS SUBSTANCES,AS DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980, AS AMENDED, AND THE REGULATIONS PROMULGATED THEREUNDER. CITY SHALL RELY SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY THE PAHA OR ITS AGENT. CITY ACKNOWLEDGES THAT IT IS PURCHASING THE PROPERTY ON AN "AS IS," "WHERE IS" AND "WITH ALL FAULTS" BASIS. PAHA SHALL NOT BE LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR THE OPERATION THEREOF FURNISHED BY ANY PARTY PURPORTING TO ACT ON BEHALF OF THE PAHA, INCLUDING THE PAHA'S AGENTS. CITY IS ADVISED TO RETAIN APPROPRIATE CONSULTANTS KNOWLEDGEABLE IN ENVIRONMENTAL LAW AND HAZARDOUS SUBSTANCE MATTERS TO INSPECT THE PROPERTY AND TO ASSIST CITY IN THIS TRANSACTION. THE FOREGOING TERMS AND PROVISIONS SHALL SURVIVE THE CLOSING OF THE SALE,AND SHALL, IN FACT, BE INCLUDED IN THE DEED THAT THE PAHA IS TO EXECUTE WITH CITY UNDER THE TERMS AND PROVISIONS OF THIS AGREEMENT. 4.2 PAHA's Covenants.The PAHA hereby agrees and acknowledges as follows: 4.2.1 The PAHA shall deliver 100% control of surface rights to CITY, with no surface drilling rights for mineral owners. Purchase and Sale Agreement—Page 3 4.2.2 The PAHA shall deliver all of PAHA's mineral interests, if any,to CITY. 4.2.3 Prior to Closing,the PAHA shall, at the PAHA's expense, cause any undefined or unrecorded easements affecting the Property to be released or defined and recorded. 4.3 CITY's Covenants. CITY hereby agrees and acknowledges as follows: 4.3.1 Any and all improvements to be constructed on the Property are subject to the PAHA's prior review and approval. 5. CLOSING 5.1 Closing. The Closing("Closing") shall be held at the office of the Title Company, at 2:00 PM,Houston time,on or July 15,2025 (the"Closing Date"). 5.2 PAHA's Obligations at Closing. At Closing, the PAHA and the Title Company, as applicable, shall deliver to CITY the following, each of which must be satisfactory in form and substance to CITY,to-wit: 5.2.1 Deed. The PAHA shall execute and acknowledge a Special Warranty Deed (the "Deed")executed by the PAHA conveying the Property to CITY, subject to the Permitted Exceptions. 5.3 CITY's Obligations at Closing.At Closing,CITY shall execute and deliver the following funds and documents to the PAHA and the Title Company, as applicable,at the Closing,to-wit: 5.3.1 Cash Consideration. CITY shall pay and deliver the Cash Consideration. 5.3.2 Other Matters. Such other matters as may be required herein. 5.4 Proration.Ad valorem taxes, rental, utilities, and all other sums customarily prorated in the closing of similar properties in the County where the Property is located shall be prorated as of 12:00 midnight on the Closing Date.Ad valorem taxes relating to the Property for the calendar year in which the Closing shall occur, shall be prorated based upon the best available estimates of the amount of taxes that will be due and payable,and CITY shall be entitled to a credit against the Purchase Price at the Closing in the amount of the PAHA's pro rata portion of such taxes and assessments through the Closing Date.As soon as the amount of taxes and assessments on the Property for such year is known,the PAHA and CITY shall readjust the proration of the amount of taxes and assessments to be paid by each party,with the result that the PAHA shall be paying to CITY by proration,those taxes and assessments attributable to the period of time prior to the date of Closing, and CITY shall then, by use of such proration funds and its own funds, pay all taxes assessed against the Property for the year of the Closing. 5.5 Possession. Possession of the Property shall be delivered to CITY at Closing, subject to the Permitted Exceptions. 5.6 PAHA's Closing Costs. Except as otherwise expressly provided herein, the PAHA shall pay,on the Closing Date: 5.6.1 One-half of any escrow fees, if any. 2 Expenses of placingtitle in proper form as required under the terms hereof. 5.6. p P P � Purchase and Sale Agreement—Page 4 5.6.3 All recording costs for any title curative document. 5.6.4 The costs of obtaining tax certificates from taxing authorities, if any. 5.6.5 Other customary charges normally charged to the PAHA by the Title Company. 5.6.6 The legal fees of the PAHA's counsel in negotiating, preparing and closing this transaction. 5.7 CITY's Closin!Costs.CITY shall pay,on the Closing Date: 5.7.1 The cost of preparing the Mortgage, Deed of Trust and any other applicable financing instruments,if any. 5.7.2 All recording costs for the Deed and other closing documents. 5.7.3 One-half of any escrow fees,if any. 5.7.4 Other customary charges normally charged to buyers of property by the Title Company; and 5.7.5 The legal fees of CITY's counsel in negotiating, preparing and closing this transaction. 6. RISK OF LOSS 6.1 Condemnation. If prior to the Closing, action is initiated or threatened to take any of the Property by eminent domain proceedings or by deed in lieu thereof, by any entity other than CITY, then CITY may either(a)terminate this Agreement, or(b)consummate the Closing, in which event the award of the condemning authority shall be assigned to CITY at the Closing. 6.2 Casualty. The PAHA shall have, and shall continue to have, all risks and liability for damage to or injury occurring to the Property,by fire, storm,accident,or any other casualty or cause,until the Closing has been consummated. If the Property, or any part thereof, suffers any damage prior to the Closing from fire, storm or any other casualty or cause, CITY may either(a)terminate this Agreement or (b)consummate the Closing,without any reduction in the Purchase Price as a result of any such damage. 7. DEFAULT 7.1 Breach by the PAHA. If the PAHA breaches this Agreement, CITY shall be obligated to give the PAHA a written notice (a "Default Notice"), setting forth in detail the nature and extent on any alleged default by the PAHA under the terms and provisions of this Agreement, and making demand that the PAHA forthwith cure or remedy such default.Upon receipt of such Default Notice,the PAHA shall have a period of ten(10) days after the date of receipt of such Default Notice, in which to cure or remedy any such alleged default. In the event that the PAHA fails or refuses to cure or remedy such alleged default on or before the end of such ten(10) day period, then (a)CITY may terminate this Agreement by giving the PAHA a written notice (a "Termination Notice") within five (5) days after the end of such ten (10) day period,stating that CITY has elected to terminate this Agreement by reason of the PAHA's failure to timely cure or remedy the default(s)stated in the Default Notice sent to the PAHA by CITY, and all parties shall Purchase and Sale Agreement—Page 5 Fir then be immediately released from all liabilities under the terms and provisions of this Agreement, to the same extent as if this Agreement had never been executed by and between the parties. 7.1 Breach by CITY. If CITY breaches this Agreement,the PAHA shall be obligated to give CITY a written notice (a "Default Notice"), setting forth in detail the nature and extent on any alleged default by CITY under the terms and provisions of this Agreement,and making demand that CITY forthwith cure or remedy such default. Upon receipt of such Default Notice, CITY shall have a period of ten (10) days after the date of receipt of such Default Notice, in which to cure or remedy any such alleged default. In the event that CITY fails or refuses to cure or remedy such alleged default on or before the end of such ten (10) day period, then the PAHA may terminate this Agreement by giving CITY a written notice (a "Termination Notice")within five(5)days after the end of such ten(10)day period, stating that the PAHA has elected to terminate this Agreement by reason of CITY's failure to timely cure or remedy the default(s) stated in the Default Notice sent to CITY by the PAHA, and all parties shall then be immediately released from all liabilities under the terms and provisions of this Agreement,to the same extent as if this Agreement had never been executed by and between the parties. 8. MISCELLANEOUS 8.1 Notices.All notices, demands and requests which may be given, or which are required to be given by either party to the other,and any exercise of a right of termination provided by this Agreement, shall be in writing and shall be given in the aforesaid manner,and shall be deemed effective when personally delivered to the address of the party to receive such notice set forth below,or,whether actually received or not,three(3)days after such written notice,demand or request has been deposited in any post office or mail receptacle regularly maintained by the United States government,certified or registered mail,return receipt requested, postage prepaid, addressed as set forth on the signature pages attached hereto and made a part hereof for all purposes, or such other place as the PAHA or CITY, respectively, may from time to time designate by written notice to the other. Any written notice to be given to the PAHA shall be given to the PAHA at the following addresses, to-wit: Port Arthur Housing Authority 920 Dequeen Avenue Port Arthur,TX 77640 With a copy of any such notice to the PAHA's attorney at: Melody Carrier Carrier Law Group 505 Orleans Street, Suite 505 Beaumont,Texas 77701 MarJuana B.Williams MarJuana Bush Williams, PLLC 3318 Highway 365 #240 Nederland,TX 77627 Any written notice to be given to CITY shall be given to CITY at the following address,to-wit: City of Port Arthur 444 4th Street Purchase and Sale Agreement—Page 6 Port Arthur,TX 77640 Attn: Ron Burton,City Manager With a copy of any such notice to CITY attorney at: Roxann Pais Cotroneo City Attorney 444 4th Street Port Arthur,TX 77640 8.2 Entire Agreement.This Agreement,together with the Exhibits attached hereto,embodies the entire agreement between the parties relative to the subject matter hereof,and there are no oral or written agreements between the parties,nor any representations made by either party relative to the subject matter hereof,which are not expressly set forth herein. 8.3 Survival.The representations and warranties contained herein shall survive the Closing of this transaction and shall not be merged into the Deed to be delivered at Closing. 8.4 Amendment.This Agreement may be amended only by a written instrument executed by all of the parties to this Agreement. 8.5 Captions.The captions and headings used in this Agreement are for convenience only and do not in any way limit,amplify or otherwise modify the provisions of this Agreement. 8.6 Time of Essence. Time is of the essence of this Agreement. However, if the final date of any period which is set out in any provision of this Agreement falls on a Saturday, Sunday or legal holiday under the laws of the United States or the State of Texas, in such event, the time of such period shall be extended to the next day which is not a Saturday, Sunday or legal holiday. 8.7 Governing Law. This Agreement shall be governed by the laws of the State of Texas, as amended, and the laws of the United States, as amended, pertaining to transactions in Texas, and shall be performable in Jefferson County,Texas. 8.8 Successors and Assigns.This Agreement shall bind and inure to the benefit of the PAHA and CITY and their respective successors and assigns. 8.9 Severability and Reformation. 8.9.1 Unless the court applies subsection(b), if any provision of this Agreement or the application thereof to any person or circumstance is ever judicially declared invalid, such provision shall be deemed severed from this Agreement, and the remaining portions of this Agreement shall remain in effect. 8.9.2 If any provision of this Agreement or the application thereof to any person or circumstance is prohibited by or invalid under applicable law, it shall be deemed modified to conform with the minimum requirements of such law, or, if for any reason it is not deemed so modified, it shall be prohibited or invalid only to the extent of such prohibition or invalidity without the remainder thereof or any such other provision being prohibited or invalid. 8.10 Attorneys' Fees. In the event it becomes necessary for either party hereto to file suit to enforce this Agreement or any provision(s) contained herein, the party prevailing in such suit shall be Purchase and Sale Agreement—Page 7 entitled to recover, in addition to all other remedies or damages as herein provided, reasonable attorneys' fees,court costs and allied expenses incurred in such suit. 8.11 Confidentiality. The PAHA agrees to keep all information relating to the negotiations of this Agreement and CITY, or any approved assignee of CITY, whether such information is in any way proprietary, strategic or otherwise,in strict confidence,and the PAHA shall guard its accessibility to others within its control, or subject to its direction. The PAHA agrees not to divulge to persons other than the attorneys, accountants, or involved officers, directors, employees, agents, representatives, and if appropriate,family members,on a need to know only basis,any of the terms and conditions or any matters related to the negotiations,this Agreement and CITY nor any approved assignee of CITY.Notwithstanding anything to the contrary, CITY acknowledges that the PAHA is a public entity and is subject to the Public Information Act and does not interpose any objection as to the response of the PAHA to a request under the Act. 8.12 Cooperation. The parties shall cooperate with one another, execute such additional documents as are necessary and reasonable to consummate the transactions set forth herein. 8.13 Multiple Counterparts. This Agreement may be executed in a number of identical counterparts, each of which for all purposes is deemed an original, and all of which constitute collectively one agreement; but in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart Furthermore, facsimile signatures on this Agreement shall be binding and effective to the same extent as original signatures hereon for all purposes. 8.14 Effective Date. As used in this Agreement, the terms "date of this Agreement," "date hereof," or "Effective Date" shall mean and refer to the date of the Title Company's receipt of this Agreement. 8.15 Exhibits. Any exhibits attached to this Agreement are incorporated into this Agreement and made a part hereof. 8.16 Notices to the PAHA and CITY.If the Property is situated in a utility or statutorily created district providing water,sewer,drainage or flood control facilities and services,or if the Property is located in a certificated service area of a utility service provider, or a Texas Agricultural Development District, Texas law requires the PAHA to deliver and CITY to sign statutory notices relating thereto.Accordingly, in such event,the parties agree to execute notices in the form required by applicable law,contemporaneously with the Closing. EXECUTED on the dates set forth below. SELLER: Port Arthur Housing Authority By: Name: Title: Purchase and Sale Agreement—Page 8 PURCHASER: City of Port Arthur Ronald Burton,City Manager City of Port Arthur ATTEST Sherri Bellard,City Secretary Purchase and Sale Agreement—Page 9