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PKT-CC-2019-08-27
AUGUST 27, 2019 PRE -COUNCIL WORKSHOP 12:00 P.M. EXECUTIVE (CLOSED) SESSION 6:00 P.M. PRE -COUNCIL WORKSHOP 6:30 P.M. REGULAR CITY COUNCIL MEETING 7:00 P.M. City Council Chambers 217 East Center Street Moab, Utah 84532 Pre -Council Workshop - 12:00 p.m. Workshop Regarding Possible Night Work Provisions for the Highway 191 Widening Project Executive (Closed) Session - 6:00 p.m. Strategy Session to Discuss Reasonably Imminent and/or Pending Litigation Discussion Regarding Deployment of Security Personnel, Devices, or Systems Pre -Council Workshop 6:30 p.m. Discussion regarding sewer rates for churches and non -profits Regular City Council Meeting - 7:00 p.m. Call to Order and Pledge of Allegiance Approval of Minutes Minutes: August 13, 2019 2019 -08 -13 mcc minutes draft (1).pdf Mayor and Council Reports Administrative Reports Citizens to Be Heard Special Events Approval of a Request for Amplified Music at Old City Park on September 7, 2019 agenda summary amplified music ocp 09072019 holling.pdf ocp holling music request sep. 7 2019.pdf Old Business Proposed Resolution 46 -2019: A Resolution Authorizing the Execution of a Restated and Amended Subdivision Improvements Agreement for the MAPS Subdivision, Phase II Briefing and possible action maps agenda summary.pdf maps sia resolution.pdf maps amended sia.pdf maps set aside agreement.pdf Proposed Resolution 45 -2019: Adopting the 2019 Sustainability Action Plan Briefing and possible action agendasummarysap.pdf planresolution8272019.pdf sustainability report -final 6.21.19.pdf 2019 sustainability action plan executive summary -final (2).pdf Update on the City of Moab 2019 -2020 Administrative Work Plan administrative work plan agenda summary.pdf administrative work plan update - 2019 -2020 clean copy.pdf Update on the Administrative Guidelines for the Use and Reservation of City Owned Property parks policies agenda summary.pdf parks policies 10-4 -18 version.pdf New Business Proposed Resolution 44 -2019: Establishing a Debt Policy for the City of Moab Briefing and First Review agenda summary sheet debt policy.pdf resolution 44 -2019 debtpolicy.pdf Proposed Ordinance 2019 -26: An Ordinance Renaming Rimrock Road to a New Name of "Aggie Boulevard" Briefing and possible action agenda summary aggie boulevard.pdf ordinance 2019 -26.pdf usurimrockrdplatrecorded.pdf Resolution 40 -2019: Authorizing the City of Moab to Commence Eminent Domain Proceedings to Acquire a Utility Easement Across the Pilles Property in Conjunction with the North Corridor Wastewater Improvements Briefing and possible action resolution 40 -2019 packet (pilles).pdf Resolution 41 -2019: Authorizing the City of Moab to Commence Eminent Domain Proceedings to Acquire a Utility Easement Across the Moab Lodging LLC Property in Conjuction with the North Corridor Wastewater Improvements Briefing and possible action resolution 41 -2019 packet (moab lodging).pdf Canvass of the Moab Primary Election: The Canvassing of Votes from the Moab City Primary Election held on August 13, 2019. This is for the final audit, including those who voted absent and provisional ballots. Approval of Bills Against the City of Moab Adjournment Special Accommodations: In compliance with the Americans with Disabilities Act, individuals needing special accommodations during this meeting should notify the Recorder ’s Office at 217 East Center Street, Moab, Utah 84532; or phone (435) 259 -5121 at least three (3) working days prior to the meeting. Check our website for updates at: www.moabcity.org 1. 1.1. 2. 2.1. 2.2. 3. 3.1. 4. 5. 6. 6.1. Documents: 7. 8. 9. 10. 10.1. Documents: 11. 11.1. Documents: 11.2. Documents: 11.3. Documents: 11.4. Documents: 12. 12.1. Documents: 12.2. Documents: 12.3. Documents: 12.4. Documents: 12.5. 13. 14. AUGUST 27, 2019PRE-COUNCIL WORKSHOP 12:00 P.M.EXECUTIVE (CLOSED) SESSION 6:00 P.M.PRE -COUNCIL WORKSHOP 6:30 P.M.REGULAR CITY COUNCIL MEETING 7:00 P.M.City Council Chambers217 East Center StreetMoab, Utah 84532Pre-Council Workshop - 12:00 p.m.Workshop Regarding Possible Night Work Provisions for the Highway 191 Widening ProjectExecutive (Closed) Session - 6:00 p.m.Strategy Session to Discuss Reasonably Imminent and/or Pending LitigationDiscussion Regarding Deployment of Security Personnel, Devices, or SystemsPre-Council Workshop 6:30 p.m.Discussion regarding sewer rates for churches and non -profits Regular City Council Meeting - 7:00 p.m.Call to Order and Pledge of AllegianceApproval of MinutesMinutes: August 13, 20192019 -08 -13 mcc minutes draft (1).pdfMayor and Council ReportsAdministrative ReportsCitizens to Be HeardSpecial Events Approval of a Request for Amplified Music at Old City Park on September 7, 2019 agenda summary amplified music ocp 09072019 holling.pdf ocp holling music request sep. 7 2019.pdf Old Business Proposed Resolution 46 -2019: A Resolution Authorizing the Execution of a Restated and Amended Subdivision Improvements Agreement for the MAPS Subdivision, Phase II Briefing and possible action maps agenda summary.pdf maps sia resolution.pdf maps amended sia.pdf maps set aside agreement.pdf Proposed Resolution 45 -2019: Adopting the 2019 Sustainability Action Plan Briefing and possible action agendasummarysap.pdf planresolution8272019.pdf sustainability report -final 6.21.19.pdf 2019 sustainability action plan executive summary -final (2).pdf Update on the City of Moab 2019 -2020 Administrative Work Plan administrative work plan agenda summary.pdf administrative work plan update - 2019 -2020 clean copy.pdf Update on the Administrative Guidelines for the Use and Reservation of City Owned Property parks policies agenda summary.pdf parks policies 10-4 -18 version.pdf New Business Proposed Resolution 44 -2019: Establishing a Debt Policy for the City of Moab Briefing and First Review agenda summary sheet debt policy.pdf resolution 44 -2019 debtpolicy.pdf Proposed Ordinance 2019 -26: An Ordinance Renaming Rimrock Road to a New Name of "Aggie Boulevard" Briefing and possible action agenda summary aggie boulevard.pdf ordinance 2019 -26.pdf usurimrockrdplatrecorded.pdf Resolution 40 -2019: Authorizing the City of Moab to Commence Eminent Domain Proceedings to Acquire a Utility Easement Across the Pilles Property in Conjunction with the North Corridor Wastewater Improvements Briefing and possible action resolution 40 -2019 packet (pilles).pdf Resolution 41 -2019: Authorizing the City of Moab to Commence Eminent Domain Proceedings to Acquire a Utility Easement Across the Moab Lodging LLC Property in Conjuction with the North Corridor Wastewater Improvements Briefing and possible action resolution 41 -2019 packet (moab lodging).pdf Canvass of the Moab Primary Election: The Canvassing of Votes from the Moab City Primary Election held on August 13, 2019. This is for the final audit, including those who voted absent and provisional ballots. Approval of Bills Against the City of Moab Adjournment Special Accommodations: In compliance with the Americans with Disabilities Act, individuals needing special accommodations during this meeting should notify the Recorder ’s Office at 217 East Center Street, Moab, Utah 84532; or phone (435) 259 -5121 at least three (3) working days prior to the meeting. Check our website for updates at: www.moabcity.org 1.1.1.2.2.1.2.2.3.3.1.4.5.6.6.1.Documents:7.8.9.10. 10.1. Documents: 11. 11.1. Documents: 11.2. Documents: 11.3. Documents: 11.4. Documents: 12. 12.1. Documents: 12.2. Documents: 12.3. Documents: 12.4. Documents: 12.5. 13. 14. AUGUST 27, 2019PRE-COUNCIL WORKSHOP 12:00 P.M.EXECUTIVE (CLOSED) SESSION 6:00 P.M.PRE -COUNCIL WORKSHOP 6:30 P.M.REGULAR CITY COUNCIL MEETING 7:00 P.M.City Council Chambers217 East Center StreetMoab, Utah 84532Pre-Council Workshop - 12:00 p.m.Workshop Regarding Possible Night Work Provisions for the Highway 191 Widening ProjectExecutive (Closed) Session - 6:00 p.m.Strategy Session to Discuss Reasonably Imminent and/or Pending LitigationDiscussion Regarding Deployment of Security Personnel, Devices, or SystemsPre-Council Workshop 6:30 p.m.Discussion regarding sewer rates for churches and non -profits Regular City Council Meeting - 7:00 p.m.Call to Order and Pledge of AllegianceApproval of MinutesMinutes: August 13, 20192019 -08 -13 mcc minutes draft (1).pdfMayor and Council ReportsAdministrative ReportsCitizens to Be HeardSpecial EventsApproval of a Request for Amplified Music at Old City Park on September 7, 2019agenda summary amplified music ocp 09072019 holling.pdfocp holling music request sep. 7 2019.pdfOld BusinessProposed Resolution 46 -2019: A Resolution Authorizing the Execution of a Restated and Amended Subdivision Improvements Agreement for the MAPS Subdivision, Phase IIBriefing and possible actionmaps agenda summary.pdfmaps sia resolution.pdfmaps amended sia.pdfmaps set aside agreement.pdfProposed Resolution 45 -2019: Adopting the 2019 Sustainability Action Plan Briefing and possible actionagendasummarysap.pdfplanresolution8272019.pdfsustainability report -final 6.21.19.pdf2019 sustainability action plan executive summary -final (2).pdfUpdate on the City of Moab 2019 -2020 Administrative Work Planadministrative work plan agenda summary.pdfadministrative work plan update - 2019 -2020 clean copy.pdfUpdate on the Administrative Guidelines for the Use and Reservation of City Owned Property parks policies agenda summary.pdfparks policies 10-4 -18 version.pdfNew BusinessProposed Resolution 44 -2019: Establishing a Debt Policy for the City of MoabBriefing and First Review agenda summary sheet debt policy.pdfresolution 44 -2019 debtpolicy.pdfProposed Ordinance 2019 -26: An Ordinance Renaming Rimrock Road to a New Name of "Aggie Boulevard"Briefing and possible action agenda summary aggie boulevard.pdf ordinance 2019 -26.pdf usurimrockrdplatrecorded.pdf Resolution 40 -2019: Authorizing the City of Moab to Commence Eminent Domain Proceedings to Acquire a Utility Easement Across the Pilles Property in Conjunction with the North Corridor Wastewater Improvements Briefing and possible action resolution 40 -2019 packet (pilles).pdf Resolution 41 -2019: Authorizing the City of Moab to Commence Eminent Domain Proceedings to Acquire a Utility Easement Across the Moab Lodging LLC Property in Conjuction with the North Corridor Wastewater Improvements Briefing and possible action resolution 41 -2019 packet (moab lodging).pdf Canvass of the Moab Primary Election: The Canvassing of Votes from the Moab City Primary Election held on August 13, 2019. This is for the final audit, including those who voted absent and provisional ballots. Approval of Bills Against the City of Moab Adjournment Special Accommodations: In compliance with the Americans with Disabilities Act, individuals needing special accommodations during this meeting should notify the Recorder ’s Office at 217 East Center Street, Moab, Utah 84532; or phone (435) 259 -5121 at least three (3) working days prior to the meeting. Check our website for updates at: www.moabcity.org 1.1.1.2.2.1.2.2.3.3.1.4.5.6.6.1.Documents:7.8.9.10.10.1.Documents:11.11.1.Documents:11.2.Documents:11.3.Documents:11.4.Documents:12.12.1.Documents:12.2.Documents: 12.3. Documents: 12.4. Documents: 12.5. 13. 14. Page 1 of 4 – August 13, 2019 JOINT MOAB CITY COUNCIL/PLANNING COMMISSION WORKSHOP AND MOAB CITY COUNCIL REGULAR CITY COUNCIL MEETING MINUTES--DRAFT AUGUST 13, 2019 The Moab City Council held its regular meeting on the above date in the Council Chambers at the Moab City Center, located at 217 East Center Street. Joint City Council/Planning Commission Workshop: At 5:00 PM, Mayor Emily Niehaus called the workshop meeting to order. In attendance were Mayor Emily Niehaus, Councilmembers Tawny Knuteson-Boyd, Kalen Jones, Karen Guzman-Newton, Mike Duncan and Rani Derasary. Also in attendance were Planning Commission members Allison Brown (chair), Kya Marienfield, Marianne Becnel, Brian Ballard, Jeanette Kopell and Becky Wells. Staff in attendance included City Manager Joel Linares, Recorder Sommar Johnson, City Attorney Chris McAnany, Public Works Director Oscar Antillon, Finance Director Rachel Stenta, City Engineer Chuck Williams, Planner Nora Shepard, Sustainability Director Rosemarie Russo and Records Specialist Eve Tallman. Recordings are archived at: www.utah.gov/pmn/index.html (audio) and: https://www.youtube.com/watch?v=WOztpJoJLmw (video). The Workshop considered progress on the overnight accommodations moratorium. Planner Shepard updated Council on next steps and timeframe for reintroducing some allowed uses in zones. Discussion focused on development standards, height restrictions, oversized vehicle parking, hotel shuttles, mixed use projects, and future allowed uses in the C-3 zone. The Joint Workshop meeting recessed at 6:45 PM. Regular Meeting—Call to Order and Attendance: Mayor Niehaus called the regular meeting to order at 7:00 PM and led the Pledge of Allegiance. Additional staff in attendance included Police Chief Bret Edge and Communication and Outreach Director Lisa Church. Sixteen members of the public and media were present. Approval of Minutes: Councilmember Derasary moved to approve minutes of the July 23, 2019 meeting with corrections. Councilmember Duncan seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Derasary, Knuteson-Boyd, Guzman-Newton and Duncan voting aye. Mayor and Council Reports: Mayor Niehaus reported she attended a meeting of the Southeastern Utah Association of Local Governments, and a meeting with the leadership of Seekhaven, and she participated in the Sun Valley Forum, which was a conference on the topic of resiliency. She met with a group partnering with the City to find childcare solutions and she met with a representative of the Small Business Administration. She urged councilmembers and the public to participate in an online survey for the Utah Office of Tourism. Mayor Niehaus concluded with a comment regarding discussions with state legislators about overnight accommodations and their unintended consequences on the community. Councilmember Derasary reported she attended a conference concerning leadership development for Utah women. She reported on a tour of the Monument Waste facilities, a meeting of the Emergency Medical Services (EMS) special service district, and the Canyonlands Health Care special service district. She stated the Uranium Mill Tailing Remedial Action (UMTRA) group was planning a celebration for reaching the milestone of ten million tons of tailings moved. She concluded with kudos for the recent free swim and barbecue hosted by the police department and the recreation staff. Councilmember Duncan said he attended the Grand Water and Sewer Services Agency meeting. Page 2 of 4 – August 13, 2019 Councilmember Knuteson-Boyd mentioned she toured Monument Waste facilities and reported on the Veterans’ Charity Ride. She noted she also attended the Utah Women in Leadership conference. She stated she spoke with a representative of the Red Cross who was looking for ways to help the local community. A program to provide smoke alarms was proposed and a straw poll of the Council was favorable. She attended a debrief of the fire mitigation clean-up days and noted more than 1,900 cubic yards of yard waste was collected. Knuteson-Boyd concluded with an explanation of her recusal at a prior meeting when the Council considered legislation regarding the Emma Boulevard area. She explained it was because a relative of her husband had a financial interest in one of the properties involved in the transaction. Councilmember Guzman-Newton reported she had recused herself from the same legislation because she owns a business that abuts the subject property. She went on to report on an airport board meeting and noted airport usage is up eighteen percent. She stated she attended the Grand County Council meeting at which the overnight accommodations ordinance was approved. She described a new “Every Kid Outdoors” campaign hosted by the Bureau of Land Management and she noted she attended the school district’s Truth in Taxation meeting. Guzman-Newton mentioned she attended a work party day pulling weeds at the middle school in advance of the first day of school. She concluded with praise for the City staff working to mitigate traffic congestion during construction of the middle school. Councilmember Jones mentioned he attended an ad hoc committee meeting regarding congestion at Arches National Park. He also reported on Dark Skies work and announced a party. He also stated he attended solid waste meetings and went on the Monument Waste tour. Administrative Report: City Manager Linares reported on Walnut Lane issues in the wake of a fire that damaged two units. He added the City was working on temporary modular housing and that the City was working with a new management company. Linares stated he was working with Zion’s Bank Public Finance representatives on the City’s debt management policy. He mentioned the interim legislative session would begin in one week and noted several City representatives would attend. He concluded with a thank you to an intern at the Moab Arts and Recreation Center who created an artistic planter for the landscaping, and a mention of the new traffic revision in effect on Uranium Boulevard. Police Chief Bret Edge reported on the free swim and barbecue at the recreation center and announced the police department would have a presence at Truck or Treat. He thanked City Market for donations. He stated the department was in the midst of a sergeant selection process. He praised the good relations his department has with Grand County EMS and noted a donation of an ambulance that will be converted to a critical incident response unit. Citizens To Be Heard: Crystal White spoke in support of the dark skies proposal and spoke about the International Dark Skies communities. She remarked on the benefits of changing the way people think about lighting including health, ecosystem and other benefits. Mary O’Brien spoke in favor of the Dark Sky ordinance. She mentioned the legislation would be largely useless if there is no five-year compliance provision. She stated she will work to introduce a dark sky ordinance in Castle Valley. She concluded with a mention of the importance of affordable housing and the impacts of crowding, light pollution and noise. Sara Melnicoff remarked that the City’s limitations on the ability for volunteer recycling and trash cleanup is heartbreaking. She spoke of the ramifications related to the differences between single-stream and source-separated recycling. Page 3 of 4 – August 13, 2019 Presentation: Grand County Solid Waste Special Service District Evan Tyrell, District Manager of the Solid Waste District, presented a brief history of the solid waste district including the landfills, recycle center, equipment and board. He outlined improvements underway. Community events offered by the district were presented and Tyrell reported on the success of the recent fire mitigation yard waste drop off days and spoke of plans for a new administration building, e-waste recycling, antifreeze disposal and a proposed re-use center for household goods. He outlined future equipment needs, revising the fee structure and noted there would be a public hearing on August 29. Special Events: Amplified Music Events at Old City Park—Approved Motion and Vote: Councilmember Knuteson-Boyd moved to approve requests for amplified music at Old City Park on September 2 and 14 and October 26, 2019. Councilmember Guzman- Newton seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Derasary, Knuteson-Boyd, Guzman-Newton and Duncan voting aye. Old Business: 100 Percent Renewable Energy—Approved Discussion: Sustainability Director Russo briefed the Council on the proposal to accelerate the timeline for reaching 100 percent renewable electricity from 2032 to 2030 due to a statewide mandate. Motion and Vote: Councilmember Jones moved to approve Resolution 38-2019: A Resolution Adopting the Accelerated Goal of 100% Renewable Electricity by 2030. Councilmember Knuteson-Boyd seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Derasary, Knuteson-Boyd, Guzman-Newton and Duncan voting aye. Solid Waste Hauling Amendments—Approved Discussion: Russo briefed Council on the proposed amendments. Construction waste recycling was discussed and the benefits of recycling concrete and paving were mentioned. Possible grant funding for a concrete crusher was mentioned. Motion and Vote: Councilmember Jones moved to approve Ordinance 2019-15: An Ordinance Amending the City of Moab Municipal Code, Section 8.04.010 Pertaining to Definitions; Amending Definitions; Amending Section 8.04.020 Mandatory Collection; and Section 8.04.030 Rates and Charges, amending Section 8.04.020 striking the third paragraph regarding construction waste. Councilmember Duncan seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Derasary, Knuteson-Boyd, Guzman-Newton and Duncan voting aye. Outdoor Lighting Amendments—Approved Discussion: Planner Shepard briefed Council. Discussion covered the pros and cons of grandfathering existing noncompliant fixtures, along with potential problems with a delayed adoption date. Audits of compliance were deliberated. Motion and Vote: Councilmember Jones moved to approve Ordinance 2019-03: An Ordinance Creating Chapters 17.09.060 and 17.09.465 of the Moab Municipal Code Establishing Outdoor Lighting and Sign Illumination Standards, amending the ordinance to be effective immediately and to strike Section 069b.1 regarding conditional use permits, as presented. Councilmember Knuteson-Boyd seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Derasary, Knuteson-Boyd, Guzman-Newton and Duncan voting aye. New Business: Moab Tramway Subdivision—Conditionally Approved Motion and Vote: Councilmember Guzman-Newton moved to approve Resolution 42- 2019 Conditionally Approving the Moab Tramway Subdivision at 1750 North Hwy 191, as Referred by the Planning Commission. Councilmember Jones seconded the motion. The motion passed 5-0 aye with Jones, Derasary, Knuteson-Boyd, Guzman-Newton and Duncan voting aye. Page 4 of 4 – August 13, 2019 HooDoo Minor Subdivision—Conditionally Approved Motion and Vote: Councilmember Derasary moved to approve Resolution 43-2019: A Resolution Conditionally Approving the HooDoo Minor Subdivision at 201 Walnut Lane, as Referred to Council by the Planning Commission. Councilmember Knuteson-Boyd seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Derasary, Knuteson-Boyd, Guzman-Newton and Duncan voting aye. Traffic Plan Requirements—Approved Motion and Vote: Councilmember Guzman-Newton moved to approve Ordinance 2019- 22: Authorizing the City to require a traffic control plan and authorizing the City to recover its costs for traffic control associated with events, construction activities, or other activities affecting public rights-of-way. Councilmember Derasary seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Derasary, Knuteson-Boyd, Guzman-Newton and Duncan voting aye. Surplus Property—Approved Motion and Vote: Councilmember Derasary moved to approve Resolution 39-2019: A Resolution of the Governing Body Declaring Certain City Property as Salvage. Councilmember Duncan seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Derasary, Knuteson-Boyd, Guzman-Newton and Duncan voting aye. Election Services Interlocal Agreement—Approved Motion and Vote: Councilmember Duncan moved to approve Resolution 37-2019: A Resolution Adopting an Interlocal Agreement for the Provision of Election Services by and between the City of Moab and Grand County. Councilmember Jones seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Derasary, Knuteson-Boyd, Guzman- Newton and Duncan voting aye. Bills Against the City of Moab—Approved Motion and Vote: Councilmember Knuteson-Boyd moved to approve payment of bills against the City in the amount of $560,186.55. Councilmember Derasary seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Derasary, Knuteson-Boyd, Guzman- Newton and Duncan voting aye. Executive (Closed) Session: At 9:13 PM, Councilmember Derasary moved to enter an Executive Session to discuss the Character, Professional Competence, or Physical or Mental Health of an Individual or Individuals. Councilmember Duncan seconded the motion. The motion passed 5-0 aye with Councilmembers Jones, Duncan, Knuteson-Boyd, Guzman-Newton and Derasary voting aye. Mayor Niehaus convened the Executive Session at 9:25 PM. Councilmember Guzman-Newton moved to end the Executive Session. Councilmember Derasary seconded the motion. The motion carried 5-0 aye, with Councilmembers Derasary, Jones, Knuteson-Boyd, Duncan and Guzman-Newton voting aye. Mayor Niehaus ended the Executive Session at 10:10 PM. Adjournment: Councilmember Guzman-Newton moved to adjourn the meeting. Councilmember Derasary seconded the motion. The motion carried 5-0 aye, with Councilmembers Derasary, Jones, Duncan, Knuteson-Boyd and Guzman-Newton voting aye. Mayor Niehaus adjourned the meeting at 10:10 PM. APPROVED: __________________ ATTEST: ___________________ Emily S. Niehaus, Mayor Sommar Johnson, City Recorder Moab City Council Agenda Item Meeting Date: August 27, 2019 #: Click here to enter text. Title: Approval of a Request for Amplified Music at Old City Park on September 7, 2019 Date Submitted: August 14, 2019 Staff Presenter: Carmella Galley Attachment(s): Request Letter Options: Approve, deny, or modify. Recommended Motion: "I move to approve the request for amplified music at Old City Park for a marriage celebration on September 7, 2019." Background/Summary: Use of amplified sound equipment at Old City Park is not permitted without special permission of the City Council. Stephanie Holling is requesting amplified music for her marriage celebration. Park Rules state any amplified music must be curtailed by 9:00 pm. Staff Recommendation: City Staff recommends approval of the request. Approval is subject to compliance with all Park Policies, which provides that approved sound amplification shall not extend beyond 9:00 pm. Carmella Galley <carmella@moabcity.org> Music Request Sep. 7 2019 1 message Stephanie Holling <steph.holling66@gmail.com>Wed, Aug 14, 2019 at 10:56 PM To: info@moabcity.org Hello Carmella, My name is Stephanie Holling and my fiance and I have old city park reserved for Saturday September 7th for our wedding. We just needed approval for music for the event. It will be small, around 50 people, and music will only be played around 6-8:30pm or so (with only a couple small speakers to begin with). We have already payed the amplified music deposit, if there's any other information you need from me please let me know! Thanks in advance. -Stephanie 1 Moab City Council Agenda Item Meeting Date: August 27, 2019 Title: Resolution No. 46-2019, a Resolution Authorizing the Execution of a Restated and Amended Subdivision Improvements Agreement for the Maps Subdivision, Phase II. Disposition: Discussion and possible action Staff Presenter: Christopher McAnany, City Attorney Attachment(s): -Attachment 1: Subdivision Improvements Agreement and Set Aside Agreement -Attachment 2: Resolution 46-2019 Recommended Motion: I move to approve Resolution 46-2019, a resolution authorizing the execution of the Restated and Amended Subdivision Improvements Agreement for the Maps Subdivision, Phase II.” Background/Summary: On March 12, 2019 the City approved a Subdivision Improvements Agreement (SIA) in the amount of $205,282 for the construction of public improvements for the Maps Subdivision. The plat for the subdivision was also subsequently recorded. The developer under the SIA was the Housing Authority of Southeastern Utah (HASU). Since that time HASU has made changes to its financing arrangements. The subdivision will now be developed by a new entity, Maps Senior Living, LLC. As a result, we have prepared a new SIA that is substantially similar to the earlier document, but which specifies Maps Senior Living LLC as the developer. HASU is a signatory to the new SIA for the purpose of acknowledging that the old agreement is terminated. Security for the public improvements will be provided in the form of a Set-Aside Agreement, whereby the lender, Key Bank, will segregate a portion 2 of the construction loan funds to cover those specific improvements. Disbursements for the public improvements will be authorized jointly by pay requests executed by the City Engineer and the developer, or by the City individually if it should declare a default. This SIA differs from the original in one respect: it omits lapse of plat as a remedy for the City in the event of a developer default. Key Bank objected to this provision—claiming that it was unlawful and jeopardized its lien in the subject property. The City maintains that the original provision was lawful but, after consulting with the City Manager, we elected to delete this provision. In exchange we concurrently demanded tighter provisions in the Set-Aside Agreement to protect the City ’s interest in seeing that improvements are correctly installed. 1 CITY OF MOAB RESOLUTION NO. 46-2019 A RESOLUTION AUTHORIZING THE EXECUTION OF A RESTATED AND AMENDED SUBDIVISION IMPROVEMENTS AGREEMENT FOR THE MAPS SUBDIVISION, PHASE II The following findings describe the reasons for this resolution and explain its purpose. a.On March 12, 2019 the City entered into a Subdivision Improvements Agreement (SIA) with the Housing Authority of Southeastern Utah (HASU) for the Maps Subdivision. A plat for the subdivision was subsequently recorded. b.As a result of changes in its financing for the project, HASU has now elected to convey the subject property to another entity, Moab Senior Living, LLC, which will develop the project. c.The parties intend to execute a new SIA in the form attached which will supersede the original agreement between the City and HASU. Additionally, the SIA includes a Set- Aside Agreement wherein the lender, Key Bank, will disburse funds from the construction loan for the construction of the public improvements. d.HASU consents to the execution of the Restated and Amended Subdivision Improvements Agreement. Now therefore, the City of Moab resolves as follows: The City authorizes the Mayor to execute the attached SIA with Moab Senior Living, LLC and to accept the Set-Aside Agreement provided by the lender, Key Bank, in the amount of $205,282.00. PASSED AND APPROVED by a majority of the City Council, this 27th day of August, 2019. By:___________________________________________ Emily S. Niehaus, Mayor Date Attest: By:___________________________________________ Sommar Johnson, Recorder Date 1 RESTATED AND AMENDED SUBDIVISION IMPROVEMENTS AGREEMENT For MAPS the Subdivision, Phase II The City of Moab, a Utah municipality (hereinafter “CITY”), and the MAPS Senior Living LLC, a Utah limited liability company (“MAPS” or “SUBDIVIDER”) mutually referred to as the “Parties,” enter into the following Subdivision Improvements Agreement (the “Agreement”), pursuant to Moab Municipal Code (hereinafter: “City Code”) Section 16.20, to cover the installation of subdivision improvements required by law and applicable land use approvals. I. RECITALS. A. On February 22, 2018 the City Planning Commission recommended approval of the final plat for the MAPS Subdivision to the Moab City Council. B. The Moab City Council, as the land use authority for subdivision final plat approval, approved the final [lat for the MAPS Subdivision, Phase II (hereafter “the Subdivision” or “the Plat”) at its regular City Council meeting on March 12, 2019. The Plat was subsequently modified and is now recorded as Maps Subdivision, Phase II, Reception No. 534983, Book 885, Page 510 of the Grand County land records. C. Subdivider has submitted to City for its review construction plans and specifications entitled MAPS SENIOR HOUSING (sheets C0.0–C4.6 inclusive, dated 1-9-2019, and approved by the City Engineer), having been prepared by Goff Engineering and bearing the stamp of Robert Sean Harries, a licensed Professional Engineer (hereinafter: the “Construction Plans”). Said plans show in sufficient detail the Required Improvements for the Subdivision. D. The Construction Plans have been reviewed and approved subject to such modifications as may have been specified by each of the following entities: (i) The City Engineer with respect to site grading, pathway, street, and storm water drainage improvements, (ii) The City Public Works Director with respect to culinary water improvements if provided by the City, storm water drainage improvements, parking improvements, and access improvements. E. The Housing Authority of Southeastern Utah was formerly a party to a Subdivision Improvements Agreement, dated March 12, 2019, with the City for the MAPS Subdivision. That agreement is hereby terminated and superseded by this Agreement, and Maps Senior Living, LLC assumes all such obligations as the owner of the Subdivision and the successor in title. 2 II. AGREEMENT IN CONSIDERATION OF THE ABOVE RECITALS, THE PARTIES AGREE AS FOLLOWS: 1. Covered Property. The real property subject to this Agreement (the “Property”) is described as follows: PARCELS 1 and 2, MAPS SUBDIVISION Phase II, LOCATED IN THE NW l/4 OF SECTION 1, T26S, R21E, SLB&M, ACCORDING TO THE OFFICIAL PLAT THEREOF, Reception 534983, Book 885, P. 510. 2. Payment of Fees; Approved Land Uses. Subdivider agrees to pay all in-effect City fees applicable to the Subdivision, including but not limited to, impact fees, connection fees, building permit fees, and applicable inspection fees. Applicable fees shall be calculated and paid according to City policy. a. The uses permitted in the Subdivision shall correspond with the uses authorized for the R-4 Zone under the Moab Municipal Code and other applicable ordinances. The configuration of the Subdivision and the uses therein shall conform to the Construction Plans, Exhibit 1 attached, and the Final Plat, as set forth in Exhibit 2, attached. 3. Required Improvements. Subdivider shall construct all of the improvements to the property shown on the Construction Plans, and as described in the Subdivision Improvement Schedule attached as Exhibit 1 (the “Required Improvements”). Required Improvements shall include the public improvements shown on the Construction Plans, including but not limited to the following: (a) Site clearing and removal of obstructions (b) General site grading (c) Site utilities including but not limited to culinary water and sanitary sewer, gas, and electrical power (d) Streets, curb & gutter, and sidewalks (e) Street signage and lighting (f) Storm water drainage facilities. 4. Improvements to be Completed in Conformance with Construction Plans. Improvements shall be completed in conformance with the approved Construction Plans. All changes to the Construction Plans must be authorized in writing by the City Engineer. In addition, all improvements shall be completed in conformance with the City of Moab Public Improvement Specifications and all state and federal regulations as applicable. Where discrepancies occur between the Construction Plans and the listed reference standards, the reference standard shall prevail. 3 5. Timeline for Completion. Construction of all Required Improvements for Property shall be completed within two (2) years from the date of this Agreement. A reasonable extension of time for the completion of improvements may be granted, at the discretion of the City Council, upon a showing by the Subdivider that there is good cause for an extension and that the work has been diligently prosecuted from the date of this Agreement. 6. Acceptance of Improvements, Warranty. All work shall be subject to quality assurance testing and inspection as specified in the Construction Plans and/or applicable reference standards. Subdivider or Suvdivider’s authorized representative shall provide 48 hours minimum notification to City as applicable when inspection is required. The costs associated with such testing and inspection shall be the responsibility of Subdivider. (a) Upon satisfactory completion of improvements as evidenced by inspection and testing as applicable, all water and sewer mains and all street and public pathway improvements shall be dedicated to City. (b) Subdivider warrants that all public improvements dedicated to City shall be constructed in a workmanlike manner and in accordance with approved plans and specifications, and that all such improvements shall be free of defects in materials and workmanship for a period of one (1) year from the date of acceptance by City. (i) Subdivider shall promptly repair or replace any defective work following receipt of written notice under this warranty from the City. (ii) Subdivider additionally warrants that all public improvements shall be delivered free and clear of all liens or encumbrances. 7. Performance Guarantee. Contemporaneous with the execution of this Agreement, the Subdivider’s lender, Key Bank, shall deliver to the City a validly executed construction loan Set-Aside Agreement, in a form substantially complying with Exhibit 4, attached, for the use and benefit of the City. The Set Aside Agreement shall be in an amount of TWO HUNDRED FIVE THOUSAND TWO HUNDRED EIGHTYTWO DOLLARS which equals one hundred ten percent (110%) of the estimated cost of all Public Improvements. Said cost estimate shall be approved by the City Engineer and is shown in Exhibit 3 hereto. 8. Partial Releases of the funds secured by the Set Aside Agreement may be made for the purpose of paying for labor, materials, or construction services provided in the installation of the Public Improvements. Partial releases of the Set Aside Agreement funds may be jointly authorized by the City and the Subdivider, in writing. 9. Final Release of Set Aside Agreement. Upon completion of all Required Improvements in accordance with the approved Construction Plans, Subdivider may request that the Set Aside Agreement be released. (a) In order for Subdivider to receive final release, the following shall be 4 presented to City: (i) A completed Final Release Form supplied by City and signed by Subdivider. Said form shall include Subdivider’s certification of warranty for the completed improvements. (ii) Copies lien waivers/releases from all contractors who performed work on the project and all suppliers who supplied materials that were incorporated into the work. (iii) Written certification by Subdivider that all outstanding charges for the Improvements have been paid and that there are no liens, encumbrances, or other restrictions on the Improvements. (b) Upon acceptance of a complete request for final release, the City shall verify that all Required Improvements are complete and in accordance with the approved Construction Plans and Final Plat. 10. City’s Use of Set Aside Agreement upon Default. Upon written certification by the City Manager that the Subdivider has failed to perform its obligations under this Agreement, within the time period set forth in this Agreement, and if City intends to proceed with the task of installing any or all of the Required Improvements covered by this Agreement, the City may elect to declare a default pursuant to this Agreement. The City may then proceed to draw on the Set Aside Agreement and apply the funds towards completion of the Public Improvements. 11. Zoning Compliance. Certificates of Occupancy for structures within the Property shall only be issued upon satisfactory completion and acceptance of all Required Improvements as required by this Agreement. In no case shall a Certificate of Occupancy be issued, nor shall any structure be occupied, prior to the completion of all Required Improvements and the satisfaction of zoning requirements for a given lot. The occupying of any structure without a Certificate of Occupancy shall constitute Default as provided for herein. 12. Default, Remedies, Lapse of Plat. All provisions of this Agreement are material and any violation is grounds for declaration of Default. Prior to invoking any remedies for Default under this Agreement City shall deliver written notice to the Subdivider describing the act, event, or omission constituting same, and allowing Subdivider a period of not less than thirty (30) days in which to cure or abate the violation. Cure within that period reinstates this Agreement. (a) Upon declaration of Default, City may exercise any remedies for violation available under City ordinances or Utah statutes, including, without limitation: withholding building permits or certificates of occupancy; commencing an action for specific performance or to enjoin or abate zoning violations or violations of this Agreement; an action for recovery of damages; and/or taking any other remedies available at law or equity. Injunctive relief may be obtained upon a showing of a violation of this Agreement, and without the necessity of the applicant posting a bond. 5 13. General Provisions. This Agreement shall be binding on and inure to the benefit of the successors and assigns of Subdivider in the ownership or development of all or any portion of the Property. Assignment of this Agreement shall require the mutual approval of the City and the proposed assignee, in writing. (a) This Agreement is the product of mutual bargaining. All terms shall be construed in accordance with their plain meaning, regardless of the extent to which either party participated in the drafting. (b) Failure of a party to exercise any right under this Agreement shall not be deemed a waiver of any such right, nor shall any course of dealing or previous action or inaction be deemed a waiver of any rights or claims arising with respect to later or subsequent breaches, acts or omissions. (c) The term “Agreement” includes this Improvements Agreement, all exhibits hereto, the Final Plat/Plan for the subdivision, and all related design drawings, which documents shall constitute the sole and complete Agreement between the parties. The Agreement shall supersede all prior Agreements or representations, however evidenced. No modifications to any of the terms of this Agreement shall be binding, unless reduced to writing and lawfully executed by both parties. (d) The place of performance of this Agreement is Grand County, Utah. In the event of any legal dispute concerning the subjects of this Agreement, the parties agree that the exclusive venue in the Seventh Judicial District Court, Grand County, Utah. In any such proceeding arising under this Agreement, regardless of the denomination of the legal claims, the parties waive trial to a jury on all claims and agree that the action shall be tried to the court. (e) In any legal proceeding concerning the terms of this Agreement the substantially prevailing party shall be entitled to recover its reasonable attorney fees and court costs in addition to any other relief authorized herein. (f) This Agreement shall be governed by Utah law. (g) This Agreement does not create any third-party beneficiary rights. It is specifically understood by the parties that: (i) the Project is a private development; (ii) the City of Moab has no interest in, responsibilities for, or duty to third parties concerning any improvements to the Property, unless/until the City accepts dedication of public improvements pursuant to this Agreement; and (iii) except as otherwise provided herein, Subdivider shall have full power and exclusive control of the Property. (h) The provisions of this Agreement are severable, and if any portion should be held to be invalid or unenforceable, then the remainder of this Agreement shall be construed to be in full force without reference to the invalid 6 provision. (i) In the event of any legal dispute concerning this Agreement neither party shall be liable to the other for consequential damages, lost profits, or delay related damages of any kind. (j) All notices under this Agreement shall be given in writing by first class or certified mail, postage prepaid, and delivered to the following addresses: To the City of Moab: City of Moab 217 East Center Street Moab, Utah 84532 Attn: City Manager To SUBDIVIDER: MAPS Senior Living, LLC 321 East Center Street Moab, Utah 85432 (k) Notice may be delivered to such other parties or addresses as the parties may designate in writing from time to time. (l) Nothing in this Agreement shall be deemed to waive any governmental or other immunity to which the City is entitled under applicable law. -Remainder of Page Intentionally Left Blank- 7 This Agreement has been executed by the City of Moab, acting by and Through the Moab City Council, which has duly authorized execution, and by Subdivider as of the date(s) specified below. CITY OF MOAB: By:____________________________ ___________________ Mayor Emily S. Niehaus Date ATTEST: By:_____________________________ ____________________ Sommar Johnson Date City Recorder SUBDIVIDER: Maps Senior Living, LLC By:_____________________________ ____________________ Date Title:_________________________ STATE OF UTAH ) )§ COUNTY OF GRAND ) The foregoing agreement was executed before me by MAPS Senior Living, LLC, acting by and through _____________________________, this _____ day of ____________, 20__. Witness my hand and official seal. My commission expires: ______________________. ______________________________ Notary Public, State of Utah Address: ______________________ 8 ACKNOWLEDGMENT The Housing Authority of Southeastern Utah, as party to the former Subdivision Improvements Agreement with the City of Moab, dated March 12, 2019, hereby consents to the termination of the agreement of that date, which shall be superseded by this Agreement. THE HOUSING AUTHORITY OF SOUTHEASTERN UTAH: By:________________________________ ____________________ Benjamin Riley, Executive Director Date 4835-7949-0715 Exhibit 4 KeyBank National Association 4910 Tiedeman Road, 3rd Floor Mail Code OH-01-51-0311 Brooklyn, Ohio 44144 Attention: Community Development Lending Reference: MAPS Senior Living, LLC JulyAugust ___, 2019 City of Moab 217 East Center Street Moab, Utah 84532 Attn: City Manager Re: Completion Assurance/Set Aside Letter Borrower: MAPS SENIOR LIVING, LLC, a Utah limited liability company Bank's Loan No. 10201400 Municipality: City of Moab, a Utah municipality Amounts: See Borrower Work Budget attached hereto as Exhibit B Amount: [Two Hundred Five Thousand Two Hundred Eighty Two and No/100 Dollars ($205,282.00)] Ladies and Gentlemen: We are pleased to advise you that KeyBank National Association, a national banking association, has made or has agreed to make a construction loan (the “Loan”) to the above-referenced Borrower (“Borrower”) for the purpose of financing, among other things, the construction of certain on-site, off-site, street improvement and/or other improvements (collectively, the “Borrower Work” as described in Exhibit AB) to the property described in Exhibit BA hereto (the “Property”), which we understand Borrower, as successor-in-interest to Housing Authority of Southeastern Utah, has agreed with the City of Moab (“City” or “you”) to construct at Borrower’s expense pursuant to a subdivision improvements agreement (the “SIA”). In consideration of Borrower’s agreement to perform the Borrower Work and at your request, we agree to establish certain on-site, off-site, and street improvement categories in the construction loan budget in an amount not less than two hundred five thousand two hundred eighty two dollars [$205,282.00][Two Hundred Five Thousand Two Hundred Eighty Two and No/100 Dollars ($205,282.00)] in the aggregate and as more fully set forth above (the “Set Aside Funds”), to pay for the cost of constructing the Borrower Work. Although Borrower has represented to us that such Set Aside Funds are sufficient to pay for the cost of constructing and completing the Borrower Work, we make no representation or warranty as to whether the amount of such Set Aside Funds is or will be sufficient to complete and pay for the Borrower Work. The disbursement of Set Aside Funds will be subject to stop notices (if applicable), tax assessments, levy, attachment, executions, any statutory or governmental requirements mandating a holdback of Loan funds, any order of a court of competent jurisdiction and any other legal process. We have no obligation to ensure that the Set Aside Funds, if disbursed,Disbursement of any portion of the Set Aside Funds from such budget categories to Borrower will be made upon the request of Borrower and in accordance with the terms and conditionsprocedures set forth in that certain Construction Loan Agreement of substantially even date by and between Borrower and KeyBank National Association, a national banking association, governing the Loan (as amended, the “Construction Formatted: Font: 16 pt 4835-7949-0715 City of Moab JulyAugust ___, 2019 Page 2 Loan Agreement”). . In addition, the Construction Loan Agreement contains certain conditions precedent to funding disbursements of the Set Aside Funds from the line item budget categories which to date have not been satisfied by Borrower. We have no obligation to ensure that the Set Aside Funds, if disbursed to Borrower or City (as applicable), are actually used for the construction of the Borrower Work, or that the Borrower Work is properly and timely constructed according to any required standard of workmanship. In the absence of the City exercising its Draw Right (as defined below) hereunder, we will only disburse the Set Aside Funds to the Borrower (i) upon the City’s written consent to Borrower’s request for such funds, which consent may be evidenced by the City Engineer’s (or other duly authorized representative’s) signature on the Borrower’s draw request or certification submitted to Lender for such funds. If the City’s right to draw on the Set Aside Funds to complete the Borrower Work has arisen under the SIA pursuant to the occurrence of a default thereunder (such right, the “Draw Right”), we will disburse to the City (and not Borrower) the remaining undisbursed balance, if any, of the Set Aside Funds for the City to use in diligently completing the Borrower Work and paying the costs of it. We will only disburse these Set Aside Funds to the City if (i) the Draw Right has arisen upon a declaration of default by the City under the SIA, and (ii) we receive the written demand of the City for such funds. For the avoidance of doubt, our liability, if any, under this letter will be reduced by the aggregate amount of Set Aside Funds which we actually disburse to the Borrower or the City from the applicable category(ies) in the Loan budget provided that, for the avoidance of doubt, our liability hereunder shall not be reduced by any advance of Set Aside Funds to the Borrower if the City hasn’t consented to such advance in writing as provided herein. Our liability will expire and terminate upon, and no claim that you might bring hereunder shall be valid unless received by us prior to, the earliest to occur of: (i) acceptance of the Borrower Work by you as evidenced in a writing delivered to us at our address set forth above (or such other address of which we send you notice at your address set forth above), (ii) disbursement in full of all Set Aside Funds in the respective category(ies) in the Loan budget, or (iii) your return of the original of this letter to us at our address set forth above (or such other address of which we send you notice at your address set forth above). This letter will be governed by the laws of the State of Utah. No notice is required of your acceptance of this letter. [Remainder of Page Intentionally Left Blank] 4835-7949-0715 City of Moab JulyAugust ___, 2019 Page 3 Very truly yours, KEYBANK NATIONAL ASSOCIATION a national banking association By: Name: Sarah Geis Title: Vice President 4835-7949-0715 Exhibit BA EXHIBIT BA PROPERTY DESCRIPTION That certain real property owned by Borrower and situated in the County of Grand, State of Utah and described as follows: Parcels 1 and 2, Maps Subdivision, Phase II, as recorded at Reception 534983, Book 886, Page 510 of the land records, Grand County, Utah. 4835-7949-0715 4835-7949-0715 Exhibit AB EXHIBIT AB BORROWER WORK BUDGET Utah 18-055 PIA ITEM NO. CONTRACT ITEM UNIT PLAN Unit Cost Total 1 EARTHWORK - EXCAVATION CY 400 $ 15.00 $ 6,000 2 SAWCUT, REMOVAL & DISPOSAL OF ASPHALT PAVEMENT SY 50 $ 40.00 $ 2,000 3 SAWC., REM., & DISP. OF SIDEWALK, CURB & GUTTER SY 4 $ 50.00 $ 200 4 CLEARING, GRUBBING, SUBGRADE PREP SY 1,930 $ 4.00 $ 7,720 5 AGGREGATE BASE COURSE 3/4" (8" DEPTH) CY 400 $ 35.00 $ 1 4,000 6 ASPHALT PAVEMENT (3 INCH) SY 1,060 $ 25.00 $ 2 6,500 7 CONCRETE CURB & GUTTER LF 540 $ 25.00 $ 1 3,500 8 CONCRETE SIDWALK (4" DEPTH) SY 270.0 $ 10.00 $ 2,700 9 CONCRETE APRON (6" DEPTH) SY 20.0 $ 15.00 $ 300 $ 7 2,920 ITEM NO. CONTRACT ITEM UNIT PLAN Unit Cost Total 10 8" SDR-35 INCL. TRENCH, BED, BACKFILL LF 305 $ 80.00 $ 2 4,400 11 48" DIA. MANHOLE EA 1 $ 4 ,000.00 $ 4,000 12 CONNECT TO EXISTING MANHOLE EA 1 $ 3 ,500.00 $ 3,500 13 4" SDR-35 INC. TRENCH, BED, BACKFILL, CLEANOUT LF 15 $ 60.00 $ 900 $ 3 2,800 ITEM NO. CONTRACT ITEM UNIT PLAN Unit Cost Total 14 8" C900 INCL. TRENCH, BED, BACKFILL LF 560 $ 100.00 $ 5 6,000 15 8" WATER VALVE EA 3 $ 3 ,000.00 $ 9,000 16 8" FITTING (8 TEE, 45 DEG. ELBOW,8x6 REDUCER,CAP) EA 5 $ 1 ,000.00 $ 5,000 17 6" C900 INCL. TRENCH, BED, BACKFILL LF 40 $ 90.00 $ 3,600 18 6" FITTING (CAP) EA 1 $ 800.00 $ 800 19 FIRE HYDRANT ASSEMBLY W/ 6" VALVE EA 1 $ 6 ,500.00 $ 6,500 $ 8 0,900 $ 186,620 x 110%= $205,282.00 Moab City Council Agenda Item Meeting Date: August 27, 2019 Title: A Resolution adopting the 2019 Sustainability Action Plan Disposition: Discussion and adoption Staff Presenter: Rosemarie Russo Attachment(s): - Attachment 1: Proposed Resolution 45-2019 Recommended Motion: I move to adopt Resolution 45- 2019 adopting the 2019 Sustainability Action Plan Background/Summary: The evidence is overwhelming that, despite the fact that Moab has an aspirational Sustainability Action Plan, the nation and global preparation for climate related impacts (i.e., extreme cold, increase in days over 105 degrees, increase in severity and duration of wildfires and extended droughts) is inadequate. Moab has to build upon our long history of promoting sustainable practices through numerous resolutions, ordinances, plans, projects and internal policies as provide leadership to our community and others. The 2019 Sustainability Action Plan outlines the goals, schedule, and strategies that will help put the community on a long- term sustainable path. Within this document are recommendations to augment existing goals, and metrics, with a special emphasis on energy use and sources of energy because how we acquire energy and how efficiently we use resources will determine, if Moab can achieve transformational change and protect the world-class environment we call home. 1 CITY OF MOAB RESOLUTION NO. 45-2019 A RESOLUTION ADOPTING THE TEN YEAR SUSTAINABILITY PLAN INCLUDING THE ACCELARATED GOAL OF 100% RENEWABLE ELECTRICITY BY 2030 WHEREAS, the evidence is overwhelming that, despite the fact that Moab has an aspirational Sustainability Action Plan, the nation and global preparation for climate related impacts (i.e., extreme cold, increase in days over 105 degrees, increase in severity and duration of wildfires and extended droughts) is inadequate. WHEREAS, by passing the Plan, City Council will signal the urgency of creating political will to: • Halt the loss of wildlife populations. • Include underrepresented population’ voices in sustainability planning. • Educate the public about water and energy efficiency strategies to save money. • Quickly transition to a just, renewable electricity source. WHEREAS, the municipality has not set numerical goals or established baseline data, the community inventory cited will allow us to track progress for energy and new systematic goals including water quality; waste diversion and recycling; alternative transportation, education; purchasing; biodiversity; forest canopy; health and local food; WHEREAS, separate amendments will be presented to Council to address achieving systematic sustainability goals; WHEREAS, the transition to a low-carbon community reliant on the efficient use of renewable energy resources and electrified transportation will provide a range of benefits including improved air quality, enhanced public health, increased national and energy security, local green jobs, reduced reliance on finite resources and myriad other positive outcomes; and WHEREAS, Moab is committed to helping facilitate this transition alongside other national and international communities that have prioritized investing in clean energy to enhance the well-being of current and future generations; and 2 NOW, THEREFORE, BE IT RESOLVED by the Moab City Council and Mayor as follows: 1. Confirm the City’s existing goals and establish amended and new goals that align with the best available science by approving the Sustainability Action Plan 2. Effective Date and Duration. This resolution shall take effect immediately upon passage by the City Council, regardless of the date of publication. PASSED AND APPROVED by a majority of the City Council, this 27 day of August, 2019. By: __________________________ _________________ Emily S. Niehaus, Mayor Date Attest: By: ___________________________ ________________ Sommar Johnson, Recorder Date Sustainability Action Plan Framework, Principles, Guidelines, Goals & Strategies 2019 4 “Sustainability is equity over time… think of it as extending the Golden Rule through time. Do unto future generations as you would have them do unto you.” — Robert Gilman, Context Institute 5 6 Letter from the Sustainability Director ........................................................................7 Acknowledgements .........................................................................................................8 Awards ...............................................................................................................................9 Background .......................................................................................................................10 Introduction ............................................................................................................................ Future Plans ............................................................................................................................ Vision ........................................................................................................................................ Mission ........................................................................................................................... Progress .............................................................................................................................11 Goals ..................................................................................................................................13 Goal #1: Sustainability, Adaptation & Mitigation ........................................................14 Goal #2: Energy Efficiency and Renewable Energy ..................................................15 Goal #3: Water .................................................................................................................18 Goal #4: Waste Reduction & Diversion ........................................................................20 Goal #5: Active Transportation & Alternative Fuels ..................................................21 Goal #6: Education and Outreach ................................................................................22 Goal #7: Funding & Purchasing .....................................................................................24 Goal #8: Biodiversity .......................................................................................................25 Goal #9: Health, Well-Being and Social Equity ..........................................................26 Goal #10 Food ..................................................................................................................27 Innovation Corner ............................................................................................................28 Conclusion .........................................................................................................................30 Bikers, Rafters & Climbers: Guide to Sustainability Options ...................................33 Tables & Figures Figure 1: Percentage of Carbon Emissions by Source ...............................................14 Figure 2: Municipal Electrical Costs ..............................................................................15 Figure 3: Percentage Municipal Electricity Costs by Sector ....................................15 Figure 4: Rocky Mountain Power Energy Source for Electricity .............................15 Figure 5: Renewable Energy Trends ....................................................................................16 Figure 6: 2016 Baseline Electricity Use ...............................................................................16 Figure 7: Baseline Community Electricity Use ..................................................................16 Figure 8: Net Metering Generation ......................................................................................16 Figure 9: Net Metering Process .............................................................................................16 Figure 10: Blue Sky Energy .....................................................................................................17 Figure 11: Moab Bike Routes Map ..................................................................................22 Figure 12: wattSmart Saving Equivalents ............................................................................32 Table 1: Renewable Blue Sky Projects ..................................................................................10 Table 2: City of Moab Timeline ..............................................................................................11 Table 3: Water Users by Source ....................................................................................19 Table 4: 2019 Strategic Initiatives .................................................................................29 Table 5: Challenge Triple E Savings ..............................................................................32 Appendix A: Actionable Items — Take It Personally .................................................38 Appendix B: Implementation Grid ...............................................................................39 Appendix C: Timeline — Gantt Chart ...........................................................................49 Appendix D: Preliminary Baseline Inventory ..............................................................57 Appendix E: Co-Benefits and Triple Bottom Line Analysis ......................................58 Appendix F: Residential Efficiency Data Set ..............................................................66 Appendix G: Community-Based Social Marketing .....................................................67 Appendix H: Waste Diversion ........................................................................................69 Appendix I: Glossary .......................................................................................................71 Appendix J: Acronyms ....................................................................................................74 Appendix K: Living Buildings, Well Building, LEED, Alignment ..............................75 Appendix L: City Document Review .............................................................................78 References .........................................................................................................................80 Table of Contents 7 Moab has a long history of promoting sustainable practices through numerous resolutions, ordinances, plans, projects and internal policies. The 2019 Sustainability Action Plan outlines the goals, schedule, and strategies that will help put the community on a long- term sustainable path. Incremental change, minimizing negative environmental and social impacts is no longer a viable option, if Moab hopes to reach existing, new and revised goals. During my first year at the City, I have concentrated my efforts on water and energy conservation efforts and establishing baseline data so that we can set and track measureable goals. Unfortunately, in spite of setting a 20% energy reduction goal in 2008, the energy consumption use has increased by 34% over the last 17 years. Given that the scale of change we seek is immense and our impact has steadily increased, new strategies, resources and engagement are critical. Buildings can account for between 40% and 75% of community-level greenhouse gas emissions in Utah. Given that many impactful and cost-effective opportunities exist to reduce energy use (and associated greenhouse gases) in buildings, and that reducing energy consumption is typically the lowest cost strategy to reducing emissions and dramatically decreasing energy consumption among buildings, that is where most of my time has been spent so that we can create a 100% renewable electricity system. As community-wide electricity consumption is reduced, the amount of renewable electricity needed by the community is also lowered, making it easier to achieve a 100% renewable electricity scenario. Beyond the prodigious role that the build environment plays, sustainability efforts need to address resilience, carbon neutrality, watershed health, community vitality, regeneration and triple bottom line thinking (i.e., social, economic and environmental). In order for the goals to be more than words in a City Plan, Council and citizens will need to dedicate substantial time and resources to educate, assist and support the priority strategies. See Appendix A for recommendations. This quote from Paul Hawkins succinctly summarizes the main intent of our work: “Leave the world better than you found it, take no more than you need, try not to harm life or the environment, make amends if you do.” The plan content is a reflection of input from numerous business and community members to identify actions that will increase efficiency and resiliency because: • Economic health, social inclusion, and environmental quality are mutually interdependent. • Policy choices have long-term cost effectivenes. • Organizational and community awareness, responsibility, participation, and education are key elements of sustainability. • Local actions have regional, national, and global implications. Within this document are recommendations to augment existing goals, and metrics, because how we acquire energy and how efficiently we use resources will determine, if Moab can achieve transformational change and protect the world-class environment we call home. Sustainably yours, Dr. Rosemarie Russo Letter from the Sustainability Director 8 Acknowledgements City and County Leadership Rani Derasary, City Council Mike Duncan, City Council Karen Guzman-Newton, City Council Kalen Jones, City Council Tawny Knuteson-Boyd, City Council Mary McGann, Grand County Council Emily Niehaus, Mayor of Moab City Staff Contributors Makeda Barkley, Graphic Design Didar Charles, Engineering Intern Lisa Church, Communications & Engagement Manager Eric Johanson, Assistant City Engineer Eve Tallman, Water Conservation & Drought Management Advisory Board Community Representatives Kristen Ardani, NREL Andrew Austin, Austin Solar Kyle Bailey, Water Conservation & Drought Management Advisory Board Kate Bowman, Utah Clean Energy Roslynn Brain-McCann, Utah State University: Moab Darcey Brown, Grand County League of Women Voters Zak Bynum, Green to Gold (GtG) Business Partner Andrea Cook, Educational Consultant Sam Cunningham, Grand Conservation Board A special thanks to the nearly 40 staff and community members that provided valuable input, time and expertise to this Plan as well as additional government and utility representatives that requested anonymity. Kara Dohrenwend, Water Conservation & Drought Management Advisory Board Deb Dull, Rocky Mountain Power Regional Business Manager John Gould, Water Conservation & Drought Management Advisory Board Arne Hulquist, Water Conservation & Drought Management Advisory Board Ruth Linford, The Art of Farm Eric Lockhart, NREL Kyle McVey, Educational Consultant Jeremy Lynch, Water Conservation & Drought Management Advisory Board Natalie Mims Frick, LBNL Kyle McVey, Educational Consultant Joyce McLaren, NREL Moab Area Watershed Partnership Clay Monroe, wattsmart Business Program Manager Rachel Nelson, Utah State University Denver Perkins, Water Conservation & Drought Management Advisory Board Orion Rogers, SE Utah District Health Department David Sakrison, Former Moab Mayor Howard Trenholme, Green to Gold Business Partner Crystal White, Dark Sky Committee Sarah Wright, UCE SE Utah 500 Women Scientists 9 • Green to Gold Partner Award • League of American Bicyclists: Bicycle Friendly Community Award • Blue Sky Community Challenge • Blue Sky Legacy Award Recipient • Blue Sky Renewable Energy Project Funding Awardee • U.S. EPA Green Power Partner • Wattsmart Community: $30,000 free consulting • Electric Vehicle Charging Stations: $50,000 grant • National Geographic’s Aspen Institute Environmental Scholar Award: Sustainability Director, Dr. Rosemarie Russo • The Rural Water Association of Utah: Water Reclamation Plant Manager Greg Fosse named Water Plant Operator of the Year Awards The City of Moab and staff have received numerous sustainability-related awards: 10 Background The City of Moab has always been influenced by, and is determined to sustain, natural resources. Exemplifying the City’s long history of environmental stewardship, the City gained recognition by the EPA as the first Green Power Community. Likewise, as a longtime supporter of renewable energy, the City of Moab has a co-beneficial partnership with Rocky Mountain Power beginning with its participation in Blue Sky in 2002. Through its Blue Sky participation, the Moab community has been awarded over $430,000 in Blue Sky renewable energy funding for seven local renewable energy projects. See Table 1: Renewable Blue Sky Projects. With this as a backdrop, the City recognizes the need to continue to lead in promoting energy efficiency and renewable energy community-wide and regionally. To this end, the City believes in not only setting goals to reduce energy use and increase support for and use of non- renewable fuels, but also to take immediate and impactful action today to make progress on its aspirational goals identified in 2020 Vision: A Sustainable Moab Plan and in support of the Global Covenant of Mayors, signed in 2017. In addition to aspirational energy goals, the City set ambitious greenhouse gas reduction goals through resolutions and outlined in the General Plan. However, over the past decade the City has not: • Determined its baseline natural resource use, so percent reductions are meaningless for the select numerical goals that have been established; • Set numerical goals for the vast majority of goals specified in the General Plan; • Determine priority and comprehensive goals; • Implemented or tracked strategies based on a triple bottom line analysis or life cycle assessment; nor set aside an adequate budget to implement strategies. Beginning in 2017, focus have been centered on two main goals: energy and water. In 2017, the General Plan was evaluated and an energy baseline was determined to evaluate progress against the energy goals. We selected 2016 as the baseline year to be consistent with two other local municipalities (i.e., Park City and Salt Lake City) in order to collaborate on a regional basis. In order to assess progress toward the overarching carbon goal, an inventory of carbon, electricity, water, natural gas, fuel, and recycling, travel (i.e., car, plane) and solid waste usage for both the municipal government and community is in progress. The 2019-2029 Sustainability Plan delineates immediate, short-term and long-term strategies for the reduction and mitigation of the organization’s and communities net carbon emissions. The Plan follows in the footsteps of the initial program successes by incrementally transforming Moab into an environmentally sustainable community with the long-term goal of becoming carbon neutral. The Plan lays out strategies to reduce our environmental impact, save energy, and support health. The Plan documents long-term goals accompanied by interim benchmarks that measure progress, and provides a list of strategic actions that can be implemented by individuals to help make progress on the organization’s sustainability goals that will address the top goals. Appendix B documents a series of short, medium and long- term strategies. In addition to working towards established sustainability goals, the Plan delineates 10 priority areas that will guide future policy decisions. Introduction Table 1. Blue Sky Projects (7) and Self-Funded (4). 11 Policy Statement Moab supports the overarching sustainability principle: “To systematically, creatively, and thoughtfully utilize environmental, human, and economic resources to meet our present needs and those of future generations without compromising the ecosystems on which we depend.” Vision Moab will create a culture of sustainability through engagement, education, collaboration, and innovation to inspire and guide the community and tourists. Mission Leading responsibly through triple bottom line stewardship. Strategies & Actions by Focus Area The Intergovernmental PAnel on Climate Change (IPCC) estimates that global emissions need to be reduced by 40-70% by 2050 and carbon neutrality by the end of the century. Scientific consensus sets an 8% reduction as key. (Hansen, 2016) Our Plan is divided into ten focus areas. Each area section includes a goal, an introduction to its relevance, and accomplishments to date, benchmarks and the strategies and actions that will get us there. Each broad strategy is driven forward by specific priority actions that focus on mitigation, adaptation, or both. As details and funding becomes available, more specific quantitative goals and milestones will be created, driving the pace of strategy implementation. The Plan narrative lays out the “what and the why”; Appendix A: “Take It Personally” addresses the personal actions steps, Appendix B: Implementation Grid addresses the “how” including the timeframe of priority actions and which City departments and community stakeholders are responsible for accomplishing them and Appendix C: Gantt Chart outlines the “when” over a ten year period knowing that some activities will be ongoing. Nationally and internationally many municipal governments are adopting goals based on revised scientific findings related to climate change. There is scientific consensus that a global atmospheric concentration of less than 350 parts per million (ppm) of carbon dioxide equivalent (CO2e) is necessary to avoid dangerous anthropogenic interference with the climate and to limit global temperature increase to less than 1.5°C. Increasingly, climate scientists have determined that the concentration may need to be 350 ppm or less. Data suggest that in order to reach these necessary global concentrations, goals need to be adjusted to decrease emissions by 80 to 95% below 1990 levels by 2050. Governments have begun to adopt these targets as long-term goals. The European Union (EU) has committed to reduce its emissions by 20% below 1990 levels by 2020. The EU has an ultimate goal of reducing its carbon emissions by 80 to 95% below 1990 levels by 2050. Some local (and national) governments are using this goal as an interim step to achieving long term neutrality. The City has been examining and evaluating emerging best practices and strategies to reduce local carbon emissions. Given the new reduction goals and generated capacity being adopted and achieved by other jurisdictions such as Austin, the organization and community will have to set aside additional resources and staff to achieve the aspirational goals already set for carbon neutrality. Austin and Aspen have achieved a 100% renewable energy goal for municipal operations. Denmark set a goal to reduce carbon emissions 40% below 1990 levels by 2020, with associated goals of 30% renewable energy-consumption and gross energy savings of 4% (relative to 2005). Table 2. City of Moab Timeline 12 In a recent U.S. mayoral survey about energy and carbon reduction strategies, the top five areas identified included LED energy efficient lighting, low-energy buildings, solar electricity generation, energy efficient pumps and appliances, and hybrid vehicles. The emphasis on low-energy buildings and solar generation supports the revised energy goals. Moab can build upon its success while recognizing the numerical reductions have not been remotely achieved and certain areas have not been addressed at all. Public Engagement The public provided valuable input that helped shaped the plan through three half-day charrettes in 2017, and numerous one-on-one meetings in 2019 with the Water Conservation and Drought Advisory Board, Grand Conservation District Board, Grand County Solid Waste Special Service District Board #1, Grand County League of Women Voters forums, web feedback and newspaper articles. Greenhouse Gas Inventory, Emission Modeling & Target-Setting Moab as a signatory to the Mayor’s Global Covenant will be utilizing specified EPA and International Council Local Environmental Initiatives’ (ICLEI) protocols. A separate quality assurance document is being drafted with methodologies, assumptions and emission factors. There is some degree of uncertainty in any inventory due to incomplete data or translating sector based activities into emissions. Additional data gathering and using a consumption based vs sector based inventory will be necessary. 13 Goal #1: Sustainability, Adaptation and Mitigation Reduction of community greenhouse gases by at least 80% by 2040, including a reduction of at least 50% by 2032; and ultimately achieving carbon neutrality for the municipal organization. This reduction will be relative to a 2016 community emissions baseline, including emissions from energy use and transportation. Goal # 2: Energy: Electricity & Renewable Energy • Transition to 100% for community electricity by 2030. •Transition to 100% for municipal government operations by 2027 including at least 50% municipal renewable energy by 2024 from the 2016 baseline with at least 10% provided by onsite distributive energy. • Reduction of electricity demand by 20% by 2032 in City buildings. • Achieve a 20% Btu/sq. reduction in all City facilities from 2016 baseline levels. Goal #3 — Water • Reduce water consumption by 20 percent per capita and 20 percent of outdoor usage of culinary water from the 2016 baseline by 2032. • Protect quality of surface and groundwater to maintain sole source aquifer designation. Goal #4 — Waste Diversion & Recycling Reduce trash by 20 percent per capita and increase diversion rate for community by 20 percent by 2032. Increase participation in City curbside recycling by 20% and decrease waste for residents and commercial customers by 2032; decrease construction debris and waste by 50% by 2024 and increase composting by 20% by 2024. The 2017 Moab City General Plan promotes using the most cost-effective and environmentally sustainable systems for the disposal, composting, reusing and recycling of resources. The recycling strategies are to encourage waste reduction. The EPA prioritizes recycling practices according to the following hierarchy: 1. Reduce waste at the source. 2. Reuse and repurpose materials. 3. Recycle. Goal # 5— Fuel/Transportation Ensure all community members and tourists have access to multimodal means of commuter travel, to reduce single–occupancy vehicles and support public adoption of electric vehicles by 10% by 2032. Reduce traditional fuel use by 20 percent and total vehicle miles travel (VMT) for community by 20 percent by 2032. Reduce traditional fuel use by the City’s vehicle fleet by 20% by 2032 and reach a 1.5 average vehicle ridership (AVR) by 2032 for city employees. Goal #6 — Education, Outreach & Legislative Indicatives Increase sustainable practices throughout the community, the state, and nation. Triple bottom- line analysis (i.e., environmental, economic and social) will be available to all levels of the community—students in grades K-12, college level, and the general public—as well as internal customers (staff). Support sustainable policies at the state and federal level. Goal #7 — Purchasing & Funding • Foster a culture of sustainability in the organization and community and advance goals through various funding mechanisms (i.e., Innovation Fund, grants). • Purchasing decisions shall evaluate products and services that have a reduced impact while maintaining fiscal responsibility. Goal #8— Biodiversity & Forest Canopy Achieve a 10% forest canopy density; a 70 native vegetation cover and soil stability on select City property and promote carbon sequestration by restoring and preserving biological soil crusts. Goal #9 — Health, Well-Being & Social Equity Ensure that Moab is an inclusive community, where physical and mental health and social wellbeing are accessible to all. Goal #10 – Food Promote long-term agricultural stewardship and access to healthy local food. Goals The following new and revised goals are recommended. Goals in italics are new or revised goals. 14 Relevance • Carbon Dioxide Equivalent (CO2e) includes heat- trapping gases such as carbon dioxide and methane. As fossil fuel usage has increased over the last 200 years, the concentration of CO2 in the atmosphere has increased at a quicker rate than natural systems can absorb. Trapped CO2 gradually increase the amount of heat in the atmosphere, causing a slow, gradual rise in temperatures. • The City can provide regional leadership to reduce CO2e in a manner that supports clean tech jobs and reduces the City’s annual energy costs. For example: The City is now able to validate what areas of operation generate the most carbon emissions. Not surprisingly, carbon emissions and energy costs are directly related — meaning reduced CO2e emissions result in a corresponding decrease in energy costs. • Because of the uncertainty involved in setting and meeting goals decades out, staff set interim target of 2% annual reductions in addition to long-term goals. Benchmarks 2016: Municipal carbon emissions: XXX MT CO2e 2016: Community carbon emissions: 420,863 MT CO2e Accomplishments • The City benchmarked its greenhouse gas emissions and related costs from electrical generation. The City is beginning to quantify municipal and community carbon emissions from additional sources and plans to include that data in the first Progress Report. • The City of Moab will be calculating all of its carbon emissions inventories using International Council Local Environmental Initiatives (ICLEI) and EPA’s protocols. This methodology will allow greater efficiency in conducting the annual carbon inventory and the implementation of more quality assurance and control measures. Information is being gathered to provide detailed descriptions of methods, emission factors, and data sources. • Updated City’s Sustainability website page and created an external website portal that can be utilized as an inspirational and educational resource. The site includes periodic progress reports, management, successes, tips, and resources. • Developed municipal carbon performance measures for community dashboard. • The city launched a massive energy lighting retrofit to reduce emissions in August 2018, and 82 businesses participated including the municipal government. Participants reduced 324,854 kWh and 230 metric tons of carbon emissions. Businesses will collectively save $25,988 annually. Short-term Plans • Identify and implement at least three priority projects for each sustainability goal annually. • Approve budget fund offers to help reach the sustainability goals over a 3-year period. • Completion of at least three building or grounds audits (water, energy, or solid waste), if funding is awarded. • Monitor the NCRES site for drought conditions and adjust water storage capacity from conservation efforts and to maintain water pressure for wildfires. Goal #1 Sustainability, Adaption & Mitigation Reduction of community greenhouse gases by at least 80% by 2040, including a reduction of at least 50% by 2032; and ultimately achieving carbon neutrality for the municipal organization. Goal Figure 1. Percentage of Emissions by Source 15 Long-term and Ongoing Plans • Identify and assess one department per year to determine baseline levels and strategies to meet the carbon commitment. Energy conservation practices, adoption of new technology, and investments in renewable energy sources will be implemented. • Evaluate the feasibility of developing high-level estimates of the carbon impacts of future projects and policies. If feasible, this would enable the carbon impact to be considered as part of the evaluation criteria for City Council. • Set aspiration date for the organization to reach carbon neutrality. Relevance • Electricity consumption is a primary source of carbon emissions. Preliminary community results indicate electricity accounts for 20% of carbon emissions. Electricity costs are a significant driver for conservation. In 2017, the City government consumed 324,854 kWh of electricity at a cost of $338,988 for its buildings. Additional costs were the Wastewater Reclamation Plant ($30,330), water pumps ($42,534), traffic and street lights ($82,758) and parks ($15,732). By reducing energy, the organization can save thousands of dollars. Percentages are as follows in Figure 3. • In addition to reducing energy, using cleaner energy is key to creating a healthy community. Given that Rocky Mountain Power’s (RMP) energy mix is over 55% from coal, it is critical that the City investigate cleaner energy sources. See Figure 5 for trends in renewable energy adoption. • Lowering utility costs through conservation and efficiency reduces environmental impact and frees funding for municipal services like police protection. The cheapest way to achieve lower utility costs is through conservation (e.g., turning off lights) and investments in efficiency (e.g., retrofit lighting). The City can also become a leader in energy efficiency by piloting new technologies and educating the community about the process. • Energy consumption is a mix of electricity and natural gas. Electrical use in the community and municipal government has been steadily increasing. In 2008 the City set a 20% reduction goal but electrical consumption has increased by 34%. As outlined Goal Transition to 100% for its community electricity by 2030. Transition to 100% for the municipal government operations by 2027, including at least 50% municipal renewable energy by 2024 from the 2016 baseline with at least 10% provided by onsite distributive energy. Reduction of electricity demand by 20% by 2032. $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Buildings Water Water Reclamation Solar Streetlights Parks/Recreation Annual Municipal Electricity Costs Yearly Cost Figure 2. Municipal Electricity Costs Percentage of Municipal Electricity Costs Buildings Water Water Reclamation Solar Streetlights Parks/Recreation Figure 3. Percentage of Municipal Electricity Costs Figure 4. Rocky Mountain Power’s Current & Future Energy Source for Electricity Goal #2 Energy: Electricity & Renewables 16 Baseline Community Electricity Use (123.5 GWh) Figure 7. 2016 Baseline Community Electricity Use (123.5 GWh) Figure 5. Renewable Energy Trends in the Community Energy Plan, the community energy use for our baseline year is 123.5 GWh with businesses using 67%. See Figure 6. • Electricity use has been increasing from both the residential and business sector. The usage has increased slightly more from the business sector. See Figure 7. • Emissions from energy have been increasing as well. The City is investigating different suppliers for natural gas and may heat the new Public Works building with a mix of natural gas and solar. The energy emissions from different suppliers vary depending on which uses a higher percentage of coal as a fuel source. Benchmarks 2016 Municipal Annual kWh usage 232,915 2016 Subscriber Solar Renewable kWh usage 190,800 2016: Community annual GWh usage: 123.5 2016: Renewable GWh usage: 1.52 Accomplishments • The municipal and communities renewable energy use has been increasing by both residents and businesses. However, the percentages remain well below the adopted goals. Renewable energy use is a combination of net metering and subscription adoption through the Blue Sky and Solar Subscriber Programs. Net metering is rooftop and ground mount systems that residents or businesses have on their properties. Figure 9 explains the net metering process. • Subscriber programs include customers paying a premium to have a percenatage of their electricity use provided by a large scale array owned by Rocky Mountain which may be situated in a different community. • In August 2017, the City hired a Sustainability Director to reduce utility costs, in conjunction with the Public Works Director. • Retrofits and lighting upgrades were conducted at several facilities and will be expanded by staff each year, contingent on funding. In 2018, lighting upgrades saved $9,601 at the Aquatic Center. 2016 Electricity Use Figure 6. 2016 Electricity Use Figure 9. Net Metering Process Figure 8. Net Metering Non-Residential 47% Residential 53% Net Metering kWh Generation (1.52 GWh) Non-residential 47% Residential 53% 17 Retrofits will continue for a number of years, saving the City additional funds. • Beginning in 2019, the City will work with the Utah Department of Transportation (UDOT) and RMP to convert street and traffic lights to LED (light emitting diode) bulbs. Lights will be dark sky compliant. The LED bulbs are up to 90% more energy efficient and last much longer, resulting in substantial annual savings. Today, several traffic and pedestrian signals are equipped with LED bulbs. • The City has followed the principles of Leadership In Energy and Environmental Design (LEED) for the remodel of City Hall. LEED is a voluntary green building certification program that requires energy and water efficiency and sustainable materials and construction practices. • Through a partnership with ENERGY STAR, staff has begun to measure and track energy performance of select City facilities. • In 2019, building air barrier leakage and envelope testing will be performed at City Hall in support of planned comprehensive recommissioning. Short-term Plans • The City will partner with the Solar Energy Innovation Network to identify and address technical issues associated with high solar market penetration, coaching institutional and technical challenges, and focus implement the strategies, actionable steps, and pilot programs identified in the Plan. • The City is working to increase the percentage of businesses that subscribe to solar as well as the amount of renewable energy used per businesses. Again, the percentage of renewable subscriptions is 3% well below the goals adopted by Council. See Figure 10: Blue Sky Energy. • In addition to efficiency improvements, the City’s footprint can be reduced by switching to renewable energy sources such as solar electricity. While solar is more expensive than traditional fuel sources today, purchase power agreements and solar collective buys will bring those costs down. In addition, solar power provides a hedge against the rise of future energy costs and is a sustainable way to produce electricity. Budget offers will need to be developed. • Review and revise codes that impede solar adoption fee waivers. • Engage one developer to participate in Rocky Mountain Power’s New Homes Program by the end of 2019. • Increase energy efficiency in new and remodel construction. • Retrofit outdoor lighting in restrooms and pavilions at the majority of the City’s parks. • Increase communication and accountability regarding computer power settings. • Conduct energy efficiency and dark sky lighting retrofits at City buildings and throughout the community. • All new City buildings or remodels over 5,000 sq feet will be built to LEED Gold standards. Long-term and Ongoing Plans • Efficient allocation of public dollars while leveraging incentives to develop a cost effective renewable energy program. • Increase in on-site renewable portfolio with geothermal, photovoltaic, solar storage. • All City facilities will achieve a 20% kBtu sq. ft./year reduction by 2024 based on the 2016 baseline by 2024. This will be accomplished using the following tools: • Conservation through education: 1. Improved management of operational practices; 2. New policies for the purchase of electrical equipment; 3. Energy audits for existing buildings; 4. Installation of new efficient technologies in buildings, plants, and infrastructure. w Figure 10. Blue Sky Energy 18 Relevance • Water is Spanish Valley comes from various sources and providers. Water is classified as either groundwater (i.e., springs/wells) or surface water (i.e., ditches, streams, rivers). It can be used for irrigation or drinking (i.e., culinary water) and depending on your location is provided by either the City or Grand Water and Sewer Service Agency. • Generally, over 50% of potable water commercially and residentially is used for irrigation, making irrigation efficiency one of the easiest ways to reduce potable water consumption. The City uses water for maintaining parks, street medians, and operating City facilities. • Using native, drought-tolerant landscaping represents one way to decrease the demand for landscape irrigation and address climate change adaptation strategies. Benchmarks 2016 : 61,386,500 gallons (1884 AF) Indoor: 42,356,685 gallons (1300 AF) Outdoor: 19,029,815 gallons (580 AF) Accomplishments • City staff has been working with businesses partners through the Green to Gold Program to reduce water use by industrial and commercial customers. Partners can earn different badges and be recognized for their efforts. • Staff calculated current City water use by sector (i.e., residents, apartments, motels, condos, trailers, institutional, commerical) to determine outreach strategies. See Table 3. • Staff and the Water Conservation & Drought Advisory Board calculated estimated water rights and uses by providers: Groundwater Rights: Moab City: 9,664 AF GWSSA: 3,940 AF SJSVSSD: 500 AF Estimated private well water rights currently being used: 400 AF Surface Water Rights: GCWCD & MIC @ Sheley Tunnel: 2,500 AF MIC Lower Diversions: 1,783 AF Total amount of GW currently considered appropriated: Water rights (14,931 total) + surface flow rights (4,283) = 19,214 AF Groundwater Use: Moab City: 12,283 AF GWSSA: 830 AF SJSVSSD: 0 Private wells: 400 GCWCD & MIC at Shelley Tunnel: 2,500 AF MIC Lower Diversions: 1,783 • Estimated total amount of groundwater being used currently: 17,796 AF. See Appendix J for additional information. • Hosted a Water Conservation Forum with regional partners and League of Women Voters regarding water supply, irrigation, and the ongoing Division of Water Rights adjudication process. • Hosted a series of water conservation seminars for contractors, developers, property managers and residents. • Passed a resolution requesting state to limit new water right appropriations. • Hosted a Water Challenge for kids and adults. Goal Reduce of per-household, per-business and City- owned facilities’ water use by 20 percent by the year 2032. Protect quality of surface and groundwater to maintain sole source aquifer designation. Goal #3 Water 19 • Prepared a Quick Water Reference Guide for public use. • Provided comments to Forest Service on Manti La Sal Forest Management Plan. • Submitted grant to state to revitalize Old City Park pond. • Distributed over 50 aerators to homeowners and GtG Business Partners. • In 2000, Governor Leavitt set a statewide goal for Utahns to reduce their per capita use for municpal and industrial (M&I) purposes by 25% by 2050. With a good public response to public education and water reduction becoming more urgent, Governor Herbert reset the goal to 25% by 2025 which is 1% annually (24 AF). In 2016, the City billed for 1884 AF which is a 22% reduction. Short-term Plans: • Prioritize and implement strategies outlined in the 2016 Water Conservation Plan including build-out, conservation campaigns, carrying capacity and data verification. • Provide training because commercial customers represent about 40 percent of annual water demand. The Water badge aims to achieve high water efficiency that provides additional measures of reliability to the water supply system to ensure high quality service to customers in case of drought, climate change and unforeseen shortages. • Examine current zoning, leases and property mangement to ensure protection of the fractured Glen Canyon conveyance from Mill Creek to Skakel Spring and other high- risk areas (McConkie: Old City Park and Sommerville Springs #2, #3 at Moab Golf Course)—overlay zones and IPM. • The City will also address lowering indoor water use. • Encourage residents to apply for FREE Water-Efficiency Kits from Rocky Mountain Power. • Review Water Treatment Plant bid specs, Sewer and Storm water Management and Downtown Plan in regards to water efficiencies. • Advance and support engagement in the areas of storm water management, water harvesting, water rights, greywater, and integrated green infrastructure. • Assist businesses through the GtG Program to adopt water conservation practices. • Disseminate information to general public from Hydrogeologic and Environmental System Analysis Report of Moab City’s springs and wells. Long-term & Ongoing Plans: • Ecourage staff to pass Well Building exam and incorporate the water principles into planning recommendations for permit applicants. • Provide guidance around management of Moab’s water rights and ensure we have sufficient rights and production capacity for current and future residents of Moab. • Advise City Council and staff on water management priorities and strategies to inform municipal planning for storm water and other infrastructure developments. • Participate in the Groundwater Management Plan process being conducted by the Division of Water Rights, including consideration of closing the aquifer and consideration of recharge rate. • Research use of micro-hydro power turbines as a mechanism to defray electrical costs. Table 3. Water Users by Source 20 Relevance • Making staff and public knowledgeable about their habits relating to solid waste and how to reduce waste is a powerful tool for achieving waste reduction and diversion goals, reducing carbon emissions, and extending landfill life. • The City generates three streams of waste: the material that is deposited by the public in waste containers at parks, natural areas, and recreational facilities (including illegally dumped items); industrial byproducts from activities such as street sweeping, storm water detention pond clean-outs, and repair/ maintenance of water and sewer pipes; and discarded “office” types of material from administrative buildings, shops, warehouses, and utility plants. Systems for collection and management vary, as does the potential for capturing materials from each of these waste streams to be reused, recycled, or composted. Benchmarks 2016: Landfill — 20,276 tons 2016: Recycled — 1,441 tons 2016: Yard/Organics — 1,651 tons Accomplishments: • A cross-departmental group was convened to develop top priority strategies and actions to reduce the waste stream and issue a new Trash & Recycling Franchise Agreement. • An RFP was issued, contractor selected and contract signed for waste hauling and recycling. • Met with various stakeholders, industry groups and industry experts to develop new contract and fair rates. • Passed ban to discourage use of single-use bags. • Piloted composting with green cones at Old City Park. • Implemented variable rate pricing for trash and recycling collection. • Posted information to website about recycling and trash rates and schedule. Short-term Plans • Continue to educate businesses and residents about new rates, pick-up schedule and expanded commodity list. • Amend ordinances to address residential recycling and construction debris. • Investigate bike courier for food waste collection. • Post educational materials and/ or signs on or around the recycling receptacles to serve as a point of reference. • Plan and design projects to reduce the volume of municipal waste self-hauled to landfill. • Increase composting and use of green cones throughout the community. • Increase communication to public and staff about what can be recycled. • Publicize mulch resource at Public Works Shop to public. Goal Reduce trash by 20 percent per capita and increase diversion rate for community by 20 percent by 2032. Increase participation in City curbside recycling by 20% and decrease waste for residents and commercial customers by 2032; decrease construction debris and waste by 50% by 2024 and increase composting by 20% by 2024. Goal #4 Waste 21 Relevance • Fostering alternative transportation options has multiple benefits such as lowering emissions, cutting fuel expenditures, extending vehicle life, reducing reliance on foreign oil, and creating U.S. jobs by alternative fleet manufacturing. • Reductions in traditional fuel use reflect multiple strategies such as use of more alternative fuels, increased fuel efficiency of fleet vehicles, and reduction of miles traveled. Benchmarks 2016: Ground Transportation - 229,058,000 miles 2016: Airline – 293,266 miles 2016: Total Fuel Use Municipal Government – Not calculated Accomplishments • City and County employees have participated in Bike- to-Work Day(s). • An “Anti-idling” Policy has been adopted and communicated through a poster campaign. • Purchased new software to establish fuel usage by fleet operations that will provide the current scope of fuel consumption. This software program will allow staff to maintain and update vehicle data for the City’s fleet, including vehicle information (make, model, year, and acquisition date). • Installed bike racks and a bike repair station at Swanny Park. • Installed 10 electric vehicle charging stations at no cost to taxpayers. Short-term Plans • Develop and incorporate the following information: sustainable driving tips, anti-idling, seasonal driving tips, and vehicle use policies and procedures across the organization. • Add bike trails, corrals, shade structures and u-lock bike racks throughout the community. • Map and promote bike trail connectivity. Distinguish non-motorized trails. • Support shuttle services and alternative transportation such as Moab Hopper, KZMU Ride- Share, restaurant shuttle, pedi-cab services. • Replace parking areas in downtown with at least three corrals. Goal Ensure all community members and tourists have access to multimodal means of commuter travel , to reduce single–occupancy vehicles and support public adoption of electric vehicles by 10% by 2032. Reduce traditional fuel use by 20 percent and total VMT for community by 20 percent by 2032. Reduce traditional fuel use by the City’s vehicle fleet by 20% by 2032 and reach a 1.5 average vehicle ridership (AVR) by 2032 for city employees. Goal #5 Active Transportation Long-term and Ongoing Plans • Start work now to create a compost facility in partnership with SWSSD and County. • Calculate and communicate waste reduction benefits to the organization and community, such as cost savings and greenhouse gas emission reductions. • Persistently work to divert problematic materials (organic debris, excavated soils, drywall, carpet, etc.) from landfill disposal. • Support and strengthen internal recycling programs that optimize employees’ knowledge and participation. • Actively create more recycling options and publicizing the information throughout the organization. • Continue to “right-size” trash service, including reduced number of trash container pick-ups and use of smaller trash bins, whenever possible. • Incorporate wise resource use (plan for durability, reuse, recycle-ability) in long term planning and purchasing decisions. • Establish a standard that provides incentives for adopting voluntary green building elements in new construction and renovation projects. • Attract credible manufacturers that make products from recycled materials. Increase the types of materials that can be accepted in curbside recycling program. 22 • The 2017 Moab City General Plan models a path to achieving greenhouse gas targets that includes accelerated adoption of fuel efficient, electric vehicles and active transportation. • The transportation sector accounts for approximately 23 percent of the community’s greenhouse gas emissions. The primary way to reduce these emissions is through reduction in vehicle miles traveled and accelerated adoption of fuel-efficient and electric vehicles. The Green to Gold (GtG) Transportation badge includes activities, tools and resources that support these goals. • Install bike boxes, “Share the Road” signage and increased bike striping throughout the community. Long-term and Ongoing Plans • Develop and incorporate the following information: sustainable driving tips, anti-idling, seasonal driving tips, and vehicle use policies and procedures across the organization. • Install bike racks at all City facilities. • Implement the following priorities for the City vehicle purchases: alternative–fueled vehicles; downsize from original request; and add hybrids. • An Eco-Driving Initiative is being planned using community-based social marketing to change behavior of City employee drivers. The program goal is to improve fuel economy. • Explore Bike Share and Scooter Share Programs (Lime). • Increase Walkability Score. Relevance • Education is critical to the success of any initiative, especially if the initiative requires a change in behavior. Efforts in 2018 focused on helping businesses understand the cost and environmental ramifications of wasting resources. • Outreach centered on adoption of energy efficiency and renewable power throughout the community. • A number of water conservation seminars were hosted although technology difficulties and resources continue to be a challenge. Staff is using Community Based Social Marketing (CBSM) to calibrate messaging (see Appendix G for more information on CBSM). • As employees are educated about the merits of a sustainable Moab, additional initiatives can be identified for employees to make an impact within their respective divisions. An effective feedback loop will continue to generate incremental improvements over time and involve new staff in the process. Benchmarks 2016: No trainings or challenges Accomplishments • Led a Beacon Afterschool Program holiday giving project. Students traded incandescent bulbs from their homes for LED lights. They decorated the old Goal Triple bottom line analysis (i.e., environmental, economic and social) will be available to all levels of the community—students in grades K-12 and university, the general public—as well as internal customers (staff). Goal #6 Education 0 2,000 4,0001,000 Feet 1 inch = 2000 feet Legend Bike Lanes Bike Connecting Route Bike Lane Downtown Trails Dirt - Official Paved - Shared Use Path Paved - Unclassified 500 West400 EastCenter St 300 South100 WestWilliams Way U. S 1 9 1 Main StU.S 1 9 1 Sand Flats Rd. Mill Cr e e k D r . 200 North Kane Creek Blvd500 West400 North Colorad o R i v e r Moab Biking Routes Always wear helmet and fasten it. Obey the rules of the road. Bring more water than you need. Ride with friends. Ride prepared for the unexpected. Leave no trace. To Gemini Bridges Road Navajo Rocks Mag 7 Brand I-70 Prospect or To Moab R i m T r a i l Amasa Ba c k / C l i f f h a n g e r Hurrah Pas s Pi p e D r e a m No T r a i l h e a d P a r k i n g ! To W h o l e E n c h i l a d a To Slickrock Bike Trail Porcupine Rim LPS Kokopelli Sli c k r o c k T r a i l Aspen AveMcGill Blvd Doc Allen Dr 400 North MividaDr400 EBittle Ln Holyoak Ln Powerhouse L n100 ERose Tree Ln Arc h e s D r Walnut LnBartlett St Westwood Ave Locust Ln Bonita St & &&& Hwy 128 &Kane Spring s R d Hike Moab 234-210-0761 Poison Spiders Bicycles 800-635-1792 Porcupine Shuttle 435-260-0896 Redrock Express 800-259-2869 Roadrunner Shuttle 435-259-9402 Moab Express 435-260-9289 Moab Taxi 435-210-0214 Trailhead Shuttle Services 3/8/19 DC MRAC Ol d C i t y P a r kSHOWERSHOWER Figure 11. Moab Biking Routes Map, 2018 23 bulbs as Christmas ornaments, then wrapped them in beautiful little bags with an automatic LED night light, or non-toxic natural air freshener for the participants. • Conducted ten engagement challenges in 2018. Cumulative savings were $98,831, 43 MT CO2e reductions, 47 gallons of fuel, 188,705 gallons of water, and 851,768 kWh electricity. • The City hosted numerous energy efficiency and water conservation training classes seminars and assessments to explain how to reduce energy and water consumption for GtG businesses and identify incentives available for improvements to air conditioners, insulation and HVAC systems. • Enroll 22 partners (i.e., non-profits, faith-based, educational institutions, HOAs, businesses) in the City’s GtG Sustainable Business Program. • City maintains a Sustainability website. The site includes, but is not limited to: Sustainable Purchasing Guidelines, recycling guidelines, challenges, current articles, PowerPoint presentations, and rebate information. • Through involvement in the Solar Innovation Network, Moab Area Watershed Planning, Grand Conservation Board, Moab Sustainable Tourism Taskforce and Castle RC & D Board, staff has partnered with other communities to address natural and environmental resource issues. Short-term Plans • Provide public outreach through the GtG Program, targeted presentations, and workshops to audiences such as, USU, Homeowner Associations (HOAs), and religious organizations to promote lasting behavior change within targeted communities. • Implement bi-monthly challenges. • Encourage staff participation in community initiatives such as Bike to Work Days, wattSmart and increased recycling to identify individual benefits relative to the desired default behavior. • Identify opportunities for collaboration within and outside organization through volunteer projects and additional training. • Coordinate with Utah Clean Cities and DOE to promote EV adoption and Clean Air Challenges. • Recognize the important role that families play in creating an environment in which learning is both valued and encouraged. • Host brown bags on energy efficiency, WELL Building standards, green infrastructure, Living Building Challenge, blue roofs, and Leadership in Energy and Environmental Design (LEED). Long-term and Ongoing Plans • Involve a demographically balanced group of citizens in decision-making processes that directly impact their community. • Increase visibility and engage key leaders to help justify financial support for sustainability programs and staffing. • Encourage managers to add a sustainability goal tied to the performance management system. Green to Gold Partner — EV Charger 24 Relevance • Establishing a secure source of funding is imperative to advancing sustainability. The municipality needs to develop a mechanism (i.e., project or scholarship) to seed efficiencies, encourage innovation, and leverage savings into more efficiencies. • Innovative projects support and enhance the City’s application of sustainable thinking and decision- making. • Like an effective green building program, the City’s purchasing strategy can drive change in the broader marketplace through its purchasing power. The City purchases large quantities of cleaning supplies, paper products and computers. Ensuring that these important products meet sustainable criteria sends signals to the marketplace that sustainable product demand exists. As the City reduces the number of products purchased and promotes greater recycling participation costs will be reduced and other organizations can adopt best practices based on the City’s experiences. • Sustainable procurement is needed to avoid pitfalls such as choosing energy-intensive vending machines or hazardous cleaning supplies, when better choices are readily available. • Researching Environmentally Preferable Purchasing (EPP) will allow multiple agencies to buy products at a lower cost. Current and potential funding sources include: 1. City General Fund 2. Solid Waste Franchise Agreement 3. Stormwater Utility revenues 4. Water Utility revenues 5. C-PACE Loans 6. Rocky Mountain Power grants 7. Federal and state grants 8. Revolving loan funds 9. Newly identified funding sources 10. Visitor’s Sustainability Travel Off-Set Fund Benchmarks 2016: Limited funding Accomplishments • Staff secured funding through private donors and Rocky Mountain Power to purchase and distribute LED bulbs that conserve energy saving money and reducing air pollution. • Amber lights that are dark sky compliant are also being distributed to reduce the health effects recently discovered by leading medical professionals throughout the country. Light is one of the main drivers of the circadian system affecting hormone levels and the sleep-wake cycle. • Staff have distributed sink and shower aerators, moisture gauges, dryer balls and tank bags to GtG partners and residents at the numerous water conservation and finance seminars. • Staff has identified recycling containers to increase diversion. • Identify and implement innovative improvements to City’s physical plant and operational procedures that are not otherwise funded. Create a specific line item in budget for sustainability. • Implement sustainable purchasing practices throughout the City organization and establish a 2% increase in office and industrial sustainable purchases annually starting in 2019. Short-term Plans • Develop an Innovation Fund for high return on investment (ROI) projects through Energy at Risk & Innovation Calculator. • In conjunction with other agencies and businesses increase environmentally preferable purchases. • Increase consciousness of sustainability practices by including sustainability in vendor contracts. • Identify, rank, and fund sustainability projects. • Create visibility for the sustainability program in the City by documenting existing practices and their cost-saving implications. Engage the community in sustainability and identifying strategic partnerships to provide necessary visible support for sustainability. • Evaluate ways to increase financial incentives for departments to implement sustainability initiatives Goal Decisions shall evaluate products and services that have a reduced impact on human health and the environment where practical, while maintaining fiscal responsibility. Goal #7 Funding & Purchasing 25 “The need for wilderness and the refuge it offers to Americans will only increase with the passage of time.” -Theodore Roosevelt Relevance • Forest canopies aid in carbon dioxide absorption; shade and reduced air conditioning needs; increased property values; stormwater absorption; traffic calming along streets and pedestrian buffers from vehicles; and habitat for wildlife. • Support maintaining a natural species cover to promote and restore biodiversity and conserve water. Benchmarks 2016: Percentage of tree canopy on City property 2016: Percentage of native species on City Property Accomplishments • Dark Sky Initiatives: Contacted hardware stores about bulbs carried and outdoor lighting fixtures; created a Night Sky Friendly handout for business owners, and contacted the producer of Skyglow movie regarding a screening. Short-term Plans • Identify and plant drought- tolerant native trees on select City property and update City tree list with native and drought lens. • Launch community campaign to remove invasive species including ravenna grass, arundo, tamarisk, Russian olive and tree of heaven. • Retrofit outdoor lighting to comply with Dark Sky requirements: Install amber colored (3000 Kelvin correlated color temperature (CCT) and below) exterior lighting. • Increase the number of fruit trees on select City property and new developments. • Use natural and organic practices to control weeds, pests, and add nutrients to soil on City-owned property to the greatest extent possible. Long-term and Ongoing Plans • Create linear parks along streets and in empty lots to create pockets of new native vegetation to enhance floodplains and reduce heat island effect. • Pilot use of arundo for carbon sequestration through annual cropping to control spread and harvest the biomass outside of riparian areas. • Park Planning and Park Maintenance will work together on park designs to maximize “no mow areas” while providing a park that meets the needs of the community. Goal Achieve a 10% forest canopy density; a 70 native vegetation cover and soli stability on select City property and promote carbon sequestration by restoring and preserving biological soil crusts. Goal #8 Biodiversity and receive financial savings. • Research and develop grant proposals for innovative sustainability initiatives. • Explore Revolving Loan Fund for Sustainability. Long-term and Ongoing Plans • Support best management practices, including asset management and environmental management systems. • Focus on equipment upgrades to save energy in major building repairs, roofing, and capital improvement projects. • Explore aggregate purchasing. • Establish funding to help low-income residents invest in rooftop solar/energy efficiency. • Draft Climate Economy Strategic Plan. • Develop a fund that: 1. Becomes self-sustaining in a relatively short time period. 2. Motivates facility managers to implement energy efficiency projects. 3. Saves facilities operating dollars, translating to saved tax dollars. 4. Decreases energy resources used by the City. 26 Relevance • The municipal government can set an example regarding wellness and safety and influence policies while providing exceptional services to motivate residents toward healthy lifestyle choices and, ultimately, healthier and more productive lives. Benchmarks 2016: Percentage of children on free/reduced lunch: 48% 2016: Municipal Recordable Accident Frequency (RAF) and Days Away, Restricted, or Transferred (DART) rates: Unavailable 2016: Percentage of resident spending more than 30% of income on housing: Unavailable Accomplishments • City purchased land for a planned affordable housing development on Walnut Lane. • City passed a resolution to assess a fee on permits to fund affordable housing units. • Council issued a moratorium on construction of overnight accommodations for six months. Short-term Plans • Increase affordable housing opportunities. • Incorporate a program fostering a culture of health, safety and equity. • Increase the number of City employees that participate in the Wellness Program from 72% to 100% by 2027. • Lower accident frequency and severity. • Decrease the number of children on free and reduced lunch. • Increase number of community gardens. • Decrease income gap. • Amend burn days to reduce open burning during inversions. • Promote the use of less toxic chemicals throughout the community (Tier 3 pesticides, LCC: Red list, Cradle to Cradle). • Using precautionary principle - pass ordinance banning glyphosate (i.e., endocrine disruptor) and neonicotinoids (which kill bees) near any sole source drinking water aquifers. • Continue campaign to reduce idling of motor vehicles through citations and education. • Promote businesses that pay a livable wage to employees (i.e. more than $14.00/hr). • Increase the local food and school/hospital connections (classes, internships). Long-term and Ongoing Plans • Promote the use of less-polluting heat sources through public information efforts. Goal Ensure that Moab is an inclusive community, where physical and mental health and social well-being are accessible to all. Goal #9 Health, Well-being & Equality • Host Dark Sky Conservation event at Moab Information Center. • Host Shield making activity at the MARC. • Host streetside astronomy events through Neighborhood Campaign. 27 Relevance • Most of the food we eat comes from sources hundreds or thousands of miles away. In most communities, less than 3% of food consumption is locally grown and locally produced. Sustainable, local, and organic food production and distribution strategies have enjoyed broadened community support in recent years. Nationally, the U.S. organic industry is one of the fastest-growing industries in the nation. Studies have shown that small farms reinvest more money into local food economies by purchasing feed, seed, and other materials from local businesses. • Focused development of our local food network is a potential economic catalyst with many social and environmental benefits. The essence of this nascent movement is shifting from a globalized, industrialized food system in which we all are dependent on distant and unreliable suppliers for our basic food needs, to a resilient and self- reliant locally-based food supply system where communities are able to provision their own essential food needs by relying on bio-intensive production methods that restore soil, rekindle connection with the land, and rebuild community. • Certain foods , such as meats, are more carbon intensive to produce than dairy and grains and therefore contribute the largest proportion of food related emissions. Benchmarks 2016: Percentage of lbs of food produced and processed: Unavailable Accomplishments • Supported Local Farmers brochure. • Hosted Local Food Challenge to promote restaurants using local produce, meat and dairy products. • Encouraged residents and business owners to plant gardens with at least three flowering plants in bloom during spring, summer and fall, including perennial and/or annual plant. Short-term Plans • Support local farmers and ranchers and value- added products produced in the community. • Sponsor the local farmers market re-establishment. • 10% of food purchased by staff for City functions will be grown within 150 miles or prepared by a local business, beginning in 2019. Goal Promote long-term agricultural stewardship and access to healthy local food. Goal #10 Local Food • Cooperate with the State of Utah in air quality monitoring efforts and explore possibility of setting up an EPA AIR Now air quality monitoring station. • Support actions that facilitate Arches and Canyonlands National Parks retaining Class I air status. Moonflower Gulch Petroglyph Panel. Local Food Challenge. 28 • Recognized residents and businesses that planted pollinator gardens through the Bee Inspired Garden (BIG) signs after application review and site audit. • Encourage community members to install a native bee box, bat box, or similar home for pollinators. • Increase the number of CSA sign-ups, workshare options, mobile farm stands, community gardens, Local Food brochures delivered and food workshops. • Increase the amount of food produced and processed locally. • Support food accessibility operations (delivery, refrigeration, commercial kitchens). • Promote the connection between local farmers, and ranchers with restaurants, hotels, and tour companies. • Map and harvest produce from existing fruit trees. • Encourage use of conservation easements for preserving agricultural land. • Monitor soil health and restore nutrients. Long-term and Ongoing Plans • Support farmers and ranchers with organic and other certifications. • Source independently and locally owned catering. • Increase the connection between local food being donated to various meal programs. • Allow Moab Community Gardens to use select City properties for community gardening spaces. Innovation Corner Sustainability requires systems thinking and innovation. In 2018, the city launched a Green to Gold Business Program. Green to Gold is a free, voluntary program that offers solutions to help Moab businesses and non-profits reduce environmental impact, save money, and gain recognition for their achievements in energy and water conservation, waste reduction, and alternative transportation. Below are a few examples of Green to Gold Business Partners and City departments that are leading by example. Case Study: Neighborhood-level Leadership The Portal Vista Homeowners’ Association collaborated with the City in its efforts to publish its first Community Energy Plan. Maggie Corson led the efforts, focusing on reducing both energy and water use among HOA members. Maggie distributed the adult and kid versions of a Water Challenge and distributed rebate information for reducing energy use and saving money. Case Study: Red Rock Bakery Howard Trenholme, CEO of Red Rock Bakery, was an early participant in the GtG Program. Howard installed solar panels last spring. Trenholm is committed to helping other businesses as well as educating his staff and customers about the benefits of solar energy. Case Study: Moab Arts and Recreation Center The Moab Art Center demonstrated its stewardship in conjunction with Terrasophia by installing a rain capture system that is used to water the new drought-tolerant native species planted during a recent remodel. Vegetables harvested from the Moab Community Gardens. 29 Innovation Corner, cont. Wastewater Reclamation Plant built in 2018. Case Study: Adventure Inn Adventure Inn is 100% solar-powered with a 72.8 kW system (226 Hanwa Q-cell solar modules) that produces 104,120 kWh of power annually. The clean energy powers the hotel’s rooms and electric vehicle charging stations installed by the city. The system will reduce 135,981 pounds of GHG emissions each year—the equivalent of planting 1,735 trees. In addition to the environmental benefits, the system has the potential to save the hotel more than $270,000. Case Study: Wastewater Reclamation Plant The new wastewater reclamation facility has a total hydraulic capacity of 1.75 million gallons per month and can process significantly more effluent using far less water. The plant, built in 2018, has reduced city water use from 2 million gallons a month to 25,000 a month, resulting in financial savings and conserving a valuable resource. The plant has installed Variable Frequency Drives (VFD) to lower equipment use so that during slow periods the blowers run at a lower speed, saving money on use and demand charges (an additional charge if you use energy from 3-8pm). The pump sizes were carefully selected to reduce energy use. Oversized pumps can increase pumping costs by 15-25% (Easton Consultants, 1995). The site participated in the community wide lighting assessment campaign last August. Solar panels have been installed on the administration building to add energy efficiency to the offices. The City will also install a larger array of solar panels to help offset a portion of the plant’s energy use. Case Study: KZMU Public Radio KZMU hosted an amazing up-cycle workshop with experts from Santa Fe. Plastic bottles were compacted into construction bricks and made into a bench. KZMU is also experimenting with biocrust revegetation. Case Study: Red Moon Lodge Red Moon Lodge took recycling to the next level by investing in metal gallon-sized water containers to lend to their guests for day trips eliminating the need for single-use plastic water bottles. 30 This Sustainability Plan is as an important step to ensure the City of Moab’s sustainable and vibrant future. Select sections focus on actions that the municipal government and its employees can take in order to make the City a leader in sustainable practices. The Plan is essential to highlight early successes and identify areas that need additional focus to ensure we accomplish the short term and long term goals. The Plan identifies the recommended revised and new goals and associated benchmarks for the areas that we have data. There are areas that need additional data input and analysis. One such area is our resiliency planning. The City must be prepared for disturbances such as, drought, wildfires, extreme rain events, electricity outages, as well as urban heat island effect. In addition to building upon our successes, integration of climate strategies into master plans needs to be addressed especially in planning and budgetary decisions. A preliminary review of existing plans, programs, studies and ordinances has been conducted. See Appendix L. Climate change is already affecting Moab and the surrounding region, and its impacts are projected to become much more severe in the coming decades. To minimize harmful impacts and play our part in curbing global carbon pollution, Moab needs to take bold steps to reduce greenhouse gas emissions and build resiliency. This plan lays out a foundation to reduce our emissions and improve our resilience to future impacts of climate change on Moab’s environment, infrastructure, and people. The immediate initiatives for 2019 are outlined in Table 5. The impacts of climate change will have tangible effects on public health and quality of life for residents and visitors. Climate models project that Moab will experience: • A decrease in winter snowpack; • Summer water scarcity as temperatures increase; • More days of extreme heat each year; • An increase in temperature on the hottest days of the year; • Additional rainfall during heavy storms; and • More frequent and severe droughts, heat waves, and wildfires. In addition to the direct dangers of wildfires, flooding, and extreme weather events made worse by climate change, secondary effects of more extreme temperatures, snowpack declines, and wildfire smoke are significant. • Sensitive and exposed populations like the very young, elderly, those with respiratory illness, and outdoor workers will be at risk from wildfire smoke and heat-related illnesses. • Plants and wildlife will need to adapt to shifting or diminishing habitats. • Seasonal and climate-dependent industries such as agriculture, outdoor recreation, and tourism will be threatened under changing conditions. The urban heat island effect can have serious impacts on public health and quality of life, including causing Conclusion Table 4: 2019 Strategic Initiatives 31 heat-related fatalities among elderly or otherwise vulnerable people. The City can reduce this effect by increasing the tree canopy cover in targeted areas that do not currently have adequate shade or air conditioning, as well as promoting and educating citizens about the benefits of shading with trees and building features. • Offer Incentives for cooling strategies such as cool roofs/pavements and expanded tree canopies. Early successes • 82 Local businesses performed lighting retrofits, exceeding the initial targets. • The City is in the process of implementing a more robust and convenient recycling program. • The City’s bike-share program kicked off in the fall of 2018 and has stations at 90% of City facilities. • The City installed bike racks and a bike repair station at Swanny City Park. Barriers • There is no accountability across the organization regarding sustainability (i.e., purchases, hiring, and performance). As such, the Sustainability Director can only encourage managers to adopt new practices. Several departments have expressed an interest in conserving resources, but do not have adequate funding or staff time to implement changes. • Better load management is critical if the community is to reach its energy goals. • Enhance sustainability competencies through training. • Focus on equipment upgrades and rebates to save energy in major building repairs, roofing, and capital improvement projects. Recommendations & Opportunities • Offer bi-annual education and training for staff and the public. • The wattSmart Technical Team and NREL Advisory Team are examining the costs associated with the new potential energy goals and their contribution to our carbon reduction goal. • Increase sustainability staff and resources to enter and verify data. • Minimize obstacles to affordable housing—reducing parking lot requirements, reducing connection and impact fees, piloting compostable toilet systems, requiring solar, greywater and EV ready wiring and infrastructure for buildings over 5,000 square feet. • Establish the revolving energy fund; this allows funds to be used for City energy efficiency upgrades. The savings from those upgrades are used to pay off the initial investment and re-allocate savings to additional energy efficiency improvements in other City-owned buildings. • Add additional bike trails, corrals and U-lock bike racks throughout the community. • Developing an Environmentally Preferential Purchasing (EPP) policy—each department must conserve and utilize existing materials and consistently choose more sustainable new products. This information can be shared with GtG partners and businesses throughout the community. • Track all street trees planted and removed. • Expand the current production of renewable energy. Key Indicators and Strategies (2016 - 2019) Moab is in the process of entering and verifying data for key indicators. Changes in key indicators between baseline and subsequent years: 32 • Total CO2e emissions — XX% increase • Scope 1 (direct carbon emissions) — fleets: XX increase and natural gas: XXX % increase • Scope 2 (energy indirect emissions) — XX% increase • Scope 3 emissions (gases from waste and recyclables to the landfill and air travel) — XX% increase • Per sq. ft. CO2e emissions —XX% increase • Per employee — XX% increase • Per vehicle emissions — XX% increase • Percent of electricity generated by clean, renewable energy on-site -- % increase • Change in tons of waste sent to the landfill — % increase • Waste diversion — increased from XX% in to XX% in (including office and industrial materials). Game Changing Projects The City of Moab is committed to operating in a manner that lowers its ecological impacts while strengthening its economic and societal leadership — the triple bottom bine (TBL). The following projects and challenges had the most significant environmental and/or economic returns. These types of projects result in long-term, fiscally sustainable progress and should be replicated and scaled-up throughout the community. These include load shedding and management; outdoor lighting; retrofits (i.e., high pressure sodium and LEDs); indoor lights (i.e., LEDs and T-5s); and various challenges (i.e., energy and water). The outreach campaigns and the numerous employee and community challenges required relatively low investments. See Table 5. Leading By Example The City organization intends to set an example of sustainability stewardship in managing our operations and being good stewards of taxpayers funds. A few such examples are highlighted below: • Kudos to Terry Lewis, Patrick Ball, Liz Holland and Patrick Trim for efficiency gains. • Moab Arts & Recreation Center installed water retention pollinator landscaping. • The Parks & Recreation Department conducted a lighting audit of the Sun Court and the Moonstone Gallery in order to reduce energy costs. Lifetime materials and maintenance savings are estimated to be $59,840. The City used Rocky Mountain Power wattSmart Incentives to defray costs. • The Moab Recreation & Aquatic Center underwent a lighting assessment that yielded estimated savings of $96,000. Continue to “Lead By Example” through participation in Blue Sky Programming (Figure 12). Next Steps These types of projects have assisted us in surpassing the municipal governments renewable electricity 2020 goals. • Communicate to staff, residents and tourists actionable items to reduce our impact outlined in Appendix A: Actionable Items and Appendix F. • Review and implement at least one project identified in Appendix B: Grid and Appendix E: Co-Benefit Analysis annually to systematically address conservation and budget for projects identified in Appendix C: Timeline Gantt Chart and Bikers Sustainability Plan. • Build upon the projects and processes identified in the Community Energy Plan through the GtG Program and a residential Neighborhood Campaign including additional Blue Sky applications. See Figures below. • Continue to verify data used for the preliminary Community Baseline Inventory Appendix D and prepare Municipal Baseline Inventory. Figure 12. wattSmart Savings Equivalents Table 5: Challenge Savings 33 Bikers, Rafters & Climbers: Guide to Sustainability Options Options rated A - E (Excellent to Failing) comparing sustainability options to popular mountain biking, rafting and climbing routes. City Council should select and fund at least six projects and/or ordinance amendments annually. Option A: Captain Ahab, Cataract Canyon, Free Soloing El Capitan (Yosemite, CA) – Steep, Fast Option 34 Bikers, Rafters & Climbers: Guide to Sustainability Options Option B: The Whole Enchilada, Westwater in the Terrible Teens, The Diamond (Longs Peak, CO) – Good Ascent 35 Bikers, Rafters & Climbers: Guide to Sustainability Options Option C: Bar M Loop, The Upper San Juan, Kor-Ingalls, Castleton (Moab) - Steady Progress 36 Bikers, Rafters & Climbers: Guide to Sustainability Options Option D: Rusty Spur, The Moab Daily, Flatirons (Boulder, CO) – Moderate Progress 37 Bikers, Rafters & Climbers: Guide to Sustainability Options Option E: Bike Path, Ruby-Horse Thief, Wall Street – Low/No Progress 38 Appendix A: Actionable Items - Take It Personally 39 Appendix B: Implementation Grid 40 Appendix B: Implementation Grid 41 Appendix B: Implementation Grid 42 Appendix B: Implementation Grid 43 Appendix B: Implementation Grid 44 Appendix B: Implementation Grid 45 Appendix B: Implementation Grid 46 Appendix B: Implementation Grid 47 Appendix B: Implementation Grid 48 Appendix B: Implementation Grid 49 Appendix C: Timeline - Gantt Chart 50 Appendix C: Timeline - Gantt Chart 51 Appendix C: Timeline - Gantt Chart 52 Appendix C: Timeline - Gantt Chart 53 Appendix C: Timeline - Gantt Chart 54 Appendix C: Timeline - Gantt Chart 55 Appendix C: Timeline - Gantt Chart 56 Appendix C: Timeline - Gantt Chart 57 Appendix D: Preliminary Baseline Inventory 58 Appendix E: Co-Benefits and Triple Bottom Line Analysis 59 Appendix E: Co-Benefits and Triple Bottom Line Analysis 60 Appendix E: Co-Benefits and Triple Bottom Line Analysis 61 Appendix E: Co-Benefits and Triple Bottom Line Analysis 62 Appendix E: Co-Benefits and Triple Bottom Line Analysis 63 Appendix E: Co-Benefits and Triple Bottom Line Analysis 64 Appendix E: Co-Benefits and Triple Bottom Line Analysis 65 Appendix E: Co-Benefits and Triple Bottom Line Analysis 66 Appendix F: Residential and Commercial Efficiency *Please see disclaimer on page 80. 67 Community-based social based marketing (CBSM) is a strategy for promoting pro-environmental behavior based on research from environmental psychologists, conservation psychologists, and social-based marketing professionals mainly focuses on the physical context of campaigns such as the color or placements of recycling bins, while conservation psychologists are interested exclusively in pro-environmental outcomes. Community- based social marketing involves systematic efforts to promote positive change within a community through simultaneous barrier reduction and benefit enhancement. The Sustainability Director used CBSM research to evaluate outreach and education campaigns and staff professional development found low adoption rates for behaviors such as installing micro generation, using more efficient vehicles, avoiding unnecessary flights, and using the car for shorter trips. Again, easy behavior, which was more readily implemented, included increasing recycling, buying efficient products, wasting less food, and installing insulation. Given those findings, a campaign to discount insulation or Energy Star and Water Sense appliances is strategic. A “waste less” food campaign has not been implemented yet at the City and could be developed. In addition to individual behavior research, group behavior holds promise for improving municipal outreach programs. Another key finding of community-based social marketing is that one-to-one communications with members of the target audience is important (Haldeman & Turner, 2009). Again, the approach taken by the Green to Gold Program meets those parameters, but direct mail or website information may not. Efforts to increase GtG and networking should receive increased funding and less emphasis placed on programs such as bill inserts or website development. Findings indicate it may be beneficial to evaluate the budgets for our most and least changeable campaigns, and adjust funding accordingly (i.e. direct funds to conservation and technology adoption because they require greater efforts to achieve change). A future strategy may be to focus on the difficult areas (i.e. technology adoption). TBL return on investment analyses needs to be refined to evaluate benefits of existing programs, marketing campaigns, reporting efforts and projects. Research on the effectiveness of competitions has shown the behavior changes are short-lived with the exception of groups or individuals that have won or received prizes or discounted items because of a competition. To capitalize on the competition and new technology research, a top ten technology devices should be developed and communicated to staff and community members. Select devices should be included piloted and awarded as part of the 2019 Sustainability Challenges. Studies have shown that outreach campaigns need to be tailored for different types of audiences. For example, with motivated individuals, prompts and feedback are effective. To capitalize on that research, Moab Happenings articles were developed after each City challenge to report on cumulative financial, social and environmental savings. For the community programs such as the planned neighborhood campaigns that have high participation in energy conservation, (i.e., home audits), acknowledgement and instructions on next steps are important. The social-based marketing research shows that a key to changing behavior is identifying barriers and benefits of targeted behavior. A leading benefit is a person’s belief about the positive outcomes associated with a behavior such as saving money, protecting the environment or receiving recognition. The strategy used by Green to Gold is consistent with the benefits analysis. New challenges were implemented with staff and select GtG partners to educate participants about the multiple benefits of select behavior. In addition to economic and environmental benefits, social benefits were quantified as well to appeal to the largest base of participants. In the area of barriers, research shows making the pro-environmental behavior the default can lead to larger changes (Werner, Brown, Gallimore, 2010). Based on these findings, the janitorial contract should be rewritten so custodians are no longer responsible for waste. Instead, they will collect recycling at individual workstations to discourage excess waste production. Bags should not be replaced if clean. Research indicates that individuals ae more likely to engage in select behavior if it is part of a social norm, such as the New Year’s Resolution pledge sheets or the City’s prescribed challenged (Bamber & Moser, 2007). Last year, challenge participation among some partners gained momentum each month. A spotlight was published on the website Appendix G: Community-Based Social Marketing 68 acknowledging departments, businesses and individuals that exhibited sustainable leadership. These types of announcements cover the social norming strategies that have been recommended. Messagin in Stall News (i.e., bathroom signs). This technique aligns with the research that shows prompts have the most success for repetitive behaviors when they are places in close proximity to target behavior and when they emphasize the correct behavior (i.e., “Please turn off your computer” or “Starve your trash” (Werner, Rhodes, and Partain, 1998)) On the opposite end of the spectrum, lottery-type incentives have the highest results especially for individuals or groups that are not motivated. A lottery type challenge is planned for the businesses and departments with low and zero diversion rates. Using incentives within programs can be a powerful tool to change one-time behavior such as solar installations (PV or solar thermal). The City staff challenges have utilized incentives. It is time to scale up these incentive programs at the community level. A practical approach to utilizing the research on motivated audiences could be to provide prompts and feedback to departments and neighborhooods that have high diversion rates. For the City, building diversion data will be entered so that comparisons can be calculated. Preliminary analysis for last year indicates some buildings such as Public Works were not recycling at all. Another approach that is not commonly used throughout the organization is cognitive dissonance tools that involve using small behaviors first to instill a favorable attitude toward an issue such as energy efficiency (i.e., providing small LED lights). Research shows that a person will engage more pro-environmental behavior so their cognition is consistent. Challenges or pledges have been shown in a number of studies to be the most successful following a commitment, especially if made public. (McKenzie, Mohr, 2011). A good example of this is where photos were taken of participan nts after they signed a pledge. The photos were posted on the website to establish a social norm. 69 The City generates three streams of trash: the material that is deposited by the public in trash containers at parks, natural areas, and recreational facilities (including illegally dumped items); industrial byproducts from activities such as street sweeping, storm water detention pond cleanouts, and repair/ maintenance of water and sewer pipes; and, discarded “office” types of material from administrative buildings, shops, warehouses, and utility plants. Systems for collection and management vary, as does the potential for capturing materials from each of these waste streams to be reused, recycled, or composted. Data streamlining and analysis in 2020 is proposed that will render strong baseline metrics to reflect, as accurately as possible, the general amount (by weight) of discarded material that falls under the City’s control, seasonal variability and better understanding of other influences that cause fluctuations in the recycling and waste streams. Public Area Trash: Steadily reduce the amount by 5% per year of trash collected in public access facilities (parks, recreational sites, natural areas, right-of-ways) using either weight or volumetric measurements as appropriate, by applying Triple Bottom Line analyses. • Policy: Offer greater opportunities to recycle in public access areas. • Policy: Discourage illegal dumping on City property. Office Waste: Reduce the amount of trash generated by municipal workplaces and offices by 10% per year, by weight. Special Wastes: Achieve minimum 10% per year reduction in each of the industrial byproducts generated by City operations using either weight or volumetric measurements, as appropriate. • Policy: Apply life cycle analyses to establish best reuse applications. • Policy: Apply source reduction as a priority approach. • Policy: Invest in infrastructure when feasible, to process waste materials into new products. • Policy: Refine data and ensure it is collected—and used—in a timely manner. • Policy: Establish a 2020 baseline for waste generation. Special Materials Recycling • Start work now to create compost facility for City operations. • Divert organic-rich debris (e.g., from Parks maintenance, detention pond maintenance) into compost. • Compost will be readily put to use by Parks Maintenance, Golf Course, and others. • Increase involvement with ditch companies to divert limbs and materials from ditch cleanout work. • Coordinate timing and process to collect materials • Encourage use of goats or sheep to provide low-waste weed management services in storm water detention areas and other appropriate properties. • Continue and Improve Waste Reduction and Recycling Programs for Employees. • Increase communication to employees about what can be recycled. • Post new, icon-based recycling guidelines throughout City facilities. • Submit regular articles on timely recycling items, e.g., election sign recycling. • Encourage use of “waste stations” with attached sign frames that consistently include: – Updated signage about what can/can’t be recycled. – Both a trash can and a recycling can to avoid risks of “contamination” and physically connect bins to each other when possible, to prevent “straying.” • Increase employee knowledge and participation. • Emphasize the importance of keeping contaminants out of the recycling stream. –Reduce residuals (contamination) in the recycling stream to 10% or less. • Ensure each employee’s work site has a recycling bin provided. • Launch a “Starve Your Trash” campaign. –Distribute more of the small “saddle” bins to employees’ individual work sites. • Explore options to earn well day points for waste reduction activities. • Hold small parties for work groups to celebrate success. • Highlight success stories. Appendix H: Waste Reduction Strategies 70 • Provide “Road Show” opportunities for City work group staff meetings. • Develop model/step-wise decision process (life- cycle analyses) for making purchases. For instance, use of carpet tiles instead of wall- to-wall carpet. • Evaluate end-of-life management options for acquisitions. • Link reports from database with Recycling pages on website, and urge employees to become familiar with summaries and comparisons of waste diversion, by building, over time. – Consider creating competitions/challenges between buildings. • Continue to “right-size” trash service from vendor. Reduce frequency of collection services and downsize trash bins whenever possible. • Emphasize subscribing to smaller levels of service for regular use, get extra pickups as needed. • Promote approach of “thinking seasonally” or on events-based need for trash service. • Educate employees about level-of-service change options/ease of shifting as often as necessary. • Site and Situation-Specific Recycling and Waste Reduction. • Pinpoint opportunities to provide additional, convenient recycling containers. • Field crews’ areas where trucks are returned at end of work day. • Other, general building applications. • Use special bins or poly-carts when durability is important and make sure they are clearly “signed.” • Aim for near-zero waste in new building construction. • Invite Sustainability Team to share input at design stage on building materials to be used. • Enhance design specifications for contractors to follow for reuse and recycling. • Anticipate long term disposal/expansion needs of buildings before they are even built. • Invite sustainability team to tour deconstruction sites before project starts to identify trash/ recycling/reuse opportunities. • Establish policies and procedures to help employees make waste disposal decisions. • Develop series of questions/decision matrix to support when decisions are made, e.g., whether to landfill certain materials, or alternatively, to pay extra to have discards recycled. • Add requirement for sports registrations and ball-field reservations that teams correctly use recycling bins. • Apply long-term planning to tree species selection for new plantings to consider: • Amount of wood waste / mulch generated over time due to tree growth and disease. – Anticipate potential to use wood mulch in biomass digester(s) as a way to recover energy. – Carpentry uses for trees at end-of-life. • Cross-pollinate with green purchasing policies that are under development to require better design specifications (more recycled content, better durability, etc.) for City acquisitions. • Encourage consolidated contracting; benefits of fewer contracts include greater efficiency and savings. 71 Biologically Sequestered Carbon Carbon that resides in a carbon pool. For example, through photosynthesis, plants convert carbon dioxide in the atmosphere into plant material. The carbon becomes part of the plant and is trapped within it. Biogenic Fuels Biogenic fuels are produced from biological resources such as plants and other organics (vs. “fossil” fuels) and include biodiesel, ethanol and landfill gas. Carbon Dioxide (CO2) A colorless, odorless greenhouse gas. It is produced naturally when dead animals or plants decay, and it is used by plants during photosynthesis. People are adding carbon dioxide into the atmosphere, mostly by burning fossil fuels such as coal, oil, and natural gas. This extra carbon dioxide is the main cause of climate change. Carbon Dioxide Equivalent (CO2e) A unit of measurement that can be used to compare the emissions of various greenhouse gases based on how long they stay in the atmosphere and how much heat they can trap. For example, over a period of 100 years, 1 pound of methane will trap as much heat as 21 pounds of carbon dioxide. Thus, 1 pound of methane is equal to 21 pounds of carbon dioxide equivalents. Carbon Footprint The total amount of greenhouse gases that are emitted into the atmosphere each year by a person, family, building, organization, or company. A person’s carbon footprint includes greenhouse gas emissions from fuel that he or she burns directly, such as by heating a home or riding in a car. It also includes greenhouse gases that come from producing the goods or services that the person uses, including emissions from power plants that make electricity, factories that make products, and landfills where trash is sent. Carbon Offsets A carbon offset is a certificate representing the reduction of one metric ton (2,205 lbs.) of carbon dioxide emissions, the principal cause of climate change. Although complex in practice, carbon offsets are fairly simple in theory. Climate Neutral A facility or organization can be said to be climate neutral if it has no net climate impact resulting from carbon or other greenhouse gases. This can be best achieved through a hierarchy of actions that include aggressive reduction of energy consumption, followed by conversion to low- or no-impact energy sources, and finally through carbon offsets. CSA A process that allows residents to work or pay for produce from a local farm prior to the season. The income allows farmers to purchase seeds and tools to grow their operations. During the season the members receive in-season produce. DART Days Away, Restricted or Transferred (DART) is a measure used by many employers to measure the severity of injuries in the workplace. Demand Side Management (DSM) Modification of consumer demand to decrease energy consumption, especially during peak hours or to shift time of energy use to off-peak periods, such as nighttime and weekends. Efficient Lighting LED (light-emitting diodes) are the most efficient lighting. One LED will last as long as 42 incandescent bulbs. The second most efficient bulbs are compact fluorescent lighting (CFL). These light bulbs are the same as the big fluorescent tubing that we see in many commercial buildings; however they have been reduced in size in order to fit into normal and typical light fixtures. They use only about 25% of the electricity that a typical light bulb uses. Electric Vehicle Charging Infrastructure Including a plug/s in a garage makes a home more suitable for the future and the present as electric vehicles become more common. Level 1 can be used with a simple 120 volt household outlet and is used with a charging cable. It may take up to 8 hours to fully charge a car. A Level 2 charges a car in approximately four hours and requires a 240-volt outlet Embodied Energy Some building products are indigenous to an area, meaning that they, for example, are harvested on the site, such as rock or wood, and have almost no additional energy costs in fuels, manufacturing or building, to get them to and on the building. Embodied energy is the energy used by the individual building material from acquisition of the Appendix I: Glossary 72 natural resource to manufacturing and production, to product transportation and delivery. For example, pine beetle kill is readily available in Colorado. Energy Baseline Historical data (usually a full calendar year) of a community’s energy consumption, including electricity, renewable energy, and other sources of power. Energy Star Appliances Dishwashers, laundry machines, dryers, etc. should all be Energy Star certified. If trying to conserve remember to replace the most energy-intensive appliances first—dryer (39%), refrigerator (25%), TV and gaming (10%) and washers (4%). Geothermal Geothermal Energy is acquired by pumping a glycol fluid through a closed loop system in and out of each well to the heat pumps. Building temperatures are heated or cooled from the adjusted temperature, thus using less energy to regulate indoor temperature. Greenhouse gas (GHG) Gas in the atmosphere that absorbs and emits radiant energy within the thermal infrared range (primary GHGs include water vapor, carbon dioxide, methane, nitrous oxide, and ozone). GHG emissions, or any of the atmospheric gases that contribute to the greenhouse effect by absorbing infrared radiation produced by solar warming of the Earth’s surface, are associated with affecting climate change. High R – Values The R stands for resistance (resistance to heat loss). When used in referring to insulation, the higher the number means that the wall, roof, or floor is less likely to allow heat to move between one side and the other. The insulating ability of material(s) to prevent the migration of heat from warm to cold is rated numerically and is expressed as 1/U. The higher the number means the slower heat loss. That is a good thing. HVAC Heating, ventilation, and air conditioning. Integrated Pest Management (IPM) Is a broad-based approach to reduce pest populations and reduce risks to human health and the environement. For example, the USGS has used tamarisk beetles to control Saltcedar invasive species along the Colorado River. LCC Living Community Challenge (LCC) is comprised of seven performance areas (i.e., petals): Place, Water, Energy, Health and Happiness, Materials, Equity, Beauty and Spirit that can be applied in master plans and building. LED Light-emitting diode. LEED Leadership in Energy and Environmental Design is a green building rating system used globally, providing a framework to create healthy, highly efficient, and cost-saving green buildings and promoting sustainability achievement. Low U-Factor U-factors often fall between .15 and 1.20. Lower U-factors indicate a window’s increased capacity to keep heat inside of a building. U-factors consider conductance, emissivity, and effect of convection around the window. Low-VOC Paints (or No-VOC Paint) VOC stands for volatile organic compounds. These paints do not contain them because VOCs outgas and affect indoor air quality. kW Kilowatt (1,000 watts); a unit of electric power. kWh (kilowatt-hour) A unit of electric consumption. MTCO2e Metric tons of carbon dioxide equivalent (MTCO2e): measure used to compare the emissions from different GHGs based on their global warming potential (GWP). The carbon dioxide equivalent for a gas is derived by multiplying the tons of the gas by its associated GWP. MW Megawatt (1 million watts); a unit of electric power. Photovoltaic (PV or Solar Cells) Light is converted to electricity in DC voltage stored in a battery array, directly used in the house, or sold back to the utility company. These systems can be either off the grid, meaning that Appendix I: Glossary 73 they are not hooked up to a company that supplies electricity, or grid tied, where the electricity can be sold back to the utility. RAF Recordable Accident Frequency is the number of injuries on a worksite. Social Equity Creating a “level playing field” or equality of opportunity. Solar Hot Water Systems Solar hot water systems use light energy from the sun to heat water for homes. Solar Thermal Heating System This system works similarly to domestic hot water with collectors and a storage tank. But here the hot liquid is sent directly through a hot water baseboard in each room. A backup system for solar thermal would be a boiler. Ground Source Heat Pumps Ground source heat pumps tap geothermal energy to control the temperature of homes and water. Trees Deciduous trees work well in front of southern-facing windows. During the winter, their bare branches minimally reduce southern sun exposure, allowing for passive solar heating. During the summer, their leafy branches help keep houses and yards cool. Xeriscaping This is the use of native plants and vegetation, which, in our climate, means drought tolerant. This type of vegetation needs very little, if any, water to survive. Appendix I: Glossary 74 Appendix J: Acronyms AF = Acre Foot or Acre Feet Cfs = cubic feet per second 1 AF = 325,851 gallons 1 cubic foot = ~7.5 gallons 1 cfs/year = 236,000,000 gallons 1 cfs/year = 724 AF GWSSA: Grand Water and Sewer Service Agency GW: Groundwater GCWCD: Grand County Water Conservancy District LED: Light Emitting Diode LEED: Leadership in Energy and Environmental Design MIC: Moab Irrigation Company NCRES: Northern Colorado Renewable Energy Society SJSVSSD: San Juan Spanish Valley Special Service District TNC: The Nature Conservancy UDWRi: Utah Division of Water Rights VF: Valley Fill aquifer C i t y o f Moab 75 Appendix K: Living Building Challenge, LEED V4, Well Building & Alignment 76 Appendix K: Living Building Challenge, LEED V4, Well Building & Alignment 77 Appendix K: Living Building Challenge, LEED V4, Well Building & Alignment 78 Appendix L: City Document Review 79 Appendix L: City Document Review 80 References Bamberg, S., & Moser, G. (2007). “Twenty years after Hines, Hungerford, & Tomera: A new meta-analysis of psych-social determinants of pro-environmental behavior.” Journal of Environmental Psychology, 27, 14-25. www.Retrieved(2019).Beeinspired.usu.edu Haldeman, T. & Turner, J. (2009). “Implementing a community-based social marketing program to increase recycling.” Social Marketing Quarterly, 15, 114-127. Hansen, J. E. (2016). Declaration of James E. Hansen, PhD, in Support of Western Environmental Law Center and Our Children’s Trust’s Comments on Proposed Clean Air Rule. Intergovernmental Panel on Climate Change (2018), 48th Session – Special Report, Republic of Korea, UNEP. McKenzie-Mohr,D. (2011). “Fostering sustainable behavior: An Introduction to Community Based Social Marketing.” Gabriola Island, Canada: New Society. McKenzie-Mohr,D. (2011). “Fostering sustainable behavior: An Introduction to Community Based Social Marketing.” Gabriola Island, Canada: New Society. www.O’Shaughnessy et al. (2018). Data from SLED Building Stock Summary for Moab, Utah. www.pvwatts.nrel.gov.Retrieved (2019) PVWatts Calculator, Stavros, E. N., Abatzoglou, J., Larkin, N. K., McKenzie, D., & Steel, E. A. (2014). Climate and very large wildland fires in the contiguous western USA. International Journal of Wildland Fire, 23(7), 899–914. Schultz, W. (2019). “Strategies for Promoting Pro-environmental Behavior: Lots of Tools But Few Instructions.” European. Weber, C. L., & Matthews, H. S. (2007). Food-miles and the Relative Climate Impacts of Food Choices in the United States. Environmen- tal Science and Technology, 42, 3508-3515. Werner, Brown, Gallimore (2010). Light rail use is more likely on walkable blocks. Journal of Environmental Psychology, 30, 206-214. Werner, Rhodes, & Partain, (1998). Designing effective instructional signs with schema theory: Case studies of polystyrene recycling. Environment and behavior, 30, 709-735. World Resources Institute. (2014). The Carbon Budget. Retrieved from http://www.wri.org/resources/data- visualizations/infographic- global-carbon-budget * Disclaimer: This data was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. CITY OF MO�!H 2019 Sustainability Action Plan Executive Summary Moab has a long history of promoting sustainable practices through numerous resolutions, ordinances, plans, projects and internal policies. The 2019 Sustainability Action Plan outlines the goals, schedule, and strategies that will help put the community on a long- term sustainable path. Incremental change, minimizing negative environmental and social impacts is no longer a viable option, if Moab hopes to reach existing, new and revised goals. During my first year at the City, I have concentrated my efforts on water and energy conservation efforts and establishing baseline data so that we can set and track measureable goals. Unfortunately, in spite of setting a 20% energy reduction goal in 2008, the energy consumption use has increased by 34% over the last 11 years. Given that the scale of change we seek is immense and our impact has steadily increased, new strategies, resources and engagement are critical. Buildings can account for between 40% and 75% of community-level greenhouse gas emissions in Utah. Given that many impactful and cost-effective opportunities exist to reduce energy use (and associated greenhouse gases) in buildings, and that reducing energy consumption is typically the lowest cost strategy to reducing emissions and dramatically decreasing energy consumption among buildings, that is where most of my time has been spent so that we can create a 100% renewable electricity system. As community-wide electricity consumption is reduced, the amount of renewable electricity needed by the community is also lowered, making it easier to achieve a 100% renewable electricity scenario. Beyond the prodigious role that the build environment plays, sustainability efforts need to address resilience, carbon neutrality, watershed health, community vitality, regeneration and triple bottom line thinking (i.e., social, economic and environmental). In order for the goals to be more than words in a City Plan, Council and citizens will need to dedicate substantial time and resources to educate, assist and support the priority strategies. See Appendix A for recommendations. This quote from Paul Hawkins succinctly summarizes the main intent of our work: “Leave the world better than you found it, take no more than you need, try not to harm life or the environment, make amends if you do.” The plan content is a reflection of input from numerous business and community members to identify actions that will increase efficiency and resiliency because: •Economic health, social inclusion, and environmental quality are mutually interdependent. •Policy choices have long-term cost effectivenes. •Organizational and community awareness, responsibility, participation, and education are key elements of sustainability. •Local actions have regional, national, and global implications. Within this document are recommendations to augment existing goals, and metrics, because how we acquire energy and how efficiently we use resources will determine, if Moab can achieve transformational change and protect the world-class environment we call home. Sustainably yours, Dr. Rosemarie Russo Letter from the Sustainability Director Goal #1: Sustainability, Adaptation and Mitigation Reduction of community greenhouse gases by at least 80% by 2040, including a reduction of at least 50% by 2032; and ultimately achieving carbon neutrality for the municipal organization. This reduction will be relative to a 2007 community emissions baseline, including emissions from energy use and transportation. Goal # 2: Energy: Electricity & Renewable Energy •Transition to 100% for community electricity by 2030. •Transition to 100% for municipal government operations by 2027 including at least 50% municipal renewable energy by 2024 from the 2016 baseline with at least 10% provided by onsite distributive energy. • Reduction of electricity demand by 20% by 2032 in City buildings. • Achieve a 20% Btu/sq. reduction in all City facilities from 2007 baseline levels. Goal #3 — Water •Reduce water consumption by 20 percent per capita and 20 percent of outdoor usage of culinary water from a 2001 baseline by 2032. •Protect quality of surface and groundwater to maintain sole source aquifer designation. Goal #4 — Waste Diversion & Recycling Reduce trash by 20 percent per capita and increase diversion rate for community by 20 percent by 2032. Increase participation in City curbside recycling by 20% and decrease waste for residents and commercial customers by 2032; decrease construction debris and waste by 50% by 2024 and increase composting by 20% by 2024. Goal # 5— Fuel/Transportation Ensure all community members and tourists have access to multimodal means of commuter travel, to reduce single–occupancy vehicles and support public adoption of electric vehicles by 10% by 2032. Reduce traditional fuel use by 20 percent and total vehicle miles travel (VMT) for community by 20 percent by 2032. Reduce traditional fuel use by the City’s vehicle fleet by 20% by 2032 and reach a 1.5 average vehicle ridership (AVR) by 2032 for city employees. Goal #6 — Education, Outreach & Legislative Indicatives Increase sustainable practices throughout the community, the state, and nation. Triple bottom- line analysis (i.e., environmental, economic and social) will be available to all levels of the community—students in grades K-12, college level, and the general public—as well as internal customers (staff). Support sustainable policies at the state and federal level. Goal #7 — Purchasing & Funding • Foster a culture of sustainability in the organization and community and advance goals through various funding mechanisms (i.e., Innovation Fund, grants). • Purchasing decisions shall evaluate products and services that have a reduced impact while maintaining fiscal responsibility. Goal #8— Biodiversity & Forest Canopy Achieve a 10% forest canopy density; a 70 native vegetation cover and soil stability on select City property and promote carbon sequestration by restoring and preserving biological soil crusts. Goal #9 — Health, Well-Being & Social Equity Ensure that Moab is an inclusive community, where physical and mental health and social wellbeing are accessible to all. Goal #10 – Food Promote long-term agricultural stewardship and access to healthy local food. Goals The following new and revised goals are recommended. Goals in italics are new or revised goals. This Sustainability Plan is as an important step to ensure the City of Moab’s sustainable and vibrant future. Select sections focus on actions that the municipal government and its employees can take in order to make the City a leader in sustainable practices. The Plan is essential to highlight early successes and identify areas that need additional focus to ensure we accomplish the short term and long term goals. The Plan identifies the recommended revised and new goals and associated benchmarks for the areas that we have data. There are areas that need additional data input and analysis. One such area is our resiliency planning. The City must be prepared for disturbances such as, drought, wildfires, extreme rain events, electricity outages, as well as urban heat island effect. In addition to building upon our successes, integration of climate strategies into master plans needs to be addressed especially in planning and budgetary decisions. A preliminary review of existing plans, programs, studies and ordinances has been conducted. See Appendix L. Climate change is already affecting Moab and the surrounding region, and its impacts are projected to become much more severe in the coming decades. To minimize harmful impacts and play our part in curbing global carbon pollution, Moab needs to take bold steps to reduce greenhouse gas emissions and build resiliency. This plan lays out a foundation to reduce our emissions and improve our resilience to future impacts of climate change on Moab’s environment, infrastructure, and people. The immediate initiatives for 2019 are outlined in Table 4. The impacts of climate change will have tangible effects on public health and quality of life for residents and visitors. Climate models project that Moab will experience: •A decrease in winter snowpack; •Summer water scarcity as temperatures increase; •More days of extreme heat each year; •An increase in temperature on the hottest days of the year; •Additional rainfall during heavy storms; and •More frequent and severe droughts, heat waves, and wildfires. In addition to the direct dangers of wildfires, flooding, and extreme weather events made worse by climate change, secondary effects of more extreme temperatures, snowpack declines, and wildfire smoke are significant. •Sensitive and exposed populations like the very young, elderly, those with respiratory illness, and outdoor workers will be at risk from wildfire smoke and heat-related illnesses. •Plants and wildlife will need to adapt to shifting or diminishing habitats. •Seasonal and climate-dependent industries such as agriculture, outdoor recreation, and tourism will be threatened under changing conditions. The urban heat island effect can have serious impacts on public health and quality of life, including causing Conclusion Table 4: 2019 Strategic Initiatives heat-related fatalities among elderly or otherwise vulnerable people. The City can reduce this effect by increasing the tree canopy cover in targeted areas that do not currently have adequate shade or air conditioning, as well as promoting and educating citizens about the benefits of shading with trees and building features. • Offer Incentives for cooling strategies such as cool roofs/pavements and expanded tree canopies. Early successes •82 Local businesses performed lighting retrofits, exceeding the initial targets. •The City is in the process of implementing a more robust and convenient recycling program. •The City’s bike-share program kicked off in the fall of 2018 and has stations at 90% of City facilities. •The City installed bike racks and a bike repair station at Swanny City Park. Barriers •There is no accountability across the organization regarding sustainability (i.e., purchases, hiring, and performance). As such, the Sustainability Director can only encourage managers to adopt new practices. Several departments have expressed an interest in conserving resources, but do not have adequate funding or staff time to implement changes. •Better load management is critical if the community is to reach its energy goals. •Enhance sustainability competencies through training. •Focus on equipment upgrades and rebates to save energy in major building repairs, roofing, and capital improvement projects. Recommendations & Opportunities •Offer bi-annual education and training for staff and the public. •The wattSmart Technical Team and NREL Advisory Team are examining the costs associated with the new potential energy goals and their contribution to our carbon reduction goal. •Increase sustainability staff and resources to enter and verify data. •Minimize obstacles to affordable housing—reducing parking lot requirements, reducing connection and impact fees, piloting compostable toilet systems, requiring solar, greywater and EV ready wiring and infrastructure for buildings over 5,000 square feet. •Establish the revolving energy fund; this allows funds to be used for City energy efficiency upgrades. The savings from those upgrades are used to pay off the initial investment and re-allocate savings to additional energy efficiency improvements in other City-owned buildings. •Add additional bike trails, corrals and U-lock bike racks throughout the community. •Developing an Environmentally Preferential Purchasing (EPP) policy—each department must conserve and utilize existing materials and consistently choose more sustainable new products. This information can be shared with GtG partners and businesses throughout the community. •Track all street trees planted and removed. •Expand the current production of renewable energy. Key Indicators and Strategies (2016 - 2019) Moab is in the process of entering and verifying data for key indicators. Changes in key indicators between baseline and subsequent years: " T o t a l C O 2 e e m i s s i o n s X X % i n c r e a s e " S c o p e 1 ( d i r e c t c a r b o n e m i s s i o n s ) f l e e t s : X X i n c r e a s e a n d n a t u r a l g a s : X X X % i n c r e a s e " S c o p e 2 ( e n e r g y i n d i r e c t e m i s s i o n s ) X X % i n c r e a s e " S c o p e 3 e m i s s i o n s ( g a s e s f r o m w a s t e a n d r e c y c l a b l e s t o t h e l a n d f i l l a n d a i r t r a v e l ) X X % i n c r e a s e " P e r s q . f t . C O 2 e e m i s s i o n s X X % i n c r e a s e " P e r e m p l o y e e X X % i n c r e a s e " P e r v e h i c l e e m i s s i o n s X X % i n c r e a s e " P e r c e n t o f e l e c t r i c i t y g e n e r a t e d b y c l e a n , r e n e w a b l e e n e r g y o n - s i t e - - % i n c r e a s e " C h a n g e i n t o n s o f w a s t e s e n t t o t h e l a n d f i l l % i n c r e a s e " W a s t e d i v e r s i o n i n c r e a s e d f r o m X X % i n t o X X % i n ( i n c l u d i n g o f f i c e a n d i n d u s t r i a l m a t e r i a l s ) . G a m e C h a n g i n g P r o j e c t s T h e C i t y o f M o a b i s c o m m i t t e d t o o p e r a t i n g i n a m a n n e r t h a t l o w e r s i t s e c o l o g i c a l i m p a c t s w h i l e s t r e n g t h e n i n g i t s e c o n o m i c a n d s o c i e t a l l e a d e r s h i p t h e t r i p l e b o t t o m b i n e ( T B L ) . T h e f o l l o w i n g p r o j e c t s a n d c h a l l e n g e s h a d t h e m o s t s i g n i f i c a n t e n v i r o n m e n t a l a n d / o r e c o n o m i c r e t u r n s . T h e s e t y p e s o f p r o j e c t s r e s u l t i n l o n g - t e r m , f i s c a l l y s u s t a i n a b l e p r o g r e s s a n d s h o u l d b e r e p l i c a t e d a n d s c a l e d - u p t h r o u g h o u t t h e c o m m u n i t y . T h e s e i n c l u d e l o a d s h e d d i n g a n d m a n a g e m e n t ; o u t d o o r l i g h t i n g ; r e t r o f i t s ( i . e . , h i g h p r e s s u r e s o d i u m a n d L E D s ) ; i n d o o r l i g h t s ( i . e . , L E D s a n d T - 5 s ) ; a n d v a r i o u s c h a l l e n g e s ( i . e . , e n e r g y a n d w a t e r ) . T h e o u t r e a c h c a m p a i g n s a n d t h e n u m e r o u s e m p l o y e e a n d c o m m u n i t y c h a l l e n g e s r e q u i r e d r e l a t i v e l y l o w i n v e s t m e n t s . S e e T a b l e 5 . L e a d i n g B y E x a m p l e T h e C i t y o r g a n i z a t i o n i n t e n d s t o s e t a n e x a m p l e o f s u s t a i n a b i l i t y s t e w a r d s h i p i n m a n a g i n g o u r o p e r a t i o n s a n d b e i n g g o o d s t e w a r d s o f t a x p a y e r s f u n d s . A f e w s u c h e x a m p l e s a r e h i g h l i g h t e d b e l o w : " K u d o s t o T e r r y L e w i s , P a t r i c k B a l l , L i z H o l l a n d a n d P a t r i c k T r i m f o r e f f i c i e n c y g a i n s . " M o a b A r t s & R e c r e a t i o n C e n t e r i n s t a l l e d w a t e r r e t e n t i o n p o l l i n a t o r l a n d s c a p i n g . " T h e P a r k s & R e c r e a t i o n D e p a r t m e n t c o n d u c t e d a l i g h t i n g a u d i t o f t h e S u n C o u r t a n d t h e M o o n s t o n e G a l l e r y i n o r d e r t o r e d u c e e n e r g y c o s t s . L i f e t i m e m a t e r i a l s a n d m a i n t e n a n c e s a v i n g s a r e e s t i m a t e d t o b e $ 5 9 , 8 4 0 . T h e C i t y u s e d R o c k y M o u n t a i n P o w e r w a t t S m a r t I n c e n t i v e s t o d e f r a y c o s t s . " T h e M o a b R e c r e a t i o n & A q u a t i c C e n t e r u n d e r w e n t a l i g h t i n g a s s e s s m e n t t h a t y i e l d e d e s t i m a t e d s a v i n g s o f $ 9 6 , 0 0 0 . C o n t i n u e t o L e a d B y E x a m p l e t h r o u g h p a r t i c i p a t i o n i n B l u e S k y P r o g r a m m i n g ( F i g u r e 1 2 ) . N e x t S t e p s T h e s e t y p e s o f p r o j e c t s h a v e a s s i s t e d u s i n s u r p a s s i n g t h e m u n i c i p a l g o v e r n m e n t s r e n e w a b l e e l e c t r i c i t y 2 0 2 0 g o a l s . " C o m m u n i c a t e t o s t a f f , r e s i d e n t s a n d t o u r i s t s a c t i o n a b l e i t e m s t o r e d u c e o u r i m p a c t o u t l i n e d i n A p p e n d i x A : A c t i o n a b l e I t e m s a n d A p p e n d i x F . " R e v i e w a n d i m p l e m e n t a t l e a s t o n e p r o j e c t i d e n t i f i e d i n A p p e n d i x B : G r i d a n d A p p e n d i x E : C o - B e n e f i t A n a l y s i s a n n u a l l y t o s y s t e m a t i c a l l y a d d r e s s c o n s e r v a t i o n a n d b u d g e t f o r p r o j e c t s i d e n t i f i e d i n A p p e n d i x C : T i m e l i n e G a n t t C h a r t a n d B i k e r s S u s t a i n a b i l i t y P l a n . " B u i l d u p o n t h e p r o j e c t s a n d p r o c e s s e s i d e n t i f i e d i n t h e C o m m u n i t y E n e r g y P l a n t h r o u g h t h e G t G P r o g r a m a n d a r e s i d e n t i a l N e i g h b o r h o o d C a m p a i g n i n c l u d i n g a d d i t i o n a l B l u e S k y a p p l i c a t i o n s . " C o n t i n u e t o v e r i f y d a t a u s e d f o r t h e p r e l i m i n a r y C o m m u n i t y B a s e l i n e I n v e n t o r y A p p e n d i x D a n d p r e p a r e M u n i c i p a l B a s e l i n e I n v e n t o r y . F i g u r e 1 2 . w a t t S m a r t S a v i n g s E q u i v a l e n t s T a b l e 5 : C h a l l e n g e S a v i n g s 1 Moab City Council Agenda Item Meeting Date: August 27, 2019 Title: Update on the Administrative Work Plan Which Contains the Priorities and Goals of the City Council To Be Used By City Staff and Administration in Administrative Operations Presenter: Joel Linares Attachment(s): ●Administrative Work Plan Background/Summary: The City Council through its legislative authority has indicated to City staff that there are several projects, ideas, and management practices it wishes to see implemented by the City administration. These will provide guidance to priorities and actions by City staff. The City Council has deliberated and through work sessions and strategic planning sessions have determined that this Administrative Work Plan is in the best interest of the City. The Administrative Work Plan is an administrative guideline for the City of Moab for the operations, priorities, and goals of City staff and administration. Revised February 6, 2018 1 City of Moab 2019-2020 Administrative Work Plan City employees spend much of their time working on essential services to maintain a functional municipal government. In addition, unexpected emergency or urgent items require immediate attention, which can take many hours to address and resolve. At the same time, employees are expected to work on new initiatives or projects that advance agreed-upon goals. Set forth below is a work plan that reflects Council priorities while balancing the practical constraints of available time and resources for the calendar years 2019 and 2020. Section 1: Quality-of -Life and Cross-Jurisdictional Initiatives Section 2: Housing Section 3: Water Resource Protection Section 4: Land Use and Infrastructure Planning and Development Section 5: Infrastructure Maintenance and Operations Section 6: Central Administration and Personnel Section 7: Arts and Recreation Services Section 1: Quality-of -Life and Cross-Jurisdictional Initiatives 1.1 Support a high-level community-driven visioning process. • The City will help identify a consultant and/or community groups that will lead this effort. • At the same time, the City will initiate a process to establish future land use expectations and patterns. 1.2 Create a 10-Year Sustainability Plan. • Develop a comprehensive Sustainability Plan that builds upon the Vision 2020 Plan and set actionable priority goals for carbon reduction, energy efficiency, water conservation, and the tree canopy. This will guide the City’s decision making across departments as well as provide a roadmap for meeting community-wide sustainability goals. 1.3 Coordinate a legislative strategy with Grand County. • Coordinate closely with the County on priorities and lobbying strategy to ensure that we are as effective as possible during the 2020 Utah Legislative session. • Consider using external lobbying services. 1.4 Implement Dark Skies Initiatives. • Update and amend City Code outdoor lighting elements to minimize light trespass. • Retrofit street lights with full cutoff shielding. 1.5 Address in-town ATV/UTV noise issues. • Pursue state-level legislative fixes. • Explore parking alternatives that allow for trailering and/or shuttling to trailheads and into downtown core. 1.6 Support the development of the new USU Campus. • Continue to take the lead on the primary infrastructure project • Stay involved in planning and financing efforts. Revised February 6, 2018 2 1.7 Analyze potential for future shared services with Grand County. • Determine where, if any, consolidated services may be appropriate and if current partnerships are optimized. 1.8 Set up a twice-yearly reporting procedure to update the City Council on the status of special events in the area. Section 2: Housing 2.1. Continue efforts to inform and educate the City Council and the community generally regarding affordable housing issues in Moab while implementing the Moab Area 2017 Affordable Housing Plan • Conduct a workshop or workshops to better understand the issue. 2.2 Identify and reduce barriers to affordable housing development in city code. • May include establishing a process to fast-track project that support the City’s workforce housing and/or sustainability goals. 2.3 Continue to manage and advance the City’s Walnut Lane Housing Development. 2.4 Create an incentive program for deed-restricted housing development (single or multifamily). • Will likely include a new “planned affordable development” ordinance but may also include other approaches to incentivizing deed-restricted development. 2.5 Explore incentives for primary residential housing development. 2.6 Set up the administrative process to ensure that deed restrictions are enforced. Section 3: Water Resource Protection 3.1 Closely follow and participate in the formulation of the State-led groundwater management planning process. 3.2 Provide quantitative information to Council and public regarding a Citywide water budget 3.3 Explore collaborative efforts to implement a water conservation public education campaign with GWSSA. Section 4: Land Use and Infrastructure Planning and Development Land use planning: 4.1 Complete the Downtown Master Plan. 4.2 Complete the parking plan. 4.3 Develop small area plans. Specific neighborhood plans will be developed for: • Powerhouse Lane/Millcreek Drive area • 400 East corridor 4.4 Participate in regional mobility planning. In partnership with Grand County, San Juan County, and UDOT, facilitate long -range mobility and transportation planning for the greater Moab area. Revised February 6, 2018 3 Development standards: 4.5 Revise various development standards. This may include: • Sidewalk requirements • Height limits • Solar access • Residential building envelope • Parking on commercial and multifamily sites • Residential area driveway separations; • Fencing; • Landscaping; • Signs and lighting (in accordance with dark skies policies); and • Pedestrian safety. 4.6 Develop standards for “pocket neighborhoods”. These will address character and infrastructure issues in areas such as: • East Center; • West Center; and • East 100 North. 4.7 Reorganize the development-related sections of City Code. Specifically, consolidate and update as appropriate the sections describing commercial zones and residential zones, and add a comprehensive use table. Infrastructure planning: 4.8 Create a 5-year capital improvement plan. 4.9 Inventory all transportation system components. This is needed to better predict future needs and plan for capital improvements. 4.10 Develop a pavement management plan. This plan will provide guidance for the capital improvements list for streets, sidewalks, curb and gutter, and paved non-motorized pathways. 4.11 Inventory all public signage and develop signage plan . As Moab grows, there is a need to evaluate signage and ensure that current and new signage complies with federal and state standards. 4.12 Create a striping plan for all city roads. 4.13 Develop street and pedestrian safety standards that includes a comprehensive speed limit plan. Section 5: Infrastructure Maintenance and Operations Sewer and Storm Water: 5.1 Complete the annual sewer and storm water capital projects list. Culinary Water: 5.2 Complete the annual culinary water capital projects list. Streets/Sidewalks/Curb/Gutter: 5.3 Complete the annual concrete-related capital projects list, including an annual new seal coat for all roads chip sealed in 2017. Revised February 6, 2018 4 Fleet: 5.4 Establish fleet master list and preventative maintenance schedule. 5.5 Evaluate purchasing/leasing options for vehicles. Parks: 5.6 Develop and implement a park-specific plan for Old City Park. This will likely include trailer removal, pond revitalization, and stage rehabilitation/rebuilding. 5.7 Implement Swanny Park improvements. • Install shade structures over play area. • Investigate refurbishing skate park. Facilities: 5.8 Implement a SCADA system for city buildings. 5.9 Develop a preventative maintenance program for city buildings. This will address HVAC, mechanical, and electrical systems. 5.10 Conduct energy audits and establish benchmarks for all city facilities. Section 6: Central Administration and Personnel Personnel: 6.1 Continue to implement succession planning. Each department will produce a recommendation for how to best structure their organization to foster internal advancement and ensure organizational resiliency. This may include professional development in the form of mentoring programs and/or a training regimen, as well as structural changes and the development of written policies and procedures. 6.2 Develop performance indicators. Staff will collectively create a set of recommended performance indicators for council consideration. These will provide high-level trendlines over time to show how city government is functioning. This will likely include conducting a community survey to contextualize internal perceptions of success. 6.3 Update citywide personnel policies and procedures. The City’s personnel manual is due for a significant update to reflect recent changes in management, leave time, grievance procedures, and many other HR-related items. 6.4 Revise the performance evaluation process. The new approach to adjusting compensation based on performance evaluations is working well, but as with all new methodologies, refinements are needed (primarily with regard to the evaluation form itself and what is expected from supervisors who perform the evaluations). 6.5 Identify an effective customer service training program for city employees. Open and Better Government: 6.6 Continue to improve the City’s digital presence. We will coordinate social media engagement and website creation and maintenance across departments to ensure consistent and effective messaging and communication. Revised February 6, 2018 5 6.7 Investigate a constituent response management system (“CRM”). Evaluate effective processes and systems for tracking constituent feedback and comments to the City that come from any communication vector (phone, email, verbal, etc.) 6.8 Continue overall City Code cleanup and updating. This would include a consolidated fee schedule section and a reordering of the city code. 6.9 Implement an online Special Events application process. 6.10 Substantively revise specific non-land use code sections. Management and Organization: 6.11 Create an orientation and training program for Planning and Zoning Commissioners. 6.12 Develop a Public Works-specific set of written policies and procedures. 6.13 Update City Center offices and Public Works offices and shop spaces. Significant capital facilities planning and analysis has been conducted for City Center, and a similar endeavor is needed for the Public Works offices and yard. 6.14 Evaluate the costs and benefits associated with a City-assessed property tax. Section 7: Arts and Recreation Services 7.1 Conduct a parks and recreation community survey. 7.2 Develop a Recreation and Trails Master Plan. This may result in a more specific in-town urban trails plan ahead of a more comprehensive recreation plan. 7.3 Revise and renew the lease agreement regarding the golf course. 7.4 Continue to support expanded arts offerings. This may include: • Large sculpture commissions; • Creative lighting downtown; • An artist-in -residence program; and/or • Additional arts contests and festival offerings. 7.5 Revisit the organizational structure of arts and recreation in the context of community wellness. Section 8: Public Safety 8.1 Conduct a major revision of the departmental policies and procedures manual. 8.2 Institute a formal individualized training plan for every officer. 8.3 Fill vacant positions. 8.4 Draft code changes to strengthen the City’s ability to deal with dangerous dogs. 1 Moab City Council Agenda Item Meeting Date: August 27, 2019 Title: Update on the Administrative Guidelines for the Use and Reservation of City Owned Property Presenter: Joel Linares Attachment(s): ●Administrative Park Policy Plan Background/Summary: The City owns several facilities and parks which are available for the public use. These include Swanny Park, Rotary Park, Old City Park, Lyon’s Park, Anonymous Park, the Ball Park, The Moab Art and Recreation Center (MARC), Moab Recreation and Aquatic Center (MRAC) Center Street Gym, Sun Court, and others. These facilities are very popular and are in high demand. Individuals contact the City to request the use of these facilities for private events and for day-to-day use. Individuals wish to secure facilities for private events through reservations and City staff seeks guidance as to policies and procedures regarding the use of these facilities for both public and private events, use by dogs, use of amplified sound, and other types of events and issues. City of Moab City Park Use Policies The City of Moab is pleased to provide a beautiful park and trail system for residents and visitors. Swanny Park, Lions Park, Rotary Park, Old City Park, the Center Street Ballfields, the Bark Park, and Sun Court are official City parks. The City is also responsible for the Millcreek Parkway trail system, Anonymous Park (the BMX track area), Center Street Gym, and other smaller park areas and trails within the City. Generally, park use is on a first-come, first-served basis. Gatherings that involve fewer than 50 people and that do not involve business activity, amplified music, moved‐on structures or other special accommodations do not require prior permission, special event licensing, or the payment of a fee. When an individual or a group wishes to use part or all of a park for an event or gathering that does not meet the above criteria, the City uses two different processes to ensure that park resources are used fairly and sustainably: 1.Park reservations. Specific areas of some parks (pavilions, stages, etc.) may be reserved for private use for birthday parties, weddings and more. See Table 1. 2.Special Event permitting. Parks, in whole or in part, may be used subject to the special event permitting process, as defined in Chapter 4.02 of the Moab Municipal Code. Questions about what permits and licenses your group may need for an event should be directed to the City at (435) 259‐5121. Below you will find park policies that apply to all city parks and areas, policies for individual parks, and information about reservations and fees. General Park Policies All parks and park areas close at 10:00 p.m. This does not apply to pathways. Citywide noise regulations apply to all parks. See Moab Municipal Code Section 17.74. The following activities are prohibited at City parks, park areas, and pathways, unless specifically allowed in Table 1 or per individual park policies: Commercial activity Smoking Alcohol Dogs or other pets. Dogs are allowed on shared use pathways (including the Millcreek Parkway) and trails, but must be on a leash and under voice control. See Table 1. Bounce houses and other inflatable structures. Slacklining, except for where specifically designated. All permitted slacklines must be removed before dark. See Table 1. ��M o v e d o n s t r u c t u r e s . ��T e n t s p i k e s . T a b l e 1 : P e r m i t t e d U s e s P a r k o r A r e a D o g s a l l o w e d R e s e r v a b l e a r e a s S l a c k l i n i n g A m p l i f i e d s o u n d a l l o w e d S w a n n y C i t y P a r k Y e s , w h e r e d e s i g n a t e d n e a r N E c o r n e r Y e s , a s a p p r o v e d t h r o u g h s p e c i a l e v e n t s L i o n s P a r k Y e s o n l e a s h P a v i l i o n Y e s R o t a r y P a r k P a v i l i o n [ A m p h i t h e a t e r ] O l d C i t y P a r k P a v i l i o n S t a g e Y e s A n o n y m o u s ( B M X ) P a r k M i l l c r e e k P a r k w a y S y s t e m Y e s o n l e a s h Y e s , w h e r e d e s i g n a t e d n e a r 5 0 0 W e s t C e n t e r S t r e e t G y m E n t i r e c o u r t B a r k P a r k Y e s o n o r o f f l e a s h S u n C o u r t E n t i r e c o u r t Y e s C e n t e r S t r e e t B a l l f i e l d s S p e c i f i c f i e l d s Y e s , a s a p p r o v e d t h r o u g h s p e c i a l e v e n t s R e s e r v i n g A r e a s W i t h i n a P a r k P o r t i o n s o f O l d C i t y P a r k , R o t a r y P a r k , t h e C e n t e r S t r e e t B a l l f i e l d s , C e n t e r S t r e e t G y m , t h e S u n C o u r t , a n d L i o n s P a r k m a y b e r e s e r v e d f o r e x c l u s i v e u s e . F e e s v a r y b a s e d o n d u r a t i o n o f u s e a n d t h e a m o u n t o f t h e p a r k t o b e u s e d . W i t h o u t a r e s e r v a t i o n , individuals may use park areas on a first come‐first served basis, provided that non‐reserved use does not conflict with a reservation. Reservations are subject to the following guidelines: Make a reservation by calling the Public Works Department at (435) 259‐7485. All reservations require the payment of a fee per City Code. Reservation fees must be paid to the City within seven days of making the reservation. Reservations that are not paid within the seven day time frame will be canceled. If a reservation is canceled by the user prior to three days before the event, the reservation fee is refundable upon request to the City. No refunds will be given for reservations cancelled within three days of the event. Weather‐related refunds will not be given. Reservations may be made up to one year in advance of the reservation time. Parks may be reserved from 7:00 am until 10:00 p.m. Parks may not be reserved during previously scheduled maintenance times as specified in individual park policies. Cleaning and damage deposits are required for all groups over 100. The group or person making the reservation must ensure that all garbage and recycling generated from the use of the park are picked up and deposited into the appropriate containers when the use/event is complete. For reservations requiring a cleaning and damage deposit, Parks staff will inspect the area after the use to determine if the cleaning and damage deposit may be returned. It will be up to the discretion of the Parks staff to determine if all or a portion of the cleaning/damage deposit should be returned to the user. All personal items including decorations, props, tables, chairs, etc., must be removed immediately following the reservation time. Costs associated with cleaning expenses may be deducted from the damage and cleaning deposit. Specific Park Policies In addition to the General Park Policies and the General Reservation Policies, additional conditions apply to specific parks as outlined below. Old City Park The pavilion area and the stage are reservable areas. The entire day of Wednesday is maintenance time at Old City Park. No reservations will be made for Wednesdays. Use of amplified music requires a separate administrative approval. Requests for amplified music must be submitted in writing to the City at least three weeks prior to the scheduled event. Use of electricity for approved amplified sound or for electricity usage in excess of the standard 120 volt outlets at the park requires an additional fee. ��A p p r o v e d a m p l i f i e d s o u n d m u s t e n d b y 9 : 0 0 p m . R o t a r y P a r k ��T h e p a v i l i o n a r e a a n d t h e a m p h i t h e a t e r a r e r e s e r v a b l e a r e a s . ��M o n d a y i s m a i n t e n a n c e d a y . N o r e s e r v a t i o n s w i l l b e m a d e f o r M o n d a y s b e f o r e 3 : 0 0 p m . ��A v o l l e y b a l l n e t m a y b e s e t u p f o r y o u r r e s e r v a t i o n w i t h p r i o r r e q u e s t . R e n t e r s h o u l d b r i n g t h e i r o w n b a l l . ��T h e M o a b R o t a r y C l u b i s e x e m p t f r o m p a y i n g t h e r e s e r v a t i o n f e e , b u t m u s t o b t a i n a l l o t h e r n e c e s s a r y p e r m i t s a n d a p p r o v a l s . L i o n s P a r k ��T h e p a v i l i o n a r e a i s t h e r e s e r v a b l e a r e a w i t h i n L i o n s P a r k . ��D o g s a r e a l l o w e d i n t h e p a r k . D o g s m u s t b e o n l e a s h a n d o w n e r s m u s t p i c k u p d o g w a s t e a n d f o l l o w o t h e r r u l e s o f D o g P a r k . D o g s a r e n o t a l l o w e d o n t h e X X X X X X F a i l u r e t o f o l l o w t h e s e r u l e s c a n r e s u l t i n a f i n e u p t o $ 1 , 0 0 0 p e r M o a b M u n i c i p a l C o d e S e c t i o n 6 . 0 4 . ��L i o n s P a r k l a w n i s n o t a r e s e r v a b l e a r e a . T h e C i t y m a y , h o w e v e r , a p p r o v e u s e o f l a w n ( a n d p a v i l l i o n ) f o r S p e c i a l E v e n t s . S w a n n y P a r k S w a n n y P a r k , d u e t o i t s p o p u l a r i t y a n d p r o x i m i t y t o r e s i d e n c e s , m a y b e s u b j e c t t o s t r i c t e r n o i s e a n d d i s t u r b a n c e r e q u i r e m e n t s t h a n o t h e r p a r k s . S w a n n y P a r k i s n o t a r e s e r v a b l e p a r k . T h e C i t y m a y , h o w e v e r , a p p r o v e u s e o f S w a n n y C i t y P a r k f o r S p e c i a l E v e n t s t h a t b e n e f i t t h e c o m m u n i t y . A p p r o v e d e v e n t s t y p i c a l l y f a l l i n t o o n e o f t w o c a t e g o r i e s : a ) f e s t i v a l s a n d e v e n t s t h a t " . . . p r o v i d e s o c i a l , c u l t u r a l , e d u c a t i o n a l o r e n t e r t a i n m e n t b e n e f i t s a s w e l l a s e c o n o m i c b e n e f i t s p r o v i d e e c o n o m i c b e n e f i t s t o t h e c o m m u n i t y , a n d b ) f u n d r a i s i n g e v e n t s f o r b o n a f i d e c o m m u n i t y g r o u p s a n d a c t i v i t i e s . P e r m i t s w i l l n o t b e a p p r o v e d f o r p r i v a t e b u s i n e s s e v e n t s t h a t s e r v e a l i m i t e d c l i e n t e l e a n d d o n o t s e r v e t h e b r o a d i n t e r e s t s o f t h e c o m m u n i t y . S l a c k l i n e u s e i s p e r m i t t e d o n l y o n d e d i c a t e d s l a c k l i n e p o s t s i n t h e n o r t h e a s t c o r n e r o f t h e P a r k . U s e o f t h e s l a c k l i n e p o s t s i s o n a f i r s t c o m e f i r s t s e r v e d b a s i s . S l a c k l i n e s s h a l l n o t b e l e f t u n a t t e n d e d , o r u p a f t e r d a r k . C e n t e r S t r e e t B a l l f i e l d s The Center Street Ballfields are primarily used for sports activities and tournaments sponsored by the City’s Recreation Department. Because of its extensive use for City recreation programming, the Ballfields are available for private reservation and special events on a limited basis. The following conditions apply to the use of the Center Street Ballfields: All use of the Center Street Ballfield should be coordinated with the Moab City Recreation Department at (435) 259‐2255. Reservations for small groups that do not charge a fee for participants may simply make a reservation with the Moab City Recreation Department and pay the appropriate fee per City Code. Use of the lighting system at the Center Street Ballfield requires a separate fee. Sun Court The Sun Court is a multi‐use sport court that is open to the public on a first‐come first served basis generally, but may also be reserved. Bark Park The Bark Park is a dog park designed for the enjoyment of off‐leash dogs and their owners. The Bark Park is not available for special events. The Bark Park’s general use policies are as follows: All dogs must have a current vaccination and shall wear a visible license tag. Owners and pets use the park at their own risk. Dogs must be under owner’s voice control at all times. Owners must closely supervise their dogs and remain in the enclosure with their dogs at all times. Feces shall be removed immediately and disposed of properly. Children under seven years of age are not allowed to enter; children 7‐14 years must be accompanied by an adult. No more than two (2) dogs per owner/responsible party may be off‐leash at one time. The following are prohibited: o Dogs under four months of age; o Dogs that are ill or in heat; o Dogs with internal/external parasites (fleas, ticks, worms); o Aggressive dogs or overly fearful dogs; o Spiked, choke or prong collars. Dogs shall not dig or disturb park resources. No rawhide, bones or food allowed inside the enclosure. Owners must possess a valid driver’s license or government‐issued identification card. ��V i o l a t i o n o f a B a r k P a r k r u l e m a y r e s u l t i n l o s s o f u s e p r i v i l e g e s a n d / o r c i t a t i o n s . A n o n y m o u s P a r k ( B M X ) T h i s a r e a h a s e v o l v e d o r g a n i c a l l y t h r o u g h c o m m u n i t y - l e d i n i t i a t i v e s t o p r o v i d e B M X - s t y l e j u m p s a n d f e a t u r e s . I t i s c o o p e r a t i v e l y m a i n t a i n e d t h r o u g h a c o o p e r a t i v e a p p r o a c h w i t h l o c a l b u s i n e s s e s . M i l l C r e e k P a r k w a y a n d o t h e r P a r k A r e a s T h e P a r k w a y a n d o t h e r p a r k a r e a s w i t h i n t h e C i t y a r e n o t g e n e r a l l y a v a i l a b l e f o r r e s e r v a t i o n o r s p e c i a l e v e n t u s e . H o w e v e r , i f a g r o u p w o u l d l i k e t o s p o n s o r a n e v e n t o n t h e M i l l C r e e k P a r k w a y , t h e y s h o u l d c o n t a c t t h e C i t y a b o u t o b t a i n i n g p r o p e r a p p r o v a l s , p e r m i t s a n d l i c e n s e s . C e n t e r S t r e e t G y m A l t h o u g h t h e C e n t e r S t r e e t G y m i s n o t a c i t y p a r k , i n q u i r i e s a r e o f t e n m a d e a s t o t h e u s e o f t h e G y m f o r s p e c i a l e v e n t s a n d u s e . I n q u i r i e s a s t o t h e a v a i l a b i l i t y a n d r e s e r v a t i o n o f t h e C e n t e r S t r e e t G y m s h o u l d b e m a d e t h r o u g h t h e C i t y R e c r e a t i o n D e p a r t m e n t a t ( 4 3 5 ) 2 5 9 2 2 5 5 . # # # # Moab City Council Agenda Item Meeting Date: August 27, 2019 Title: Proposed Resolution #44-2019 – Establishing a Debt Policy for the City of Moab Date Submitted: August 19,2019 Staff Presenter: Rachel Stenta, Finance Director Attachment(s): Proposed Resolution 44-2019 Options: Approve, deny, or modify. Recommended Motion: I move to adopt “Proposed Resolution 44-2019 establishing a debt policy for the City of Moab” Background/Summary: Previously, the City has carried minimal debt and has paid for most capital projects on a “pay as you go” basis. As demonstrated in this previous year’s budget process, that approach is not sustainable. The past two years, the City has applied for and taken on debt for several sewer and water projects as well as an affordable housing project. We are at the beginning of a new Capital Planning process, and as part of that roadmap, we need to formalize and adopt a strategy for taking on new debt. As stated in our draft policy: The purpose of this policy is to guide City officials as they consider the proper use of debt to fund capital projects. The primary objective is to establish conditions for the use of debt and to create policies that minimize the City’s debt service and issuance costs, retain the highest credit rating and maintain full and complete financial disclosure and reporting. The debt policy is intended to guide the prudent use of resources to provide the needed services to the citizens of the City of Moab and to maintain sound financial management practices. These policies, therefore, are flexible in design to allow for exceptions under changing and extraordinary circumstances. The City’s debt policy is the guideline for City staff to use in issuing debt. Essentially, the policy guides the discussion on why, when and how we will take on new debt and for what type of projects. I modeled this policy from a Government Finance Officer Association (GFOA) template and then asked our financial consultant at Zions Public Finance to review it as well as our independent auditors. The policy has gone through legal review and will be reviewed on an annual basis by the Finance Director and the City Manager. Any substantive modifications made to the policy must be approved by the City Council. Please let me know if you have any questions. I would be happy to discuss. RESOLUTION NO. 44-2019 A RESOLUTION ESTABLISHING A DEBT POLICY FOR THE CITY OF MOAB WHEREAS, The City Manager and Finance Director recommend Council adopt the debt policy for the City of Moab which policy shall guide City officials as they consider the proper use of debt to fund capital projects, and WHERAS, The primary objective is to establish conditions for the use of debt and to create policies that minimize the City’s debt service and issuance costs, retain the highest credit rating, and maintain full and complete financial disclosure and reporting, and WHEREAS, It is in the best interest of the City of Moab to adopt a debt policy as contained in Exhibit “A” which is attached to this resolution. NOW, THEREFORE, Be It Resolved by the Council of the City of Moab, Utah. SECTION 1. This policy encompasses legal and regulatory requirements, types of permitted debt, how to select the bond type, the “prudent person” rule and planning for debt. The policy states guidelines on issuing debt, financing alternatives, how to use debt derivatives and how to structure and market a debt issue. It also describes the method of sale for debt, debt disclosures, and it outlines debt targets. The policy establishes a procedure for annual appropriation requirement for debt and how to apply and communicate with credit rating agencies. Lastly, it outlines when to defease debt, as well as how to handle investment of debt proceeds, monitoring covenant compliance, reporting debt obligations and how to manage arbitrage and rebates. SECTION 2. City Council having received the City Manager and Finance Director recommendation hereby accepts their recommendation and adopts the debt policy attached hereto and incorporated herein by reference. SECTION 3. This resolution shall be in full force and take effect upon its passage. Passed this day of , 2019. MAYOR Emily S. Niehaus City of Moab Resolution No. 44-2019 CITY RECORDER APPROVED AS TO FORM: CITY ATTORNEY CITY OF MOAB Debt Policy 3 EXHIBIT A DEBT POLICY Introduction The purpose of this policy is to guide City officials as they consider the proper use of debt to fund capital projects. The primary objective is to establish conditions for the use of debt and to create policies that minimize the City’s debt service and issuance costs, retain the highest credit rating and maintain full and complete financial disclosure and reporting. The debt policy is intended to guide the prudent use of resources to provide the needed services to the citizens of the City of Moab and to maintain sound financial management practices. These policies, therefore, are flexible in design to allow for exceptions under changing and extraordinary circumstances. The City’s debt policy is the guideline for City staff to use in issuing debt. The policy will be reviewed on an annual basis by the Finance Director and the City Manager. Any substantive modifications made to the policy must be approved by the City Council. Legal & Regulatory Requirements Management responsibility for the City’s debt program is hereby delegated to the Finance Director, who will establish written procedures for the operation of the debt program consistent with the Debt Policy. The Finance Director, upon City Council approval and with consent from the City Manager and City Attorney, will coordinate their activities to ensure that all financings are issued in full compliance with the City’s governing statutes and regulations. The Finance Director will select the bond counsel for a bond issue. Bond Counsel will review all documents to the issuance of securities by the City. Scope This debt policy applies to debt issued directly by the City and debt issued on behalf of the City. This policy also provides guidelines regarding the execution of capital leases between conduit issuers and the City to finance capital improvements projects. This debt policy will be all-inclusive of debt issued by the City, but not be limited to: general obligation debt, government purpose revenue debt, economic development related debt, lease obligations, certificates of participation, debt derivatives and all forms of debt having an annual appropriation of City revenues. Additionally, this policy governs the use of any swap transactions used in conjunction with the City’s debt program. This debt policy contains certain elements on procedures and practices to achieve the objectives of the policy and to ensure that professional standards are defined and met in the policy’s implementation. In numerous specified cases within this policy, these procedures and policies are adopted by reference from the Government Finance Officers Association (GFOA) published “Recommended Practices for Debt Management”. These best standards are amended over time, and this policy incorporates these ongoing changes. This policy concludes with a glossary of terms frequently used in the municipal debt industry and in this policy. Guidelines for Use A. Debt is a financing tool which should be judiciously used when the City has legal, financial and market debt capacities and will be considered when some or all of the following conditions exist: CITY OF MOAB Debt Policy 4 1. Estimated future revenue is sufficient to ensure the repayment of the debt obligation; 2. Other financing options have been explored and are not viable for the timely or economic acquisition or completion of a capital project; 3. A capital project is mandated by federal or state authorities with no other viable funding option available; and 4. The capital project or asset lends itself to debt financing rather than pay-as- you-go funding based on the expected useful life of the project based on the City’s ability to pay debt service. 5. Debt will not be used to fund ongoing operating expenses of the City. 6. Any City debt issued in support of a development project will first be reviewed and approved under the auspices of the City’s economic development policies and procedures. The City will manage its cash in a fashion that will prevent any borrowing to meet needed operating expenses. The City will primarily rely on current revenue and cash set-asides to finance its capital improvements. The City believes in funding a significant portion of capital improvements on a “pay-as-you-go” basis. Therefore, the City will strive to increase each year the percentage of its capital improvements financed by current revenues. The City’s General Fund equity balance has been built over the years to provide the City with sufficient working capital and enable it to finance unforeseen emergencies without borrowing. To conserve the General Fund equity balance and to avoid reliance on this balance, the City will not finance operations from the General Fund equity balance for periods longer than two years. Types of Permitted Debt The City has numerous choices regarding types of debt available to meet its financing objectives. The following is a listing if the types of permitted debt and general guidelines as to their use. A. General Obligation. General Obligation (G.O.) bonds provide the investor with its most secure City transaction, because the City’s pledge of its unlimited authority to levy property taxes for debt services. G.O. bonds are authorized to be issued in the following variations: full faith and credit, double-barrel. The sum of all G.O. debt outstanding (regardless of type) is governed by the City’s statutory legal debt margin but must also conform to limitations on the general credit of the City. The city may obtain voter authority to issue G.O. by a majority vote (50.1%) at the general municipal, primary or general election day. a. Full Faith and Credit - To be issued for projects, which benefit the City as a whole. Principal and interest to be paid from City’s debt levy assessed on all real and personal property. b. Double-barrel (including public benefit districts) - To be issued for purposes consistent with the voted authority. Principal and interest to be paid from a designated revenue source (e.g. sales tax, tax increment financing etc.) or a special assessment on real property (e.g. sewer special assessment). Revenue shortfalls to be made up from the City’s debt levy assessed on all real and personal property. Selecting Bond Type The City of Moab will seek voter authorization to issue general obligations only for essential projects. In addition, such authority will be sought only after it is determined by City Council that no other funds are available to meet the projected costs. Lease purchase financing and Certificates of Participation will only be undertaken when the project is considered essential to the efficient operation of the City. CITY OF MOAB Debt Policy 5 The City will favor the use of limited obligation revenue bonds to finance capital improvements as a means of insuring that beneficiaries of an enterprise pay for a fair share of the costs to maintain a City service. Prudence Debt will be issued with judgment and care—under circumstances then prevailing—which persons of prudence, discretion and intelligence exercise in the management of their own affairs. The standard of prudence to be used by debt issuance officials will be the “prudent person” standard and will be applied in the context of managing an overall debt portfolio. Debt managers acting in accordance with the debt policy and written procedures and exercising due diligence will be relieved of personal liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. The “prudent person” is expected to be reasonably well informed person, not an investment banker or market maker, who is obligated to act responsibly. Planning for Debt The primary tool used to plan for debt is a capital improvement plan (CIP). A CIP is a multi- year financial planning tool that identifies public facilities, infrastructure improvements, machinery, and equipment requirements. A CIP identifies each proposed capital project, the year it will be started; the estimated cost anticipated each year; and the proposed sources of financing. Based on these individual project details, summaries of capital expenditures for each year are prepared. These summaries are then matched with funding available from all applicable sources including current revenues, cash reserves, grants, and borrowings. A CIP represents the balancing of project requests with current and future financing capabilities. A CIP document will assist the government in determining the amount of infrastructure and equipment spending that will be required to accommodate anticipated growth and development. Each year the City of Moab will adopt a CIP covering the subsequent five fiscal years. The CIP will identify projects for further consideration over the next five- year period and will recommend specific funding strategies for each identified project. The City Manager and the Finance Director will develop criteria that will be used in the evaluation of all capital projects. All capital projects will be accompanied by a description of the sources of funding to cover the project costs. Where borrowing is recommended, the source of funds to cover debt service requirements must be identified. Projects with a useful life of less than five years will not be eligible for inclusion in bond issues. The Finance Director, with approval from Bond Counsel, will determine the useful life of a project. The Finance Director will incorporate an estimate of the useful life of the proposed capital improvements in developing an amortization schedule for each bond issue. Financing Alternatives One of the primary decisions made regarding the CIP is financing whether to use cash on hand, capital leases, low-interest loans, short-term debt financing, or long-term debt financing. This policy sets forth guidelines for this decision by identifying the parameters within each funding source that are considered appropriate. These parameters are defined below. Cash Funding City policy encourages funding capital projects with cash, on a “pay as you go” basis, to the extent possible and practical. As part of the pay-as-you-go strategy, the City will first look for grant funding for capital projects. The City will strive to allocate at least 5% of its sales based tax collections to capital projects each year as funding CITY OF MOAB Debt Policy 6 permits and that money is used first for annual debt payments, and the amount remaining after paying debt service is available for cash funded projects. Cash funding is recommended under the following circumstances: To finance purchases of assets whose lives are shorter than five years. To finance recurring maintenance expenditures (i.e. street repair vs. street construction) When market conditions are unstable or present difficulties in achieving acceptable interest rates. Debt Financing Short term debt financing: Short-term bond anticipation notes may be issued to finance projects or portions of projects. Short-term debt is appropriate under the following conditions: Short-term notes are suitable as a source of permanent financing for projects with useful lives of less than five years. Notes are used as a temporary funding source prior to and in anticipation of the completion of a bond sale. Long-term debt financing: It is prudent policy to use notes and bonds for capital asset funding under the parameters set forth below. No single parameter stands alone; they must all be considered under the then current circumstances and in relation to the others. The parameters are as follows: Variable rate bonds are suitable as long term financing tools designed to manage interest costs. When variable rate bonds are used for long-term financing, the City must schedule annual principal payments similar to a fixed rate financing that will not exceed 20% of the City’s outstanding debt. Long-term bonds are recommended for projects with useful lives of ten years or longer and for amounts. Debt is recommended when the fiscal year’s beginning balance of the General Fund is less than 15% of the budgeted General Fund Revenue. It is preferred that the debt ratio of available capital fund dollars to sales based tax supported debt payments does not fall below 2 to 1 in the current fiscal year and projected forward over four years. Long-term bonds are considered especially appropriate when average long- term interest rates, as indicated by the Bond Buyer General Obligation 20 Bond Index, are at or below eighty-five percent of the index’s twenty-year average. Long-term bonds are considered less appropriate when average rates for the index are at or above one hundred and fifteen percent of the twenty-year average. The City will make every effort to structure the terms of its bonds to match the status of the market at the time. Debt funding is recommended for projects where the burden of payment rests more directly on a selected group of taxpayers or beneficiaries, such as for project revenue bonds, special assessment projects, tax increment financing, or economic development projects. Revenue Bonded Debt It will be a long-term goal that each utility or enterprise will ensure future capital financing needs are met by using a combination of current operating revenues and revenue bond financing. Therefore a goal is established that 15% of total project costs should come from operating funds of the utility or enterprise. It is City policy that each utility or enterprise will provide adequate debt service coverage. Per the trust indenture, a specific factor is established by City Council that projected operating revenues in excess of operating expenses less capital CITY OF MOAB Debt Policy 7 expenditures, depreciation and amortization in the operating fund should be at least 1.25 times the annual debt service costs. Conduit Debt Conduit debt is a bond or other debt obligation issued by the City to finance a project for use by a third party. This arrangement is typically used for nonprofit organizations. The term “conduit” refers to the fact that the issuer assumes no commitment to pay or guarantee payment of the debt service underlying the debt. The City may issue bonds through conduit agencies provided that the projects financed have a general public purpose (e.g. infrastructure, economic development, housing, health facilities, etc.) consistent with the City’s overall operating and capital plans. Principal and interest to be paid from project revenues or specific taxes. Conduit debt bonds are not included in the City’s debt burden because they are secured solely by revenues of the private or non-profit party. Principal and interest on conduit bonds is paid solely from the net revenues of the project. Issuance of these bonds does not constitute a general obligation of the City. The City will obtain a clear opinion that it will not be liable for the payment of principal and interest in the event of default by the conduit borrower by independent bond counsel. If no such opinion can be obtained, the conduit borrower will purchase insurance or a letter of credit in the City’s name to protect taxpayers in the event of default. The City will require a commitment from all institutions that borrow money under the City’s name to agree to provide the market with continuing disclosure information Capital Lease Debt Lease-backed debt may be issued by the City. It may be issued as tax- exempt or taxable leasehold revenue bonds or special limited obligation bonds (including redevelopment bonds) through not-for-profit municipal corporations or by using a trust structure. Projects are primarily to be limited to public revenues or specific taxes. Capital lease debt may be considered to finance capital improvements, including vehicles and equipment. Principal and interest to be paid from the operating budget or other dedicated resources of the department purchasing equipment or constructing capital improvement. Certificates of Participation (COPs). A form of lease obligation in which the City enters into an agreement to pay a fixed amount annually to a third party, usually a nonprofit agency or a private leasing company or trust structure, subject to annual appropriation. Capital leases are not considered an indebtedness of the City according to state statute because the lease payments are subject to annual appropriation; however, from a variety of perspectives (e.g. credit, accounting, etc.) all or most of this type of debt may be considered an obligation of the City. Departments requesting capital financing must have an approved budget appropriation. Departments will submit documentation for approved purchases to the Finance Department each year within sixty days after the annual budget is adopted. The Finance Department will consolidate all requests and may solicit competitive or negotiated proposals for capital financing to insure the lowest possible interest costs. Low Interest Loan The use of federal and state aided low interest loans will be a valid financing CITY OF MOAB Debt Policy 8 mechanism and should be considered before consideration of issuing any other forms of debt. This method of financing should be used wherever possible to fund a project. However, simply because funds are available for a particular project does not obligate the City to proceed with a project without consideration of future cash flows and other capital needs. Debt Structuring and Marketing. a. Fixed or Variable Rate Debt. The City’s debt portfolio may at any given time be comprised of a combination of both fixed and variable rate debt. The City will always seek to manage its debt portfolio, including the absolute amount(s) of outstanding fixed and variable rate debt, in a manner which best supports the City’s long term financial condition. b. Use of Fixed Rate Debt. The City will generally issue its debt on a fixed interest rate basis, wherein at the time of the bond sale all interest rates are known and do not change while those bonds are outstanding. c. Use of Variable Rate Debt. Particular conditions may arise where the City would consider the use of variable interest rates that reset on a periodic basis (e.g. daily, weekly, monthly, etc.). Conditions which would cause a consideration of variable rate debt are: 1. Adverse fixed-rate municipal market; 2. Uncertainty or variability of the amount of annual revenues for debt service; 3. The potential for rapid repayment of debt; or 4. The need or desire to maximize the City’s asset and/or liability balance Variable interest rate debt exposes the City to interest rate risk over the term of the financing. While the credit rating agencies are supportive of an issuer of the magnitude of the City having certain amount of unhedged variable rate debt, they suggest the aggregate amount be capped at a level not exceeding 20-25% of all comparable debt outstanding. Their guideline is generally applied to variable rate debt which has no other significant risk mitigation factors. Once variable rate debt is issued, the City may employ various risk mitigation factors including “natural” hedging of its short term liabilities (i.e. variable rate debt) with its substantial short-term assets to create a net financial margin (i.e., cash management investment portfolio) or the use of derivatives, specifically interest hedges. From the debt portfolio management perspective, the City will also seek the optimal mix of hedged and unhedged variable rate debt, which best fits the City’s long-term credit and financial profile. Methods of Sale. The Finance Director will select the method of sale, which best fits the types of bonds being sold, market conditions, and the desire to structure bond maturities to enhance the overall performance of the entire debt portfolio. Three general methods exist for the sale of municipal bonds: a. Competitive Sale. Bonds are marketed to a wide audience of investment banking (underwriting) firms. Their bids are submitted at a specified time. The underwriter is selected based on its bid for its securities. Pursuant to this policy, and within the parameters approved by the City Council, the Finance Director is hereby authorized to sign the bid form on behalf of the City fixing the interest rates on bonds sold on a competitive basis. b. Negotiating Sale. The City selects the underwriter or group of underwriters of securities in advance of the bond sale. The City financing team works with the CITY OF MOAB Debt Policy 9 underwriter to bring the issue to the marker and negotiates all rates and terms of the sale. In advance of the sale, the City will determine compensation for and liability of each underwriter employed and the designation rules and priority of orders under which the sale itself will be conducted (e.g. retail, group net, net designated, etc.) Pursuant to this policy and within the parameters approved by the City Council, the Finance Director is hereby authorized to sign the bond purchase agreement on behalf of the City fixing the interest rates on bonds sold on a negotiated basis. c. Private Placement. The City sells its bonds to a limited number of sophisticated investors, and not the general public. Private placement bonds are often characterized as having highest risk or a specific type of investor base. The City will accept bids for its bonds via facsimile transmission or electronic submission. Such bids must conform in all respects with the terms of the Official Notice of Sale. The Official Notice of Sale will be designed by the Finance Director or designated agent to allow a degree of flexibility for the prospective purchasers and may include a permitted discount, term bonds with mandatory sinking fund installments, and other features to enhance the attractiveness of the offering consistent with the receipt of the lowest true interest cost possible. Disclosure. Disclosure is both a regulatory requirement and a highly advisable means to enhance the marketing of the City’s bonds. The Securities and Exchange Commission (SEC) regulates both primary disclosure, the initial marketing of a bond issue, and continuing disclosure, the ongoing information to the market about the status of the issue and issuer. The regulations place responsibility for primary disclosure on underwriters, and on issuers for continuing disclosure. Failure by the City to properly manage disclosure and to timely provide its continuing disclosure may have adverse impacts on the credit ratings and access to the tax- exempt capital market. It may also subject the City to regulatory actions from both the SEC and IRS. Adequate disclosure on both a primary and continuing basis can enhance the marketability of the City’s bonds by providing potential investors with current and professional information regarding the City. Timely and accurate completion of these tasks both influences investors’ decisions on purchasing the City’s bonds and contributes to the competitive audience for the City’s bonds. The City will fully comply with disclosure regulations. 1. Primary. In the preparation of official statements the City will follow professional and market standards in the presentation of its issues and issuers. It will facilitate the distribution of the official statements in a timely manner to allow investors adequate time to make their investments in a timely manner. The City will execute continuing disclosure undertaking in a manner to fully comply with regulatory provisions and ensure a full disclosure of appropriate information to the market. 2. Secondary. The City will meet all substantive and time requirements in its annual continuing disclosure filings, which include making City’s CAFR available to the public 180-270 days after the fiscal year end. The City will keep current with any changes in both the administrative aspects of its filing requirements and the national repositories responsible for ensuring issuer compliance with continuing disclosure regulations. In the event a ‘material event’ occurs that requires immediate disclosure notification to the parties impacted. The City of MOAB will require all conduit securities to be issued with a complete official CITY OF MOAB Debt Policy 10 statement or other disclosure document; the documents will clearly describe the limited source of repayment and lack of direct financial support from the City. The City will also require the conduit borrower to provide all information necessary for the City’s audit in regard to the specific debt issue. Debt Target. Maintaining an appropriate level of indebtedness is appropriate to reserve flexibility for future infrastructure investments and to position for high credit quality. Each type of debt has its own appropriate level. The appropriate levels are internally determined based on a variety of factors, such as: infrastructure investment needs of the particular service area, capacity to repay debt from the specific revenue source, and the sector’s credit rating objectives. Since these factors can change over time, any debt guideline must be periodically reviewed to reflect evolving City conditions. Certain types of debt may have different applications but are treated as one type by the credit rating agencies. Therefore, the City may develop guidelines which reflect both the use of the debt type and its contribution to the credit rating debt burden. The City will retire all debt on or before the maturity date. The City will also fully comply with all statutory debt limitations imposed by the Utah Revised Code or those incorporated into Moab City Municipal Code. Annual Appropriation Requirements. General obligation and annual appropriations-backed bonds present both individual and collective financial impacts. Individually, they place actual or potential demands on general municipal revenue sources. Collectively, they are reviewed by the credit rating agencies as to their cumulative impact on these revenue sources. Guidelines for their individual and overall levels assist on the ongoing evaluation of these impacts. As part of the debt management program, City staff will report the following the debt ratios to the City Council, which are routinely reviewed by the credit rating agencies: Tax-Supported Debt Outstanding as a Percent of Market Value Tax Supported Debt Outstanding Per Capita Tax Supported Debt Service as a Percent of General Fund Revenue (GFR) Additionally, the City Council will utilize the following two guidelines to ensure general obligation indebtedness is maintained within constitutional debt limitations and non self- supporting (net) tax-supported debt outstanding is maintained within a targeted range: 1. General Obligation Debt Outstanding as a Percent of Assessed Valuation 0<20%. 2. Net Tax-Supported Debt Service as a Percent of Net GFR 5-15% Revenue. Each type of revenue bond indebtedness has an estimated capacity dictated by financial position, user rate revenue generation capacity, and existing and anticipated future debt requirements. Revenue bonds may also have legal restrictions on the amount of parity debt that may be issued based on an additional bonds covenant for existing debt. The debt capacity guidelines for each type of revenue bond indebtedness will be governed by their specific bond covenant. Rating Agency Applications and Communications The City of MOAB may seek a rating on all new issues that are being sold in the public market.. When applying for a rating on an issue of over $10,000,00 or more, the City of MOAB will make a formal presentation of the finances and positive developments within the City to the rating agencies. The City of MOAB will report all financial information to the rating agencies on an annual basis. The Finance Director will provide the rating agencies that maintain a rating of the City CITY OF MOAB Debt Policy 11 securities with all materials that have a pertinent bearing on the City finances on an annual basis or at the request of the rating agencies. Investor Information Program. The City will maintain a multi-faceted information program, which will include: Providing new informational materials to the agencies, on a periodic basis. Delivering rating presentations in the appropriate form prior to any bond sale. Seeking opportunities to have the agencies tour the City at times not necessarily associated with a bond sale to update them on the changes to the community. Working with other governmental entities impacting the City’s rating to coordinate both the substance and presentation of the City’s credit ratings case. The City of Moab will post its annual financial report on the internet at the City hosted website of https://moabcity.org/ and provide hard copies of the document to interested parties upon request. Defeasance and Prepayment. The accelerated retirement and restructuring of debt can be valuable debt management tools. Accelerated retirement occurs through the use of defeasance and the exercise of prepayment provisions. Debt is often restructured to the benefit of the City through the issuance of refunding bonds. Defeasance can occur when funds are accumulated in a dedicated debt service fund or other available reserve to place in an irrevocable escrow account an amount sufficient such that the initial deposit plus accumulated investment earnings pay all scheduled debt service obligations on the refunded bonds until an optional prepayment date, at which time all remaining refunded bonds are retired. In the case of dedicated debt service funds, the City will monitor such fund balances and will periodically review the advisability of defeasing related bonds. In the case of other available reserves, the City will periodically analyze the financial trade-offs of defeasing or other advantageous uses of these bonds. Prepayment provisions are structured into the original bond issue to provide the City with opportunities to manage the issue. These opportunities take the form of using cash to reduce all or a portion of outstanding principal and future debt service obligations. Prepayment provisions play a major part in the economics of refunding debt. The City will monitor the prepayment provisions on its outstanding debt to realize both of these potential opportunities. By monitoring its debt service funds the City can gauge its ability to prepay debt. Debt can be refunded to achieve one or more of the following objectives: Reduce future interest costs; Restructure future debt service in response to evolving conditions regarding anticipated revenue sources; and Restructure the legal requirements, termed covenants of the original issues to reflect more closely the changing conditions of the City or the type of bond. Alter bond characteristics, such as call provisions or payment dates, on existing debt. If the City pursues a refinancing for interest rate savings, it should initiate the transaction (select method of sale, engage outside service providers and begin Preliminary Official Statement preparation) when the present value savings exceed 1% of the par amount of the outstanding issue, inclusive of all costs of issuance. Generally, the City will execute the refunding once present value exceeds 3% of the outstanding par. CITY OF MOAB Debt Policy 12 Investments of Bond Proceeds. The investment of bond proceeds requires significant diligence in meeting the objectives of regulatory compliance, the management of the flow of funds described in bond documents, and the needs of the projects being funded. The investment of bond proceeds should be considered at the outset of every debt issuance and integrated throughout the process. As one part of the City’s investment management program, this policy incorporates by reference the GFOA’s Recommended Practice, “Investment of Bond Proceeds” and the City’s Investment Policy. 1. Maintenance of Records. The City will maintain appropriate records in accordance with the federal, state, and City requirements, and in accordance with its bond documents to fully meet their provisions and provide for ease of any reporting requirements. 2. Arbitrage and Rebate Liabilities. The City will structure and time its bond issues such that the investment of bond proceeds will minimize any arbitrage and/or rebate liabilities. Federal Arbitrage and Rebate Compliance. The City will fully comply with federal arbitrage and rebate regulations. Concurrent with the policy, the City will take all permitted steps to minimize any rebate liability through proactive management in the structuring and oversight of its individual debt issues. All the City’s tax- exempt issues, including lease purchase agreements, are subject to arbitrage compliance regulations. The City may elect to utilize taxable interest debt instruments where compliance with federal arbitrage rules would be impracticable or inefficient. The Finance Department and the requesting departments will be responsible for the following: 1. Using bond proceeds only for the purpose and authority for which the bonds were issued. Tax-exempt bonds will not be issued unless it can be demonstrated that 85% of the proceeds will be expended within the three-year temporary period. 2. Performing arbitrage rebate calculations on construction funds, as determined by the IRS. 3. Performing arbitrage rebate computations no later than each five-year anniversary date of the issuance and at the final maturity for all bonds. 4. Examining whether the City met the arbitrage rebate exception calculation rules. 5. Maintaining detailed investment records, including purchase prices, sale prices and comparable market prices for all securities. 6. Monitoring the expenditure of bond proceeds and exercising best efforts to spend bond proceeds in such a manner that the City will meet one of the spend-down exemptions from arbitrage rebate. 7. Monitoring the investment of bond proceeds with awareness of rules pertaining to yield restrictions. To the extent any arbitrage rebate liability exists, the City will report such liability in the comprehension annual financial report (CAFR). Monitoring of Covenant Compliance. The City’s revenue bonds generally have a number of bond covenants requiring ongoing compliance and conditions for future bond issuance on an equal security (‘parity’) basis. The City will maintain a compliance monitoring system by revenue bond type of all bond covenants. This system will specifically report information on coverage, rate and additional bond covenant compliance. The system will track trends in coverage levels over time and capacity availability under additional bonds’ covenants. Reporting. The Finance Department is charged with the responsibility of preparing monthly financial CITY OF MOAB Debt Policy 13 reports. Within the monthly financial report a summary of the City’s outstanding debt type including the outstanding principal amount for each. Additionally, the monthly financial report will also include a calculation of debt capacity for the general municipal debt of the City (i.e., excludes enterprise-related revenue bonds). On an annual basis, the Finance Department will prepare all required debt related schedules and footnotes for inclusion in the City’s comprehensive annual financial report. CITY OF MOAB Debt Policy 14 GLOSSARY OF TERMS AD VALOREM TAXES Real estate and personal property taxes calculated “according to the value” of property. The taxes are based on the assessed valuation of real property and, in certain cases, on the valuation of tangible personal property. AMORTIZATION The planned reduction of a debt obligation according to a stated maturity or redemption schedule. ARBITRAGE The gain that may be obtained by borrowing funds at a lower (often tax-exempt) rate and investing the proceeds at higher (often taxable) rates. The ability to earn arbitrage by issuing tax- exempt securities has been severely curtailed by the Tax Reform Act of 1986, as amended. ASSESSED VALUATION The appraised worth of property as set by a taxing authority through assessments for purposes of ad valorem taxation. The method of establishing valuation is specified in the Utah Revised Code. BALLOON MATURITY A maturity within a serial issue of securities that contains a disproportionately large percentage of the principal amount of the original issue. A balloon maturity is generally distinguished from a term bond by the fact that a term bond generally has the benefit of a sinking fund to smooth out the amount of principal paid from any single year’s operations. BASIS POINTS The measure of the yield to maturity of an investment calculated to four decimal places. A basis point is 1/100th of 1% (.01 percent). BEARER BOND A security that does not identify its owner on its face or by registration. The security is presumed to be owned by the person possessing it. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) curtailed the issuance of tax-exempt bearer bonds. BOND A written promise, generally under seal, to pay a specified amount of money, called the face value, at a fixed time in the future, called the date of maturity, and carrying interest at a fixed or variable rate, usually payable periodically. NOTE: The difference between a note and a bond is that the latter usually runs for a longer period of time and requires greater legal formality. CITY OF MOAB Debt Policy 15 BOND ANTICIPATION NOTE (BAN) A short-term interest-bearing security issued in anticipation of a long-term bond issue. The investors typically rely upon the sale of a subsequent issue of securities to pay a BAN upon maturity. BONDED DEBT That portion of indebtedness represented by the outstanding bonds. BOND COUNSEL An attorney or firm of attorneys retained by the issuer to give a legal opinion concerning the validity of the securities. The bond counsel’s opinion usually addresses the subject of tax exemption. Bond counsel may prepare, or review and advise the issuer regarding authorizing resolutions or ordinances, trust indentures, official statements, validation proceedings and litigation. BOND INSURANCE A type of credit enhancement where a monocline insurance company indemnifies an investor against a default by the issuer. In the event of a failure by the issuer to pay principal and interest in-full and on- time, investors may call upon the insurance company to do so. Once assigned, the municipal bond insurance policy generally is irrevocable. The insurance company receives an up- front fee, or premium, when the policy is issued. BOND ISSUED Bonds sold. BOND RATING A rating (made by an established bond rating company) from a schedule of grades, indicating the probability of timely repayment of principal and interest on bonds issued. BOOK-ENTRY-ONLY Bonds that are issued in fully registered form but without certificates of ownership. The ownership interest of each actual purchaser is recorded on computer. CALL OPTION The right to redeem a bond prior to its stated maturity, either on a given date or continuously. The call option is also referred to as the optional redemption provision. CAPACITY A measure of an organization’s ability to provide customers with the demanded service or products, in the amount requested and in a timely manner. CAPITAL APPRECIATION BOND A bond without current interest coupons that is sold at a substantial discount from par. Investors are provided with a return based upon the accretion of value in the bond through maturity. CAPITAL IMPROVEMENT Land, buildings, structures and all facilities other than buildings, traffic lights, machinery, equipment, automobiles, etc., with a unit cost in excess of $5,000 and a useful life of five or more years. CAPITAL IMPROVEMENT PROGRAM A plan for capital expenditures to be incurred each year over a fixed period of several future years setting forth each capital project, identifying the expected beginning and ending date for each project, the amount and the method of financing. CITY OF MOAB Debt Policy 16 CAPITAL LEASE The acquisition of a capital asset over time rather than merely paying rent for temporary use. A lease-purchase agreement, in which provision is made for transfer of ownership of the property for a nominal price at the scheduled termination of the lease, is referred to as a capital lease. CAPITAL PROJECT Major construction, acquisition or renovation activities which add value to a government’s physical assets or significantly increase their useful life - also called capital improvements. CERTIFICATE OF PARTICIPATION A financial instrument representing a proportionate interest in payments such as lease payments by one party (such as a city acting as a lessee) to another party (often a trustee). COMMERCIAL PAPER (TAX-EXEMPT) By convention, short-term, unsecured promissory notes issued in either registered or bearer form with a stated maturity of 270 days or less. COMPETITIVE SALE The sale of securities in which the securities are awarded to the bidder who offers to purchase the issue at the best price or lowest cost. CONDUIT FINANCING The issuance of securities by a governmental entity to finance a project that will primarily benefit a third party, typically a private corporation, college or university. The security for this type of financing is usually the credit of the private entity, rather than the governmental unit. Usually such securities do not constitute general obligations of the issuer since the private entity is liable for generating the pledged revenues for repayment. Industrial development bonds or economic development bonds are a common type of conduit financing. CONTINUING DISCLOSURE The requirement by the Securities and Exchange Commission for most issuers of municipal debt to provide current financial information to the informational repositories for access by the general marketplace. COUPON RATE The interest rate on specific maturities of a bond issue. While the term “coupon” derives from the days when virtually all municipal bonds were in bearer form with coupons attached, the term is still frequently used to refer to interest rates on different maturities of bonds in registered form. CUSIP NUMBER The term CUSIP is an acronym for the Committee on Uniform Securities Identification Procedures. An identification number is assigned to each maturity of an issue, and is usually printed on the face of each individual certificate of the issue. The CUSIP numbers are intended to help facilitate the identification and clearance of municipal securities. CITY OF MOAB Debt Policy 17 DEBT BURDEN The ratio of outstanding tax-supported debt to the market value of property within a jurisdiction. The overall debt burden includes a jurisdiction’s proportionate share of overlapping debt as well as the municipality’s direct net debt. DEBT LIMITATION The maximum amount of debt that is legally permitted by a jurisdiction’s charter, constitution, or statutes. DEBT SERVICE The amount necessary to pay principal and interest requirements on outstanding bonds for a given year or series of years. DEBT SERVICE FUND A fund established to finance and account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Also called a SINKING FUND. DEBT SERVICE FUND REQUIREMENTS The amounts of revenue which must be provided for a debt service fund so that all principal and interest payments can be made in full, on schedule. DEBT SERVICE RESERVE FUND The fund into which moneys are placed which may be used to pay debt service if pledged revenues are insufficient to satisfy the debt service requirements. DEFAULT The failure to pay principal or interest in full or on time. An actual default should be distinguished from technical default. The latter refers to a failure by an issuer to abide by certain covenants but does not necessarily result in a failure to pay principal or interest when due. DEFEASANCE Providing for payment of principal of premium, if any, and interest on debt through the first call date or scheduled principal maturity in accordance with the terms and requirements of the instrument pursuant to which the debt was issued. A legal defeasance usually involves establishing an irrevocable escrow funded with only cash and U. S. Government obligations. DEPOSITORY TRUST COMPANY (DTC) A limited purpose trust company organized under the New York Banking Law. DTC facilitates the settlement of transactions in municipal securities. DERIVATIVES A financial product, the value of which is derived from the value of an underlying asset, reference rate or index. Typically these agreements are contracts between a lender/investor and a burrower and include interest rate swaps, stations, caps, floors, collars, and forward purchase agreements. DISCOUNT The difference between a bond’s par value and the price it is sold when the latter is less than par. CITY OF MOAB Debt Policy 18 DOUBLE-BARRELED BOND A bond secured by a defined source of revenue (other than general property taxes) and the full faith and credit of an issuer. ENTERPRISE ACTIVITY A revenue-generating project or business. The project often provides funds necessary to pay debt service on securities issued to finance the facility. The debts of such projects are self- liquidating when the projects earn sufficient monies to cover all debt service and other requirements imposed under the bond contract. EQUITY Balance remaining after liabilities is deducted from assets. FINANCIAL ADVISOR A consultant who advises an issuer on matters pertinent to a debt issue, such as structure, sizing, timing, marketing, pricing, terms and bond ratings. FINAL OFFICIAL STATEMENT (FOS) A document published by the issuer that disclose material information on a new issue of municipal securities including the purposed of the issue, how the securities will be repaid, and the financial, economic and social characteristics of the issuing government. Investors may use this information to evaluate the credit quality of the securities. FLOW OF FUNDS The order in which pledged revenues must be disbursed as set forth in the trust indenture or bond resolution. FULL FAITH AND CREDIT A pledge of the General Taxing power of a government to repay debt obligations (typically used in reference to bonds). GAAP Generally Accepted Account Principles. Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles. The primary authoritative body on the application of GAAP to state and local governments is the Governmental Accounting Standards Board (GASB). GENERAL FUND The fund that is available for any legal authorized purpose and which is therefore used to account for all revenue and all activities except those required to be accounted for in another fund. NOTE: The General Fund is used to finance the ordinary operations of a governmental unit. CITY OF MOAB Debt Policy 19 GENERAL LEDGER A book, file or other devise which contains the accounts needed to reflect the financial position and the results of operations of an entity. In double entry bookkeeping, the debits and credits in the general ledger are equal; therefore, the debit balances equal the credit balances. GENERAL OBLIGATION DEBT Bonds for whose payments the full faith and credit of the BONDS issuing body are pledged. More commonly, but not necessarily, general obligation bonds are considered to be those payable from taxes and other general revenues. GFOA Government Finance Officers Association. An organization founded to support the advancement of governmental accounting, auditing, and financial reporting. INDENTURE A contract between the issuer and a trustee stipulating the characteristics of the financial instrument, the issuer’s obligation to pay debt service, and the remedies available to the trustee in the event of a default. ISSUANCE COSTS The costs incurred by the bond issuer during the planning and sale of securities. These costs include but are not limited to financial advisory and bond counsel fees, printing and advertising costs and other expenses incurred in the marketing of an issue. ISSUER COUNSEL An attorney retained by the issuer to represent its best interest in a debt transaction. Often this role is performed by bond counsel, however, at time separate counsel is engaged that does not have responsibility to issue the bond opinion as well as represent the issuer’s best interests. JUNIOR LIEN BONDS Bonds that have a subordinate claim against pledged revenues. LEASE An obligation wherein a lessee agrees to make payments to a lesser in exchange for the use of certain property. The term may refer to a capital lease or to an operating lease. LEASE REVENUE BONDS Bonds that are secured by an obligation of one party to make annual lease payments to another. LESSEE The party to a lease agreement that obtains use of a facility or piece of equipment on exchange for rental payments. LESSOR The owner of the property being leased. LETTER OF CREDIT Bank credit facility whereby a bank will honor the payment of an issuer’s debt, in the event that an issuer is unable to do so, thereby providing an additional source of security for bondholders for a predetermined period of time. A letter of credit often is referred to as an L/C or an LOC. Letter of Credit can be issued on a “stand-by” or “direct pay” basis. CITY OF MOAB Debt Policy 20 LINE OF CREDIT Bank credit facility wherein the bank agrees to lend up to a maximum amount of funds at some date in the future in return for a commitment fee. LONG-TERM DEBT Debt with a maturity of more than one year after the date of issuance. MANAGING UNDERWRITER The member (or members) of an underwriting syndicate charged with the primary responsibility for conducting the affairs of the syndicate. The managers take the largest underwriting commitment. MUNICIPAL SECURITIES RULEMAKING BOARD (MSRB) A self-regulating organization established in September of 1975 upon the appointment of a fifteen member Board by the Securities and Exchange Agreement. The MRSB is comprised of representatives from investment banking firms, dealer bank representatives, and public representatives; it is entrusted with the responsibility of writing rules of conduct for the municipal securities market. New Board members are selected by the MSRB pursuant to the method set forth inboard rules. NEGOTIATED SALE A sale of securities in which the terms of sale are determined through negotiation between the issuer and the purchaser, typically an underwriter, without competitive bidding. NET INTEREST COST (NIC) The average interest cost of a bond issue calculated on the basis of simple interest. This calculation involves a fraction in which the numerator is the gross amount of interest to be paid over the bonds’ life (adjusted for the amount or premium granted at the time of sale), and the denominator is the average of the bond issue multiplied by the issue’s par value. NOTE A written promise to pay a certain amount of money on a specific date, with interest. By convention, the maturity of a note is one year or less, making it short-term debt. However, financial instruments with a longer stated maturity sometimes are called Notes. For example, a bond anticipation note can have maturities of two years or longer. OBLIGATIONS Amounts which a government may be legally required to meet out of its resources. They include not only actual liabilities, but also encumbrances not yet paid. OFFICIAL STATEMENT (OS) A document published by the issuer that discloses material information on a new issue of municipal securities including the purposes of the issue, how the securities will be repaid, and the financial, economic and social characteristics of the issuing government. Investors may use this information to evaluate the credit quality of the securities. CITY OF MOAB Debt Policy 21 OPERATING LEASE A lease that enables the less to acquire the use of the asset only, not its ownership as in a capital lease. The lease term typically runs for only a portion of the asset’s useful life. ORIGINAL ISSUE DISCOUNT BONDS Bonds sold at a substantial discount from their par value at the time of the original sale. OVERLAPPING DEBT The legal boundaries of local governments often overlap. In some cases, one unit of government is located entirely within the boundaries of another. Overlapping debt represents the proportionate share of debt that must be borne by one unit of government because another government with overlapping or underlying taxing authority issued its own bonds. PAR VALUE The face value or principal amount of a security. PAYING AGENT An agent of the issuer with responsibility for timely payment of principal and interest to bond holders. PRELIMINARY OFFICIAL STATEMENT (POS) The POS is a preliminary version of the official statement that is used by an issuer or underwriters to describe the proposed issue of municipal securities prior to the determination of the interest rate(s) and offerings price(s). The preliminary official statement, also called a “red herring”, often is examined upon by potential purchasers prior to making an investment decision. PREMIUM The excess of the price at which a bond is sold over its face value. PRESENT VALUE The value of a future amount or stream of revenues or expenditures in current dollars. PRIVATE ACTIVITY BONDS A bond where the use of bond proceeds is used for private purposes. If deemed a private activity bond, the interest is not tax exempt unless the use of the proceeds meets certain requirements of the Internal Revenue Code. PUT OPTION The right to demand repayment of principal prior to a bond’s maturity. In the case of short-term variable rate debt, this right often is referred to as a variable-rate demand option. REFUNDING A procedure whereby an issuer refinances an outstanding bond issue by issuing new bonds. REGISTERED BOND A security on which the ownership is recorded by the issuer or its agent. RESERVE An account used to indicate that a portion of fund equity is legally restricted for a specific purpose or not available for appropriation and spending. RESERVE FUND A fund established to accumulate money for a special purpose, such as the purchase of new equipment. CITY OF MOAB Debt Policy 22 REVENUE BOND A bond which is payable from a specific source of revenue and to which the full faith and credit of an issuer with taxing power is not pledged. They are payable from identified sources of revenue, and do not permit the bondholders to compel the City to pay debt service from any other source. Pledged revenues are derived from the operation of an enterprise. Generally, no voter approval is required prior to issuance. SECONDARY MARKET The market in which bonds are sold after their initial sale in the new issue market. SENIOR LIEN BONDS Bonds having a prior or first claim on pledged revenues. SERIAL BONDS A bond issue in which the principal is repaid periodic installments over the issue’s life. SPECIAL ASSESSMENTS A charge imposed against property or parcel of land that receives a special benefit by virtue of some public improvement that is not or cannot be enjoyed by the public at large. Special assessment debt issues are those that finance such improvements and are repaid by the assessments charged to the benefiting property owners. TERM BONDS A bond issue in which the entire principal matures on one date. Term bonds also refer to a particularly large maturity of a bond issue that is created by aggregating a series of maturities. In the latter instance. Provision is made for mandatory structuring fund installments in advance of the term bond’s maturity to reduce the burden of a particular large debt service payment in any one fiscal year. TRUE INTEREST COST (TIC) A method of calculating the overall cost of a financing that takes into account the time value of money. The TIC is the rate of interest that will discount all future payments so that the sum of their present value equals the issue proceeds. UNDERWRITER The term used broadly in the municipal market, to refer to the firm that purchases a securities offering from a governmental issuer. UNDERWRITER SYNDICATE OR GROUP The firms which collectively purchase a securities offering from a governmental issuer. UNDERWRITER’S COUNSEL An attorney engaged by the underwriter(s) to represent its interests in a debt transaction. Underwriter’s counsel prepares the bond purchase agreement between the issuer and the underwriter and, when appropriate, the agreement among underwriters. VARIABLE-RATE BOND A bond on which the interest rate is reset periodically, usually no less often than semi-annually. The interest rate is reset either by means of an auction or through an index. CITY OF MOAB Debt Policy 23 YIELD CURVE A graph that plots the market yield on securities with different maturities, at a given point in time. The vertical axis represents the yields, while the horizontal axis depicts the time to maturity. The term structure of interest rates, as reflected by the yield curve, will vary according to market conditions, resulting in a wide variety of yield curve configurations. YIELD-TO-MATURITY The rate of return that an investor will receive if the bond remains outstanding and the investor holds the bond to maturity. The investor must take into account the price paid for the bonds, the dates of purchase and maturity, and the coupon rate on the bonds. The “yield to maturity” assumes that interest payments will be re- invested at the same coupon rate borne by the bond. ZERO COUPON A bond that does not pay interest periodically. Investors receive interest on the scheduled principal maturity date of the obligation. Moab City Council Agenda Item Meeting Date: August 27, 2019 Title: Ordinance 2019-26: An Ordinance Renaming Rimrock Road To A New Name Of “Aggie Boulevard” Disposition: Discussion and possible action Staff Presenter: Chuck Williams, City Engineer Attachment(s): -Attachment 1: Proposed Ordinance Recommended Motion: I move to adopt the “Ordinance 2019-26 Renaming Rimrock Road to A New Name of “Aggie Boulevard” Background/Summary: The City and other stakeholders have worked for many years with representatives of Utah State University (USU) to develop a higher education campus to serve the Moab community. The City will be completing the new road up to the future USU Campus in September. USU has begun design of their new facility with construction anticipated to begin in the spring of 2020. USU leadership has requested that the City rename the road from Rimrock Road to Aggie Boulevard in order to provide easier recognition of the access in the future. There are currently no other developed facilities on the roadway; therefore changing road names at this time should not create addressing problems for anyone. Staff recommends approval of the proposed Ordinance 2019-26. 1 ITY OF MOAB ORDINANCE #2019-26 AN ORDINANCE RENAMING RIMROCK ROAD TO A NEW NAME OF “AGGIE BOULEVARD” The following describes the intent and purpose of this ordinance. a.The City designated the road accessing the future Utah State University (USU) campus and adjacent parcels as “Rimrock Road” pursuant to the plat recorded at Reception No. 531656, Dated October 12, 2018, Book 874, Page 532 of the Grand County land records (the Plat), attached as Exhibit 1. b.The City and other stakeholders have worked for many years with representatives of USU to develop a higher education campus to serve the Moab community. c.Moab Municipal Code Section 12.04.040 authorizes the City to designate or change the official names of public streets within the City. d.In recognition of the fact that Utah State University will be constructing a satellite campus in Moab that will be accessed by the current Rimrock Road, the City finds that it is appropriate to designate the road with a name that reflects a connection to USU. THEREFORE, the former Rimrock Road is hereby renamed “Aggie Boulevard.” The Plat is hereby amended to reflect the new name. All City street records shall be modified accordingly and addresses shall utilize that name. Nothing in this ordinance shall be construed to alter the dimensions or other attributes of the right-of-way described in the Plat. This Ordinance shall be recorded in the Grand County land records. PASSED AND APPROVED by a majority of the City of Moab City Council. This ordinance shall take effect immediately upon passage. SIGNED: Emily S. Niehaus, Mayor Date ATTEST: Sommar Johnson, Recorder STATE OF UTAH ACKNOWLEDGMENT i� 1 SURVEYOR'S CERTIFICATE STATE OF UTAH /_�,_ S.S COUNTY OF Scj f- UAL ON T R DIRECTOROFSTATE OAY OF 'PERSONALLY OAPPEARED BEFORE FI UTAH SCHOOLANDINSTI UT ONATRUSTLANDS ADMINISTRATION,ADUm, WHO BEING BY ME DULY SWORN DID SAY THAT E AND HE D D DULY ACKNOWLEDGE THAT HE EXECUTED THE ABOVE INSTRUMENT ON BEHALF OF THE STATE OF UTAH FOR THE USES AND PURPOSES STATED HEREIN. NOTARY PUBLIC NOTARY PUBLIC FULL NAME: pilaf. Russell Rot A NOTARY PUBLIC COMMISSIONED IN UTAH STAMP IS NOT REQUIRED PER UTAH CODE 46-1-16(6) COMMISSION NUMBER: MY COMMISSION EXPIRES. CORPORATE ACKNOWLEDGMENT 6717VI ospc/zr STATE OF Utah S.S. COUNTY OF COI/ ON THE 2 DAY OF Usr 201g PERSONALLY APPEARED BEFORE ME NOEL E E. COCKETT WHO BEING BY ME DULY SWORN DID SAY THAT SHE IS THE PRESIDEN OF UTAH STATE UNIVERSITY, A UTAH CORPORATION, AND THA�HE EXECUTED THE FOREGOING OWNER'S DEDICATION ON BEHALF OF SAID CORPORATION BY AUTHORITY OF A RESOLUTION OF ITS EXECUTIVE COMMITTEE AND SHE DID ACKNOWLEDGE TO ME THAT THE CORPORATION EXECUTED THE SAME FOR THE USES AND PURPOSES STATED THEREIN. NOT P UI U LIC NOTARY PUBLIC FULL NAME: Taint ant A ` i SI MY COMMISSION EXPIRES: thine. lot n /22, A NOTARY PUBLIC COMMISSIONED IN UTAH STAMP IS NOT REQUIRED PER UTAH CODE 46-1-16(6) LIMITED LIABILITY ACKNOWLEDGEMENT STATE OF COUNTY OF G1CAP1G S ss. ON THE DAY : V , 2011, PERSONALLY APPEARED BEFORE ME, THE UNDERSIGNED NOTARY PUBLIC IN AND FOR SAID STATE AND COUNTY, ailk, /, sit i�► U, WHO BEING BY ME DULY SWORN, DID SAY THAT HE IS THE AUTHORIZED AGENT OF RED ROCK PARTNERS, LLC, AND THAT HE ECUTED T - nOREGOING OWNER'S DEDICATION IN BEHALF OF SAID LIMITED LIABILITY COMPANY BEING AUTHORIZED AND EMPOWERED TO DO SO BY THE OPERATING AGREEMENT OF RED ROCK PARTNERS, LLC, AND HE DID DULY ACKNOWLEDGE TO ME THAT SUCH LIMITED LIABILITY COMPANY EXECUTED THE SAME FOR THE USES AND PURPOSES STATED THEREIN. 04*A0 NOTARY P IC NOTARY PUBLIC FULL NAME: -.Nitwit Hulce._ A NOTARY PUBLIC COMMISSIONED IN UTAH STAMP IS NOT REQUIRED PER UTAH CODE 46-1-16(6) O COMMISSION NUMBER: 1001110 COMMISSION NUMBER: MY COMMISSION EXPIRES: LEGEND (p92.781 fib• 1et7,ee1 SECTIONAL MONUMENTATION (FOUND: TYPE, DATE, AGENCY AND LOCATION ETC. AS SHOWN ON\ THE PLAT). SPECIFIES SURVEY CONTROL MONUMENT TO BE SET (CLASS 1, RING & LID SET TO CITY STANDARD). SPECIFIES SURVEY CONTROL MONUMENT TO BE SET (CLASS II, REBAR & ALUM. CAP SET TO CITY STANDARD). ALL BOUNDARY AND PROPERTY (LOT) CORNERS TO BE SET WITH 5/8" REBAR AND CAP STAMPED CIVIL SCIENCE SURVEYORS, UNLESS OTHERWISE SPECIFIED ON THE PLAT. - - - - - - PUBLIC UTILITY AND DRAINAGE EASEMENT - - SLOPE EASEMENT, CONTROL BY CITY OF MOAB STATE OF UTAH PARCEL NO. 01-018-0001 SLOPE EASEMENT / 20.00' PUBLIC UTILITY & DRAINAGE EASEMENT R=394.00' L=916.00' A=133°12'22" // 'I II 1 g 1 1 L33 1 L32 L31 J �/ C.) . �/ tO ttn. CO NORTHEAST CORNER SECTION 18, TOWNSHIP 26 SOUTH, RANGE 22 EAST, SALT LAKE BASE AND MERDIAN, LOCATION AS PER COUNTY TIE SHEET, DATED 11-19-08 N 88°45'40" E 64.00' N 1 °14'20" W 30.01' L36 N 42°40'20" E 28.96' 047 7F,/t NN A� l \ N 48°20'03" W 111.76' STATE OF UTAH \ PARCEL NO. \ 01-018-0002 L37 L38 ,...441111‘ I L w nr nr 2.00 0 0 W U O t- w et O U �• . 8 �Ir 3° o z z R/C, AS SHOWN ON REFERENCE SHEET, DATED 11-19-08 N 14°55'00" E 21.20' R/C, AS SHOWN ON REFERENCE SHEET, DATED 11-19-08 N 84.52'00" E 24.W 9": STORM DRAINAGE DETENTION EASEMENT COVERS ENTIRE PARCEL NO.01-017-0008, ENTRY NO.457706 RED ROCK PARTNERS, LLC PARCEL NO. 01-017-0006 L39 L40 L42 0, , / 5 .4k db .4/0 gbh �ryb 140.31' N 89°0 '06" E 180.24' 69.86' 110.3W N 47°05'10" W 27.13' N 1°14'20" W 25.96' / / L7 / DETENTION AREA \,b0 144 /R=288.00' L=662.98' A=131 °53'44" SLOPE EASEMENT L10 S.0 7 vb. F L29 -<, \ \6 \ \ 130.00' WIDE 345KV TRANSMISSION LINE EASEMENT, UTAH POWER AND LIGHT COMPANY, ENTRY NO.338860 <P' STATE OF UTAH PARCEL NO. 01-018-0002 1, • 7 h"" R=416.00' L=529.02' A=72°51'41 SLOPE EASEMENT 20.00' PUBLIC UTILITY & w co 5 2.00 "4. L6 L5 S 1°14'20" E 22.04' L4 � 1 d3��4 / ti /L3r R=382.00' L=279.31' c5 A=41 °53134" S 44°11'07" W 28.01' S 88°45'40" W 64.00' RED ROCK PARTNERS, LLC PARCEL NO. 01-017-0006 ,NORTH 1/16TH CORNER, SECTION 18, TOWNSHIP 26 SOUTH, RANGE 22 EAST, SALT LAKE BASE AND MERIDIAN FOUND 1955 BLM BRASS CAP S 48°20'03" E 111.76' r� I I fL14 ! I 20.W PUBLIC UTILITY & DRAINAGE EASEMENT 1 i 1 I \ 1' .1`: l ° I 1 1 I �� i 1 1t1 �" I\ 1 l 1). II 11 DRAINAGE EASEMENT I UTAH STATE UNIVERSITY OF AGRICULTURE AND APPLIED SCIENCE PARCEL NO. 01-018-0004 Nss. l l 1 ?82�. / 1 w(R) / kzs 1 N 65°28'21" W 106.00' I I 1 66.00' EXISTING RIGHT OF WAY NO.3232 ENTRY NO. 415240 1 I 1 1 66.00' EXISTING RIGHT OF WAY NO.3232 ENTRY NO. 415240 Fe' - w o zz, C'ni U ce / m .z flC co 00 co M Q �co r ao / S 88°41'49" W 96.W 4 C7 POINT OF BEGINNING EAST 1/4 CORNER, SECTION 18, TOWNSHIP 26 SOUTH, RANGE 22 EAST, SALT LAKE BASE AND MERIDIAN FOUND GLO BRASS CAP 1912 /118 R=6166.24' L=106.19' A=0°59'12" 'P N 88.26'08" E 484.06' RED ROCK PARTNERS, LLC PARCEL NO. 01-017-0008 L19 L20 SLOPE EASEMENT R=522.00' L=663.81' A=72°51141" RED ROCK PARTNERS, LLC PARCEL NO. 01-017-0008 tea. ‘<t / V v F *o FND BLM PROPERTY CORNER, 1" BRASS CAP (ACCEPTED) 130.00' WIDE 345KV TRANSMISSION LINE EASEMENT, UTAH POWER AND LIGHT COMPANY, ENTRY NO.335645 & \ 335646 Ent 531656 Bk 874 Pi 532 Date: 12-OCT-2018 11:49:09AM Fee: NoneFiled By: JAC JOHN ALAN CORTEB Recorder GRAND COUNTY CORPORATION For: MOAB CITY LINE TABLE LINE NO. DIRECTION LENGTH L1 S 1'14'20" E 33.18' L2 S 44°40'22" E 29.11' L3 N 39.08'09" W 0.72' L4 N 114'20" W 4.78' L5 N 88'45'40" E 30.00' L6 N 88'45'40" E 13.61' L7 S 14°01'31" W 36.58° L8 S 80°24'55" W 62.73' L9 N 10°08'00" W 86.71° L10 N 8.2528" W 47.81' L11 N 42.05'3'r W 55.34' L12 S 58°29'50" W 52.44' L13 N 34'32'22" W 33.49' L14 N 18°21'32" W 53.29' L15 N 41°3954" W 166.70' L16 N 63°orao" W 80.55' L17 N 12°44'09" W 64.87' L18 N 0"49'41" E 85.38' L19 N 25°4r45" W 12.64' L20 N 77'53'18" W 46.75' L21 N 18.58'2'8" E 134.67' L22 S 29°03'58" W 68.91' L23 S 32°04'44" W 121.47 L24 N 65°28'21" W 30.00' L25 N 65°28'21" W 49.00' L26 S 45°14'4.2" E 48.33' L27 S 25'09'513" E 50.26' 1.28 N 48°20'03" W 15.80' L29 S 87°47'39" E 53.86' L30 S 41°01'51" E 157.13' L31 S 9°36'0:2" E 70.3r L32 N 1°52'27" W 28.93' L33 S 11'4221" E 42.7r L34 N 524'06" E 27.61' L35 N 42°40'20" E 5.54' L36 N 1°14'20" W 17.92' L37 N 88°45'40" E 30.00' L38 S 88°45'40" W 30.00' L39 N 1'14'2U" W 21.23' L40 N 44°40'22" W 3.91' L41 S 7°14'16" E 42.34' L42 N 49°01'111" E 14.97' L43 N 45°07'56" E 106.32' L44 S 73°22 24" E 108.36' 7, I, TRAVIS W. SANDERS, DO HEREBY CERTIFY THAT I AM A PROFESSIONAL LAND SURVEYOR, AND THAT I HOLD LICENSE NO. 9481170 AS PRESCRIBED UNDER THE LAWS OF THE STATE OF UTAH. I FURTHER CERTIFY THAT BY AUTHORITY OF THE HEREON OWNERS, I HAVE MADE A SURVEY OF THE TRACT OF LAND AS SHOWN ON THIS PLAT AND SUBDIVIDED SAID TRACT OF LAND INTO PUBLIC ROADS, AS WELL AS THE EASEMENTS WHICH ARE SHOWN AS DASHED LINES PARALLEL AND IMMEDIATELY ADJACENT TO THE DESCRIBED AREA BOTH OF WHICH ARE TO BE HEREINAFTER BE KNOWN AS: ` M.R CKR D AND THAT THE SAME HAS BEEN CORRECTLY SURVEYED AND STAKED ON THE GROUND AS SHOWN ON THIS PLAT. 1-25-2-®vS DATE BOUNDARY DESCRIPTION BEGINNING AT A POINT N 1°18°11" W 365.02 FEET ALONG THE EAST SECTION LINE OF SECTION 18, TOWNSHIP 26 SOUTH, RANGE 22 WEST, SALT LAKE BASE AND MERIDIAN AND S 88°41'49" W 96.00 FEET FROM THE EAST 1/4 CORNER OF SAID SECTION 18, AND RUNNING THENCE N 65°28'21" W 106.00 FEET, TO A POINT ON A 416.00 FOOT RADIUS NON -TANGENT CURVE TO THE LEFT, WITH A RADIUS WHICH BEARS N 65°28'21" W; THENCE ALONG THE ARC OF SAID CURVE 529.02 FEET THROUGH A CENTRAL ANGLE OF 72°51'41"; THENCE N 48°20'03" W 111.76 FEET, TO A POINT ON A 394.00 FOOT RADIUS CURVE TO THE RIGHT; THENCE ALONG THE ARC OF SAID CURVE 916.00 FEET THROUGH A CENTRAL ANGLE OF 133°12'22'; THENCE N 42°40'20" E 28.96 FEET; THENCE N 1°14'20" W 30.01 FEET; THENCE N 88°45'40" E 64.00 FEET; THENCE S 1°14'20" E 33.18 FEET; THENCE S 44°40'22" E 29.11 FEET, TO A POINT ON A 276.00 FOOT RADIUS NON -TANGENT CURVE TO THE LEFT, WITH A RADIUS WHICH BEARS N 0°54'45" W; THENCE ALONG THE ARC OF SAID CURVE 207.61 FEET THROUGH A CENTRAL ANGLE OF 43°05'51", TO A POINT ON THE WESTERLY RIGHT OF WAY OF STATE ROUTE 191, POINT ALSO BEING ON A 6166.24 FOOT RADIUS NON -TANGENT CURVE TO THE RIGHT, WITH A RADIUS WHICH BEARS S 49°32'23" W; THENCE ALONG THE SAID RIGHT OF WAY AND ARC OF SAID CURVE 106.19 FEET THROUGH A CENTRAL ANGLE OF 0°59'12", TO A POINT ON A 382.00 FOOT RADIUS NON -TANGENT CURVE TO THE RIGHT, WITH A RADIUS WHICH BEARS N 42°53'13" W; THENCE ALONG THE ARC OF SAID CURVE 279.31 FEET THROUGH A CENTRAL ANGLE OF 41°53'34"; THENCE S 44°11'07" W 28.01 FEET; THENCE S 1°14'20" E 22.04 FEET; THENCE S 88°45'40" W 64.00 FEET; THENCE N 1°14'20" W 25.96 FEET; THENCE N 47°05'10" W 27.13 FEET, TO A POINT ON A 288.00 FOOT RADIUS NON -TANGENT CURVE TO THE LEFT, WITH A RADIUS WHICH BEARS S 6°26'19" E; THENCE ALONG THE ARC OF SAID CURVE 662.98 FEET THROUGH A CENTRAL ANGLE OF 131°53'44'; THENCE S 48°20'03" E 111.76 FEET, TO A POINT ON A 522.00 FOOT RADIUS CURVE TO THE RIGHT; THENCE ALONG THE ARC OF SAID CURVE 663.81 FEET THROUGH A CENTRAL ANGLE OF 72°51'41", TO THE POINT OF BEGINNING. CONTAINS 202,520 SQ FT OR 4.65 ACRES MORE OR LESS OWNER'S DEDICATION KNOW ALL MEN BY THESE PRESENT THAT THE UNDERSIGNED OWNERS AND HOLDERS OF OTHER INTERESTS OF ALL THE ABOVE DESCRIBED TRACT OF LAND, TO BE HEREAFTER KNOWN AS RNA alfROAID FOR GOOD AND VALUABLE CONSIDERATION RECEIVED, DO HEREBY DEDICATE AND CONVEY TO CITY OF MOAB FOR THE GENERAL USE OF THE PUBLIC END UDOT RIGH ° THE PUBLIC ROAD IDENTIFIED ON THIS PLAT AS , 11114KOCK ROA AND DO HEREBY DEDICATE AND CONVEY TO CITY OF MOAB NON-EXCLUSIVE OF WAY MARKER EASEMENTS OVER, ON, UNDER AND ACROSS ALL PORTIONS SHOWN OR REFERENCED ON THIS PLAT AS EASEMENTS OR DETENTION AREA, FOR THE (ACCEPTED) INSTALLATION AND MAINTENANCE OF PUBLIC UTILITIES, DRAINAGE- AND STORM WATER DETENTION FACILITIES, AND SLOPE MAINTENANCE. EXCEPTING AND RESERVING, HOWEVER TO THE STATE OF UTAH ALL COAL, OIL, GAS AND OTHER MINERAL DEPOSITS IN ITS LANDS SO DEDICATED. IN WITNESS WHEREOF I HAVE HEREUNTO SET MY HAND THIS DAY OF 3-tiq 1 ( , 2018 STATE OF UTAH APPROVED AS TO FORM STATE OF UTAH, ACTING THROUGH THE SCHOOL AND INSTITUTIONAL TRUST LANDS ADMINISTRATION DAVID URE - DIRECTOR GRAND COUNTY (HOLDER OF EXISTING RIGHT OF WAY NO. 3232) UTAH STATE UNIVERSITY A BODY POLITIC AND CORPORATE PRESIDENT: CURVE TABLE CURVE NO. RADIUS LENGTH DELTA CHORD DIRECTION CHORD LENGTH C1 276.00' 207.61' 43°05'51" N 67'12'19" E 202.75' C2 6166.24' 49.11' 02r23" N 40°13'56" W 49.11' C3 6166.24' 57.09' 0°31'50" N 39'44'19" W 57.09' 04 6166.24' 36.34' 020'16" N 39' 18'17" W 36.34' C5 419.00' 293.83' 40.10'48" N 67°31'12" E 287.85' C6 258.00' 226.21' 50°14'07" S 12°54'03" W 219.03' C7 552.00' 19.74' 2°02'55" N 23.'30'11" E 19.74' C8 367.W 416.86' 65°04'49" N 8°00'46" W 394.81' C9 424.00' 679.04' 91°45'35" S 37°24'12" W 608.76' C10 246.00' 135.83' 31.38'10" N 70°21'21" E 134.11' C11 6166.24' 65.96' 0'36'46" N 40'46'00" W 65.96' SPECIAL ASSISTANT ATTORNEY GENERAL SEAN D. REYES, UTAH ATTORNEY GENERAL RED ROCK PARTNERS, LLC (A UTAH LIMITED LIABILITY COMPANY) UTHORI ZED AGENT: 0 100 50 SCALE: 1" = 100' (SCALE ONLY VALID FOR 24" x 36" PAPER) 200 U z INFRASTRUCTURE, 0 `r' o H� vlcc F- 0 W � Xp W t7) t-/ M � LA v> rl- r- O O �D oo O� Lfi M Q N N Z Z �Q = t+7• 1- O2 G u) CU Z CV Q a (n Q 0 Z Ib Y 00 ors 05) I`+ z O U LIJ PROD. #: FF18127.00 DRAWN BY: TWS/PJW DATE: 7/25/2018 MAYORS APPROVAL PRESENTED TO THE CITY OF MOAB MAYOR THIS /I" i DAY OF OC#1,bllr , A.D. 20/8 . I HEREBY ACCEPT SAID ROAD DEDICATION PLAT WITH ALL COMMITMENTS AND OBLIGATIONS PERTAINING THERETO. RECORDED No. 5 '3 1 (0 5te, Ry rnaa0 C1.4y De te. i d -12. - is 11'. 441 A N4 CHECKED BY: TWS SCALE OF SHEET HOR SCALE: 1" = 100' SHEET 1 OF *ct,IVAti ATTEST: CITY RECORDER, CITY OF MOAB MAYOR, CITY OF MO GRAND COUNTY RECORDER 1 Moab City Council Agenda Item Meeting Date: August 27, 2019 Title: Resolution No. 40-2019 Authorizing the City of Moab to Commence Eminent Domain Proceedings to Acquire a Utility Easement Across the Pilles Property in Conjunction with the North Corridor Wastewater Improvements. Disposition: Discussion and possible action —this is a Public Memo Staff Presenter: Chris McAnany, City Attorney Attachment(s): - Attachment 1: Proposed Resolution - Attachment 2: June 10, 2019 Correspondence, Easement, Appraisal, and Related Documents Recommended Motion: "I move to adopt Resolution No. 40-2019 Authorizing the City of Moab to Commence Eminent Domain Proceedings to Acquire a Utility Easement Across the Pilles Property in Conjunction with the North Corridor Wastewater Improvements." Background/Summary: The City has acquired rights -of -way in conjunction with the North Corridor Wastewater Improvement Project (the Project). The Project will extend a sewer trunk line and related facilities along the west side of Highway 191 to provide service to a number of properties on the north side of the City that currently lack sewer service, or that have substandard service. Construction on the Project is slated to commence in late 2019. The City needs to obtain a temporary (construction) and permanent utility easement across the property owned by Lewie Pilles and Jennifer Pilles. City staff has had multiple contacts with the Pilleses over the last eight months. On June 10, 2019 I transmitted to the Pilleses a letter: a) disclosing eminent domain procedures, as required by Utah law; b) delivering an appraisal for the subject easement; c)delivering the proposed easements; and d) offering to pay appraised value in exchange for the easements. Exhibit 2, attached. The appraised value is $57,200. 1 To date I have had multiple contacts with Lewie Pilles on the matter. We have offered to negotiate, but we have yet to receive anything by way of a counter-offer from the Pilleses. The principal objection of the Pilleses appears to be that they would like to have the easement relocated to a different area on their property. After consulting with the City Engineer, we have concluded that realignment of the pipeline is impracticable because of the grades necessary to allow for wastewater flows to the Moab Water Reclamation Facility. The Pilles have been informed of this situation. The City Engineer will be available to brief the Council on Project details applicable to this property. Utah law requires that a condemning authority negotiate in good faith with the property owner. The City has done so to date, and we will continue to do so. However, the tight timeline for construction will compel the City to commence an eminent domain case soon to acquire the necessary right-of- way if the parties are unable to reach a deal. Prior to commencing eminent domain, the City must notify the landowners of its intent to do so, allow those persons to address the Council, and formally authorize a case to go forward. U.C.A. § 78B-6-504(2). As required by law, the City notified the property owners in writing of this hearing and that the City will be considering authorization to invoke eminent domain. Id. Eminent domain is authorized for the acquisition of land for public sewage facilities. U.C.A. § 78B-6-501(3)(b) and (9). In this case the easements in question are necessary for the completion of the Project. And construction on the Project —and use of the subject property will commence promptly. Although the City will continue to negotiate with the property owners, adoption of the resolution will authorize the acquisition of the property through a court process if no agreement is reached. 2 ATTACHMENT 1 • Proposed Resolution CITY OF MOAB RESOLUTION NO.40-2019 A RESOLUTION AUTHORIZING THE CITY TO COMMENCE EMINENT DOMAIN PROCEEDINGS ACQUIRE A UTILITY EASEMENT ACROSS THE PILLES PROPERTY IN CONJUNCTION WITH THE NORTH CORRIDOR WASTEWATER IMPROVEMENTS The following findings describe the reasons for this resolution and explain its purpose. a. The City has secured financing and it will undertake the construction of the North Corridor Wastewater Improvement Project (the Project) in late 2019. b. The Project will extend wastewater service to properties in the north area of the City of Moab via a sewer pipeline and related improvements, which will convey wastewater to the City Water Reclamation Facility. c. The City has undertaken to negotiate for the acquisition of a utility easements (for construction and permanent placement of a pipeline) over and across the lands of Lewie Pilles and Jennifer Pilles (Owners), located at 1263 North Main Street, Tax Parcel No. 02-0135-0057 (the Property). d. The easements are necessary for the pipeline and related improvements to provide sanitary sewer service to a number of properties in the north area of the City of Moab. e. On June 10, 2019 the City provided to the Owners correspondence containing: i) the Eminent Domain Disclosure required by Utah law; ii) a copy of appraisal for the Property; iii) a copy of the proposed utility easements (for construction and permanent access) across the Property; and iv) an offer to pay the appraised value of $57,200 in exchange for the easements. The easements contained the precise metes and bounds descriptions of the lands needed for the public improvements. f. On August 8, 2019 the City notified Owners that it would be considering a resolution to authorize eminent domain at the August 27, 2019 meeting, and that the Owners have the right to appear and be heard with respect to the acquisition. g. All conditions precedent to commencing eminent domain, as provided by U.C.A. § 78B- 6-504, 505, and other applicable law, have been satisfied. Now therefore, the City of Moab resolves as follows: 1. The taking of real property for the construction of public sanitary sewer facilities is a use authorized by law. 2. The acquisition of the easements across the Property is necessary for the completion of the Project. 1 3. The City is prepared to timely commence construction of the Project by the end of 2019 or the first quarter of 2020, and it will use all of the lands encompassed within the easements sought to be acquired. 4. The City has negotiated in good faith and will continue to do so with the Owners. 5. The Owners have been given the opportunity to appear and address the Council on this subject. The Council gave consideration to the comments of the Owners, if any. 6. The Council concludes that the acquisition is reasonable and necessary for the completion of the Project. 7. The City is hereby authorized to commence eminent domain proceedings to acquire easements across the Property of the Owners. PASSED AND APPROVED by a majority of the City Council August 27, 2019. By: Emily S. Niehaus, Mayor Date Attest: By: Sommar Johnson, Recorder Date 2 ATTACHMENT 2 • lime 10, 2019 Correspondence • Easement • Appraisal • Related Documents " P a H e r s B a r b a r a R . B u t l e r W i l l i a m S . D e F o r d N a t h a n A . K e e v e r M i c h a e l A . K u z m i n s k i " C h r i s t o p h e r G . M c A n a n y ' A n n i e D . M u r p h y ' - J o h n R . P i e r c e + S a m D . S l a r r i t t 4 O f C o u n s e l S h e l l y S . D a c k o n i s h J o s e p h H . S k i n n e r A g E & A l e _ s J o n T B u r t a r d K a t e J a q u i t h L a u r e n F . O ' D e l l ' B r u c e C . W a l t e r s E g k e d P a r t n e r s W i l l i a m H . T . F r e y R i c h a r d H . K r o h n L a i r d T . M i l b u r n D . J . D u f f o r d ( 1 9 1 9 . 1 9 9 8 ) W i l l i a m G . W a l d e c k ( 1 9 2 3 - 2 0 0 9 ) A l s o a d m i t t e d i n O r e g o n ' A l s o a d m i t t e d i n U t a h A l s o a d m i t t e d i n W i s c o n s i n O A l s o a d m i t t e d i n W y o m i n g G R A N O J n N C T I D N , C O L O R A D O T a d n o r i r o n C a i n S u l i r a O o " G r a n d J u d d i o n G o l a m a ] , 8 1 5 0 6 l e t 9 7 0 . 2 4 1 5 5 0 0 F a x W O 2 4 3 7 7 3 9 v o y y r O w n s c o r n D U F F O R D W A L D E C K M I L B U R N & K R O H N L L P A t t o r n e y s a t L a w J u n e 1 0 , 2 0 1 9 L e w i e L . P i l l e s 2 0 3 1 W e s t D e e r V a l l e y R o a d P h o e n i x , A Z 8 5 0 2 7 - 2 0 1 6 C h r i s t o p h e r G . M c A n a n y D i r e c t D i a l P h o n e : ( 9 7 0 ) 2 4 8 - 5 8 6 2 E m a i l A d d r e s s : l r n c a n a n y a d w m k . c o m B y : F e d e r a l E x p r e s s R e : C i t y o f M o a b N o r t h T r u n k S e w e r E x t e n s i o n D e a r M r . P i l l e s : I r e p r e s e n t t h e C i t y o f M o a b ( C i t y ) . T h e C i t y i s w e l l u n d e r w a y i n i t s p l a n n i n g a n d d e s i g n p r o c e s s f o r t h e n o r t h a r e a t r u n k s e w e r p r o j e c t . T h i s p r o j e c t w i l l e x t e n d s a n i t a r y s e w e r s e r v i c e a n d u p g r a d e e x i s t i n g s e r v i c e t o s e v e r a l p r o p e r t i e s o n t h e n o r t h e n d o f M o a b , p a r t i c u l a r l y t h o s e o n t h e w e s t s i d e o f H i g h w a y 1 9 1 . I a m w r i t i n g t o r e q u e s t t h a t y o u g r a n t a n e a s e m e n t t o t h e C i t y f o r t h e p u r p o s e o f t h e i n s t a l l a t i o n o f a s a n i t a r y s e w e r p i p e l i n e a c r o s s y o u r p r o p e r t y a t 1 2 6 3 N o r t h M a i n S t r e e t i n M o a b . T h i s C i t y i s w i l l i n g t o n e g o t i a t e w i t h y o u w i t h r e s p e c t t o a n y c o n c e r n s y o u m a y h a v e p e r t a i n i n g t o t h e p r o p o s e d e a s e m e n t . A s p a r t o f t h a t n e g o t i a t i o n , p l e a s e n o t e t h e f o l l o w i n g d i s c l o s u r e , a s r e q u i r e d b y U t a h l a w , U . C . A . � 7 8 B - 6 - 5 0 5 . I . E m i n e n t D o m a i n D i s c l o s u r e A l t h o u g h t h i s l e t t e r i s p r o v i d e d a s p a r t o f a n a t t e m p t t o n e g o t i a t e w i t h y o u f o r t h e s a l e o f y o u r p r o p e r t y o r a n i n t e r e s t i n y o u r p r o p e r t y w i t h o u t u s i n g t h e p o w e r o f e m i n e n t d o m a i n , t h e C i t y o f M o a b m a y u s e t h a t p o w e r i f i t i s n o t a b l e t o a c q u i r e t h e p r o p e r t y b y n e g o t i a t i o n . B e c a u s e o f t h a t p o t e n t i a l , t h e p e r s o n n e g o t i a t i n g o n b e h a l f o f t h e e n t i t y i s r e q u i r e d t o p r o v i d e t h e f o l l o w i n g d i s c l o s u r e s t o y o u . 1 . Y o u a r e E n t i t l e d t o J u s t C o m p e n s a t i o n f o r Y o u r P r o p e r t y . 2 . Y o u a r e E n t i t l e d t o A n O p p o r t u n i t y t o N e g o t i a t e w i t h t h e A g e n c y O v e r t h e A m o u n t o f C o m p e n s a t i o n f o r Y o u r P r o p e r t y B e f o r e A n y L e g a l A c t i o n i s F i l e d . a . Y o u a r e E n t i t l e d t o a n E x p l a n a t i o n o f H o w t h e C o m p e n s a t i o n O f f e r e d f o r Y o u r P r o p e r t y w a s C a l c u l a t e d . Lewie L. Pilles June 10, 2019 Page 2 b. If an Appraiser is Asked to Value Your Property, You are Entitled to Accompany the Appraiser During an Inspection of the Property. 3. You are Entitled to Discuss the Matter with the Attorneys at the Office of the Property Rights Ombudsman. 4. The Office of the Property Rights Ombudsman is a Neutral State Office Staffed by Attorneys Experienced in Eminent Domain. Their Purpose is to Assist Citizens in Understanding and Protecting Their Property Rights. You are Entitled to Request an Explanation of Your Legal Options. 5. In a Dispute with a Condemning Agency, a Property Owner Has the Right to Request Free Mediation or Arbitration Through the Office of the Property Rights Ombudsman. As Part of Mediation or Arbitration, you are Entitled to Request a Free Independent Evaluation of the Property. 6. Oral Representations and Promises Made by an Agency During the Negotiation Process are Not Binding Upon the Agency Seeking to Acquire the Property by Eminent Domain. Additionally, as provided by U.C.A. § 78B-6-505(1)(b)(i), I enclose a copy of a document published by the Utah Real Property Ombudsman entitled "Your Guide to Just Compensation." Exhibit 1. This document is intended to provide you with additional information in connection with the possible acquisition of your property via eminent domain, should that become necessary. II. Transmittal of Appraisal I enclose a copy of the appraisal report prepared by Van Drimmelen & Associates, Inc., Dated May 19, 2019. Exhibit 2. The appraisal describes in detail the methodology and conclusions as to the fair market value of a temporary construction easement and a permanent easement crossing your property. According to the appraisal, the fair market value of the requested easement is FIFTY-SEVEN THOUSAND TWO HUNDRED DOLLARS ($57,200) (the Appraised Value). III. Proposed Easements The City has prepared deeds of easement for the temporary and permanent easements that would allow construction and permanent installation of the new pipeline. Copies of the draft easements, as well as a map depicting the areas to be occupied are attached as addenda to the appraisal. The easement would be twenty feet in width, with up to thirty feet being necessary for the construction phase. The permanent easement is non-exclusive, meaning that you would still be able to use the easement area for any purposes that do not conflict with the underground pipeline; the City would be solely responsible for maintenance of the pipeline improvements. Lewie L. Pilles June 10, 2019 Page 3 IV. Offer of Appraised Value The City offers to pay you Appraised Value specified above in exchange for the conveyance by you (and execution by co -owners of record, if any) of easements substantially conforming to those enclosed. Payment would be made via wire transfer or certified funds simultaneously with the execution and recording of the easements in proper form. Please consider this offer carefully and advise us how you wish to proceed. Because this is a time -sensitive matter, please let us know of your response no later than fifteen (15) days from the date of this letter. We would be happy to meet with you in Moab or confer with you by telephone about any specific questions you have with respect to project or the proposed easement acquisition. My contact information is stated above. Thank you for your attention to this. I look forward to hearing from you soon. Sincerely, Christopher G. McAnany Enclosures xc: City of Moab CERTIFICATE OF MAILING 1, Brenda K. Stratton, paralegal at Dufford, Waldeck, Milburn & Krohn, LLP, certify that on June 10, 2019,1 placed the following in an envelope for delivery by Federal Express to Mr. Lewie L. Pilles, 2031 West Deer Valley Road, Phoenix, Arizona, 85027-2016: 1. Letter to Mr. Pilles, dated June 10, 2019; 2. Booklet, Your Guide to Just Compensation, State of Utah Office of Property Rights Ombudsman; and 3. Van Drimmelen & Associates, Inc., Appraisal Report Dated: June 10, 2019 Brenda K. Stratton, Paralegz, VAN DRIMMELEN & ASSOCIATES, INC. REAL ESTATE APPRAISERS I CONSULTANTS AN APPRAISAL REPORT OF A PERPETUAL EASEMENT AND TEMPORARY CONSTRUCTION EASEMENT WITHIN PROPERTY OWNED BY LEWIE L. PILLES LOCATED AT t1263 NORTH MAIN STREET (US-191), MOAB, UTAH PREPARED FOR MOAB CITY c/o Mr. Chuck Williams, P.E. City Engineer PROJECT IDENTIFICATION MOAB CITY SEWER IMPROVEMENT PROJECT PREPARED BY KENDALL S. MITCHELL,MAI CERTIFIED GENERAL APPRAISER DATE OF INSPECTION MAY 18, 2019 EFFECTIVE DATE OF VALUATION MAY 19, 2019 DATE OF THE REPORT JUNE 3, 2019 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com VAN DRIMMELEN & ASSOCIATES, INC. REAL ESTATE APPRAISERS CONSULTANTS June 3, 2019 Project: Moab City Sewer Improvement Project The Moab City Mr. Chuck Williams, P.E. City Engineer 217 East Center Street Moab, Utah 84532 Re: An Appraisal Report of a perpetual easement and temporary construction easement within property located at 1263 North Main Street (US-191), Moab, Utah. Recorded Ownership: Lewie L. Pilles; Project Description: Moab City Sewer Improvement Project; Project Parcel No.:Pilles (appraisal reference purposes only); Appraisal Report File #2024km0519. Dear Mr. Williams, P.E.: At your request, I have spoken with a qualified ownership representative and inspected the property owned by Lewie L. Pilles, located at ±1263 North Main Street (US-191), Moab, Utah. The purpose of the inspection and subsequent investigation and analysis is to estimate market value of the property, as of the specified date of valuation, for the proposed acquisition of the property rights specified for a state or federally assisted project. Reportedly, the perpetual easement and temporary construction easement are to be acquired by Moab City through negotiations and/or possible condemnation proceedings incident to the Moab City Sewer Improvement Project in northern Moab City. The defined larger parcel is identified as the eastern portion of Grand County parcel number 01-126-0005, which is ±9.17 acres in size and is improved with a single-family residence and related outbuildings. The subject is being affected by easements only, and the proposed perpetual easement is along the east border within an area that would not be legally developable due to setback requirements. The temporary easement will expire and the overall utility/developability of the subject will not be negatively impacted by the imposition of the acquisitions. The developability of the remainder will likely be improved due to more convenient access to sewer. The single-family residence and related outbuildings will not be impacted by the proposed easements and will remain in the after condition with similar and unchanged setbacks and the overall use and utility of the site and improvements will not be negatively impacted by the imposition of the acquisitions. As such, no damages to the improvements is necessary and the vertical improvements are excluded from this analysis and have not been inspected, appraised or otherwise considered herein. The market value(s) outlined herein represent the underlying land value(s) only. 774 Cast 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com Mr. Chuck Williams, P.E. June 3, 2019 Page 2 The perpetual easement, identified as Project Parcel No.: PE is along the east border of the subject property. The shape of the easement is mostly rectangular. It has a reported uniform depth of 20.00 feet, with a maximum length of 932.55 feet along the west border of the easement. It is noted that the perpetual easement is mainly contained within a lot line area that would generally be unbuildable due to setback requirements. Please refer to the maps and documents in the report for further clarification. The reported land area contained within the perpetual easement is 18,520 square feet, or 0.43 acre. The purpose of Parcel PE is defined in the legal description provided by the client for "establishing, installing and constructing maintaining, enlarging and repairing sewer lines, along with associated surface structures including manholes, control boxes, cables and such other surface and sub -surface appurtenances as may be deemed necessary for the intended use." Additionally, the legal description states that the easement shall be non-exclusive, and the Grantor (property owner) shall have the right to use the easement in a manner that does not impair or harm the grant or use by Grantee. Lewie L. Pities will retain ownership of the area to be encumbered by the easement. The easement appears to be both an underground and above ground easement, given the stated purpose for undergrond sewer lines and above ground associated surface structures. The temporary construction easement, identified as Project Parcel No.: TCE is also within the eastern portion of the larger parcel and is adjacent west of the perpetual easement. The temporary easement is reported to be a uniform 30 feet in width, with a maximum length of 952.22 feet along the west border of the easement. Please refer to the maps and documents in the report for further clarification. According to legal descriptions provided by the client, Project Parcel No. TCE is 28,272 square feet, or 0.65 acre. The temporary easement will be used during the construction phase of the project so that workers can access the area to construct the sewer line. The client reports that the easement will expire on January 1, 2021 and the easement will effectively be for a 1.6 year term. Lewie L. Pities will retain ownership of the area to be encumbered by the easement and the temporary easement will expire. No other acquisitions/easements are proposed and the size of the remainder in the after condition will be 399,256 square feet, or 9.170 acres, which unchanged relative to the before condition and the overall utility and market value of the remainder is not significantly impacted by the imposition of the acquisition. It is noted that the vast majority of the easements are contained within a portion of the larger parcel that is within a 100-year flood zone associated with the Colorado River easterly and will require atypically high development costs to facilitate development. Right-of-way appraisal dictates that the acquisitions be appraised and valued as part of a larger whole parcel, and not the specific and isolated portion that is being proposed for acquisition. The defined larger parcel comprises the eastern portion of Grand County parcel number 01-126-0005 that includes the small area (>.80 acre) that is not 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com Mr. Chuck Williams, P.E. June 3, 2019 Page 3 within the flood zone and also includes the land area zoned for Light Industrial uses by the county. Grand County parcel number 01-126-0005 contains a total of 28.83 acres and the majority of the site is within the Special Hazard flood plain with numerous wet issues and/or wetlands that are largely undevelopable. Due to differing highest and best uses, only the eastern portion east of the canal that is generally cleared of wild vegetation and being used agriculturally is included in the larger parcel determination. This portion appears to be the most developable, but will still require significant fill/earthwork, wetlands surveys, permits, etc. to accommodate more intensive development. Based on right-of-way appraisal requirements and the definition of larger parcel, the acquisitions are valued as part of a larger whole parcel and not the smaller parts proposed for acquisition. For this reason, many of the comparable sales suggested by the owner (i.e. 3,000 square foot RV pad sites, ±1.00 acre hotel sites with Main Street frontage in the CBD, etc.) are not appropriate comparables and could not be utilized herein. Meeting with Property Owner: The reported property owner representative and contact person for negotiations is Mr. Lewie Pilles (623-271-0993 (cell)). Mr. Pilles lives in Arizona and was contacted by telephone on May 9, 2019. He has been in contact with Moab City officials and was aware of the pending sewer project and had copies of the legal descriptions and maps. He was unable to meet with me and gave me permission to inspect the property on my own. His main concern was that he has limited buildable area due to the flood plain, and he was concerned that the easements would further reduce the buildable area and restrict his future development options. He reports that he has requested that Moab City install the sewer line further to the west within the flood zone. If this happened, he stated that he would donate the land for the project but otherwise does not desire to sell as it is presently configured. I informed him of my status as an independent appraiser with no affiliation with Moab City, and that I would appraise his property based on the highest and best use and utilizing the most appropriate comparable sales that were publicly available. We discussed the timing for completion of the appraisal and start of negotiations, and I informed him that he would likely be provided with a copy of the appraisal during the negotiation process. Mr. Pilles was cordial and stated he would wait to hear from Moab City in the near future. 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueulah.com Mr. Chuck Williams, P.E. June 3, 2019 Page 4 After analyzing all of the data presented in the report, I am of the opinion that the market value of the perpetual easement and temporary construction easement — As Is — of the fee simple interest (as defined in the attached Report and subject to the definitions, certifications, assumptions, and limiting conditions set forth) including any necessary severance/proximity damages, site improvements taken and/or cost to cure considerations, as of May 19, 2019, is: FIFTY-SEVEN THOUSAND TWO HUNDRED DOLLARS (S57,200) Definitions of market value and the fee simple estate are included in the attached document. An appraisal was performed in accordance with Standards Rule 1 as defined by the Uniform Standards of Professional Practice (USPAP). The attached report is an Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of USPAP. This appraisal report conforms with and is subject to the 2018-2019 Uniform Standards of Professional appraisal Practice (USPAP) of the Appraisal Foundation, the Uniform Act, C.F.R. 24.103, the Utah Relocation Assistance Act, Utah Code Section 57-12, Utah State Code Title 78B, the Code of Professional Ethics, UDOT appraisal requirements/scope of work agreement and applicable Uniform Appraisal Standards for Federal Land Acquisitions, where applicable. As is typical of right-of-way appraisal assignments, this report presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop an opinion of market value. Supporting documentation is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client. This report has been prepared for your use. As is customary in assignments of this nature, neither my name, my company name, nor the material submitted may be included in any prospectus, in newspaper publicity, or as part of any printed material; or used in offerings or representations with the sale of securities or participation interests to the public. No parts of this written report, including my name/company name or any value conclusions and/or explanations may be disseminated online or in other medium intended for general public consumption without prior written permission. The use of this appraisal report, by the client or by a third party, will mean acceptance of all assumptions and limiting conditions contained in the Letter of Transmittal, Preface, and attached report. The appraiser is not responsible for unauthorized use of this report. 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com Mr. Chuck Williams, P.E. June 3, 2019 Page 5 The value given is subject to the general assumptions and limiting conditions, and specific extraordinary assumptions stated in the attached report and outlined in the addendum. It is important that the reader of this report review and understand all general and specific assumptions and limiting conditions. This letter must remain attached to the report in order for the value opinion set forth to be considered valid. The effective date of value is May 19, 2019. The date of the report is June 3, 2019. Referencing the 2018-2019 Uniform Standards of Professional Appraisal Practice, an extraordinary assumption is "an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinions or conclusions." This appraisal assignment and resulting conclusions are based on the following specific extraordinary assumptions. 9) It appears that access to the site is available via an access easement only through the Portal RV access corridor from Main Street to the east/northeast. Portal RV owns this access corridor and no fee simple owned land directly connecting to Main Street or any other nearby right-of-way exists. An extraordinary assumption is necessary that the available information is correct and that an access easement exists through the adjacent property from Main Street (US-191) to the east/northeast. This extraordinary assumption further assumes that access is legally compliant and sufficient for development to the concluded highest and best use conclusion as outlined herein. 2) Moab City limits abut the subject to the north, south and east. The subject has not yet been annexed and is currently within the jurisdiction of Grand County. An extraordinary assumption is necessary that the information obtained from Moab City officials is true and correct, and that a reasonable probability exists that the subject could be annexed into Moab City, and that an RC zoning designation is the most reasonable zone. Annexation and rezoning has not yet occurred, is not guaranteed and is speculative, and will involve an investment of time and capital that has not yet been expended. 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com Mr. Chuck Williams, P.E. June 3, 2019 Page 6 Your attention is invited to the attached appraisal report, which outlines the data collected and the methods used to formulate an opinion of the market value of the subject property and the perpetual easement and temporary construction easement. If you have any questions, please do not hesitate to contact me. Respectfully submitted, Kendall S. Mitchell, MAI Utah State Certified General Appraiser License #5499605-CGOO Expires 4.30-20 Enc. 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com i Table Of Contents Certification of Value Summary of Salient Facts and Conclusions iv Subject Photographs 3 Introduction 8 Scope of Work 8 Larger Parcel Determination 10 Meeting with Property Owners 12 Purpose of the Appraisal, Property Rights Appraised, Effective Date(s) and Definitions 13 Factual Data - Before Acquisition 15 Identification Of Property ........ 15 Summary of Area Information 16 Area Map 26 Neighborhood Description 27 Neighborhood Map 32 Site Description 33 Description of Improvements 41 Recent History of the Property 42 Real Estate Taxes & Assessments 42 Data Analysis and Conclusions -Before Acquisition 43 Highest and Best Use 43 Market Overview - commercial 47 Land Valuation 51 Proposed Project & Factual Data After Acquisition 65 Description of Proposed Project 65 Description of Property — After Acquisition .. 70 Highest and Best Use — After Acquisition 71 Valuation of the Perpetual Easement 71 Data Analysis & Conclusions — After Acquisition 74 Valuation of Site Improvements Impacted 74 Damages to the Remainder 75 Valuation of the Temporary Easement 76 Cost to Cure 79 Special Benefits 79 Summary Of Values _ 81 Reconciliation and Final Estimate of Value 82 Exhibits & Addendum 83 Location Map Plat Map Aerial Map Flood Map Zoning Map Comparable Land Sales Data Sheets Ownership Records / Legal Descriptions County Information Assumptions and Limiting Conditions Qualifications of Appraiser Project besc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles ii Certification Re: An Appraisal Report of a perpetual easement and temporary construction easement within property located at 1263 North Main Street (US-191), Moab, Utah. Recorded Ownership: Lewie L. Pilles; Project Description: Moab City Sewer Improvement Project; Project Parcel No.:Pilles (appraisal reference purposes only); Appraisal Report File #2026km0519 I certify that to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analysis, 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 appraised that is the subject of this report, and no personal interest with respect to the parties involved, 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7 The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice (USPAP). 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 10. Kendall Mitchell, MAI has made a personal inspection of the property that is the subject of this report. 11. Jennifer Adams provided factual data research and significant real property appraisal assistance to the person signing this certification. She did not inspect the property. 12. I have complied with the Appraisal Standards of USPAP and the Appraisal Institute in conducting the research and analysis, and in formulating the value conclusion(s) contained in this report. 13. The Ethics Rule of the Uniform Standards shall be enforced solely by enforcement of the Code of Professional Ethics under the existing enforcement procedures of the Appraisal Institute. 14. As of the date of this report, Kendall Mitchell, MAI is licensed by the State of Utah, Department of Commerce, Division of Real Estate. Under the state's licensing regulations, Kendall Mitchell, MAI is a Certified General Appraiser and my license has not been revoked, suspended, canceled, or restricted. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles Il] Letter of Certification (Continued) 15. The undersigned hereby acknowledge that I have the appropriate education and experience to complete the assignment in a competent manner. The reader is referred to the appraiser's statements of qualifications found in the addendum of this report. 16. I have not appraised or provided other professional services related to the subject property within the last three (3) years. 17. As of the date of this report, Kendall Mitchell, MAI has completed the continuing education requirements for Designated Members of the Appraisal Institute. Dated: June 3, 2019 /;(en,, 01, l Kendall S. Mitchell, MAI Utah State Certified General Appraiser Certificate #5c109685-CGOO, Expires 04-30.20 Project Dese: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles iv Summary of Salient Facts and Conclusions TYPE OF PROPERTY APPRAISED: A ±9.17 acre tract of speculative commercial land. ADDRESS: 1263 North Main Street (US-191), Moab, Utah. PURPOSE OF THE APPRAISAL: PROPERTY RIGHTS APPRAISED: OWNER OF RECORD: COUNTY PARCEL NUMBER(S): SITE/IMPROVEMENT SUMMARY (BEFORE): Gross Land Size: Area within Existing R/W: Land Size: (Net of Existing RAN) Zoning: Improvements: HIGHEST AND BEST USE (BEFORE): As Vacant As Improved PROJECT DESCRIPTION: DESCRIPTION OF ACQUISITION(S): AREA OF ACQUISITION(S): Perpetual Easement (PE) Temporary Easement (TCE) To estimate market value of the property, as of the specified date of valuation, for the proposed acquisition of the property rights specified for a state or federally assisted project. Fee simple Lewie L. Pilles 01-126-0005 ±399,256 square feet, or 9.17 acres (estimated) (none reported) - extracted ±399,256 square feet, or 9.17 acres LI (Light Industrial) & RR (Rural Residential) (county jurisdiction) Single-family residence and related outbuildings (excluded) For speculative commercial development as demand is manifest N/A — The vertical improvements are excluded. Moab City Sewer Improvement Project A perpetual easement and temporary construction easement. 18,520 square feet, or 0.43 acre 28,272 square feet, or 0.65 acre Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles V Summary of Salient Facts and Conclusions (Continued) SITE/IMPROVEMENT SUMMARY (AFTER): Land Size: t399,256 square feet, or 9.170 acres Improvements: Single-family residence and related outbuildings. HIGHEST AND BEST USE (AFTER): As Vacant As Improved For speculative commercial development as demand is manifest. N/A — The vertical improvements are excluded from this analysis. CONCLUDED MARKET VALUES A) Market Value of the Whole: $ 1,796,652 B) Value of the Acquisition(s): $ 40,836 C) Value of the Remainder as part of the Whole: $ 1,755,816 D) Value of the Remainder after the Acquisition: $ 1,755,816 E) Value of Damages/Cost To Cure: $ 16,285 F) Special Benefits $ 0 G) TOTAL AWARD Partial Fee Acquisition(s) $ 0 Perpetual Easement(s) $ 33,336 Temporary Easement(s) $ 16,285 Improvements Acquired $ 7,500 Severance Damages $ 0 Less: Special Benefits ($ 0) Cost To Cure $ 0 Total $ 57,121 ROUNDED: $ 57,200 DATE OF VALUATION: "As Is" May 19, 2019 DATE OF THE REPORT: June 3, 2019 Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, /NC. Ownership: Lewie L Pilles vi SUMMARY OF COMPENSATION Moab City - Sewer Improvement Project Parcel # Owner(s) Acquisition (SF) Easement (SF) $!Unit Factor Factor Sub -Total TOTAL(S) PE Lewie Pilles 18,520 $4 50 0.40 1.00 $33,336 TCE Lewie Pilles 28,272 $4.50 0.08 1.60 $16,285 $49,621 Parcel # Improvements Acquired Unit Quantity Unit Price Deprec. Adj. $IUnit Totals TOTAL(S) Pilles Wiid trees near residence Overall 1 $7,500 1.00 $7,500 $7,500 $7,500 Parcel# Cost -to -Cure Unit Quantity Unit Price Factor Adj.$IUnit Totals TOTAL(S) Pilles None necessary $0 $0 Parcel # Damages Totals TOTAL(S) Pilles None necessary $0 Total $0 Parcel # Special Benefits Unit Price Factor Factor Totals TOTAL(S) Pilles None necessary $0 $0 Total Award Pilles Subtotal $57,121 Total, Rounded Off/Up + I $79 $57,200 Land Acquisitions Cost To Cure m rn E m 0 Special Benefits Total Award Project Desc: Moab City Sewer Improvement Project Ownership: Lewie L. Pilles VAN DRIMMELEN & ASSOCIATES, INC. 1 Project Maps - , '{ 1 - y `Z.,j21 , .y • ` - - 'll t1,sc 'tom HCM 13. S*41 _ 1..nY i F•:.1..-rl L4l�f JENNIFER Pill LS, 1 0,--, 1 ' r�`� 11.0.: +- SCr R4+N9J: 4a. r.-:4 r.w1 `a L'1, 3..f. .c.,.! 0 Sri •-, •s tocrzar�4 l - rsme44 r... .1� /, jr. e'WES [1/ ! :�;-- uvay tal.imi.0 : , as' au D.+o.et l » a n�r+w. a+ 16 f �.� �Sa � "-r�..s.•' -�i J•. ~r`:.r� .. - _- _� _��"- -S`—� ter` -' .�-e -6-- '' -- f r..{-•l' / ----0 1 � 1 F+' ^ {i :.eCa riti't 'e .:�••:.anr /len? to /I1N1g -' -` --... pi +�s=en5 :. �. NEW '+tits � 1TfTiC1i ��'_ Y/ �N+C-A 1 �` _ -,4 1 ` 1 _ .- ti ar�Lw ;. :.i .,. �L '\ mot- •KS .,r�� J ��: c f , kf. ^ •t i . ,h:: i - --f=? \ (t)i. } a Ft Ft$Ctf1�Ah! 1. Y�qr 7CO is - :LI f�s'�r � r tr ice• 1.5 _ i a_: :wvrn « s„r,o a iial5in 4 , t/ `{ "`t • -��.i_- . .. ( . f Z0�1 p�4p1 } :, n 1-1.35--avt+a ti •per � � , �I I �OU� i I f I I I 1 NEW ;!5• 50It 35 P0 MK c • I i i 1 ., �_�o %Ki t o Seot,i i 1 1 1 I I — --L Ii 1 I Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles IE) , T�L" S 89°03'04" W 2715.09' r NE CORNER , SECTION 35, T25S, R21 E, SLBBM �`N • N ``N 78°18'00" E ` 24.75' �`. N 78°18'00" E 37.12' LEWIE L.PILLES JENNIFER PILLES 02-135-0057 �1 FLEISCHMAN 01-135-0003 6y 30'TEMPORIIRY cool ucrioN1 EASEMENT LEGEND Q. Property Corner 20'SEWER LINE • EASEMENT 4 PROPosEd SEWER LINE FLEISCHMAN 01-135-0002 S 46°24'58" W _ . 20,05' S 46°24'58" W �n na. :R::.. 2 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN It ASSOCIATES, INC. Ownership: Lewie L. Pilles 3 Subject Photographs Front View of Subject Improvements {Excluded} Project Desc: Moab City Sewer Improvement Project Ownership: Lewie L. Pilles VAN DR/MMELEN & ASSOCIATES, INC. 4 Center Portion of LaT er Parcel Looking: West I Lar• er Parcel Lookin • South from NEC Project Desc: Moab City Sewer Improvement Project Ownership: Lewie L. Pilles VAN DR/MMELEN & ASSOCIATES, INC. Area of Easements Lookin • North from South Border Easements Looking North from Center Project Desc: Moab City Sewer Improvement Project Ownership: Lewie L. Pilles 5 VAN DRIMMELEN & ASSOCIATES, INC. 6 Easements Looking South from Center Easements Lookin $ South from North Border Project Desc: Moab City Sewer Improvement Project Ownership: Lewie L. Pilles VAN DRIMMELEN & ASSOCIATES, INC. Driveway and Gate into: Subject 7 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN B ASSOCIATES, INC. Ownership: Lewie L. Pilles CLIENT: APPRAISER: SUBJECT: 8 Introduction Moab City Mr. Chuck Williams, P.E. City Engineer 217 East Center Street Moab, Utah 84532 Kendall S. Mitchell, MAI Utah State Certified General Appraiser Van Drimmelen & Associates, Inc. 774 East 2100 South Salt Lake City, Utah 84106 A perpetual easement and temporary construction easement located within Grand County Assessor's Parcel Number(s) 01-126-0005. Scope of Work The purpose of the appraisal is to estimate market value of the property, as of the specified date of valuation, for the proposed acquisition of the property rights specified for a state or federally assisted project. The subject comprises a ±9.17 acre tract of speculative commercial land improved with a single-family residence and related outbuildings. The subject is being affected by easements only, and the proposed perpetual easement is along the east border within an area that would not be legally developable due to setback requirements. The temporary easement will expire and the overall utility/developability of the subject will not be negatively impacted by the imposition of the acquisitions. The developability of the remainder will likely be improved due to more convenient access to sewer. The single-family residence and related outbuildings will not be impacted by the proposed easements and will remain in the after condition with similar and unchanged setbacks and the overall use and utility of the site and improvements will not be negatively impacted by the imposition of the acquisitions. As such, no damages to the improvements is necessary and the vertical improvements are excluded from this analysis and have not been inspected, appraised or otherwise considered herein. The market value(s) outlined herein represent the underlying land value(s) only. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 9 In preparing this appraisal, the following steps were taken: • Inspected the subject neighborhood, vertical improvements, site and site improvements; • Gathered information on comparable land sales as well as any applicable site improvement and/or cost to cure costs; • Confirmed and analyzed the data and applied the Sales Comparison Approach in estimating land value before the acquisition (value as a whole as a total acquisition); • Reconciled the value of the perpetual easement and temporary construction easement; • Estimated any contributory value of any site improvements acquired; and • Examined potential severance damage to the remainder, special benefits, and cost to cure if applicable. The vertical improvements will not be negatively impacted and have been excluded from this analysis. The market value(s) contained herein represents land only. The market value estimate of the land for the appraised property is based on the traditional approach to land value, namely the Sales Comparison approach. The Cost Approach is not an applicable approach for the valuation of vacant land and insufficient land lease data is available for the development of the Income Approach. Therefore, these two approaches are not applicable and the Income and/or Cost Approaches have not been completed herein. Items considered furniture, fixtures, and equipment (FF&E), and/or personal property are expressly excluded from the scope of the appraisal, and have not been appraised. To formulate the opinion of value the appraiser performed an appraisal as defined by the Appraisal Foundation's Uniform Standards of Professional Appraisal Practice.1 The report has been prepared in compliance with reporting requirements established by USPAP, Federal Regulations, and UDOT appraisal guidelines/requirements for right-of- way appraisals. This Appraisal Report is a summary recapitulation of the appraiser's data, analyses and conclusions. Supporting documentation is retained in the 1 Uniform Standards of Professional Appraisal Practice, Appraisal Foundation, 2018-2019 Edition Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 10 appraiser's file. Jennifer Adams provided report writing, factual data research, and significant assistance to the person(s) signing the report. Larger Parcel Determination In typical right-of-way appraisal assignments, it is necessary to determine and clearly define the larger parcel of which the acquisition(s) are a part of. The definition of larger parcel as per the Dictionary of Real Estate Appraisal, sixth edition (2015) is as follows: • Larger Parcel 1. In governmental land acquisitions, the tract or tracts of land that are under the beneficial control of a single individual or entity and have the same, or an integrated, highest and best use. Elements for consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use. In most states, unity of ownership, contiguity, and unity of use are the three conditions that establish the larger parcel for the consideration of severance damages. In federal and some states cases, however, contiguity is sometimes subordinated to unitary use. Additionally, the Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book - Part III, Section A-14) states that: "Essential in the appraiser's conclusion of highest and best use is the determination of the larger parcel. The appraiser must make a larger parcel determination in every appraisal conducted under these Standards, even in the case of a minor partial acquisition where the client agency has determined a completed before and after appraisal is not necessary" The main areas of consideration for determination of the larger parcel include contiguity, unity of ownership, and unity of use (highest and best use). In the case of the subject, the perpetual easement and temporary construction easement are contained along the eastern border of Grand County parcel number(s) 01-126-0005. This whole tax number is 28.83 acres in size and is wholly contained within Grand County jurisdiction outside Moab City limits. The vast majority of the site is within the Special Hazard flood zone, Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 11 with less than 0.80 acre outside the flood zone. There is a canal that runs in a north/south direction through the center of the parcel and surrounding properties, and land west of this canal is generally not developed and is very wet. There is some nearby development within the flood zone areas east of the canal. Ben Byrd recently completed construction of a home south of Portal RV wholly within the same flood zone but he spent years putting fill in and built the site up f5-6 feet above grade. Additionally, the land directly south of the subject within the Portal RV parcel is currently under development. The developers have constructed a concrete retaining wall with significant fill that gradually becomes higher going westerly almost to the canal. The owner reports that he spent in excess of $250,000 just on the retaining wall and fill for this small area. This parcel adjacent south is currently under development with residences. As is evidenced by nearby development, the location within the flood zone does not completely preclude development within flood zone areas east of the canal, but a large amount of earthwork including fill/grading would be necessary. Any development within the flood zone will require flood insurance. Due to the lower elevation, proximity to the Colorado River and extensive clearly apparent wet areas and/or wetlands, the portions of the whole parcel near and west of the canal are concluded to be nearly undevelopable and the highest and best use of the land close to and west of the canal would be for open space/wetlands use. For these reasons and due to differing highest and best uses, the land area bordering and west of the canal within the center of whole property is excluded from the larger parcel conclusion. It is reasonable that the land east of the canal could be developed, but some major obstacles to development exist as outlined below: • Inferior access via easement only. • Lack of any type of Main Street/SR-191 frontage or visibility. It is highly unlikely that even signage could be placed within the easement area along Main Street. ■ Flood zone designation which will require elevated site development costs Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles 12 • Location in the county. Annexation into Moab will likely be required for any more intensive development and to access municipal services. • Inferior access to sewer. Thus, the defined larger parcel as explained herein includes the eastern portions of Grand County parcel number(s) 01-126-0005. Based on measurement tools available online, it is estimated that the defined larger parcel contains ±399,256 square feet, or 9.17 acres. An extraordinary assumption is necessary that this land size estimate is reasonably accurate for valuation purposes. The defined larger parcel is under the recorded ownership of Lewie L. Pilles and has stand alone development utility. No other abutting parcels under the same ownership that would share in unity of use are apparent. Please refer to the aerial parcel maps, plat maps and zoning maps contained in the addendum of the report for further clarification. Meeting With Property Owner(s) The reported property owner representative and contact person for negotiations is Mr. Lewie Pilles (623-271-0993 (cell)). Mr. Pilles lives in Arizona and was contacted by telephone on May 9, 2019. He has been in contact with Moab City officials and was aware of the pending sewer project and had copies of the legal descriptions and maps. He was unable to meet with me and gave me permission to inspect the property on my own. His main concern was that he has limited buildable area due to the flood plain, and he was concerned that the easements would further reduce the buildable area and restrict his future development options. He reports that he has requested that Moab City install the sewer line further to the west within the flood zone. If this happened, he stated that he would donate the land for the project but otherwise does not desire to sell as it is presently configured. I informed him of my status as an independent appraiser with no affiliation with Moab City, and that I would appraise his property based on the highest and best use and utilizing the most appropriate comparable sales that were publicly available. We discussed the timing for completion of the appraisal and start of negotiations, and I informed him that he would likely be provided with a copy of the Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L Pilles 13 appraisal during the negotiation process. Mr. Pilles was cordial and stated he would wait to hear from Moab City in the near future. Purpose of the Appraisal, Property Rights Appraised, Effective Date(s) and Definitions PURPOSE OF THE APPRAISAL: The purpose of this appraisal is to estimate market value of the property, as of the specified date of valuation, for the proposed acquisition of the property rights specified for a state or federally assisted project as of the effective valuation date. CLIENT: The defined client of this report is Moab City as well as their agents and/or assignees. INTENDED USER: The intended user(s) of this report is/are Moab City as well as their agents and/or assignees. INTENDED USE OF THE REPORT: The intended use of this report is to assist the client in the acquisition of the appraised property through negotiation and/or condemnation proceedings incident to the Moab City Sewer Improvement Project. It is acknowledged that the client may provide the property owner(s) with a copy of the report for courtesy review purposes only. The property owner is not the client. Use of this appraisal by the property owners or any other persons not named in the report for mortgage lending/collateral, refinancing, selling/listing, internal partnership allocation or pending contract renegotiation purposes is strictly prohibited, as defined by State and Federal law. This appraisal report cannot be re -addressed to, or relied upon by other parties not named as the defined client(s) herein. PROPERTY RIGHTS/INTEREST(S) APPRAISED: Fee Simple. The definition of this estate Is contained below. Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles 14 PERSONAL PROPERTY, FIXTURES, AND INTANGIBLE ITEMS: No personal property, equipment, detached fixtures, or intangible items are included in the appraised values. EFFECTIVE DATE(S) OF VALUATION: The property was last inspected on May 19, 2019, which is the effective valuation date for the subject "As Is". The date of the report is June 3, 2019. SUBJECT STATUS APPRAISED: As per the client's request, the subject is valued in its As Is condition as of the date of inspection. This and other general definitions that may be used within the narrative of the report are outlined below. DEFINITIONS: Definition of Value "As Is" The value of specific ownership rights to an identified parcel of real estate as of the effective date of the appraisal; relates to what physically exists and is legally permissible and excludes all assumptions concerning hypothetical market conditions or possible rezoning.2 G DEFINITION OF LARGER PARCEL The larger parcel is defined as that tract, or those tracts, of land, which possess a unity of ownership and have the same, or an integrated, highest and best use. Elements of consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use.3 n DEFINITION OF HIGHEST AND BEST USE "The highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonable near future...." 4 n DEFINITION OF EXTRAORDINARY ASSUMPTION 2 The Dictionary of Real Estate Appraisal, (Sixth Edition) The Appraisal Institute, Chicago, Illinois, 2015 3 Definition of Larger Parcel; Uniform Standards for Federal Land Acquisitions; 3rd Edition, 2000. 4 Uniform Standards for Federal Land Acquisitions; 3rd Edition, 2000. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 15 An assignment specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. Comment: Uncertain information might include physical, legal or economic characteristics of the subject property, or conditions external to the property, such as market conditions or trends, or the integrity of data used in the analysis. 5 1. DEFINITION OF HYPOTHETICAL CONDITION A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of the data used in the analysis.6 • DEFINITION OF JURISDICTIONAL EXCEPTION An assignment condition established by applicable law or regulation, which precludes an appraiser from complying with part of USPAP. 7 Factual Data — Before Acquisition IDENTIFICATION OF PROPERTY: ADDRESS 1263 North Main Street (US-191), Moab, Utah LOCATION West of Main Street (US-191) at ±1263 North. PARCEL NUMBER(S) 01-126-0005 OWNER(S) OF RECORD Lewie L. Pilles 5 Uniform Standards of Professional Appraisal Practice (USPAP); The Appraisal Foundation, 2018-2019 Edition 6 Uniform Standards of Professional Appraisal Practice (USPAP); The Appraisal Foundation, 2018-2019 Edition Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles LEGAL DESCRIPTION: SUMMARY OF AREA INFORMATION 16 A legal description for the entire larger parcel was provided by the client and is assumed to be correct. A legal description was also obtained from the Grand County Recorder's Office. Specific reliance is made herein on the legal description and size estimates provided by the client, which is assumed to be correct. No responsibility is assumed for any inaccuracies that may exist. Copies of the legal descriptions are contained in the addendum of this report. Review of an A.L.T.A. Survey for the subject property is recommended. There are social, economic, governmental, and environmental forces, which influence the value and marketability of the subject of this report. The main focus of this section of the analysis is in regard to the overall economic condition of the state of Utah including population trends/demographics; employment; wages, taxable sales; construction and tourism. A more specific analysis of the subject neighborhood of Moab City and surrounding areas in Grand County will follow in the summary of neighborhood information section. Population Trends/Demographics: The 2019 Economic Report to the Governor (ERG) states that Utah's population grew by 52,664 persons and reached 3,166,647 by July 1, 2018, according to estimates prepared by the Utah Population Committee (UPC). Net migration (in -migration minus out -migration) plateaued in 2018, contributing 23,248 new residents or 44 percent of growth. Natural increase declined slightly from 2017, and still contributed more than half of the new growth (56 percent or 29,416 persons). 7 Uniform Standards of Professional Appraisal Practice (USPAP); The Appraisal Foundation, 2018-2019 Edition Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L Pilles 17 Utah's rate of natural increase remains the highest among all states, at 10.5 per 1,000 population between 2017 and 2018. This high rate of natural increase has occurred even as Utah's fertility rate has continued in decline over the past decade. While Utah's total fertility rate has long been the highest in the nation, the slow decline in 2017 resulted in Utah continuing with the second highest rate behind South Dakota. While lower than in the past, Utah's total fertility rate remained above the national average in 2017 (2.12 compared to 1.77). Utah Components of Population Change 80,000 ram Net Migration Natural Increase a.w.. Population Change 60.000 40,000 20,0000 -20,000 ;. _ ^ N N N N V N O N 4 kQ ce O O O O O N N N N N Source: 2019 Utah Economic Report to the Governor The Utah Population Committee (UPC) estimates indicate Utah County experienced the largest population growth between 2017 and 2018, with 15,847 new residents. This was a shift from the previous year, in which Salt Lake County saw higher absolute growth. Salt Lake County realized significant growth, with the addition of 13,806 people. The Wasatch Front (Davis, Salt Lake, Utah, and Weber) still comprises a majority of the state's population (2,341,480 residents or 75.3 percent). Salt Lake County maintains its position as the largest county (1,142,077 residents). Iron County had the highest rate of growth (3.6 percent), followed by Piute (3.5 percent), and Washington (3.3 percent), according to the UPC estimates. Additionally, ring counties (counties that neighbor the urban core like Tooele and Juab) continue to Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN B ASSOCIATES, INC. Ownership: Lewie L. Pilles 18 experience solid population growth. Only two counties are estimated to have lost population: Emery (-0.04 percent) and Garfield (-0.19 percent). The 2019 Economic Report to the Governor (ERG) projects that Utah will continue to experience population growth at a moderate 1.7 percent pace to reach 3,219,116 by July 2019 on account of in -migration and a slightly higher natural increase. Employment: The 2019 ERG states "The state's labor force grew by roughly 2.8 percent over the year, stretching its ranks to over 1.6 million in order to meet the growing demands of Utah's employers. Prime economic conditions drew new entrants to the labor force but did not raise the rate at which adults in the state participated in the labor market. Labor force participation remained unchanged from last year at 69.4 percent and still below the state's pre -Great Recession rate of 72.1 percent. Given that 2017 saw a small surge in the participation rate, it was anticipated that the acceleration would continue through 2018." According to the 2019 ERG report, "As expected with a growing economy, the unemployment rate remained low throughout the year, ending at an average of 3.1 percent which equates to fewer than 50,000 unemployed individuals per month throughout the year. Demand for skilled workers was especially high. Utahns with a Bachelor's degree or higher experienced an unemployment rate well under 2.0 percent in 2018." 2018 Federal tax changes also impacted Utah. The 2019 Economic Report to the Governor concluded: "Changes to federal tax policy appear to have had a positive effect on workers' paychecks. The average annual wage for payroll employees in the Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles 19 state was $47,441, a $1,715 increase from the prior year and a full percentage point higher than the prior year's increase." States with Strongest Job Growth 2017-2018 Utah 3,.3% Nevada 0111111M11 33% Washington 3.094 Idaho 3A% Texas Z996 Arizona 2.8% Colorado 2.796 Florida s% V� • Les. Source: 2019 Utah Economic Report to the Governor Utah Employment Growth, Level and Percent 2017-2018 Mining # 182 (2.1%1 Construction 6,303 (6396) Manufacturing - 3,402 (2.6%) Trade, Trans., Utilities M11111111111111.11111 9559 (3.4%) Information ilk 1,972 (5.1 %) Financial Activity iii 2,729 (322%1 Professional & Business Servkes 6,714 (3.2%) Education & Heahh Services 7,649 (3.996) Leisure & Hospitality 4,664 (3.3%) Other Services 1.1991 (2,5%) Government MIN1.11 4,690 (1.9%) Total 48,843 (3.3%) Source: 2019 Utah Economic Report to the Governor The 2019 ERG report projects the following outlook for employment in Utah; "Lack of labor supply will continue as a point of concern in 2019 and may likely cause job growth Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 20 to slow unless labor force participation is stimulated or population in migration increases. Housing affordability could influence both but in dissimilar ways. The need to increase household income to afford the purchase of a home could draw more individuals into the labor market. In migration, on the other hand, could put more upward pressure on housing prices, eventually making further in -migration a costly trend. Wages should further rise as employers continue to struggle filling positions, although 2019 should not be as strong as 2018 which was stimulated by federal tax cuts." Additionally, the report states "Policy decisions at the national level will continue to be a significant, yet unknown factor in predicting the economic trajectory for Utah in 2019. Trade policy is in flux, with tariffs now an emerging tool for shaping relationships between the United States and our trade partners." Personal Income: Utah's total personal income in 2018 was an estimated $143.1 billion, a 6.1 percent increase from $134.8 billion in 2017. Utah's estimated 2018 per capita income was $45,174, up 3.9 percent from $43,459 in 2017. Both measures of personal income growth in Utah were higher in 2018 than in 2017, in which total personal income grew by 5.0 percent and per capita income grew by 3.0 percent. Utah's 2018 growth in personal income and per capita income were higher than national averages. Taxable Sales: The 2019 Economic Report to the Governor (ERG) states in 2019, total taxable sales in Utah increased by approximately 6.9 percent to an estimated $65.2 billion. A labor market that is among the best in the nation and solid gains in wages and personal income were among the primary drivers of growth. High levels of both consumer and business confidence and a strong tourism industry were also factors propelling the economy. Each major component of Utah taxable sales increased in 2018. Business Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 21 investment increased the most at 9.8 percent, followed by retail sales at 6.0 percent and taxable services at 5.2 percent. The 2019 ERG report indicates, "retail sales, buoyed by strong consumer spending, increased 6.0 percent to an estimated $33.7 billion. This growth outpaced the estimated 5.3 percent increase in U.S nontaxable and taxable retail sales in 2018. Factors that affect the health of the consumer balance sheets, such as employment and personal income, posted solid gains in 2018, which in turn led to strong growth in retail sales. Trends in the sector are particularly important as retail sales account for over half of all taxable sales (51.7 percent in 2018)." According to ERG, "For the second consecutive year, business investment purchases posted significant increases over the prior year. In 2018, business investment purchases increased by 9.8 percent to an estimated $10.0 billion. The largest increases in business investment purchases were from the construction, manufacturing, and wholesale trade industries." The ERG report states, "Utah's strong labor economy should drive another year of solid growth in Utah taxable sales. Total taxable sales are forecasted to increase by 6.0 percent to $69.1 billion in 2019. However, given that we are late in the business cycle, the likelihood of a slowdown or downturn is increasing. The slowing in the rate of growth for total taxable sales from 6.9 percent in 2018 to 6.0 percent in 2019 communicates this potential risk." The 2019 ERG report concludes, "New Utah legislation passed in 2018 will significantly affect taxable sales in 2019. Beginning January 1, 2019, remotes sellers without physical nexus in the state are required to remit sales tax to the state. The forecasted increase in retail sales of 9.2 percent in 2019 includes the increase in taxable sales expected from this legislative change." The legislative changes are expected to have an impact on taxable business investment purchases as well "with a forecasted decline by 6.4 percent in 2019." "Robust economic conditions in 2018 led to significant growth in taxable sales. Although business cycle and other risks to the projections exist, the outlook for 2019 is positive with steady growth in Utah taxable sales expected to continue in 2019." Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 22 Construction: The value of permit -authorized construction in 2018 in Utah was $8.0 billion, the third highest year ever in current dollars and the sixth highest year in inflation -adjusted dollars. The peak construction value was in 2006, in the run-up to the Great Recession, when permit -authorized construction inflation -adjusted value totaled $9.2 billion. The 2018 estimate includes the value of residential and nonresidential construction and additions, alterations and repairs. Residential construction is the largest sector in the construction industry accounting for 58.6 percent of total construction value. In 2018, the value of residential construction was $4.7 Billion, 0.5 percent higher than in 2017. The number of residential units receiving building permits increased from 22,292 in 2017 to 24,000 in 2018, a 4.7 percent increase. Single-family construction increased to 12,960 units from 12,052 units in 2017 while the number of multifamily units increased from 10,553 in 2017 to 10,800 in 2018. Product shifts in the multifamily market are driving the growth as the share of condominium and townhomes increased, for the first time, to more than 50.0 percent of multifamily units. While Utah's housing market continues to be strong, it has many challenges regarding affordability and availability. Particularly, the increase in median sales prices is drastically outpacing the increase in median household incomes. While the median sales price increased 44.0 percent between 2013 and 2018, household incomes grew by 20.8 percent. Additionally, The 2019 Economic Report to the Governor (ERG) includes the impact of housing affordability and a housing shortage, "at 4.5 percent the 30-year mortgage rate for 2018 is the highest since 2010, when it was 4.7 percent. The combination of rising prices and interest rates has increased the median mortgage payment from $1,343 in 2013 to $1,965 in 2018, an increase of 46.0 percent. To keep the mortgage payment at 30.0 percent of household income, a $1,343 monthly mortgage payment requires an Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 23 annual household income of $53,717, while a monthly mortgage payment of $1,965 requires an annual income of $78,637." "Historically, the number of new housing units exceeds the increase in households by about ten percent due to vacancies and second home construction. This has been the case over the past forty years. However, in the last few years the increase in households has been greater than the increase in housing units, which explains, at least in part, the tight housing market. A market characterized by very low apartment vacancy rates and rising rental rates as well as a limited number of "for sale" listings of existing homes. Homebuilders also complain that labor shortages, land availability, and municipal regulations are creating bottlenecks that are reducing the supply of new homes. These market conditions strongly suggest that Utah may have a housing shortage, which limits housing opportunities for both renters and homebuyers." "The value of Utah's permit authorized nonresidential construction in Utah in 2018 was $2.1 billion, the seventh highest year on record (inflation adjusted). Utah nonresidential construction sector, while down just slightly from record setting 2016, was led by office and industrial construction. The industrial sector grew approximately 4.0 percent in 2018 driven by several large manufacturing projects, along with permits associated with the Salt Lake City International Airport expansion." "In summary the $8.0 billion in permit authorized construction activity in 2018 includes $4.7 billion of residential construction, $2.1 billion of nonresidential construction and $1.2 billion of additions, alterations and repairs." Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 24 Utah Value of New Construction ($ millions) $ i o,0ao $ 8,000 $6,;000 $4,400 SZ000 Residential �•"'�' Nonresidential Additions/Alterations/Repairs '^^^" Total Value $"ss��P N N N N N �) N N N !aV 1-4N N N N CIN Source: 2019 Utah Economic Report to the Governor Tourism: Tourism economic data gleaned from the 2019 ERG report states, "Utah's tourism and travel sector experienced continued economic growth in 2018, including record -level visitor spending, jobs and wages, state and local tax revenue, and park visits... year-to- date travel -related sales tax revenues, such as transient room, restaurant, and resort communities' sales, were trending 5.0 percent higher than 2017 revenues. During the first three quarters of 2018, 26 of Utah's 29 counties experienced year -over -year increases in transient room tax revenue. Additionally, total taxable sales in the leisure and hospitality sector increased 7.0 percent during the first half of 2018, while gas station, grocery store, and other travel -related retail sales increased around 6.0 percent...first-half of 2018, travel -related jobs in Utah's private leisure and hospitality sector experienced a 3.5 percent year -over -year increase (slightly lower than all other sectors combined) and wages increased 6.8 percent (compared to 8.9 percent for all other sectors)." Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 25 Conclusion and Outlook: The economy of Utah in 2018 was healthy and continued to show signs of growth in most sectors of the market. Strong job growth, low unemployment and rising population all led to a robust economy in 2018. 2019 is expected to show continued growth at a slower pace with anticipated business cycle downward shifts in some Utah industries. Because of Utah's diverse mix of industries, the state economy is expected to weather economic fluctuations better than the national economy with industries such as construction, durable manufacturing, retail, and finance representing a slightly heavier footprint in Utah than in the national landscape. According to the 2019 ERG report, Utah's potential for continued growth is sustainable given that Utah leads the nation as the most diverse economy with a Hachman Economic Diversity Index score of 96.9 ahead of Arizona (95.7) and Colorado (93.6). Utah continues to attract organizations from across the country and globe, a trend which is expected to continue in 2019. It is important to note that the 2019 ERG report indicates that much of the potential growth for 2019 and continued years will, however, hinge on potential changes in national economic and political factors that would affect macro -economic policy or macro- economic climate. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles DELORME DeLorme Street Atlas USA® 2015 MA" i East Carbon City , Columbia Area Map 4 r�} f Rangrily j — t celdiertr Frulta MOM r aidwrid Rlor r'uk141•` Grami'lunctfon •- Orchard Mesa „ Whitownter i,� J■.R w.� �� 1 A. rhdrwr� ^ ti i f 1' �; Areaes I--. �,@t:t,� cutaway `, �. r .� o� .ej Rh• ' oab �—t, /_ ' I —r .. . 1\ . • _ . —Ifro•J. .... .._ JJw+L-Ce.f.74.j7f' i l�ryr • � � Map Ludt Hauerest `� , krr.A.mr•--- s Honksvllle...„ "I Cali, , 'S r IFo_esl Paradox_ • Uravan I�� yr Hvd7acfi • lhe ''I kh-rr1ka 1 .j t�. I �y Canygi>.ands • NP '� r { fe dl,yti _]. ••r i t' • •/� r CeloMrin River , • Dark Cny aon Wilderness r • Ma use subjeci la license. DeLorme. DeLorme Street Alias USAs-1 2015, www.delorme.com tram Gulch • Pnnvawe Brea Mexican Hal Mont!cello i —V iele I .1 I.`�T•N fur�w Stick i3oCk1 �._/_ _S - _� Placerville- r Parachute 1. Mesa k• • • t Egnar I ' .ja'91 r-- -. •" • • 1 ,Dove Creek I I . •. . Cahone 1 r,I JI ,. • r Meth v IJ.,,I, r; rr I pr 1.• _.. tit Yellow/adult Lewis Caftan OI The ' Anclmrle NM 1 Ca7tCZ• Tnrlecc • Mine I TN A NN VC) Scale 1 : 1,500,000 1" = 23.67 mi „ • I,n Data Zooin 7.1 27 NEIGHBORHOOD DESCRIPTION Neighborhood characteristics impact the value of real estate. Therefore, an overview of the subject neighborhood is presented below. Moab and Grand County are located in south central Utah. The city of Moab is further referenced as being located nearly adjacent to both Arches and Canyonlands National Parks. It has the distinction of being the only city in Utah located alongside the Colorado River. Grand County contains a total of 2,362,880 acres or 3,692 square miles. Of this amount 86% is under the management of State and Federal governments. Moab is 244 miles southeast of Salt Lake City, 360 miles west of Denver and 336 miles northwest of Albuquerque. Grand County lies in the heart of the Colorado Plateau. The community of Moab is at an elevation of about 4,000 feet. The general area is a key component of Southern Utah's widely acclaimed "red rock" country. The La Sal Mountains are some 18 miles east of Moab rising to as high as 13,000 feet above sea level. The La Sal mountains are a prominent feature of the visual skyline seen from Moab. Proxirnity The subject is on the west of Main Street (US-191) at ±1263 North near Moab City in Grand County. The Colorado River runs north and west of Moab City, with Arches and Canyonlands National Parks nearly adjacent north of the city borders. The subject neighborhood is ±240-250 miles southeast of Salt Lake City's central business district (CBD). Boundaries and Accessibility Boundaries of the neighborhood are generally defined by the incorporated city boundaries of Moab City and the immediate surrounding unincorporated areas of the county. Main Street (US-191) is a major north/south interstate freeway that connects the southeast Utah area and National Parks with central and northern Utah to the north, Arizona and New Mexico to the south, and Colorado to the east. Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 28 Other major roadways into the immediate area include SR-128, SR-279, 500 West, 400 North, and Center Street. All roads are asphalt paved and publicly maintained. Jurisdiction The neighborhood is within the jurisdiction of Moab City, Grand County and the other surrounding municipalities previously named. The county and the towns/cities within the neighborhood provide all major services and control development within their respective borders. Construction: Construction activity had been active in the residential sector and peaked in 2005. Building has gradually slowed from 2008 to 2013 due to the recession. From 2014 to present, demand for commercial development has increased with several projects that have recently taken place. Commercial development occurs as needed, typically with two or three buildings being constructed per year. Recently, several lodging projects have come on board, indicating that the local economy which is primarily based on tourism is doing well. There are plans of several more lodging facilities in the works. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 29 Land Use Characteristics Development within the defined boundaries comprises a mixture of residential, agricultural, commercial, industrial and retail uses. Commercial uses are primarily located along major roadways previously mentioned and interstate/interchange frontage. Residential uses are interspersed throughout the subject neighborhood, primarily along secondary transportation routes. Residential developments are comprised mainly of multi -family units, including condominiums and apartments. Some single-family uses are present on secondary roadways. Agricultural uses are primarily located near the peripheries of development. The subject is west of Main Street (Highway 191) in north Moab in an area that is well developed with commercial, light industrial, and some single family residences. Moab is the county seat and main population center of Grand County. The Colorado River is north and acts as a northern boundary for Moab City which is is a major regional and national tourist destination. As a result, Main Street and the other major roadways mentioned are well developed with a wide variety of commercial, hotel/motel and other lodging, restaurant, and recreational support establishments including off road vehicle rentals, bike shops and rentals, whitewater rafting, etc. The subject is setback from Main Street ±800 feet and does not have any visibility or exposure from this roadway. Downtown Moab is heavily developed and development along Main Street is almost exclusively commercial and office, with some office and residential on the secondary roads. Residential development is mainly on the secondary roadways and generally comprises a mix of older homes interspersed with newer residential dwellings. Developable land is limited in Moab City limits, and development within the Moab CBD is characterized more by smaller commercial buildings on smaller lots and higher coverage ratios. The Main Street portion of the CBD is near fully developed. The north portion of Main Street is more lightly developed in comparison to the CBD, but is still an expanding and desirable commercial location. Northern Main Street (US-191) is flanked by slickrock hills to the east which does limit building in this area. The Main Street (US - Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles 30 191) and 500 West intersection near the subject is well developed with a Denny's, Super 8 Motel and Motel 6. Further north there are multiple hotels/motels and RV parks with several tracts of vacant land remaining. There are some limited tracts of vacant land suitable for development remaining, but much of the land is within the Colorado River flood plain and/or comprised of steep, rocky terrain and the majority of the developable land is built upon. Commercial support services are in adequate proximity, and linkages into the area are average with SR-128, SR-279, 500 West, 400 North, and Center Street located nearby. Overall, the immediate neighborhood is approximately 70-75% developed. Adjacent Properties Adjacent properties are generally compatible with the subject as follows: North Slickrock Campground & Future hotel site South Portal RV East Slickrock Campground/Main Street ROW West Vacant Land in Colorado River flood plain Influences Positive influences stem primarily from the relative strong growth of the southern Utah area in general with respect to strong job formation and population growth over the past several years and projections for continued population growth in the state. Other positive influences include the relatively stable demand for commercial developments in comparison to the residential market sector. In general, market conditions and real estate activity have been positive over the last 5-7 years with strong real estate activity and sustained appreciation. The residential market (land and improvements) was particularly strong during 2016-2017 but recent indicators suggest that market conditions are moderating, but still positive, in comparison. Projections are that growth trends will continue into 2019. No negative influences are apparent. Conclusion Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 31 In summary, the subject is centrally located near the northern incorporated portions of Moab City in southeast Utah. Surrounding development is tourist, commercial, and light industrial in nature, interspersed with some limited tracts of vacant land. The area in general is in a stability/growth stage and vacant land is being absorbed at a steady rate. Access to primary transportation routes is considered to be average with SR-128, SR- 279, 500 West, 400 North, and Center Street all located nearby. Commercial support services are in adequate proximity. The long-term outlook is for a relatively stable growth pattern with stabilizing/improving property values. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles DELORME DeLorme Street Atlas USA® 2015 Neighborhood Map Poitel FN Rasorl Reck subject / ..,r.g- :, •:E• • Iti• \ •If?,..„ ;=••*.re....,e R05,Ag_k_Cf ,L,J.,r, a • i."-, 5-1... z. ._ . • - ..-.. a - -.3.•:‘,, ai -- $ _. 1 3 gy., c, 1.,. ;005 ..J .J .7. ; •C) i 07. til .13 I. - ! W 400 N LA. g., w 402 fi . ..r.. W .10,2 N L.-. . •.% i-b• al , `4 i 1 ,,, 0.. .i..:•-; -., .....,• g.: ! ,, ,,. , , • ,..i2 • ...-4. kJ. ....-- , 141 IT 1 _. BARTLE-7,cm b: ,i0 E -,- u wn,1,10111',IAY '- zr -- 1 - if , ..,___.,.... . "4111.1sUri W lt 1:1AMS.V-iikY -.1._ .. iim,,,,,, ..0,4" (.1. The Po:mi. • .:'"'%.'•?.k• cp . ;-. • -.-•.' .0:.'i at 1...0 .9 41 W 222 5 , 0) I A le I. 1 13.0 N _ _ _ virALktir Ird.1 I -- 0 L 1 W. 100 S 5 IOU Vi VI u'2 w 3a„ D S. 0 MO48 I•rf1N1i.C:f.t.F8.K BLVb_„„glimrmal en fAl F. .7nO 2 T. rl al;, w . E.-200.S 3 8-1" ;;•,' • WO • lJ 0.4 8 m o O. ILL 0 0 Data use subject to license. tD DeLorme. DeLorme Street Atlas USA® 2015. www.delorme.com 7 N 4 NIN if WEI SCIlk. 1 25.200 1.71 ...xi - I" = 2,083.3 ft Data Zoom 13-0 33 SITE DESCRIPTION Please see the property plat(s) attached to the addenda of the report. The larger subject parcel comprises the east portion of Grand County parcel number 01-126-0005 that is more developable than the west portion. The defined larger parcel is estimated to contain ±399,256 square feet, or 9.17 acres of land. Review of an A.L.T.A. Survey of the subject property is recommended. General Site Data: -Land Area Gross Land Size Area within ROW Net Land Size ±399,256 square feet, or 9.17 acres — gross land size [none reportedl - extracted ±399,256 square feet, or 9.17 acres — net effective land size - County Parcel No(s). 01-126-0005 - Street Orientation Rear lot -Shape Mostly rectangular. - Frontage There is no frontage along any nearby public rights -of -way. - Access It appears that access to the site is available via an access easement through the Portal RV access corridor from Main Street to the east/northeast. Portal RV owns this access corridor. A title report was not provided for this assignment and a full title search is beyond the scope of work for this assignment and is not my area of expertise. No definitive access documents were available from county records, but the owner of Portal RV confirmed that to the best of his knowledge, the access easement exists. For purposes of Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 34 this analysis, an extraordinary assumption is necessary that an access easement exists through the adjacent property and that access is legally compliant and sufficient for development to the concluded highest and best use conclusion as outlined herein. - Depth t1,100 feet along the west property border; see plat map. - Topography Mostly level but gradually slopes to the west; generally at to below street grade with Main Street (US-191). Approximately 90% or more of the defined larger whole parcel is within the Special Hazard flood zone associated with the Colorado River to the west. The Colorado River does historically flood, and the local market does recognize this flood zone as a major impediment to development. - Drainage Natural drainage appears westerly. -Soil Soil studies have not been made available to the appraiser. Soil stability is assumed to be adequate for slab on grade construction. Review of a geo-technical investigation prepared by a qualified engineer/firm is recommended. - Wetland Areas A GIS aerial overlay and wetland study indicating the existence of wetlands as defined by the US Army Corps of Engineers was not provided. Determination of wetlands is well beyond my area of expertise. The defined larger parcel includes the portions of Grand County parcel number 01- 126-0005 that are east of the canal and represent the most useable portions of this whole tax parcel. There is some obvious evidence of wet areas and/or possible wetlands in Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 35 the western portion of the larger parcel near the canal, but the majority of the site appears to be unencumbered with wetlands. However, without a wetlands study specific to the subject property, the existence of defined wetlands cannot be definitively ascertained. This analysis is therefore based on the extraordinary assumption that there are no wetland areas as defined by the US Army Corps of Engineers contained within the subject. Review of a wetlands investigation by a qualified firm is strongly recommended. -Adjacent Properties Adjacent properties are as follows: North: Slickrock Campground & Future hotel site South: Portal RV East: Slickrock Campground/Main Street ROW West: Vacant Land in Colorado River flood plain -Street Improvements Main Street (US-191) is a two-lane (one lane per direction of travel) asphalt paved street with a center turn lane. The frontage of the subject with Main Street is improved with curb, gutter, and sidewalk. -Traffic Counts Annual Average Daily Traffic (AADT) counts are ±13,000 cars per day on Main Street (US-191). - Utilities All utilities except municipal sewer are reported to be available nearby and sufficient for development. Some minor extension will likely be necessary. - Abutting Right -of -Way None. - Easements, Restrictions Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles and Encroachments -Special Hazards Flood Zone: 36 No title policy was provided for review in conjunction with this report. It is assumed that typical public utility easements (P.U.E.'s), drainage, and/or public street easements exist along one or more of the site's borders, and/or traverse portions of the site. No unusual easements, restrictions, and/or encroachments are indicated in the legal description for the subject parcel(s). No unusual encumbrances or encroachments were noted during inspection. The plat map does not identify any unusual easements and/or rights -of - way traversing the site. It is assumed that typical public utility, street, and drainage easements and/or any other undisclosed easements and/or rights -of -way would not adversely impact the development potential of the subject site. With regard to the assumed public street, drainage, canal, and/or public utility easements, without an A.L.T.A Survey, and/or a legal description describing the precise boundaries of these various easements, this analysis, and value conclusions contained herein, assume that the area(s) of the proposed acquisition(s) is/are held in fee simple ownership in the before condition by the indicated owner of record. Review of an A.L.T.A survey, and/or complete title report specific to the subject property is recommended. The subject is contained within a Zone A (Special Hazard Flood Zone) & Zone X (outside 100 year flood zone); panel number 49019C1775D; effective date April 4, 2009. The client (Moab City) also provided an aerial overlay showing Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles Environmental: 37 the Colorado River flood plain that generally correlates to the FEMA map. It does appear that a small area containing t0.80 acre in the southeast corner of defined larger parcel is outside of the flood zone, but the vast majority of the larger parcel and entire tax parcel associated with the larger parcel is within the A flood zone associated with the Colorado River and associated wetlands/wet areas westerly. Assuming there are no wetlands requiring mitigation, any development within the larger parcel will require significant grading/earthwork to build the site up. As an example, the parcel adjacent south is currently under development and a concrete retaining wall has been constructed and filled with din` to facilitate development. The concrete wall gradually increases in height going east to the canal and appears to have a maximum height of around 5-6 feet and the owner reports that his cost exceeded $250,000 for this small area for the retaining wall and fill only, not including permitting, surveys and approvals. Additionally, flood insurance would likely be necessary for any improvements. These atypical costs could be significant and would be recognized and discounted accordingly by market participants and will be addressed in the valuation section to follow. Please see the FEMA flood map and client provided flood map overlay contained in the addendum for further information. There is no direct current evidence of environmental problems associated with the subject. The client has not provided Phase I or Phase II Environmental Site Assessments relative to the subject. Without Phase I and Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles -Zoning 38 Phase II Environmental Site Assessments, this analysis assumes that no environmental hazards/contamination exists on the subject premises. Should a Phase I or II Environmental Site Assessment be provided indicating the existence of environmental contamination/hazards and detailing remediation costs associated with the contamination, the value estimate conclusions contained herein may need to be reevaluated and would likely be lowered. Review of a complete Phase I Environmental Site Assessment specific to the subject property, performed by a qualified engineer/firm is strongly recommended. The subject is zoned LI (Light Industrial) & RR (Rural Residential) under the jurisdiction of Grand County. The majority of the defined larger parcel is within the LI zone. The purpose of this zone as per the Grand County zoning ordinance is outlined below. 2.13 Li, Light Industrial District SHARE 2.13.1 Purpose The LI, Light industrial District is designed to accommodate a wide variety of light industrial and light manufacturing activities and to enhance the economic development of Grand County. In addition to the use and Lot Design Standards of this section, development in the LI, Light industrial District shall be in compliance with all other applicable provisions of this LUC. The Rural Residential (RR) zone is allows for single-family residential development with a minimum lot size of 1.00 acre. It is noted that the subject abuts Moab City to the north, south and east. Ms, Nora Shepard is the Moab City Planner and was contacted regarding potential annexation and probable rezoning options, if annexed. Ms. Shepard noted that the subject is surrounded on three sides by land zoned Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles 39 RC (Regional Commercial), and she stated that RC would be the most likely rezoning options, if the subject were annexed. However, Ms. Shepard noted that annexation and rezoning is not guaranteed, and will involve an extended permitting and approval process. Thus, an extraordinary assumption is necessary that a reasonable probability exists that the subject could be rezoned RC, but this is speculative at the present time. There is currently a high number of new lodging facilities either planned or under construction in the Moab area. Ms. Shepard stated that there is a temporary moratorium on any new overnight lodging facilities, which would include hotels/motels, campgrounds, etc. The City Council is meeting in August of 2019 to further discuss this issue, and she stated that there is a strong possibility that the moratorium will become more permanent at that time. If the approval process for lodging facilities becomes more difficult, this will have a dramatic downward impact on the market demand and values for commercial land in the Moab area, as the majority of recent sales have been for lodging facilities. Project Desc; Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles 40 According to Moab City zoning ordinance, the purpose of the RC zone is as follows: I17.31.010 Objectives and characteristics. Q 0o The RC, Resort Commercial District is intended site design concepts that implement the Moab/Grand County North Gateway Plan ('Gateway Plan"), an amendment 10 the City of Moab General Plan. The district is designed to create a positive first impression of the City of Moab and Grand County and to encourage mixed residential and commercial development, including resort guest -oriented and local - oriented commercial uses in an urban setting. In addition to the use and area regulations of this section, development in the RC, Resort Commercial Zone shall be in compliance with all other applicable provisions of this code. If conflict arises between this chapter and other parts of the City code, the more restrictive shall apply. (Ord. 02-04 (part), 2002) The RC zone is a Regional Commercial zone which permits a wide variety of commercial development, including hotel/motel, convenience store/gas station, retail, restaurant, office/professional office, two -household dwellings and other similar uses. The minimum lot size for development is 10,890 square feet, or 0.25 acre. The zoning ordinance outlines 0 foot front yard setback requirements next to Main Street/US-191, and 25 feet for other streets. The gross land size of the subject, at 9.17 acres, is well over the minimum required lot size with regard to existing improvements and lot coverage and is therefore assumed to be a legally conforming lot. It is noted that the master plan zoning designation is Floodway, which is essentially an open space designation directly related to the Colorado River flood plain. Please see the current and future land use zoning maps contained in the addendum. A full copy of the zoning ordinance can be accessed online at the Moab City website. Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pities -Site Utility IMPROVEMENT DESCRIPTION 41 The subject represents a medium/large sized, mostly rectangular shaped parcel to the west of Main Street (US- 191) at f1263 North. Adequate access is assumed from Main Street (US-191). The site is mostly level in topography and is generally at to below street grade with Main Street (US-191). It is assumed that all necessary utilities are available nearby other than sewer that would be sufficient for development to the concluded highest and best use. It is of sufficient size to accommodate a variety of uses and has apparent adequate load bearing capacity. Overall, utility of the site is rated as fair due to the inferior access, flood plain location, lack of sewer and other factors previously named. The subject is being affected by easements only, and the proposed perpetual easement is along the east border within an area that would not be legally developable due to setback requirements. The temporary easement will expire and the overall utility/developability of the subject will not be negatively impacted by the imposition of the acquisitions. The developability of the remainder will likely be improved due to more convenient access to sewer. The single-family residence and related outbuildings will not be impacted by the proposed easements and will remain in the after condition with similar and unchanged setbacks and the overall use and utility of the site and improvements will not be negatively impacted by the imposition of the acquisitions. As such, no damages to the improvements is necessary and the vertical improvements are excluded from this analysis and have not been inspected, appraised or otherwise considered herein. The market value(s) outlined herein represent the underlying land value(s) only. Thus, this area of descriptive analysis is not necessary. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 42 RECENT HISTORY OF THE PROPERTY: USPAP requires a three (3) year reporting history for the appraised property, while UDOT right-of-way appraisal guidelines dictate a five (5) year reporting history requirement. The current owner of record is Lewie L. Pilles, represented by Mr. Lewie Pilles. Mr. Pilles does not report any sales, listings or unsolicited offers to purchase within the last five years. A search of the Wasatch Front MLS system does not indicate any sales or listings of the subject property within the last five years. Thus, no sales, listings or unsolicited offers of any portion of the defined subject property within the last five years are known. REAL ESTATE TAXES & ASSESSMENTS: Real estate tax information for the subject for 2018 is shown in the following table.6 Current Assessment and Tax Information: FY 2018 Assessed Value Taxable Value Total Taxes Parcel Land Improvem ents Total Total Taxable Tax rate Ad Valorem Taxi Special Assess ments2 Total Tax 01-126-0005 , $119.415 $198.757 $318.172 $227.303 0.010539 $2,395.65 $0 $2,395.65 'Applies to real estate only, Taxes on pe sonal property, improvement fixtures, etc., if any are excluded. 2Special assessments include bond payments and/or other taxes that do not vary according to assessed value. Source: Grand County All taxes appear to be current, and no delinquencies are reported. The assessed value for the land is significantly lower than the appraised market value outlined herein. This appraisal defines a larger parcel, which is a smaller portion of the whole parcel and then analyzes current market data and makes specific adjustments to each sale in order to derive an indication of a specific market value for the subject. The assessed value is typically computer generated and is not specific in adjustments. Additionally, the market value contained herein for the land is based on the highest and best use of the site for speculative commercial development and is more specific to the subject property. 6 Taxes in Utah are calculated by applying a tax rate to taxable value. Taxable value is a percentage of the assessor's estimate of market value. The percentage is 100 percent for commercial properties and about 67 percent for residential properties. The tax rate varies depending on a given county's budget. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 43 Thus, limited to no weight is placed on the assessed value as a true market value indicator. Data Analysis and Conclusions — Before Acquisition ANALYSIS OF HIGHEST AND BEST USE: The definition of highest and best use as defined by the Dictionary of Real Estate Appraisal, Appraisal Institute, 5th Edition, is: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. Additionally, the definition of Highest and Best Use as per the Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) is included. Highest and Best Use is defined in the Yellow Book as: "...the highest and most profitable use for which the property is adaptable and needed or likely to be needed in the near future."8 Two procedures are used to determine a property's highest and best use. The first is an analysis of the site as if vacant. The second is an analysis of the proposed or existing improvements and their influence upon the site's highest and best use. The use(s) concluded in the analyses to be highest and best must meet the criteria of being 1) physically possible, 2) legally permissible, 3) financially feasible, and 4) maximally productive. Highest and Best Use of the Subject As Vacant • Physically Passible/Suitable The defined larger parcel is to the west of Main Street (US-191) at ±1263 North in Moab, Utah. The total land size is ±399,256 square feet, or 9.17 acres. The site is mostly rectangular in shape with mostly level topography. Natural drainage appears to be westerly. Access is from Main Street (US-191) via an access easement only, and 8 "Olson v United States", 292 U.S 246, 255 (1934) , Page 8, "Uniform Appraisal Standards for Federal Land Acquisitions" Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 44 the larger parcel has no frontage along Main Street. The site has a rear lot street orientation and no visibility/exposure from this major traffic artery. Based on the extraordinary assumption outlined herein, it is assumed that access is legally compliant and physically sufficient to allow for development to the concluded highest and best use as vacant. Main Street (US-191) is a two-lane (one lane per direction of travel) asphalt paved street with a center turn lane. The frontage of the subject with Main Street is improved with curb, gutter, and sidewalk. The vast majority of the defined larger parcel is below grade and within the Special Hazard flood zone associated with the Colorado River to the west. The site will require significant and expensive site/development work to facilitate development, and the location within the flood zone represents a major obstacle to development. The size and shape of the subject, at approximately t399,256 square feet, or 9.17 acres, could physically accommodate a number of developments. Major physical limitations to development include inferior access, lack of access to sewer and flood zone issues. Thus, the overall developability from a physical standpoint is rated as fair. • Legally Perrnissi[A There are generally two areas of concern regarding legally allowable improvements to a property. The first is associated with title or deed restrictions, which can limit the potential uses of a property. The second is associated with zoning ordinances, which often limit both the type and size of development constructed on a site. No deed restrictions, easements, or rights -of -way are believed to exist that would restrict the development of the parcel. Potential uses are limited only by permissible and legal uses allowed in the zoning classification for the subject property. As noted previously, the subject property is under the jurisdiction of Grand County and is zoned LI (Light Industrial) & RR (Rural Residential). Based on discussions with Moab City officials, it is assumed that the Moab RC zone would be most probable, if the subject were approved for annexation. Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 45 This zone is regional commercial zone that permits a wide variety of commercial uses, including retail, hotel/motel, RV park, restaurant, service -oriented, office/professional office, 2-family dwellings and other similar uses. The minimum lot size is 10,890 square feet, or 0.25 acre. The front yard setback in this zone for parcels fronting to Main Street is 0 feet, with 25 feet required on all other city streets. The subject is over the minimum lot size in the before condition and appears to be a legally conforming lot. The master plan zoning designation is Floodway, and is directly related to the location of the site within the 100-year flood plain. With respect to legal and neighborhood conformance standards, the subject could accommodate most types of commercial uses as outlined under the assumed RC zoning designation. • Financial Feasibility A financially feasible use must be one that can provide the highest return on an improvement over a prolonged period of time. The use will be constrained by zone restrictions and the physical characteristics of the land. Also considered are current economic trends, neighborhood influences, and existing supply/demand characteristics, as they pertain to real estate. Currently, market conditions are positive and have been strong for the last 5-7 years since the significant market turndown/recession experienced from 2008-2012. Real estate construction and investment has been strong since this time, with continued and sustained appreciation for all submarkets (i.e. residential, commercial, multi -family, industrial, etc.) noted throughout the Wasatch Front. Location is a significant determinant and plays a large role in the highest and best use conclusion. The subject is west of Main Street (Highway 191) in north Moab in an area that is well developed with commercial, light industrial, and some single family residences. Moab is the county seat and main population center of Grand County. The Colorado River is north and acts as a northern boundary for Moab City which is is a Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 46 major regional and national tourist destination. As a result, Main Street and the other major roadways mentioned are well developed with a wide variety of commercial, hotel/motel and other lodging, restaurant, and recreational support establishments including off road vehicle rentals, bike shops and rentals, whitewater rafting, etc. The subject is setback from Main Street t800 feet and does not have any visibility or exposure from this roadway. Downtown Moab is heavily developed and development along Main Street is almost exclusively commercial and office, with some office and residential on the secondary roads. Residential development is mainly on the secondary roadways and generally comprises a mix of older homes interspersed with newer residential dwellings. Developable land is limited in Moab City limits, and development within the Moab CBD is characterized more by smaller commercial buildings on smaller lots and higher coverage ratios. The Main Street portion of the CBD is near fully developed. The north portion of Main Street is more lightly developed in comparison to the CBD, but is still an expanding and desirable commercial location. Northern Main Street (US-191) is flanked by slickrock hills to the east which does limit building in this area. The Main Street (US- 191) and 500 West intersection near the subject is well developed with a Denny's, Super 8 Motel and Motel 6. Further north there are multiple hotels/motels and RV parks with several tracts of vacant land remaining. There are some limited tracts of vacant land suitable for development remaining, but much of the land is within the Colorado River flood plain and/or comprised of steep, rocky terrain and the majority of the developable land is built upon. Commercial support services are in adequate proximity, and linkages into the area are average with SR-128, SR-279, 500 West, 400 North, and Center Street located nearby. Overall, the immediate neighborhood is approximately 70-75% developed. None of the regional brokerages compile commercial market data in the Moab area, and commercial market indicators (i.e. commercial vacancy rates, occupancy, construction, lease rates, etc.) are not available for the Moab market. Multiple area real estate Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 47 agents interviewed for this assignment report that conditions are positive and that demand for larger tracts of land that can facilitate hotel/motel construction is strong. Indications are that at least 4 new hotels are either under construction or are proposed. Some indication of commercial market growth in a given area can be derived from residential market information, as residential growth and appreciation/depreciation factors would logically suggest the need and/or demand for commercial support services. For secondary support to the commercial market, WFMLS data concerning residential factors is more closely considered: Market Overview - Moab City Residential Market Market information and trends for finished residential product can give an indication of a local commercial market. Declining market conditions would suggest reduced consumer spending and demand for commercial support services, while increasing residential market conditions could suggest positive commercial market conditions. The estimated population of Moab proper as of 2018 is 5,253 full time residents. The 2010 population as per the US Census Data was 5,046 persons showing nominal positive growth of ±4% in the eight year span. The following graph was obtained from the Wasatch Front MLS and illustrates commercial market trends within the subject neighborhood of Moab City, effective to the 4Q of 2018. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 48 Search Criteria: Slate is Ulah, Property Type is Single Family, County is Grand City ,s Moab C1iek and drag area inside of graph to zoom. HomeSales Per Quarter ii;51 7C c S;S0k d u 5325k 0 0 0 „4s3r2ot.• ut d• •5275k V T. a c C t S?25k f 21 0`4 2• 7 R u 71 233 7 20 1 40 135 351 343 30r, } 1 30.1 qn 35 35 32 3l 71 32 rn oti 339 37 30 20 ! — 20 T. 5 - . IC Si2r14k o p ,- ? v h 41 h h b to b U .,1 ..� \ L r 4 ti' -) �� ry r, } � ^. .i s . .`' , r , .y` y. Quarter t Median Sold Pnce (in S}4,- Total Number Of Homes Solder Total Number Of Homes Listed! sawoH;O JagwnN peel As shown in the graph above, the median sale price of a single-family residence within Moab City has steadily increased over the last five years. Over the last three (3) years, the median sale price has increased ±30.7% (±10.2% annually) from $235,000 as of 4Q 2015 to a current median sale price of $339,000 as of 4Q of 2018. Within the last year, the median sale price has actually declined slightly, from $343,000 (4Q 2017) to $339,000 as of 4Q of 2018. The trendline for the number of sold homes has been fairly stable over the last three years, and the figure of 36 closed transactions as of 2Q 2016 represents the highest number of sold homes within the five year period. The number of closed transactions over the last year has ranged from 15 to 29 and has generally been in -line with previous years. The number of active listings has fluctuated dramatically and generally follows seasonal trends that are typical for the market. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pities 49 This residential market information is of limited usefulness for the commercial market, but it does show that Moab City has experienced modest population growth, as well as fairly strong residential growth over the last several years and strong appreciation for residential improvements is apparent. Absolute reliance on this limited information is not recommended, as appreciation is influenced by numerous other factors including specific location, surrounding development, linkages and other factors. Given the centralized location near the main commercial corridor in Moab (Main Street/Highway 191), mainly commercial surrounding development and RC zoning designation, the most likely financially feasible use is for commercial development. Due to numerous physical obstacles to development, (i.e. inferior access, flood zone, annexation, etc.), development of the site commercially is speculative at the present time as some of the physical issues need to be addressed. Thus, a holding period of several years is most probable during which agricultural/low density residential uses represent an interim use. Maximally Productive Use and Conclusion (As Vacant) In summary, the concluded highest and best use as vacant is for speculative commercial development as outlined under the current LI and/or assumed future RC zone. The most probable buyer would be a local, regional or even national developer/investor or end user. Given lack of Main Street access and visibility/exposure, secondary market uses are most probable. These could include light industrial, office, destination retail or other similar uses. Given the physical restrictions, a holding period is most probable and development of the site commercially is speculative at the given time. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, /NC. Ownership: Lewie L. Pities 50 Highest and Best Use of the Site As improved N/A - The single-family residence and related outbuildings on the property have been excluded from this analysis. Only the underlying land is appraised. Therefore, completion of this section is not necessary. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 51 LAND VALUATION The method used to assist in formulating the appropriate market land value is based on the traditional approach to land value, namely the Sales Comparison Approach. This involves obtaining land sales with similar characteristics and comparing those sales to the subject site. Adjustments are made to the comparables for differing features. The adjusted values of the comparables are then reconciled into a single estimate of value for the subject land. The unit of comparison referred to herein is the price per square foot. This unit is chosen to maintain consistency with the unit as outlined on the legal descriptions for right-of-way acquisitions. The concluded highest and best use is for speculative commercial development. Thus commercial lot sales in Moab City and the surrounding area of Grand County were researched. The following table is a summary of the land sales used in this report. Please that Utah is a non -disclosure state, and larger acreage, similar use land sales with flood zone issues were limited on local listing sources. The best sales that are publicly available are used herein, but substantial adjustment is necessary to reflect the numerous inferior physical aspects of the subject. All sales are in the subject neighborhood in and around Moab City. It is noted that Sale #1 was obtained from a source who requested that any identifying details of the property be kept confidential. All pertinent information concerning this sale is known and sufficient for adjustment, but the details cannot be outlined herein. The complete data sheets with plat maps and additional information are contained within the addenda of the report. Further information is retained in the appraisal workfile. Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles D Subject 1 2 52 ALES. [B E F:i.RE. 3 4 5 Address City/Utah Parcel# Land Size (Acres) Land Size (Sq.FL)-Est 1263 N. Main St Near Moab; County Jurisdiction 01-126-0005 9.17 Confidential -North Main St Moab N/A 10.00 76 E. Nob Hill (300 N.) Moab 01-0001-0062 & -0063 1.66 2049 S. Main St Near Moab Various; see data sheet 6.20 655 N. Main St Moab 01-0 MUT-0090; -0091 0.80 1431 N. Main St. Moab 01-0126-0019 320 399.256 Shape Mostly rectangular Street Orientation Topography Rear lot- easement access Mostly level, 90°% in flood plain 435,600 Mostlyrectangular Interior Mostly level 72,310 Mostly rectangular Interior Mostiylevel 270,072 Veryirregular Interior Undulating terrain 34,848 Mostly rectangular Interior Mostly level/below grade 139,392 Mostly rectangular Interior Mostly level Utilities Zoning Date of Sale Safes Price Sales PricelAcre Sales Prlce/Sq.R. All available nearby except sewer LI/RR - RC possible N/A NIA N/A N/A All available nearby RC Jan-18 $5,250,000 $525,000 $12.05 All available nearby All available nearby C-5 HC/LLR Feb-17 Apr17 $748,100 $385,000 $450,663 $62,097 $10.35 $1 A3 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles All available nearby C-1 Mar-16 $250,000 $312,500 $7.17 All available nearby RC Jan-18 $2,360,000 $737,500 $16.93 ©ELORME i �: W.wl roam Vn q F:r _ • 4. VI,i1p Falk l: r! • Sales Maps f2 Sale #5; rcnei ?iv Aeuul I?Dolt [Slll7jectj I -71u pang! 4 1Sale#4I r. AFC/AnNE\J HFK_ [gm y Y r.tln (2 r 9 9�, ' ISale #2,1 DeLorme Street Atlas USA® 2015 Jarho,' kr•ervel - ti v Data use subject to license. m DeLorme. DeLorme Street Atlas USA® 2015 www.delorme.com 1N w MN le.YE) Scale t : 2a. t2$ s +urre a NO •� +n +a HMO 1" = 2,343.8 ft Data Zoom 12-7 liv ANALYSIS AND RECONCILIATION OF LAND SALES Market evidence and appraiser judgment determined the degree of adjustment made to each sale. Each adjustment made reflects careful consideration and analysis of various factors. The factors considered in any adjustment include an analysis of paired sales data, when they are available, and information acquired from market participants. Also considered are the costs associated with bringing a site to a developable condition. It is believed that the adjustments made correspond closely with the thinking of market participants and allow for a tighter frame of reference when comparing sales data to the subject site. The unit of comparison referred to herein is the price per square foot. This unit of comparison is chosen for consistency purposes due to the square foot unit as indicated on the right-of-way documents for the acquisitions. If needed, dollar adjustments were made in the areas of property rights conveyed, conditions of sale, and financing. The resulting value reflects the "normal sales price" of the comparable. Percentage adjustments were then made to account for market conditions that change over time. Thereafter, additive percentage adjustments were made in each of the remaining areas of analysis. This is described in detail below. PROPERTY RIGHTS CONVEYED: Each sale reportedly included the transfer of a fee simple title to the buyer(s). The property rights conveyed were similar to those appraised. Therefore, none of the comparables require an adjustment for property rights. FINANCING TERMS: The value shown for a comparable is a cash -equivalent value. When a seller writes a contract with a buyer and the seller has financing terms better than those available in the market, the seller is often paid a higher price for the property. These circumstances require an adjustment to the sale. All sales were sold on a cash - to -seller basis or similar terms and no adjustments are necessary. Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN 8 ASSOCIATES, INC. Ownership: Lewie L Pilles Iv CONDITIONS OF THE SALE: The listing agent for Sale #4 reports that this property was listed and/or under contract for an extended time period, and that the buyer was particularly motivated to sell. Sale #4 was adequately marketed with a listing price of $350,000 but was under contract for almost a year before selling for $250,000. Additionally, the agent for Sale #3 also reports that the seller was motivated. These two sales are the lowest on a per square foot basis. Although the longer listing period does suggest these sales were at or near market, Sales #3 and #4 are adjusted upward to accurately reflect any unusual seller motivation. The remaining comparable sales were reportedly arms -length transactions with no unusual conditions of sale reported. Thus, no further adjustment is necessary in this area of consideration. EXPENDITURES IMMEDIATELY AFTER SALE: Sale #2 was improved with an older residence that was reportedly not attributed any value in this transaction. The house has reportedly been vacant and the buyers are responsible for the demolition. As this was a known and anticipated expense, the estimated cost of demolition is added into the sale price for Sale #2. No other unusual expenditures after the purchase are reported and no further adjustment is not necessary. MARKET CONDITIONS: Market conditions refer to price changes occurring over time due to various market forces. As has been discussed throughout the report, market conditions along the Wasatch Front and State of Utah in general have been strong the last 5-7 years, with elevated real estate investment/construction and sustained appreciation for all submarkets. Limited commercial data is available in the Moab City area but two of the local real estate agents interviewed for this appraisal assignment stated that conditions have been relatively strong and that there is a lack of developable land, particularly larger parcels that can facilitate lodging related improvements. As outlined in the Residential Overview section of the report, the median sale price of a single-family residence within Moab City has steadily increased over the last five years. Over the last three (3) years, the median sale price has increased ±30.7% (±10.2% annually) from $235,000 as of 4Q 2015 to a current median sale price of $339,000 as of Project Desc: Moab Cily Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles Ivi 4Q of 2018. Within the last year, the median sale price has actually declined slightly, from $343,000 (4Q 2017) to $339,000 as of 4Q of 2018. All the comparable sales are fairly recent transactions and took place within the last three (3) years or so, from March of 2016 to two sales in January of 2018. Based on the available market information and data outlined in the Highest and Best Use section of the report, adjustment is applied at 4% annual appreciation (0.25% per month) for those sales older than one quarter (3 months) from the effective date of valuation. Thus, upward adjustment of 4% per annum is necessary for all of the comparable sales, rounded to the nearest 0.25%. LOCATION FACTORS: Location refers to access, exposure, attractiveness of surrounding properties, proximity to surrounding support services, linkages and other factors that have a value influence on land. The subject is located at 1263 North Main Street (US-191) in Moab. The subject is west of Main Street (Highway 191) in north Moab in an area that is well developed with commercial, light industrial, and some single family residences. Moab is the county seat and main population center of Grand County. The Colorado River is north and acts as a northern boundary for Moab City which is is a major regional and national tourist destination. As a result, Main Street and the other major roadways mentioned are well developed with a wide variety of commercial, hotel/motel and other lodging, restaurant, and recreational support establishments including off road vehicle rentals, bike shops and rentals, whitewater rafting, etc. The subject is setback from Main Street ±800 feet and does not have any visibility or exposure from this roadway. Downtown Moab is heavily developed and development along Main Street is almost exclusively commercial and office, with some office and residential on the secondary roads. Residential development is mainly on the secondary roadways and generally comprises a mix of older homes interspersed with newer residential dwellings. Developable land is limited in Moab City limits, and development within the Moab CBD Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles Ivii is characterized more by smaller commercial buildings on smaller lots and higher coverage ratios. The Main Street portion of the CBD is near fully developed. The north portion of Main Street is more lightly developed in comparison to the CBD, but is still an expanding and desirable commercial location. Northern Main Street (US-191) is flanked by slickrock hills to the east which does limit building in this area. The Main Street (US- 191) and 500 West intersection near the subject is well developed with a Denny's, Super 8 Motel and Motel 6. Further north there are multiple hotels/motels and RV parks with several tracts of vacant land remaining. There are some limited tracts of vacant land suitable for development remaining, but much of the land is within the Colorado River flood plain and/or comprised of steep, rocky terrain and the majority of the developable land is built upon. Commercial support services are in adequate proximity, and linkages into the area are average with SR-128, SR-279, 500 West, 400 North, and Center Street located nearby. Overall, the immediate neighborhood is approximately 70-75% developed. All of the comparable sales are within the immediate neighborhood of Moab City and four of the five of the sales front directly to Main Street (Highway 191). The CBD is heavily developed and land values clearly decline the further north or south from the CBD a given Main Street parcel is. In the immediate subject neighborhood, development becomes less intensive north of the intersection of Main Street with 500 West and there are several large tracts of vacant land remaining. The subject does not have Main Street frontage and no visibility/exposure is available from this major traffic artery. Adjustment to follow recognizes the lack of Main Street frontage and visibility/exposure from this major traffic artery, which is a major value factor in the area. Sales #1, #4 and #5 are in the immediate area along northern Main Street and are in close proximity to the subject. However, these sales all have Main Street frontage/access as well as good visibility/exposure from this major roadway. These three sales are superior in location and are adjusted downward. Sale #2 is within the CBD, but is setback off of Main Street and does not benefit from direct Main Street Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles visibility/exposure. Nob Hill (300 North) is a short, dead end road that is lightly traveled. Given the commercial use and superior surrounding development, modest downward adjustment is necessary for Sale #2. Sale #3 is south of Moab on the north side of Main Street. Surrounding development is primarily light industrial and modest downward adjustment is necessary for the Main Street frontage associated with this sale. PHYSICAL CHARACTERISTICS: The physical characteristics of the subject property are similar to many of the physical features of the comparables. Adjustments were made in the following areas: Size: In terms of commercial land, Small land parcels often sell for a higher unit price than do large ones, as they are less risky to develop. Development risk increases in proportion to the difficulty of maximizing the development potential of a parcel of land. Larger tracts of land often require the construction of a larger building or even multiple structures in order to maximize development potential. Also, the time frame for con- struction generally increases, which often puts the developer at a greater risk. Consequently, developers are often willing to pay a higher unit price for smaller, less risky parcels of land. The subject represents a ±9.17 acres tract of land that is larger than four of the five sales, which range from 0.50 acre to 10.00 acres. Sale #1 is similar in size and is not adjusted. The remaining sales are smaller, and correlating downward adjustment is necessary for Sales #2, #3, #4 and #5. Shape: Shape refers to the physical shape or layout of a site or parcel of raw land. Typically, rectangular, square, or even moderately irregular configurations are more desirable Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles lix than severely irregular configurations because they allow the developer to maximize the potential development of the land with the least amount of wasted or excess land. The larger parcel is mostly rectangular in shape with no areas of restrictive apparent. Sale #3 is comprised of three separate tax parcels, and the resulting assemblage is very irregular with numerous angles and areas that would reduce development options. Sale #3 is inferior and is adjusted upward. The remaining sales have a similar rectangular/mostly rectangular shape and no further adjustment is not necessary. • Street Orientation: Street orientation is another factor that can influence the price a buyer is willing to pay for commercial lots. Primary corners at signalized or high -traffic intersections typically command higher prices due to the increased visibility/exposure from multiple roadways, as well as the increased ease of access. Corner parcels are particularly important for impulse -oriented retail, gas stations/convenience stores, fast food and other uses that rely on high visibility, and street orientation can have a strong effect on the market value of a given parcel of land. The subject is a rear lot that is setback ±800 feet west of the Main Street corridor and the site has no frontage along Main Street. Also considered in this area of analysis is access. Access is currently provided via an access easement through land owned by Portal RV to the south. Based on the extraordinary assumption previously outlined, it is assumed that access is legally compliant and physically sufficient to facilitate development to the concluded highest and best use. However, market participants would view the inferior easement access and related risk factors negatively and would discount the purchase price accordingly. The subject is inferior to all the comparable sales, and downward adjustment is necessary. • Topography/DeveiopabilitV: Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles lx Adjustments made for this area of consideration recognize those differences in a site's topography and/or need of fill in order to accommodate development. Typically, sites that are relatively level with stable and adequate fill conditions, sell for a higher per unit basis. The reason is that there is less site work cost incurred on a buyer's part in bringing these sites into a developable condition versus a site that has a sloping or undulating terrain and/or one that is in need of fill. The subject consists of mostly level topography. However, the vast majority of the site is within the 100-year flood plain associated with the Colorado River close to the west. The location in a flood zone will require substantial mitigation in terms of surveying, engineering, fill/earthwork and other site development costs, which could be prohibitively expensive and the location within the flood plain represents an obvious and significant impediment to development. Substantial adjustment is necessary. As the flood plain is a strong factor in the market value of the subject, the impacts thereof will be discussed and addressed/adjusted for in the final market value reconciliation to follow. As such, adjustment is not applied herein and the comparables are adjusted as if the subject were level and fully developable. Utilities: The subject property has all pertinent utilites necessary for development available nearby except sewer. This will be improved by the proposed Moab City sewer project but has not yet occurred and cannot be considered in this as is analysis. All of the comparable sales are centrally located within well developed suburban areas and are assumed to have adequate access to all pertinent utilities that would be sufficient for development. Downward adjustment is necessary for the comparable sales to account for lack of sewer. • 'Orilntj. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles Ixi The subject is zoned LI and RR, which are Grand County zoning designations for light industrial and rural residential uses. The majority of the subject could be developed with some type of light industrial improvements without rezoning, assuming that the flood plain issues were solved. Moab City officials report that if the subject were annexed into city limits, that the RC is the most probable zone. This is not guaranteed and the rezoning process will involve an investment of additional time and money, which would be recognized and discounted by potential buyers. All of the comparable sales are already within commercial zones, and downward adjustment is necessary for all five sales. Other In all other areas, the comparables appear to be similar to the subject and no further adjustments are necessary. The complete adjustment grid is on the following page. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles LAND ADJUSTMENT GRID COMPARABLES SALES Subject t 2 3 4 5 Address City/Utah 1263 N. Main St. Near Moab; County Jurisdiction Con5dential - North Main St. Moab 76 E. Nob Hill (300 N.) Moab 2049 S. Main St. Near Moab 655 N. Main St. Moab 1431 N. Main St. Moab Sales Price Adjustments: $5,250,000 5748,100 5385.000 5250,000 $2,360,000 Property Rights Adjusted Price SO 55,250,000 SO 5748,100 S0 5385,000 $0 $250,000 SO S2,350,000 Financing Terms Condition of Sale Expenditures Adjusted Price SO SO SO 55,250,000 SO SO 510,000 5758,100 50 577,000 SO 5462.000 SO 550,000 SO 5300,000 SO SO SO 52.350.000 Date of Sale Market Conditions Adjusted Price Jan-18 5.25% S5,525,625 Feb-17 8.50% 5822,539 Apr-17 8.00% S498,960 Mar-16 8.25% $324,750 Jan-18 5.25% $2,483,900 Unit of Comparison Square Feet (SF) Price per SF 399.256 435,600 512.69 72.310 511.38 270.072 S1.85 34,848 $9.32 139,392 $17.82 Other Adjustments: Location 20'-: -10% -10% -20% -20% Physical Characteristics 04; -10% -5% -15% -10% Size Shape 0% 0% 25% e' 0% 0% Street Orientation n .. l; -15°': L: er.,. -15% .a�._� -15% ..e .;r -15% ..a .. -15% ,..er._r Topography --- .. .,.... -.e. 0% ....`, 1N 25% U3,!✓aeg:-;:,,, 10% lloaflrie,V.,,,,,a-ro 0% 1.ra:^,:eael Utilities Available n .. sr -5;5 NYy.a � _n_ -5% -...,.,..,. _.. ,b/ -5% n,;, ,,..... _ , -5% A?!aae.e_.e fle:itijj. -5% 4..1as.'2Ne c_ , ZoninglHBBUse •• T �:-F ''-"„ -5% �- -5% CE -5% HC/LLR -5% C F -5% RC Adjusted Price Per SF 56.98 56 26 52.03 $4.66 58.02 Total %Change Gross % Change -42% 45% -40% 45% 43% 110% -35% 90% -53% 55% Summary of Adjusted Adjusted Value Range Values Low 1 High Mean f Median $2.03 1 $8.02 55.59 i $6.26 Project Desc: Moab City Sewer Improvement Project Ownership: Lewie L. Pilles VAN DRIMMELEN & ASSOCIATES, INC. 63 RECONCILIATION OF LAND VALUE — BEFORE ACQUISITION Before adjustment, the comparable sales range from a low of $1.43 per square foot to a high of $16.93 per square foot. After making adjustments, the adjusted sales indicate a much tighter value range of $2.03 per square foot to $8.12 per square foot. Due to the large number of inferior/detrimental aspects associated with the subject property (i.e. lack of direct access, lack of Main Street frontage, lack of sewer, county zoning, rear lot street orientation, larger size, etc.) the comparable sales required a high percentage of gross adjustment. The adjusted median is $6.26 per square foot with an adjusted mean of $5.59 per square foot. All of the sales are recent transactions in the immediate subject neighbhorhood of Moab and are the best sales that are publicly available. However, Sale #3 is the lowest adjusted sale and required the highest percentage of gross adjustment. Sale #3 is given reduced consideration, indicating that a value conclusion above the adjusted average is necessary. A preliminary value conclusion of $6.00 per square foot is appropriate before consideration of the flood zone issues. As this is a major value factor, it is discussed and adjusted for separately below. • Topography/ Deve lopa bi l itv : The defined larger parcel consists of mostly level topography and does slope gradually east to west. Review of the available flood maps indicates that ±0.80 acre in the southeast corner is not within the flood plain, but the remaining ±8.37 acres or so is well within the 100-year flood plain associated with the Colorado River close to the west. The river has historically flooded in the past, and surrounding development within the same flood zone is very limited and consists mainly of ancillary -use buildings, such as agricultural or storage. One house has been recently constructed close to the south of the subject in the flood plain, but the owner spent years adding fill to build the site above grade. Additionally, the owners of Portal RV are constructing residences within the Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 64 flood plain adjacent south, but they first installed a concrete retaining wall with fill at substantial cost in order to mitigate flood issues. Area developers interviewed for this and other appraisal assignments completed by our firm in the Moab area stated that they would not build anything habitable or permanent in the flood plain associated with the Colorado River without significant earthwork, and the marked lack of surrounding development in the same flood plain supports this assertion. Several area residents and developers further report that approval to build in the flood zone has recently become much more difficult, and numerous permitting and approval steps have been recently added. The site will need to be surveyed for designated wetlands. Any vertical construction on the subject will likely require flood insurance, and will also require a substantial amount of earthwork, including fill/grading and likely the construction of a retaining wall. The costs to mitigate the flood zone issues would possibly be into seven figures and could be prohibitively expensive. Based on the flood zone issues, an additional downward adjustment of 25% from the preliminary value of $6.00 per square foot outlined above is concluded to be justified, resulting in a market value conclusion of $4.50 per square foot, rounded, After reviewing the characteristics of the subject and the comparable sales and other market information, the concluded market value is $4.50 per square foot for the subject land. This is calculated below. Subject Land -- ±399,256 square feet SF x $4.50 per square foot = $1,796,652* * This value typically would be rounded. However, as per UDOT appraisal instructions and for summary valuation purposes in determining the total award, the indicated contributory values are not rounded for valuation purposes pertaining to the partial fee acquisition. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 65 MARKET VALUE OF WHOLE — BEFORE ACQUISITION The total indicated value of the land is $1,796,652. The vertical improvements will not be negatively impacted and have been excluded and are not appraised herein. Thus, the contributory value of the improvements is shown as $0. The market value of the whole is calculated as follows: Subject Lot — ±399,256 square feet x $4.50 per square foot = $1,796,652 Contributory Value of the improvements (N/A) = 0 Total Market Value — Before Acquisition = $1,796,652* Proposed Project DESCRIPTION OF PROPOSED PROJECT: The proposed project consists of the Moab City Sewer Improvement Project. Reportedly, Moab City is extending an additional sewer line through multiple parcels in northern Moab to a point close to the south of the Colorado River. The sewer line is west of the Main Street/SR-191 roadway and generally within undeveloped land within the 100-year flood plain. A small number of properties along this corridor will be impacted by the project. Construction is anticipated to begin during 2019. DESCRIPTION OF ACQUISITION(S): ■ PERPETUAL EASEMENT(S) The perpetual easement, identified as Project Parcel No.: PE is along the east border of the subject property. The shape of the easement is mostly rectangular. It has a reported uniform depth of 20.00 feet, with a maximum length of 932.56 feet along the west border of the easement. It is noted that the perpetual easement is mainly contained within a lot line area that would generally be unbuildable due to setback Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 66 requirements. Please refer to the maps and documents in the report for further clarification. The reported land area contained within the perpetual easement is 18,520 square feet, or 0.43 acre. The purpose of Parcel PE is defined in the legal description provided by the client for "establishing, installing and constructing maintaining, enlarging and repairing sewer lines, along with associated surface structures including manholes, control boxes, cables and such other surface and sub -surface appurtenances as may be deemed necessary for the intended use." Additionally, the legal description states that the easement shall be non-exclusive, and the Grantor (property owner) shall have the right to use the easement in a manner that does not impair or harm the grant or use by Grantee. Lewie L. Pilles will retain ownership of the area to be encumbered by the easement. The easement appears to be both an underground and above ground easement, given the stated purpose for undergrond sewer lines and above ground associated surface structures. • TEMPORARY CONSTRUCTION EASEMENT(S) The temporary construction easement, identified as Project Parcel No.: TCE is also within the eastern portion of the larger parcel and is adjacent west of the perpetual easement. The temporary easement is reported to be a uniform 30 feet in width, with a maximum length of 952.22 feet along the west border of the easement. Please refer to the maps and documents in the report for further clarification. According to legal descriptions provided by the client, Project Parcel No. TCE is 28,272 square feet, or 0.65 acre. The temporary easement will be used during the construction phase of the project so that workers can access the area to construct the sewer line. The client reports that the easement will expire on January 1, 2021 and the easement will effectively be for a 1.6 year term. Lewie L. Pilles will retain ownership of the area to be encumbered by the easement and the temporary easement will expire. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L, Pilles 67 No other acquisitions or easements are proposed. The following shows the project map with the subject (Project parcel Pilles) and proposed location of the perpetual easement and temporary construction easement. Legal descriptions are located in the addenda. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 68 Project Maps _-, . •t ` }y `!i• {S� �'1 i L� j FWIj; .1_ „Pi' La. ::Mr 1. 55CL pWWIT4• aa.• r: . + FM Lj[,` '_ � .,,..osia. rkrxox.40. ".i 19t711-V' �1-,- �u Arm, rm, ay• ';wk[7'"fin]. : • • 4 - 504 1.1876a i. 1 11 GG9101,1, Vie n, -. [ .s04916 ' Y1• A ter \ l — • f!. ...,-- . .-- ... �r l •. _ . ! f'" .r , •`t L, Y' .:1 I. N 1_ / : i J'" . f .l �;- `.1 " - n•1 r. CA1f011V1,517. 2..-I3.5'-4t15Z C /104:ftrc't ' �bkL,[Tt'W ,:r... .� f .., S.5—rr�lrs1 ' Ij. • 1 • J'61 `�• .j -- 11 11;u MALD-I r 0 _ n. r_;. z _— ,:r -1i-I "e. �y I juK11 �. Y r c e to �, _• D'1 A FLEISC�• UAN •.• • �'. -yam_. � _ri..paJ . t9"jIn = . ,.. � ,w;. .4I NMAN t�;e �� r•MAJTHEW . ..y Y - ,11.rj' j a. �__ }f r .• +t." II _ „_ \* I. war[ sljsewa I I --.- I 1 1 1 , > .1s• s� , , �1 — 1 , r r . awra{i f a IMP d I Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles (TIE} S 89°03'04" W 2715.09'±4E CORNER , SECTION 36, T25S, R21E, SLB&M N 78°18'00" E 24.75' N 78°18'00" E 37.12' ~�`s LEWIE L.PILLES JENNIFER PILLES 02-135-0057 1� , LEGEND O Property Corner FLEISCHMAN 01-135-0003 ,L07> i' 'V.., ��' ,•ice ,9 • r� S� S6 `• • _a ``• `\ •^�}� PROPOSED �, SEWER ``. • • LINE • • `, so li:I N/1 o h o ���• 'y S 46°24'58" W �n na' 10' TEMPORARY CONSTRUCTION EASEMENT 20' SEWER LINE EASEMENT S 46°24'58" W 20.05' 1 • FLEISCHMAN 01-135-0002 69 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC, Ownership: Lewie L. Pilles 70 DESCRIPTION OF PROPERTY — AFTER ACQUISITION: The perpetual easement and temporary construction easement are within Grand County parcel number(s) 01-126- 0005. As the subject will be impacted by a perpetual easement and temporary construction easement only, the size of the remainder will be unchanged at 399,256 square feet, or 9.170 acres. Discussions of the major land characteristics that will be altered by the acquisitions are listed below. Any item, or land characteristic, not addressed below is assumed to have remained unchanged from the description of the land before the acquisition. LOT AREA: Before the acquisition, the defined larger parcel contains f399,256 square feet, or 9.17 acres. As only easements are proposed and Lewie L. Pilles will retain ownership of the easements, the size of the remainder will be unchanged at ±399,256 square feet, or 9.170 acres. The remainder will be able to accommodate speculative commercial development as outlined in the Highest and Best use as vacant section of the report and continued use of the site will not be restricted. SHAPE: The shape will be mostly rectangular in the after condition and will be unchanged relative to the before condition. The overall depth and shape of the remainder will be suitable for development and does not restrict future or continued use of the site. ACCESS: The subject presently has assumed legal and sufficient access from Main Street (US-191) via an access easement. The acquisitions will not impact access and access to the remainder will not be reduced or altered and access will remain unchanged. TOPOGRAPHY: The topography will be mostly level and is unchanged from the before condition. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 71 UTILITIES: After completion of the municipal project, the subject will have more convenient and superior access to utilities. This represents a clear betterment to the remainder that will likely increase the market value and potentially reduce the interim holding period. However, this is a general benefit to area residents rather than a special benefit to one owner. HIGHEST AND BEST USE — AFTER ACQUISITION: This section of the report addresses any changes to the highest and best use after the acquisition from the highest and best use before the acquisition. There are no major physical changes to the remainder. The subject is located near the primary north/south traffic artery and main commercial corridor near the northern incorporated portions of Moab City. The remainder, at 399,256 square feet, or 9.170 acres in the after condition is unchanged relative to the before condition and is adequately sized and shaped to facilitate stand alone speculative commercial development if vacant, as outlined in the highest and best use section of the report. The highest and best use in the after condition is not altered by the acquisitions and remains for speculative commercial development and is unchanged relative to the before condition. Data Analysis and Conclusions — After Acquisition VALUATION OF THE PERPETUAL EASEMENT(S): As part of the project, there will be a perpetual easement within the subject property. The perpetual easement, identified as Project Parcel No.: PE is along the east border of the subject property. The shape of the easement is mostly rectangular. It has a reported uniform depth of 20.00 feet, with a maximum length of 932.56 feet along the west border of the easement, It is noted that the perpetual easement is mainly contained within a lot line area that would generally be unbuildable due to setback requirements. Please refer to the maps and documents in the report for further clarification. The reported land area contained within the perpetual easement is 18,520 square feet, or 0.43 acre. The purpose of Parcel PE Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 72 is defined in the legal description provided by the client for "establishing, installing and constructing maintaining, enlarging and repairing sewer lines, along with associated surface structures including manholes, control boxes, cables and such other surface and sub -surface appurtenances as may be deemed necessary for the intended use." Additionally, the legal description states that the easement shall be non-exclusive, and the Grantor (property owner) shall have the right to use the easement in a manner that does not impair or harm the grant or use by Grantee. Lewie L. Pilles will retain ownership of the area to be encumbered by the easement. The easement appears to be both an underground and above ground easement, given the stated purpose for undergrond sewer lines and above ground associated surface structures. As value is directly related to functional utility, a diminution of value is anticipated if utility of a given parcel is negatively affected by the proposed easement. The resulting impact can vary significantly depending on the type of easement and highest and best use conclusion of a property both before and after the acquisition. For example, if a property supports development either in the short or medium term, and if the easement precludes such development, substantial diminution of value can be realized. On the other hand, if a parcel's primary utility is unaffected by the acquisition, highest and best use before and after the taking would remain largely unchanged, and the value diminution would be less. The purpose of Parcel PE is defined in the legal description provided by the client for "establishing, installing and constructing maintaining, enlarging and repairing sewer lines, along with associated surface structures including manholes, control boxes, cables and such other surface and sub -surface appurtenances as may be deemed necessary for the intended use." Additionally, the legal description states that the easement shall be non-exclusive, and the Grantor (property owner) shall have the right to use the easement in a manner that does not impair or harm the grant or use by Grantee. Lewie L. Pilles will retain Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles 73 ownership of the area to be encumbered by the easement. The easement appears to be both an underground and above ground easement, given the stated purpose for undergrond sewer lines and above ground associated surface structures. The compensation to purchase the easement is usually a percentage of the fee. In speaking with representatives of the different utilities in the area, it was found that payment for easements varies depending on whether it is underground or overhead. Generally, an underground easement is less costly to purchase than an overhead easement. Most easements used for underground purposes are based at 33% to 50% of the fee. Overhead easements, such as for power lines or access easements, range from 50% to 75% of the fee depending on the type of and size of the lines. High-tension power lines (i.e. metal, etc.) with multiple lines would be at the upper end of the range, while typical wood power poles with single track overhead lines would be at the lower end. Thus, a typical range for a perpetual easement is 33% to 75%, depending on the development restrictions created by the easement. The recorded owners will be able to utilize the area contained within the perpetual easement for setback, parking, open space compliance and other secondary uses, but will not be able to construct permanent structures within the area to be encumbered by the easement. However, the perpetual easement is along the east property border and is mainly within the required setback area under the current and/or future zones. Even if the perpetual easement were not proposed: this area could not legally be developed due to zoning requirements and would be unlikely to be developed due to the close proximity to the lot line and campground adjacent east. As indicated, the easement is along the east property border in an area that could not be developed due to setback requirements. The owners will still be able to use the area of the easement for secondary purposes, including parking, landscaping, storage and the encumbered area will still have utility for zoning compliance in terms of lot size, density and setback requirements. Considering the use and the location of the perpetual easement, the estimated percentage value is forty percent (0.40). This Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 74 amount appears to be reasonable given the purpose of the easement and location within the setback area. The market value of the fee simple interest of the land has been concluded at $4.50 per square foot. The market value of the perpetual easement is calculated by multiplying the area of the easement x the price per square foot x the above determined discount. This is calculated as follows: ■ Project Parcel No.: PE 18,520 square feet x $4.50/SF x 0.40 (easement factor) = $33,336 DESCRIPTION AND VALUATION OF THE IMPROVEMENTS ACQUIRED/IMPACTED: As per Federal and State right-of-way appraisal requirements, the contributory value of all landscaping and site improvements within the acquisitions is to be included in the compensation. Contributory value is a real estate term that refers to the contribution that a particular component (i.e. fences, landscaping, trees, etc.) has to the overall value of the whole property. Contributory value takes into consideration the degree of depreciation for a particular site improvement item/component as well as the added value of that component to the value of the whale and differs from replacement cost new. This area of consideration focuses on those site/landscaping improvements that do not need to be replaced, or cannot reasonably be replaced. Deduction for depreciation is necessary when considering site improvement acquired items. As noted throughout the report, the subject comprises a mostly rectangular shaped parcel that is improved with a single-family residence and related outbuildings and related landscaping/site improvements. The south and east perimeter are fenced, but Moab City officials report that the project contractor will replace any fencing. The area of the easements is generally un-developed. There is a strip of mature trees directly east of the house that are growing wild, but the trees do provide a "green screen" that blocks the view to the campground easterly and also minimizes noise. These trees are growing wild, but they will likely be damaged/removed as part of the sewer improvement project. It is reasonable that potential buyers would give some nominal value to these Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pities 75 trees, and contributory value thereof is included herein. Thus, site improvements acquired is estimated at $7,500 as outlined below. 0. v 1 E 5 — Parcel 0 Improvements Acquired Unit Quantity Unit Price Uepree. Ad), $/Unit Totals TOTAI4S) Riles Wild Irees near residence Overall 1 $7,500 1.00 57,500 $7,500 $7,500 DAMAGES TO THE REMAINDER: In cases involving a partial acquisition, an analysis of damages and special benefits is necessary for the remaining portion of the parcel to determine if there is any loss in value to the remainder of the subject property in the after condition as a result of the partial acquisition, and/or if there are any special benefits resulting from the partial acquisition that may be used to offset damages. Severance damages can sometimes result in right-of-way acquisition situations. The International Right of Way Association defines severance damages as: "In condemnation, the loss in value to the remainder in a partial taking of a property. Generally, the difference between the value of the whole property before the taking and the value of the remainder after the taking is the measure of value of the part taken and the damages to the remainder. "9 Land The size of the remainder parcel is 399,256 square feet, or 9.170 acres and is unchanged relative to the before condition. As only easement(s) are proposed, all other physical aspects will also remain unchanged. The subject is over the minimum required lot size under the LI (Light Industrial) & RR (Rural Residential) zone and/or potential RC if annexed into Moab, and will remain well in excess of the minimum required lot size in the after condition. It will remain a mostly rectangular shaped parcel with assumed adequate and legal access from Main Street (US-191) via the aformentioned access easement. The amount of frontage and access will not be altered. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, ANC. Ownership: Lewie L Pilles 76 Considering typical lot size and setback standards, the remainder will have similar utility in comparison to the before condition and will be adequate for speculative commercial development as outlined in the Highest and Best Use as Vacant section of the report. The value of the land remainder is estimated at $4.50 per square foot and is unchanged from the before condition and no further diminution in value beyond what has been compensated for is apparent for the land. Vertical improvements: The subject is being affected by easements only, and the proposed perpetual easement is along the east border within an area that would not be legally developable due to setback requirements. The temporary easement will expire and the overall utility/developability of the subject will not be negatively impacted by the imposition of the acquisitions. The developability of the remainder will likely be improved due to more convenient access to sewer. The single-family residence and related outbuildings will not be impacted by the proposed easements and will remain in the after condition with similar and unchanged setbacks and the overall use and utility of the site and improvements will not be negatively impacted by the imposition of the acquisitions. As such, no damages to the improvements is necessary and the vertical improvements are excluded from this analysis and have not been inspected, appraised or otherwise considered herein. The market value(s) outlined herein represent the underlying land value(s) only. Thus, proximity or other damages to the vertical improvements are not apparent and damages are shown as $0 herein. VALUATION OF THE TEMPORARY EASEMENT(S): The location of Project Parcel No(s). TCE has been previously outlined. The temporary easement will be used during the construction phase of the project so that workers can access the area to construct the 9 Principles of Right of Way, International Right of Way Association, Torrance, California, 2001, pg.208 Project Pesc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles 77 sewer line. The client reports that the easement will expire on January 1, 2021 and the easement will effectively be for a 1.6 year term. The size of Project Parcel No(s). TCE is 28,272 square feet, or 0.65 acre. In order to formulate an opinion of the market value for the temporary construction easement, the land lease rate is first calculated. The lease rate is a rate of return on the fee value of the easement land area based on a one-year period. Several sales of leased properties have been located to derive an appropriate ground rent capitalization rate. As shown below, the rates from the sales range from 5.25 to 7.51 percent, with an average of 6.47 percent. Summary of Ground Rent Cap Rates IQ 70rlanl Lvcalimn Date of Salo Sales Prrce Acre& Ulm PrlcorSF NO1 Cap RMt• 1 Wendys SWC SR-72 11 SR-66, Bee/310gal Sprinys, Utah Dec•13 51,609, D00 0 fi0 15 Years + 20 years in options �g 71 595,000 5.25% 2 Burger King 1466 Eat 3500 North, Lehi, war, Mar-11 51,865,000 0 01 30 Years 552.06 t 5140,000 7,51 % 3 Retail Strip 1135 South 100 West, Logan, Blab Feb-11 51,023,300 076 20 Years 530.51 S65,000 6 35% 4 Smith's 4p09 South 5600 West, West idley City- Utah Aug-10 57 250,000 6 70 30 Years 524 84 5491,550 6,78% 5 Wendy's 5592 West 13400 South {NEC], Here -limb. UT Mar-10 5700,000 0 01 10 Years 519,64 S49,500 7 07% 0 Wells Fargo 630 North Slate Street, Litnlwr. Utah Sep-06 52,213,000 0 96 43 Years 552,92 S130,003 5,67% Summary Analya la Low Hlgh Median Average 5 25% 7,51% 6 57% 6 47% In addition to the above sales, investor surveys performed by our office have been reviewed. It is noted that land lease rates are typically based on net lease assumptions with no expenses, such as management, vacancy, etc. According to most market participants surveyed, land lease capitalization rates typical range from 5-8 percent depending on a number of factors such as location, tenant credit, land size, etc. Sales of land leases are rare as these types of leases typically bring a low -risk investment to the leased fee interest owner, or lessor. Mr. Mike Barry, Staff Appraiser with Wal-Mart Realty, Inc., was contacted regarding land lease rates for tracts of land throughout the United States. Mr. Barry stated that land Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC, Ownership: Lewie L Pilles 78 lease rates took a downward trend beginning in about 2004 and have since varied from about 6 to 8 percent. He stated that most investors around the country now use an estimate of 6-8 percent for most land leases. The rate depends on a number of factors such as location, access, surrounding development, etc. There are several land leases that he has been involved with and indicated that rates are generally in the 6-8 percent range. Other local brokers confirmed that the land lease rates are generally between 6 and 8 percent. Considering the above, it is concluded that an annual lease rate of 8% is appropriate for the temporary easements proposed on the subject property. The annual payment attributed to the temporary easement is calculated by a 8 percent rental rate times the value of the land within the easement. A typical land easement is usually paid on an annual basis for the duration of the lease. Since the owner will be compensated for the easement in one payment up front, the present value of the future cash payments is calculated. A present value factor PVF) is often used to calculate the net present value of the annual lease payments for the duration of the lease. However, the temporary easement will expire January 1, 2021 and the term is about 19 months from the effective date of valuation or ±1.6 years, which is a relatively short term, and it is possible, but somewhat unlikely that a discount for the time value of the money would be considered by investors. As such, a present value factor is not necessary and is shown herein as 1.60. The total area of the temporary construction easement is 28,272 square feet, or 0.65 acre. The market value of the fee simple interest of the land has been concluded at $4.50 per square foot. The market value of the temporary easement is then calculated by multiplying the area of the easement x $4.50/square foot x the above determined land lease rate or eight percent (0.08) x the present value factor of 1.60. The total combined value of the temporary easement is $16,285 and is calculated as follows: Parcel No(s). TCE 28,272 SF x $4.50/Sq.Ft. = $127,224 x 0.08=$10,177.92 x 1.60 = $16,285 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles 79 COST To CURE: Cost to cure refers to the estimated cost to replace landscaping and/or site improvement components once the project is complete. Cost to cure considerations would typically be included so that the property owners could replace necessary landscaping/improvement items within easements/acquisitions after the completion of the project such as mailboxes, fencing, sprinkler systems, hardscaping items, ground cover plants, small trees, shrubs/bushes, etc. Moab City officials report that the project contractor will repair/replace any fencing, and no cost to cure is necessary for any fencing that may be present. All other items are included for cost to cure consideration. As mentioned, the easements are within an undeveloped area of the larger whole parcel that are within the setback area along the east lot line. All fencing, including any gates will reportedly be replaced. No other items are readily apparent that have not already been acounted for as site improvements acquired. Thus, cost to cure is not necessary and is shown as $0 herein, SPECIAL BENEFITS: In the subject jurisdiction, special benefits are generally used to offset severance damages resulting from a partial acquisition. The International Right of Way Association defines special benefits as "advantages accruing from a given highway improvement to a specific property and not to others generally."t 0 After completion of the municipal project, the subject will have more convenient and superior access to utilities. This represents a clear betterment to the remainder that will likely increase the market value and potentially reduce the interim holding period. The subject will directly benefit from the completion of the Moab City sewer project. However, this is a general benefit to area residents rather than a special benefit to one owner. Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN 8 ASSOCIATES, INC. Ownership: Lewie L Pilles 80 In the State of Utah, special benefits can only be used to offset any damages and cannot be used to offset compensation for the acquisitions. No damages have been concluded and any potential offsetting benefits cannot be considered. Thus, special benefits are not necessary and are shown as $0 herein. 10 Principles of Right of Way, International Right of Way Association, Torrance, California, 2001, pg.216 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles Summary of Values A.) VALUE OF THE SUBJECT AS A WHOLE PROPERTY Subject Land -- ±399,256 square feet SF x $4.50 per square foot Value of Improvements (Not appraised) Total B.) VALUE OF THE ACQUISITIONS: (A-C) Partial Fee Acquisitions Perpetual Easement: - Parcel No: PE Site Improvements Acquired: Total C.) VALUE OF THE REMAINDER AS PART OF THE WHOLE (A-B) Land: 399,256 SF — 0 SF = 399,256 SF @ $4.50 per square foot Improvements Contributory Value Less: Perpetual Easements Less: Site Improvements Acquired Total D.) VALUE OF THE REMAINDER AFTER THE ACQUISITION (C-D+E) Remainder as part of the whole Less: Severance Damages Value of Remainder Parcel E.) DAMAGES Temporary Construction Easements Severance Damages: Cost To Cure: Total F.) SPECIAL BENEFITS Special Benefits: G.) TOTAL AWARD (A-F) Partial Fee Acquisition Perpetual Easements Temporary Construction Easements Improvements Acquired Severance Damages Less: Special Benefits Cost To Cure Total Award Rounded to = $ = $1,796,652 = $ 0 _ $1,796,652 _ $ 0 $ 33,336 _ $ 7,500 _ $ 40,836 $1,796,652 $ 0 $ (33,336) $ (7,500) $1,755,816 _ $1,755,816 _ $ (0) $1,755,816 $ 16,285 $ 0 $ 0 $ 16,285 0 0 33,336 16,285 7,500 0 0) 0 57,121 57,200 81 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles 82 Reconciliation and Final Estimate of Value The Sales Comparison Approach was used to formulate an opinion of the market value of the subject land. This method adequately accounts for investor motivation, which is directly tied to the principle of substitution, which states that a potential buyer will pay no more for a property than he or she would for a similar property with comparable characteristics and utility. After analyzing all of the data presented in the report, I am of the opinion that the market value of the perpetual easement and temporary construction easement, including land and any site improvements acquired, severance damages and/or cost to cure considerations, as necessary, as of May 19, 2019, is: FIFTY-SEVEN THOUSAND TWO HUNDRED DOLLARS ($57,200) i Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lewie L Pines Exhibits & Addenda Addenda Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles Addenda AERIAL PARCEL MAP Parcel # 01-126-0005 "Boundary lines are per the County website and may not be precise. Project besc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles Addenda PARCEL/PLAT MAP Parcel # 01-125-0005 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownershlp: Lewie L. Pilles 6 FEMA FLOOD MAP National Flood Hazard Layer F1RMette I, I: A• Flood Zone: Zone A (Special Hazard Flood Zone) 8, Zone X (outside 100 year flood zone) Panel Number: 49019C1775D Effective Date: April 4, 2009 Addenda FEMA feybnd` .a.I.Xlrl lb. 1.1••••••••••...1..•••p•.••... H... MY^NM M•• /4µ1w i1.•. A/q 1.10M ni iu M1a wt. CI.N.... H y M WY w.lnl.011 i./•••+1.If••/..1 O]..webur.nw/Iw.. Aw. •• IS *M.o...•• •w wr.r ri•... 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Wlo••.Mn.••••••N/.•.i••w Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewle L. Pilles CLIENT PROVIDED FLOOD MAP Moab Clly t-uno s Aor ldmzirtuVVyntiorn r Addenda Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles Addenda ZONING MAP — GRAND COUNTY Zuninp 1) sitinaliun • Light Indoitn:J • Mnxlnlum Density (units/ntre) - 5 JurisdictionlSource: Moab City Zoning: LI (Light Industrial) & RR (Rural Residential) �onin�l;ee; rivAir,,ni.ir; 1.,'nJ 11fC co:J^ Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles ZONING MAP — MOAB CITY i Addenda Moab City Zoning: RC 0.00 ZONE_COOr RC area_StIFt. 6,756,915.57 Area_Ac 153.12 M4Llot Area See Moab City Code Mln_6100_FoaNrlr N/A Frnnr 5et adi se! Moab City Cade P.ear_Selback See Moab City Code See Moab City Coda See Moab 1 — -- j1 . Jurisdiction/Source: Moab City Zoning: LI (Light Industrial) & RR (Rural Residential) Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles MASTER PLAN ZONING MAP mt+,., 1 Jurisdiction/Source: Moab City Master Plan Zoning: Floodway Addenda Project Oesc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lome L Pilles LEGEND ��.ttlyLimb t,,Fu4KeAnnexsIkm �-- aPawd Tran DAt Trull Downtown Portptiorai nee•e Zone [ la Mite Radius) �Nud Dawntawn Influence Zone • Existing or potential 7raan oad M - _ Complatia Shags Enhanced Trivet Corrklor * Irtspluttopni Hub fit' Future Rolag Per/Mown con Rutwa Comnlorelal . •. ; Fulurs Firsidvntlal RAM! Land Use Sanalva Area Resod Open Landa Ptak - Public dx ►lurtcudtme Ratldentlei CNIC Comm a it)el Itt+dttllt ttal Resort COMM Mill Motile Hants +.i.e=7..•'7 Roadway Addenda Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pities Addenda Comparable Land Sales Land Comparable #1 r Identification: Location Confidential — Main Street Commercial Land City/State Moab, Utah Parcel # Confidential Aerial Parcel Map Retained In Appraisal Workfile Land Description- Land Size 19.13 acres, or ±833,303 square feet — gross ±10.00 acres, or 435,600 square feet - useable Shape Mostly rectangular Street Orientation/Access Interior/Adequate from Main Street (US-191) Topography Mostly level but ±9.00 acres are within the Colorado River floodplain, potential wet and/or wetlands and undevelopable Utilities All available Zoning RC — Regional Commercial Transaction: Date of Sale January 2018 Conditions Arms -Length Sales Price $5,250,000 Financing Cash to seller Cash Equivalent Sales Price $5,250,000 Listing Price N/A Marketing Period N/A Grantor Confidential Grantee Confidential Verification Confidential; seller Unit of Comparison Sales Price/Useable SF $12.05 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles Addenda Remarks: This is a recent sale of a larger tract of commercial land with extensive Main Street frontage and access. This parcel is on the northern half of the SR-191/Main Street project. Of the total land size, the buyer reports that t9.00 acres were within the Colorado River flood plain. Although the future development may utilize a small portion of the flood plain area for secondary uses (open space, landscaping, parking, etc.) the buyer stated that he always viewed this transaction as if he was purchasing 10 acres, and that he attributed no value to the flood plain area and there was sufficient developable area outside the flood plain. All details of this sale, including the location, buyer/seller, conditions of sale and the buyers intended development plans were divulged by the verification source and are known by the appraiser. The source requested that all specific identifying details concerning this sale be kept confidential due to confidentiality agreements. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pities Land Comparable #2 Eden ification: Location City/State Parcel # Land Description: Land Size Shape Street Orientation Topography Utilities Zoning t76 East Nob Hill (300 North) Moab, Utah 01-0001-0062 & -0063 1.66 acres, or 72,310 square feet Mostly rectangular Interior Level All available C-5 Addenda Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewle L. Pilles Comparable Sale #2 - Continued Transaction: Date of Sale Conditions Sales Price Financing Cash Equivalent Sales Price Listing Price Marketing Period Grantor Grantee Verification Addenda February 2017 Arms -Length $748,100 Cash to seller $748,100 $750,000 160 DOM David K. Lyle Four Corners Community Behavoiral Health Lenore Beeson; real estate agent Wasatch Front MLS County records Unit of Comparison. Sales Price/Sq.Ft. $10.35 Remarks: This sale is more centrally located within the CBD of Moab but is one parcel east of Main Street and this site does not benefit from direct Main Street/US-191 visibility/exposure or access. Nob Hill is a short, dead end road with nominal traffic counts. Commercial development surrounds this site to the north, west and south. At the time of the transaction, it was within both the R-3 and C-3 zone, but the entire site has been rezoned C-5 zone, which is defined as a neighborhood commercial zone. Ms. Beeson confirmed that the sale was contingent upon a commercial rezone. There was an older home on the site that was reportedly not attributed any value in the transaction, which is for the underlying land only. Ms. Beeson reports that the house has been vacant since and will be demolished by the buyers. The buyers intend to develop the site with a medical office on the east portion, and employee housing on the western perimeter. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC, Ownership: Lewie L Pilles Land Comparable #3 Identification: Location City/State Parcel # Land Description: Land Size Shape Street Orientation Topography Utilities Zoning Addenda 2049 South Highway 191 South of Moab, Utah 02-0017-0120; -0019 & 0002 6.20 acres, or 0.50 acre, or 270,020 square feet Very Irregular Interior Undulating terrain All available HC — Highway Commercial & LLR (Large lot residential) Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles Comparable Sale #3 - Continued Transaction: Date of Sale Conditions Sales Price Financing Cash Equivalent Sales Price Listing Price Marketing Period Grantor Grantee Verification Unit of Comparison: Sales Price/Sq.Ft. Remarks: April 2017 Arms -Length $385,000 Cash to seller $385, 0000 $450,000 230 DOM Kingsley Grand County Development, LLC Sandy Norton; real estate agent Wasatch Front MLS County records $1.43 Addenda This sale south of Moab near some industrial development. The majority of the site is within the HC zone, with one parcel in a low density residential zone. The verification source is unclear as to the buyers plans, but stated that some industrial development along Main Street is probable. The site is irregular and terrain is uneven and portions of the site are below grade with Main Street. The listing agent did state that the seller was motivated. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles Land Comparable #4 Identification: Location City/State Parcel # Land Description: Land Size Shape Street Orientation Topography Utilities Zoning 655 North Main Street (Highway 191) Moab, Utah 01-0MUT-0090, -0091 0.80 acre; 34,848 square feet Mostly rectangular Interior Mostly level but below street grade All available C-1 Addenda Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L, Pilles Comparable Sale #4 - Continued Transaction: Date of Sale Conditions Sales Price Financing Cash Equivalent Sales Price Listing Price Marketing Period Grantor Grantee Verification Unit of Comparison Sales Price/Sq.Ft. Remarks: March 2016 Arm's length $250, 000 Cash or cash equivalent $250, 000 $350,000 113 days William F. Birsfield Scott Newton Rick Lamb; real estate agent WFMLS County Records $7.17 Addenda This sale is an older transaction for two contiguous lots on the west side of Main Street. The property was listed for about 3 months and the agent reports that it was a "motivated seller". Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Lewie L. Pilles Land Comparable #5 Identification: Location City/State Parcel # Land Description: Land Size Shape Street Orientation Topography Utilities Zoning Transaction: Date of Sale Conditions Sales Price Financing Cash Equivalent Sales Price Listing Price Marketing Period Grantor Grantee Verification Unit of Comparison Sales Price/Sq.Ft. Addenda 1431 North Main Street Moab, Utah 01-0126-0019 3.20 acres, or ±139,392 square feet Mostly rectangular Interior Mostly level All available RC — Regional Commercial January 2018 Arms -Length $2,360,000 Cash to seller $2, 360, 000 N/A N/A Gardiner Properties, LLC Moab Hospitality, LLC Review of Settlement Statement (by other) $16.93 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8& ASSOCIATES, INC. Ownership: Lewie L. Pilles Addenda Remarks: This is a recent sale of a commercial lot on the west side of Main Street in northern Moab. It is in the process of being developed with a Marriott Courtyard Inn in partnership with the owners to the north. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. PIIles Addenda Moab City Legal Descriptions Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, /NC. Ownership: Lewie L. Pilles When Recorded Mail to: City of Moab 217 East Center Street Moab, UT 84532 UTILITY EASEMENT AND AGREEMENT THIS UTILITY EASEMENT AND AGREEMENT (the "Agreement") is made and entered into as of the date(s) set forth below by and between Lewie L. and Jennifer Pilles, the owners of record, ("Grantors"), and the City of Moab, a municipal corporation ("Grantee"). In consideration of the mutual promises and obligations contained herein, the receipt of which is hereby acknowledged, Grantors and Grantee agree as follows: 1. Grant of Easement. Grantors hereby grant to Grantee, its successors and assigns, a perpetual easement in the NW % of the NE % and the NE %a of the NW % of Section 35, T 25 S, R 21 E SLB&M, Moab City, Grand County, Utah: Beginning at a point on Grantors Northern boundary line, said point being South 89°03'04" West 2715.09 feet from Northeast corner of Section 35, Township 25 South, Range 21 East, Salt Lake Base and Meridian, and running with Grantors boundary thence South 47°46'53" East 919.45 feet; thence with Grantors boundary South 46°24'58" West 20.05 feet; thence North 47°46'53" West 932.56 feet; thence with Grantors boundary North 78°18'00" East 24.75 feet to the point of beginning, having an area of 18,520 sq. ft., 0.43 acres. (the "Easement Area"). 2. Purpose. This Agreement is granted for the purpose of establishing, installing, constructing maintaining, enlarging, and repairing sanitary sewer lines, along with associated surface structures including manholes, control boxes, cables, and such other surface and sub- surface appurtenances as may be, deemed necessary for the intended use. Grantee shall have reasonable access to the Easement Area as necessary to carry out the purposes of this Agreement. Grantee shall be solely responsible for the maintenance of any improvements, structures, or equipment it constructs within the Easement Area. 3. Nora -exclusive Use; Removal of Encroachments. Grantors expressly reserve and shall have the right to use the Easement Area in a manner that does not impair or harm the grant or use by Grantee. Grantors shall not construct any buildings, structures, or other permanent improvements within the Easement Area, and any such improvements or encroachments may be subject to removal without compensation. 4. Restoration. Upon completion of any repair or maintenance work contemplated by this Agreement, Grantee agrees to promptly restore the surface to a condition equal or superior to that existing prior to any disturbance. 1 5. Abandonment. This Agreement shall only be deemed abandoned upon lawful execution and recording of a written grant by Grantee conveying and abandoning this Agreement. 6. Warranty of Title and Authority. The Grantors warrant that they have full right and lawful authority to make the grant contained herein, and promises and agrees to defend the Grantee in the exercise of its rights hereunder against any defect in Grantors' title to the lands subject to this Agreement. 7. Binding in Perpetuity. This Agreement is irrevocable and shall bind the subject property in perpetuity, and all of the benefits and burdens of this Agreement shall inure to and be binding upon the respective legal representatives, heirs, executors, administrators, successors and assigns of the parties. 8. Sole Afrreemcnt; Modifications. This Agreement constitutes the sole and complete agreement between the parties and no additional or different oral representation, promise or agreement shall be binding on any of the parties with respect to the subject matter of this instrument. No modification to this Agreement shall be binding unless it is in writing and duly executed by both parties. 9. Governing Law and Venue. This Agreement is governed by Utah law; the sole venue for any dispute arising from this Agreement shall be the courts of Grand County, Utah. 10. Remedies. In the event of any breach of the provisions of this Agreement, the non - breaching party may enforce same in an action for damages, specific performance, or both. In any such proceeding arising under this Agreement the prevailing party shall be entitled to recover its reasonable attorney fees and court costs, in addition to any other remedies or relief. 11. Notices. Any notice shall be sent by first class mail, postage prepaid, or delivered by courier, to the addresses for the parties as specified below: Grantee: Grantor: City of Moab Lewie L. and Jennifer Pilles Attn: City Manager 2031 W Deer Valley Rd. 217 East Center St. Phoenix, AZ 85027 Moab, UT 84532 This Agreement is binding and effective as of the date(s) of execution by the parties, below. -Remainder of Page Intentionally Left Blank- 2 Pilles/City of Moab Utility Easement Signature Page, Contd. Grantors: Lewie L. Pilles and Jennifer Pilles By. Lewie L, Pilles By: Jennifer Pilles STATE OF UTAH COUNTY OF GRAND ) ss. The foregoing Agreement was acknowledged and executed before me by Lewie L. Pilles and Jennifer Pilles this day of , 2018. Witness my hand and official seal. My commission expires: Grantee: By: Emily Niehaus, Mayor of the City of Moab Attest: Notary Public, State of Utah Address: Rachel Stenta, Recorder Date -End of Document- 3 When Recorded Mail to: City of Moab 217 East Center Street Moab, UT 84532 TEMPORARY CONSTRUCTION EASEMENT AND AGREEMENT THIS TEMPORARY CONSTRUCTION EASEMENT AND AGREEMENT (the "Agreement") is made and entered into as of the date(s) set forth below by and between Lewie L. and Jennifer Pilles, the owners of record, ("Grantors"), and the City of Moab, a municipal corporation ("Grantee"). In consideration of the mutual promises and obligations contained herein, the receipt of which is hereby acknowledged, Grantors and Grantee agree as follows: 1. Grant of Easement. Grantors hereby grant to Grantee, its successors and assigns, a temporary construction easement in the NW %4 of the NE 1/4 and the NE VI of the NW 1/4 of Section 35, T 25 S, R 21 E SLB&M, Moab City, Grand County, Utah: Beginning at a point on Grantors Northern boundary line, said point being South 89°03'04" West 2715.09 feet and South 78°18'00" West 24.75 feet from Northeast corner of Section 35, Township 25 South, Range 21 East, Salt Lake Base and Meridian, and running thence South 47°46'53" East 932.56 feet; thence with Grantors boundary South 46°24'58" West 30.08 feet; thence North 47°46'53" West 952.22 feet; thence with Grantors boundary North 78°18'00" East 37.12 feet to the point of beginning, having an area of 28,272 s. ft., 0.65 acres. (the `Basement Area"). 2. Purpose. This Agreement is granted for the purpose of establishing, installing, constructing, repairing, replacing, and/or enlarging sanitary sewer lines, along with associated surface structures including manholes, control boxes, cables; and such other surface and sub- surface appurtenances as may be deemed necessary for the intended use. This includes but is not limited to, the transport and storage of construction material, soil, equipment, and vehicles. Grantee shail have reasonable access to the T,asement Area as necessary to carry out the purposes of this Agreement, Grantee shall be solely responsible for the Inainlenance of any improvements, structures, or equipment it constructs within the Easement Area. 3. Temporary Easement. This Agreement shall be temporary in duration, commencing upon the date of execution of this Agreement and continuing (Or the duration of the construction project. but not to exceed January 1, 2021. After construction and restoration is complete, Grantee covenants and agrees that it shall have no further right or interest as to the real property comprising the same. 4. Non-exclusive Use: Removal of Encroachments, Grantors expressly reserve and shall have the right to use the Easement Area in a manner that does not impair or harm the grant or use by Grantee. 1 5. Restoration. Upon completion of any repair or maintenance work contemplated by this Agreement, Grantee agrees to promptly restore the surface to a condition equal or superior to that existing prior to any disturbance. All restoration work within or upon the Easement Area shall be undertaken at he sole cost of the Grantee. Upon completion of the restoration, the Grantee shall remove all equipment and materials from the Easement Area. 6. Warranty of Tide and Authority. Grantors warrant that they have full right and lawful authority to make the grant contained herein, and promises and agrees to defend the Grantee in the exercise of its rights hereunder against any defect in Grantors' title to the lands subject to this Agreement. 7. Sole Agreement; Modifications. This Agreement constitutes the sole and complete agreement between the parties and no additional or different oral representation, promise or agreement shall be binding on any of the parties with respect to the subject matter of this instrument. No modification to this Agreement shall be binding unless it is in writing and duly executed by both parties. 8. Governing LAW and Venue. This Agreement is governed by Utah law; the sole venue for any dispute arising from this Agreement shall be the courts of Grand County, Utah. 9. Remedies. In the event of any breach of the provisions of this Agreement, the non - breaching party may enforce same in an action for damages, specific performance, or both. In any such proceeding arising under this Agreement the prevailing party shall be entitled to recover its reasonable attorney fees and court costs, in addition to any other remedies or relief. 10. Notices. Any notice shall be sent by first class mail, postage prepaid, or delivered by courier, to the addresses for the parties as specified below: Grantee: Grantor: City of Moab Lewie L. and Jennifer Pilles Attn: City Manager 2031 W Deer Valle Rd. 217 East Center St. Phoenix, AZ 85027 Moab, UT 84532 This Agreement is binding and effective as of the date(s) of execution by the parties, below. -Remainder of Page Intentionally Left Blank- 2 Pilles/City of Moab Temporary Utility Easement Signature Page, Contd. Grantor: Lewie L. and Jennifer Pilles By: Lewie L. Pilles By: Jennifer Pilles STATE OF U1'AH COUNTY OF GRAND ) ) ss. ) The foregoing Agreement was acknowledged and executed before me by Lewie L. Pilles and Jennifer Pilles, this day of , 2018. Witness my hand and official seal. My commission expires: Notary Public, State of Utah Address: Grantee: By: Emily Niehaus, Mayor of the City of Moab Attest: Rachel Stenta, Recorder Date -End of Document- 3 (TIE} - - - -- +NE ` • •• 35, T25S, R21 E, SLB&M \• \ `• • `\ 4\ • 1 \ N. ♦ 1 \tit ``,` N 78°18'00" E LEGEND \•\ • `•24.75' \ ` `\\ `• O Property Corner N 78°18'00" E \1\\ \\\1 37.12' `1 \\ 1\ 1 N. N. 1\ \\` `\ FLEISCHMAN `\\ `1\ 01-135-0003 \ \•\ • 14: •yy�,°'"° 51i`i\' 1 Sty: �4^ Gy `\ 9• u; erg `. \\ N. t 1`\^+a \\ PROPOSED 30' TEMPORARY \\ \\ SEWER GnNsrRurrIoN N.,..`, LINE EASEMENT •\ \1 \ \ 11 `11 ►` FLEISCHMAN • \♦•\\ 01-135-0002 .tit \11 ♦ \ `. • \• `\ •`\ N..\ 1 1 LEWIE L.PILLES JENNIFER PILLES 02-135-0057 GRAPHIC SCALE no 0 50 100 200 1" (INCH) =100' (FEET) 20' SEWER LINE EASEMENT S 46°24'58" W 20.05' S 4 6°24'58" W 30.08' 1 \ LOT, `\ PORTAL \\ RESORT \ ]QED DE E EXHIBIT C 20' SEWER EASEMENT, 30' TEMPORARY CONSTRUCTION EASEMENT Land S "kit-k g 30 South 100 East Moab, UT 84532 435.259.8171 (Project 067-18-N\ Date 6/12/18 J Sheet 1 of 1 Addenda County Information Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewle L. Pilles May 6, 2019 Parcel: Name: c/o Name: Address 1: 2031 W DEER VALLEY RD Address 2: City State Zip: PHOENIX Mortgage Co: Status: Active AZ 85027-0000 Year: 2019 GRAND COUNTY CORPORATION Tax Roll Master Record 8:36:02AM 02-0135-0057 Serial #:25-21-35-17.10 20 Entry: 449936 PILLES LEWIE L Property Address N MAIN 1263 MOAB Acres: 28,83 84532-0000 District: 002 SPANISH VALLEY 0.010632 Owners Interest Entry Date of Filing Commont PILLES LEINIE L PILLES JENNIFER M Property Information hw jt hw jt 449936 12/08/1999 (0541/0451) 449936 12/08/1999 (0541/0451) 2019 Values 8 Taxes 2018 Values & Taxes Units/Acres Market Taxable Taxes Market Taxable Taxes BS01 RESIDENTIAL SECONDARY 0.00 198,757 198,757 2,093.31 198,757 198,757 2,093.31 LG01 LAND GREENBELT 28.83 91,915 1,046 11.02 91,915 1,207 12.71 LS01 SECONDARY LAND 0.00 27,500 27,500 289.63 27,500 27,500 289.63 Totals: 28.83 318,172 227,303 2,393.96 318,172 227,464 2,395.65 Greenbelt Class Code & Name Zone Code & Name Acres Price/Acre Market Taxable Status Changed GZ3 GRAZING 3 0003 MOAB MA 6.00 1,500 9,000 78 Active 12/17/2018 GZ4 GRAZING 4 0003 MOAB MA 15,83 500 7,915 79 Active 12/17/2018 IT4 IRRIGATION TILLABLE 4 0003 MOAB MA 7.00 10,714 75,000 889 Active 12/17/2018 Property Type BS01 RESIDENTIAL SECONDARY Greenbelt Totals 28.83 91,915 1,046 Year Bullt Square Footage Basement Size Building Type 1991 2,729 0 **** ATTENTION !! **** Tax Rates for 2019 have NOT BEEN SET OR APPROVED! Any levied taxes or values shown on this printout for the year 2019 are SUBJECT TO CHANGE!! (Using Proposed Tax Rate) 2019 Taxes: 2,393.96 2018 Taxes: 2,395.65 Special Fees: 0.00 Review Date Penalty: 0,00 Abatements: ( 0.00) 05/14/2015 Payments: ( 0.00) Amount Due: 2,393,96 NO BACK TAXESI NO BACK TAXES signature GRAND COUNTY TREASURER / DEPUTY DO NOT USE THIS TAXING DESCRIPTION FOR LEGAL PURPOSES OR OFFICIAL DOCUMENTS. For taxing purposes only. Consult property deeds for full legal description. Taxing Description BEG AT A PT S 1034.81 FT & W 2266.5 FT FROM THE NE COR OF SEC 35 T25S R21 E SLB&M & RUNNING TH ALNG THE W BNDRY OF THE MARTIN PARCEL S 61°09'W 152.1 FT; TH N 61°09'W 729.1 FT; TH N 13°48'W 184.22 FT; TH N 60°56'W 168.50 FT; TH N 53°06'W 283.60 TO THE NATURE CNSRVCY BNDRY; TH N 05°42'27"E 737.5 FT; TH ALNG SAID BNDRY N 14°44'W 98,8 FT; TH N 11°42'W 530.50 FT; TH N 75°11'E 160.1 FT; TH N 39°54'E 99.1 FT; TH N 60°54'W E 55.8 FT; TH S 39°54'W 99.1; TH N 60°54'E 55.8 FT; TH S 39°54'E 157.5 FT; TH S 74°53'51"W 148.94 FT TO THE SUB GAS CORP BNDRY; TH ALNG SAID BNDRY S 11°42'E 500 FT: TH ALNG THE SUB GAS CORP S BNDRY N 78°18'E 691.68 FT TO THE SW COR OF VEN MAN LLC PROP; TH S 47°46'53' E 919 45 FT; TH S 46°24'58" W 424.91 FT; TH S 43°27'11" E 108.9 FT TO FOB «<»>A PERPETUAL ESMNT: BEG AT A PT WHICH BRS S 43°05'E 1020.3 FT FROM THE NY. COR OF SEC 35 T25S R21E SLBM & PROC TH N 42°08'E 740.4 FT; S 47°56'E 60.0 FT; S Page:4340 of 8239 May 6, 2019 Parcel; Name: c/o Name: Address 1: 2031 W DEER VALLEY RD Address 2: City State Zip: PHOENIX Mortgage Co: Status: Active AZ 85027-0000 GRAND COUNTY CORPORATION Tax Roll Master Record 8:36:02AM 02-0135-0057 Serial #:25-21-35-17.10 20 Entry: 449936 PILLES LEWIE L Property Address N MAIN 1263 MOAB Acres: 28.83 84532-0000 Year: 2019 District: 002 SPANISH VALLEY 0.010532 42°08'W 793.0 FT; N 48°38'W 184.3 FT; N 46°25'E 55.1 FT; S 47°541E 120.2 FT TO TH POB «» A 20.0 FT WIDE IRRIGATION UTILITY & ACCESS ESMNT ALNG THE WESTERN BNDRY OF THE FOLLOW DESC PARCEL: BEG AT A PT ON THE SWLY R/W OF US HWY 191 (SAID PT IS ALSO ON THE N'LY BNDRY OF THE BUCKEYE PARCEL) SAID PT BRS N 18°46'E 712,0 FT FROM THE S% COR SEC 26 T25S R21 E; & PROC TH WITH THE N'LY BNDRY OF THE BUCKEYE PARCEL S 75°39'W 864.4 FT TO THE NW COR OF SAID PARCEL; TH S 60°54'W 55.8 FT: TH N 13°04'W 59.0 FT; TH N 31 °20'W 41.9 FT; TH N 72°55'E 847.9 FT TO SWLY RNV OF US HWY 191; TH WITH RNV S 47°40'E 150.0 FT TO POB «» WATER RIGHT NO 05-2104 AND NO 05-2444 SKAKEL SPRING ACCESS ESMNTS #1 BEG AT A PT WHICH BRS S 50°55'W 1037.0 FT FROM THE NE COR SEC 35 T25S R21 E SLM & PROC TH WITH E'LY RNV HWY 191 ALNG THE ARC OF A 268.2 FT RAD CUR TO THE LEFT 50.8 FT (CHD BRG N 37°51' W 44 FT); TH N 53°05'E 44.2 FT; TH ALNG THE ARC OF A 268.2 FT RAD CUR TO THE LEFT 50.8 FT (CHD BRG N 46°40'E 50.7 FT); TH S 24°07'W 104.0 FT; TH S 52905'W 2.8 FT TO THE POB «» BEG AT A PT WHICH BRS S 26°04'W 586.1 FT FROM THE NE COR SEC 35 T25S R21 E SLM & PROC TH S 19°16'W 60.2 FT; TH ALNG THE ARC OF A 113.0 FT RAD CUR TO THE LEFT 56.9 FT (CHD BRG N 77°29'W 56.3 FT); TH S 88°05'W 91.8 FT; TH ALNG THE ARC OF A 167.0 FT RAD CUR TO THE RIGHT 79.2 FT (CHD BRG=N 78°20'W 78.4 FT); TH N 64°45'W 180.6 FT; TH S 25°15'W 35.6 FT; TH ALNG THE ARC OF A 312.2 FT RAD CUR TO THE RIGHT 118,2 FT (CHD BRG=S 36°06'W 117.5 FT); TH S 88°39'W 34.8 FT; N 24°07'E 57.1 FT; TH ALNG THE ARC OF A 268.2 FT RAC CUR TO THE LEFT 74.9 FT (CHD BRG=N 33°15'E 74,6 FT); TH N 25°15'E 55.7 FT; S 70°08'E 42.2 FT; S 64°45'E 182.6 FT; TH ALNG THE ARC OF A 143.0 FT RAD CUR TO THE LEFT 67.8 FT (CHD BRG S78°20'E 67.2 FT); TH N 88°05'E 91.8 FT: TH ALNG THE ARC OF A 137.0 FT RAC CUR TO THE RIGHT 41,7 FT; (CHD BRG=S 83°11'E 41.6 FT); TH N 19°161E 75.5 FT; THE S 70°44'E 4.0 FT; TH S 19°16'W 40.0 FT; TH S 70°44'E 20.0 FT TO POB «<»>BEG AT A PT WHICH BEARS S 33°10'W 455.3 FT FROM THE NE COR SEC 35 T25S R21 E SLM & PROC TH S 70°44'E 76.0 FT; S 19°16'W 100.0 FT; N 70°44'W 26.0 FT; S 19°16'W 40.0 FT; N 70°44'W 30,0 FT; N 19°16'E 40 FT; N 70°44'W 20.0 FT TH N 19°16'E 100.0 FT TO POB. ESMNT-BEG AT A PT WHICH BRS S 50°54'W 964.8 FT FROM THE NE COR SEC 35 T25S R21 E SLM & PROC TH ALNG THE ARC OF A 312.2 FT RAD CUR TO THE RIGHT 28.0 FT (CHD BRG= S 49°31'W 28.0 FT) TH S 52°05'W 41.4 FT; TH N 24°071E 46.9 FT; TH N 88°39'E 34,8 FT TO THE POB. PARCEL CONT 29.41 ACRES M-O-L Page:4341 of 8239 Addenda Assumptions and Limiting Conditions Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownershlp: Lewie L. Niles Addenda ASSUMPTIONS AND LIMITING CONDITIONS 1 This is an Appraisal Report, which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. Based on the Scope of Work, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not responsible for unauthorized use of this report. 2. For purposes of this appraisal, any marketing program for the sale of the property would assume cash or its equivalent. 3. No detailed soil studies covering the subject property were available for this appraisal. It is therefore assumed that soil conditions are adequate to support standard construction consistent with highest and best use. 4. The date of value to which the conclusions and opinions expressed in this report apply, is set forth in the letter of transmittal. Further, the dollar amount of any value opinion rendered in this report is based upon the purchasing power of the American dollar existing on that date. 5 The appraisers assume no responsibility for economic or physical factors, which may affect the opinions in this report that occur after the valuation date. 6. The appraisers reserve the right to make such adjustments to the analyses, opinions and conclusions set forth in this report as may be required by consideration of additional data or more reliable data that may become available. 7. No opinion as to title is rendered. Data relating to ownership and legal description was obtained from the client or public records and is considered reliable. Title is assumed to be marketable and free and clear of all liens, encumbrances, easements and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management, and available for its highest and best use. 8 If no title policy was made available to the appraisers, they assume no responsibility for such items of record not disclosed by customary investigation. 9 The appraisers assume no responsibility for hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for arranging for engineering studies that may be required to discover them. 10, The property is appraised assuming it to be in full compliance with all applicable federal, state, and local environmental regulations and laws, unless otherwise stated. 11. The property is appraised assuming that all applicable zoning and use regulations and restrictions have been complied with, unless otherwise stated. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, /NC. Ownership: Lewie L. Pilles Addenda ASSUMPTIONS AND LIMITING CONDITIONS (CONTINUED) 12. The property is appraised assuming that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government 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, unless otherwise stated. 13 The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separated allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 14. No engineering survey has been made by the appraiser. Except as specifically stated, data relative to size and area was taken from sources considered reliable and no encroachment of real property improvements is considered to exist. 15. No opinion is expressed as to the value of subsurface oil, gas or mineral rights or whether the property is subject to surface entry for the exploration or removal of such materials except as is expressly stated. 16. Maps, plats and exhibits included in this report are for illustration only as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced, or used apart from the report. 17 No opinion is intended to be expressed for matters which require legal expertise or specialized investigation or knowledge beyond that customarily employed by the real estate appraisers. 18. Possession of this report, or copy of it, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with proper written qualification and only in its entirety. 19 Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal, unless such arrangements are made a reasonable time in advance. 20 The appraisers have personally inspected the subject property and found no obvious evidence of structural deficiencies, except as may be stated in this report; however, no responsibility for hidden defects or conformity to specific governmental requirements, such as fire, building and safety, earthquake or occupancy codes can be assumed without provision of specific professional or government inspections. Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles Addenda ASSUMPTIONS AND LIMITING CONDITIONS (CONTINUED) 21. Unless otherwise noted, no consideration has been given in this appraisal to the value of the property located on the premises which is considered by the appraisers to be personal property, nor has consideration been given to the cost of moving or relocating such personal property; only the real property has been considered. 22. Information obtained for use in this appraisal is believed to be true and correct to the best of our ability; however, no responsibility is assumed for errors or omissions, or for information not disclosed which might otherwise affect the valuation estimate. 23. Unless otherwise stated in this report, the appraisers signing this report have no knowledge concerning the presence or absence of toxic materials in the improvements and/or hazardous waste on the land. No responsibility is assumed for any such conditions or for any expertise or engineering to discover them. 24. Disclosure of the contents of this appraisal report is governed by the Bylaws and Regulations of the Appraisal Institute. 25. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser or the firm with which he is connected, or any reference to the Appraisal Institute) 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 appraiser. CONSIDERATION OF HAZARDOUS SUBSTANCES IN THE APPRAISAL PROCESS Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraisers become aware of such during the appraiser's inspection. The appraisers have no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraisers, however, are not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles Addenda AMERICANS WITH DISABILITIES ACT The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine 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 we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of ADA in estimating the value of the Property. SPECIFIC LIMITING CONDITIONS AND EXTRAORDINARY ASSUMPTIONS I . This report has been prepared during the month(s) of May/June of 2019. The market was characterized by below average market conditions and general declining property values from 2007-2012, but has been strong over the last 5-6 years. The indicated value is based on current market conditions as of the time the report was prepared. The appraiser's cannot be held responsible for unforeseeable events that alter market conditions subsequent to the date of the appraisal. 2 This analysis assumes no environmental hazards exist on site that would adversely affect the final value estimate. Review of a Phase I Environmental Site Assessment performed by a qualified engineer/firm is recommended. 3. An extraordinary assumption is made that the information received from the client, property owners as well as county and city officials that was relied upon to formulate an opinion of value is correct and reliable. Mr. Lewie Pilles is reported to be a qualified representatives of the recorded ownership group. Mr. Pilles provided extensive historical and factual information concerning the subject property. An extraordinary assumption is made that Mr. Lewie Pilles is qualified to represent the ownership group, and that all verbal and written information obtained from Mr. Lewie Pilles and any other property owner representatives is true and correct. 4 As of the date of inspection on May 18, 2019, the area of the acquisition(s) had not been staked. The inventory of any site improvements impacted and/or cost to cure items is based on careful review of the right-of-way map delineating the boundaries of proposed acquisitions provided by the client, as well as physical inspection of the site. For the purpose of this appraisal, an extraordinary assumption is made that the inventory of site improvements impacted is correct. 5. An extraordinary assumption is made that all public utility and other easements (i.e. power, telephone, sewer, water, storm water drainage, etc.) and the related improvements within these easements will be maintained and replaced/relocated as a construction item during the project. Thus, no consideration is given herein to potential damage to utility and/or municipal related items within these easements. In situations where the land size and/or legal descriptions differ (UDOT ownership records vs. County information), specific reliance is made on the information provided by Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L Pilles Addenda UDOT and an extraordinary assumption is made that the size and legal descriptions provided by the client (UDOT) are true and correct. No responsibility is assumed for any inaccuracies that may exist. 7 According to the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 (P.L. 91-646) 42.11(c)(1), under eminent domain appraisal, 'the appraiser shall disregard any decrease or increase in the fair market value of real property, prior to the date of valuation, caused by the project for which the property is to be acquired, or by the likelihood that the property would be &n.giiitod for the project other than that due to physical deterioration within the reasonable control of the owner." As project influence is to be disregarded in the before condition, a hypothetical condition is made that there is no proposed project in the before condition. 8. It appears that access to the site is available via an access easement only through the Portal RV access corridor from Main Street to the east/northeast. Portal RV owns this access corridor and no fee simple owned land directly connecting to Main Street or any other nearby right-of-way exists. An extraordinary assumption is necessary that the available information is correct and that an access easement exists through the adjacent property from Main Street (US-191) to the east/northeast. This extraordinary assumption further assumes that access is legally compliant and sufficient for development to the concluded highest and best use conclusion as outlined herein. Moab City limits abut the subject to the north, south and east. The subject has not yet been annexed and is currently within the jurisdiction of Grand County. An extraordinary assumption is necessary that the information obtained from Moab City officials is true and correct, and that a reasonable probability exists that the subject could be annexed into Moab City, and that an RC zoning designation is the most reasonable zone. Annexation and rezoning has not yet occurred, is not guaranteed and is speculative, and will involve an investment of time and capital that has not yet been expended. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles Qualifications of Appraiser Addenda Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Lewie L. Pilles i Addenda QUALIFICATIONS OF APPRAfSER KENDALL S. MITCHELL, MAI ken@vafueutah.com EDUCATION/TRAINING BA; Family Economics & Consumer Studies - Emphasis of Market Research Techniques _ Emphaiis on Statistical Analysis University of Utah; June 1996 - Emphasis on Economic Principles - Erirphasis on Financial Theory Fundamental Appraisal (101) Appraising Residences (102) Standards of Professional Practice (USPAP) Residential Case Study 2-4 Units (104) Basic Income Capitalization (310) Advanced Cost and Sales Approach (530) Eminent Domain for Appraisers and Attorneys Highest and Best Use & Market Analysis (520) Advanced Income Capitalization (510) National USPAP 7-hour Update Course UDOT Right of Way Appraiser Seminar Utah Law of Eminent Domain Appraising from Blueprints and Plans Small Hotel/Motel Valuation; Limited Lodging ReportWriting and Valuation Analysis (540) Appraisal Institute Symposium Eminent Domain Seminar Legislative Report to Appraisers Utah Appraiser Supervisor & Trainee Course Reviewing Appraisals in Eminent Domain (410) Rates & Ratios: Making sense of GIM's, OAR's, DCF Business Practices and Ethics Eminent Domain and Condemnation Advanced Concepts and Case Studies Pdvanced Income Capitalization Advanced Market Analysis & Highest and Best Use (test) Quantative Analysis Yellow Book Changes/Updates Webinar General Demonstration Report - Capstone O'Brien Real Estate School; May2001 O'Brien Real Estate School; June 2001 O'Brien Real Estate School; February2001 O'Brien Real Estate School; April 2001 Appraisal Institute; October 2002 Appraisal Institute; May2003 National Highway Institute; January 2004 Appraisal Institute; June 2005 Appraisal Institute; September 2005 Every two (2) years as required since 2004 UDOT; May2006 Utah Land Use Institute; February 2008 Appraisal Institute; March 2008 Appraisal Institute; March 2008 Appraisal Institute; January2009 Appraisal Institute; March 2010 The Utah Land Use Institute; February2011 Utah Association of Appraisers; April 2012 Appraisal Institute; February of 2014 IRWA; March 2014 Appraisal Institute; April 2014 Appraisal Institute; January 2016 Appraisal Institute; January2016 Appraisal Institute; April 2016 Appraisal Institute; May2016 Appraisal Institute; June 2016 Appraisal Institute; July2016 Appraisal Institute; January2017 Appraisal Institute; September 2017 PROFESSIONAL EXPERIENCE Researcher and Market Analyst Bodell Van Drimmelen; August 2000 - September 2002 Licensed Appraiser & Market Analyst Bodell Van Drimmelen; September 2002 - April 2004 Certified General Appraiser/Market Analyst Van Drimmelen & Associates, Inc. April 2004 - Presen PROFESSIONAL AFFILIATIONS/LICENSES Utah State Certified General Appraiser Designated Member (MAI) Advisor to Candidates for Designation License # 5499685-CG00; exp 4-30-2020 Appraisal Institute - Utah Chapter (2019) Appraisal Institute - Utah Chapter (2019) Project Desc: Moab City Sewer Improvement Project Ownership: Lewie L. Pilles VAN DRIMMELEN & ASSOCIATES, INC. Addenda APPRAISAL EXPERIENCE I began as a Stall Hesearcherilrafnee for Bode!! Van 1lnrrrmefen m August of 20L}0, and became a, Licensed Appraiser in late 2002. I have been a Utah State Certified General Appraiser employed by Van Drimmelen & Associates, Inc. since April 2004. I have specialized in right-of-way appraisals my entire career and am on the UDOT approved appraiser lists for State and Local right-of-way(ROW) projects fur complex ROW Appraisal Services, ROW Appraisal Review Services and Residential Appraisal/Review Services. In addition to specializing in land and right-of-way appraisals, I have extensive experience in a wide range of office, industrial, retail, residential and vacant land appraisals. I became an MAI designated member of the Appraisal Institute in early 2019. A small sampling of some of the differing types of properties that I have appraised are below_ Residential Subdivisions Office Buildings Hazardous Waste Facility Service/Gas Stations Retail Buildings Intelligent Buildings/Data Restaurants/Bars Bank/Credit Union Buildings Land Leases Churches/Religious Buildings Historic buildings Animal Control Facilities Public Parks/Municipal Uses Landlocked land parcels Plower/Canat/Trail Corridors Day Care Facilities Eminent Domain Appraisals Farm/Ranch Property Strip Retail Shopping Centers Partial Fee Acquisitions Vacant Industrial land Full Service Autobile Dealerships Tow nhome/Condo Subdivisions Residential Land and Lots Recreational Cabins Perpetual/Temporary Easements Commercial land Duplexes, Triplexes, Fourplexes Severed Tracts/Damages Recreational land Convenience Stores Federal Yellow Book Medical Office Buildings RV Sales and Services Sites Campgrounds/RV Parks Drive-in Theater Multi -tenant Industrial Buildings Bars/Taverns Day Spas Residential Paper Lots Retirement Communities Fitness Centers Airplane Hangars Valuation of Life Estates Dive Shop Power, Utility/Irrigation corridors Single Family Residences (URAR) Water Rights Office/Warehouse Buildings Multi -unit apartment complex I Auto Repair Shops CLIENT LIST (PARTIAL) First National Bank Cache Valley Bank UDOT First Community Bank Envision Lending Group Orem City Jordan Credit Union Logan City Grand County Amegy Bank Murray School District Lindon City Zions Bank Sunfirst Bank South Jordan City Bank of Utah Frontier Bank IJTA (Utah Transit Authority) Deseret First Credit Union NAI Utah Real Estate Division Granite School District Bona Vista Water District JUB Engineers Sandy City Castleview Hospital (Price) CFI- Financial Ogden City Central Bank Kaysville City South Salt Lake City Celtic Bank Snell & Wilmer Law Firm Clinton City Home Savings Bank Nlaughan Law Firm Tooele City Kenw orth Trucking Co, West Valley City Herriman City Eagle Mountain City Saratoga Springs City West Jordan City Bonneville Mortgage H.W. Lochner Engineers Lehi City ANB Financial Corporation Envirocare of Utah SITLA Frontier Bank Salt Lake City RDA BLM (Federal) Wells Fargo Bank Enterprise Financial Wellington City America West Bank Staker Parsons Group Tooele County `Numerous private investors, developers, landowners, etc. Project Desc: Moab City Sewer Improvement Project Ownership: Lewie L Pilles VAN DRIMMELEN & ASSOCIATES, INC. Addenda DATE ISSUED: EXPIRATION DATE: LICENSE NUMBER: LICENSE TYPE: ISSUED TO: STATE OF UTAH DEPARTMENT OF COMMERCE DIVISION OF REAL ESTATE ACTIVE LICENSE 04/12/2018 04/30/2020 5499685-CG00 Certified General Appraiser KENDALL S MITCHELL 774 EAST 2100 SOUTH SALT LAKE CITY UT 84106 Project Desc: Moab City Sewer Improvement Project Ownership: Lewie L Pilles tNr+� �4F r �1 M Fi� Es-rRTz nivision mEc"ron VAN DR/MMELEN & ASSOCIATES, INC. Office of the Property Rights Ombudsman State of Utah Department of Commerce 160 East 300 South; 2°d Floor Salt Lake City, UT 84111 Mailing Address: Office of the Property Rights Ombudsman PO Box 146702 Salt Lake City, UT 84114-6702 (80l) 530-6391 in Salt Lake City 1-877-882-4662 (1-877-UTAH OMB) —Toll free statewide Fax: (801) 530-6338 Email: propertvriahtsautah.6ov Website: https:/rpropertvri2hts.utah.g_av Februau 2018 TT/hat to do ivhen the government wants to acquire your land State of Utah Office of the Property Rights Ombudsman 11(11.01W-0d tyyto pa"su ibiputO utikra 0rg'? sand uo s+$mur •ungs+tarad yp.it pant drynrQ uoa17C9„Au:l mo/Ar purl drJt moll ants:..rasoD 81OZ dLmrugag Aaz, ye3n sr,!IA )l.X10.1 Stij q :ol!sgaiyi jai, [�L'3rt vet{au�adnsd :Ilgutg 8££9-0£S (I08) ncg3 apimaleis 004 Hal— (g1A10 Z99t-Z88-LL8-i ir4D 23ie'I 1PS u I6£9-0£S (I08) ZOL9-171It78 Ifl `ICID axe? �IeS ZOL9VI Yog Od ueuispnquto wpm r poclozd alp jo aotgjO :ssolPPV 2u411e1A1 I I Ib8 ,I.fl `�i?� axt:'I iiES ioo13 pu000s tRnoS 00£ VE3 09I aoiamuioO jo Tuautuedoa gem. jo ams ununpnqui0 wpm iipadold alp jo aagjo puvp -mod a tp2bov o� sluvrK luaunuarlo2 alp uaiina op o; wzmi :uogesuaduma lsnr o� aptno anoA : sa).o1\1 DISCLAIMER: The views, opinions, statements and legal conclusions contained in this publication are those of the authors, and do not represent official statements of the Slate of Utah or the Utah Department of Commerce. Any errors or misstatements in this publication are solely those of the authors. This document is not legal advice and does not remove the need to consult with your own attorney. ACKNOWLEDGEMENTS: This edition was initially revised and formatted by Richard Plehn (BYU Law School, Class of '17), and ongoing revisions are made by the legal staffof the Utah Office of the Property Fights Ombudsman. Special ,gratitude goes to Craig tin Call, former Utah Property Rights Ombudsman, who laid the fonndati.on,for the material in this booldet. YYe also express gratitude to the Utah Department .of Commerce and the Land Use and Eminent Domain Advisory Board for their ongoing support and assistance. Statutory Requirements: By delivering a complete printed copy of this document to property owners as early as practical in the negotiation process, a condemning authority will comply with the express duty to provide property owners with materials referred to in UTAH CODE § 78B-6-505(1)(b)(i) and UTAH CODE 78B-6-505(3)(b)N. Sources of Law Referred to in This Booklet The following statutes and laws are available online at both the Utah Legislature's website as well as the website for the Office of the Property Rights Ombudsman. Utah State Legislature: https:ille.0 tah. Eov Office of the Property Rights Ombudsman: https:!; prapertvrieI1ts.utoh.gcw Utah Constitution: Eminent domain powers: Article I, Section 22. Utah Code: Eminent Domain: Sections 78B-6-501 thru 522. Relocation Assistance: Sections 57-12-1 thru 14. Property Acquisition Procedures: Section 78B-6-505. Section 57-12-13. Dispute Resolution: Section 78B-6-522. Section 57-12-14. Property Rights Ombudsman: Sections 13-43-101 thru 206. 16 91 SI tiI £I II 6 L S I nAurl JO saaanoS umuspnquto satl2RI klaadoad mop aagj0 alp IauluoD Atoll dausso10 suopsaub aatl�tn3 t,oQ aagj0 s‘uuuuspnqut0 alp saoa }uqm 6puuri puu pally spu, Him moll zssaaoad alp sI Iugm t,uogusuadutoD lsur sZ;utim aufuaddug sl;ugm aauni0 kaadoad u su s;g2EN anoA slualuoD Jo apTe L Ao.;7-quin•s3tpy Auada.tcff :stfi=ti :autiu0 gnu tlt�i�� tiatinl�I.tnaaatt❑ari :ItEuza Xg :xud XE1 SEE9-0£5(I08) apinnalEls 004 II01 Z99t-Z88 (LL8) XIIO 0x01 IIES uI I6£9-0£S (I08) ZOL9-tI It8 Zfl `XIIO a?IE'I 11Es ZOL9tI xog Od uEuzspnquz0 sv.pw Xuadozd alp jo aogj0 I I I178 `x}IO qE- res ioo1d puooas `11In0S pp£ lsua 09I aoaauuuto0 jo IuaLuvudaQ uEuuspnqut0 s101-E Xliado.zd alp jo aogj0 uewspngwp slON Alaadoad ay140 apyjp pe}uoj o; moH :auogd ,fig :lluw �g :uosiad uI Your Rights As a Pronerty Owner Facing Eminent Domain Both the U.S. and the Utah Constitutions allow the taking of private property for public use, but only for a `public purpose" and the government must pay you "just compensation." The following is a summary of your rights with respect to the acquisition of your property through eminent domain in Utah. A more detailed discussion follows. > You have the right to ask questions about eminent domain in order to understand how it will affect you. Y You have the right to consult with and seek the assistance of the Office of the Property Rights Ombudsman at any time during the eminent domain process and without cost or penalty from the acquiring agency. You have the right to engage the services of a private attorney to represent you and to protect your interests. You have the right to know the public purpose for which your property is being acquired, and to challenge the necessity of the acquisition. You have the right to examine and copy public documents involving your project, and to be shown precisely what is being acquired from you. You have the right to receive just compensation when an agency acquires your property for public use. You have the right to know how the acquiring agency calculated the compensation for your property, and to request a copy of the appraisal report they obtained. 1 Glossary :appraisal: The process of estimating fair market value in a property or property interest. A qualified state -certified appraiser does this valuation. Com/erxuagon: The acquisition of private property for a public use, for just compensation. Condemnation is used when attempts to reach an agreement have failed. Condemnation actions are brought under the power of eminent domain_ Eminent Domain: The legal process by which a Government or private entity acquires property by condemnation for a public use and pays the owner just compensation, Fair Market Value: The sale price that.a willing and informed seller and buyer would agree upon within a reasonable time. The price is usually arrived at by an analysis of values of comparable properties in she area. .hest Compensation: The price a condemning agency must pay for property as a result of the emirsent domain process. Just compensation is the established fair market value as of the date that is fixed by law that she acquisition became sure. Unless otherwise negotiated, this is the date that a summons was served an those holding an interest in the property. Ombudsman: An independent public official appointed to investigate and address complaints by individuals against public bodies. Property Owner: The person or entity that owns or leases land subject to eminent domain proceedings. Right of Occupancy Agreement: An agreement entered into by the owner with the condemning agency giving the agency the right to occupy the property prior to finalizing an agreement over the amount of just compensation. ,severance Damages: An amount owe i to a property owner if only part of the property is acquired for a project, and the remainder suffers a net loss of value because of the project. Taking: A legal term used to describe the agency's acquisition of property thtnugh the power of eminent domain, for a public use, and requiring just compensation. Uneconomic Remnant: The portion of a property owner's property that remains after a taking which is determined to be of little value or utility. 14 " u v u r s p n g u r o . s 7 y 2 r d d u a d o e d a n y ; f o d o g ) a y ; l o v x o o a s n a l d ' s u o y s a n b a r t v y n o d f r o : s ; y 2 2 4 a v o w 2 u t u r a o u o a s p v p a p a d o u t - t o u r ' s u t 2 a q u o i p u 2 p t i i m j - e u o t ; e s u a d u u o a ; s n f i a n o A o u a 2 e u p i t u a p u o a a l p t p t m 3 1 u p o ��a u o ; 1 g S y . 3 t p i l i u m : o n e n i l J E - s , s s a u l y n a r i [ u r u x a o 3 p u g a a t i a p [ A a i n a s a . t d o f ' X i n f 4 ' e r n i s a n b a . r a l ' a a ; t o u o 1 l g a i l a ; m u g n o ; ` X u a d o l d s n o r t u u i a p u o o o f m o o n o A s m e l r i o n a a e p u p i n b o e a t l 1 . } 1 - s s a o o l d a n p a n c a o a . t . a y e & t u g n o A . o s o p a l A l u o t ! g o % a t t o a t u o s A q p a u a i s p u t : 2 u T i m i n o p e r a a q r i o u a a e g u r a r n b o u o g ; s a s r t u o l d i o s u o p u l u a s a i d a r t a t o 4 l l - u t ; p u m n a p ; g d i x a q ; ? 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I e g u i m o p o i z r l J s u o 4 s a n b a a y p a n d What Is Happening? What is eminent domain? Eminent domain is the government's power to acquire private property for a public use or purpose. This is called a "taking" or "condemnation." Both the Utah and U.S. Constitutions require a condemning authority to pay property owners "just compensation" for land taken. What is a public purpose? Eminent domain is available only where the property is needed for a "public purpose." Governments provide many public services that require property and facilities, such as police departments, fire stations, schools, roads, and utilities. Utah statutes specify the public purposes for which eminent domain may be used to acquire property. Who can take my property? Although eminent domain is a government power, private non- governmental entities such as public utilities, mining companies, or railroads can also use the power of eminent domain to acquire private property because the services they provide will be for a "public purpose." Can I stop (or change) the project? Eminent domain power is inherent in government, and is important to accomplish various -public services_ As long as the condemnation process complies with statutory requirements, it is unlikely you can stop or alter the project. However, you do have the right to obtain an additional appraisal and resolve the issues of just compensation outside of court. If you cannot come to an agreement, the *agency will use legal proceedings in court to condemn the property, where a judge or jury will determine your just compensation. *From here on, the condemning authority — whether public or private — will be referred to as "agency." 3 What are mediation and arbitration? Mediation is a face-to-face meeting between the parties, led by a neutral third party. An Ombudsman, acting as the mediator, will assist all parties to evaluate facts and issues to reach a resolution. Mediation is voluntary; there is no obligation to settle, and you can walk away at any time. Arbitration is more formal than mediation. Parties can present evidence and the arbitrator, like a judge, will issue a decision to resolve the dispute. The arbitration process is much faster and less formal than a court proceeding. The decision of the arbitrator is non -binding, but may become b-nding if neither party makes a timely appeal to a court. Both mediation and arbitration are voluntary and property owners are not required to participate even if the agency requests it. If you, however, want to mediate or arbitrate and the Ombudsman's office determines it to be appropriate, the agency involved must participate. How much does it cost? The mediation and arbitration services provided by the Office of the Property Rights Ombudsman are free. 12 What Does the Ombudsman's Office Do? What service can you provide? The Office of the Property nights Ombudsman can advise you about your rights in the condemnation process. The Ombudsman's office can also help facilitate negotiations bet.l:een you and the agency, order an additional appraisal of your property at the agency's expense, or conduct formal mediation or arbitration to resolve a dispute outside of court. Are you my lawyer? No. The Office or the Property Rights Ombudsman is a neutral, non -partisan state agency, and does not represent individuals. The attorneys that staff the Ombudsman's office can assist you through advising. educating. and facilitating your negotiation with the condemning agency through mediation or arbitration. However. ue cannot represent you or act as your attorney. If you rciain your ❑wit attorney to represent you in your property matter, you may still utilize the services of the Ombudsman's office. Will you help me negotiate? The Office of the Property Fights Ombudsman can be a liaison between you and the: agency to discuss a matter or potential dispute. The Ombudsman's office will attempt to help everyone understand the perspective of the others involved, and try- to fund an acceptable resolution. 11 Can they take immediate possession of my property? The acquiring agency must give you opportunity to negotiate before taking legal action. You have the right to know about and examine any evidence used to establish the amount of just compensation before any formal mediation, arbitration, or trial. When a local government --such as a city or school district -- wishes to. take your land, a public meeting is required. The agency's need to condemn your property will be discussed. You must be notifed of that meetinn before the agency starts any legal action. If the agency determines that good faith negotiations have reached an impasse, they may their attempt to take possession of your property through court action. if you are required to move, you also have the right to receive 90 days written notice before moving, unless an emergency exists. Can I believe what the agency tells me? It is a good idea to obtain verification in writing of any promises trade by the agency. Only written promises, siLmed by someone with authority.., can bind the agency. You have the right to consult at any tun` with the Office of the Property. Rights Ombudsman about your rights in eminent domain proceedings. The attorneys at the Office of the: Property Rights Ombudsman can help verify the information the agency tells you. o[ Iinsaa E SE klaadtud anoS of auop a2eurep rtuE SE Mann SE `ialadoid anoX Jo asn kreiodwal lEgl .loJ uopesuadutoa oa papnua Mils axe noh •}iJom arag; op of foladoid Nuo auuoo al 1tlap agl rC01.102E alp sang luautasea uorlaapsuaa AreJoduial y Hasli memaprs atp ao; pasn aq 1ou ium Xuadozd Jna4 Onogl uana ` Humapis e uo xaonn of .4guiodtual papaau aq ,tutu kuado.id anoX 3o uotuod dews E `aiduluxa Jo3 •loaCoid uopanalsuoa Jo3 ;Claadoad .more ssaaos Jo asn 4itiriodtual of /Cottage all Jo3 kressaaau uago st aI •luaue uSad aaE s2upel IIE joN d;uauiasea not;ana<;suoa LzuJoduia; t si;ugm •uopuuuoJu[ aaoul 10J uauspnquio sitpu Xuadoid Pip Jo anwo ails loelu:oj •algrgrla aq of smei asotil 4q pasoduir suowpuop aLp tp!Ah 4:11.uoa ism! nok pue `slunowe uopepaiaJ auTtwolap suotleingaa pun smut alms ptre iEaapad- •ssowsnq ilEtus so `ttueJ `auiaq Jnmt anour of nod( sar!nbai 'Coua2E alp Jr sasuadxa uoileaoiaa anlaoaa of aigrgiia aq Xetu nox zsasuadxa not eooia.t o; pollgua 'UM 63n0111 o; paau IJI •a3ueistunaa!a awoadsinoA autpiaaa uewspnquio yg!2i nuadoad ayl Jo aa.WO agl laeutoo aseaid •uopesuadwoo tsrr f su ged lsntu l.i le`grn oa uotlrppe u! sassoi ssauisnq Auc 10j 110k aresuadwoo 01 paau lou soap XouaSu oLp rCilrardr[1 amp. and pajusuaduioa lap I uuD •ssauisnq rfw ;audw! llim nospnalsuoa atu, •tzaload aiignd atp wo.!! &lad°Jti alp of sumac! 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What if access to my land becomes more difficult? If a project on part of your property interferes with direct access to the remainder of your property, you may be entitled to severance damages. Severance damages are only awarded when the remaining portion of your property's value has been reduced because of the taking's effects. For specific questions regarding damages for loss of access, view, visibility, or traffic flow, please contact the Office of the Property Rights Ombudsman. Can I require the agency to buy the whole property instead of a portion? Although an agency may not be required to purchase all of your property, you can always request that they do so. In any event, an agency must compensate you for the full loss of value to any of your remaining property by reason of its severance from the property acquired by the agency. Please contact the Office of the Property Rights Ombudsman to discuss your particular situation. What is the agency's obligation for improvements that they remove or damage? Improvements on property such as buildings, landscaping, fences, etc., generally contribute value to the property, although not always. Improvements are not separately assessed but are usually calculated into the fair market value of the property based on what they contribute to the overall value. Where only part of a property is taken, the agency has a legal obligation to replace, repair, or pay for any damage done to the property or improvements. In cases of temporary construction easements, any damage to improvements or fixtures are assessed and compensated. What is not considered just compensation? just compensation does nor include sentimental value., historical interest, long-time ownership, unique need or use, or ernotional trauma for having to sell_ Other unavoidable aspects or inconveniences of construction that affect all properties, such as noise and dust, are also riot considered May I dispute the compensation amount? Condemning agencies must attempt to negotiate the purchase of your property before filing an eminent domain action. They may establish the price through their negotiation with you. You have the right to reject any offer for any reason, or to request more information if unable to decide due to insufficient facts. The agency has the right to use the court for resolution if good faith negotiations reach an impasse. Can I get attorneys' fees? Legal fees of a landowner incurred by going to court over a condemnation are not recoverable in Utah, except in certain very limited circumstances. You may contact the Office of the Property Rights Ombudsman for more specific details related to your particular situation. 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Disposition: Discussion and possible action —this is a Public Memo Staff Presenter: Chris McAnany, City Attorney Attachment(s): Attachment 1: Proposed Resolution Attachment 2: May 22, 2019 Correspondence, w/ attachments - Attachment 3: August 7, 2019 Correspondence, Easement, Appraisal, and Related Documents Recommended Motion: "I move to adopt Resolution No. 41-2019 Authorizing the City of Moab to Commence Eminent Domain Proceedings to Acquire a Utility Easement Across the Moab Lodging LLC Property in Conjunction with the North Corridor Wastewater Improvements." Background/Summary: The City has acquired rights -of -way in conjunction with the North Corridor Wastewater Improvement Project (the Project). The Project will extend a sewer trunk line and related facilities along the west side of Highway 191 to provide service to a number of properties on the north side of the City that currently lack sewer service, or that have substandard service. Construction on the Project is slated to commence in late 2019. The City needs to obtain a temporary (construction) and permanent utility easement across the property owned by Moab Lodging LLC (Owner) at 1515 North Main Street (the Holiday Inn Express). City staff has had multiple oral and written contacts with the Owner representative, James Koehler, over the last several months. On May 22, 209 I transmitted to the Owner a letter explaining that the City needs to acquire an easement across the subject property for the Project, and that pursuant to the terms of the Amendment to the Pre -Annexation Agreement between the City and the Owner's predecessor I in title, James Koehler, it was agreed that he would grant sewer easements to the City when or if sewer service is extended to the area. The City received no response to that letter. On August 7, 2019 I transmitted to the Owner a letter: a) disclosing eminent domain procedures, as required by Utah law; b) delivering an appraisal for the subject easement; c)delivering the proposed easements; and d) offering to pay appraised value in exchange for the easements. Exhibit 2, attached. The appraised value is $37,600. To date I have had conferred directly with James Koehler, the principal of Moab Lodging, LLC. Mr. Koehler expressed general dissatisfaction with the City and to date has been unwilling to grant the necessary easements. We have offered to negotiate, but we have yet to receive anything by way of a counter-offer. If eminent domain is authorized the City will commence a case to acquire the subject property and pay the appraised value. Alternatively, the City will seek to specifically enforce the Amendment to the Pre -Annexation Agreement. If the court enforces that agreement the City would be entitled to obtain the subject easements without further compensation. The City Engineer will be available to brief the Council on Project details applicable to this property. Utah law requires that a condemning authority negotiate in good faith with the property owner. The City has done so to date, and we will continue to do so. However, the tight timeline for construction will compel the City to commence an eminent domain case soon to acquire the necessary right-of- way if the parties are unable to reach a deal. Prior to commencing eminent domain, the City must notify the landowner of its intent to do so, allow the owner to address the Council, and formally authorize a case to go forward. U.C.A. § 78B-6-504(2). As required by law, the City notified the Owner in writing of this hearing and that the City will be considering authorization to invoke eminent domain. Id. Eminent domain is authorized for the acquisition of land for public sewage facilities. U.C.A. § 78B-6-501(3)(b) and (9). In this case the easements in question are necessary for the completion of the Project. And construction on the Project —and use of the subject property will commence promptly. 2 Although the City will continue to negotiate with the Owner, adoption of the resolution will authorize the acquisition of the property through a court process if no agreement is reached. 3 ATTACHMENT 1 • Proposed Resolution CITY OF MOAB RESOLUTION NO. 41-2019 A RESOLUTION AUTHORIZING THE CITY TO COMMENCE EMINENT DOMAIN PROCEEDINGS ACQUIRE A UTILITY EASEMENT ACROSS THE MOAB LODGING LLC PROPERTY IN CONJUNCTION WITH THE NORTH CORRIDOR WASTEWATER IMPROVEMENTS The following findings describe the reasons for this resolution and explain its purpose. a. The City has secured financing and it will undertake the construction of the North Corridor Wastewater Improvement Project (the Project) in late 2019. b. The Project will extend wastewater service to properties in the north area of the City of Moab via a sewer pipeline and related improvements, which will convey wastewater to the City Water Reclamation Facility. c. The City has undertaken to negotiate for the acquisition of a utility easements (for construction and permanent placement of a pipeline) over and across the lands of Moab Lodging, LLC (Owner), located at 1515 North Main Street, Tax Parcel No. 01-126-0005 (the Property). d. The easements are necessary for the pipeline and related improvements to provide sanitary sewer service to a number of properties in the north area of the City of Moab. e. On May 22, 2019 the City provided to the Owner correspondence enclosing proposed utility easements across the Property and requesting the grant of same pursuant to the terms of the Amendment to the Pre -Annexation Agreement, dated April 8, 2008, between the City and the Owner's predecessor in title. f. On August 7, 2019 the City provided to the Owner correspondence containing: i) the Eminent Domain Disclosure required by Utah law; ii) a copy of appraisal for the Property; iii) a copy of the proposed utility easements (for construction and permanent access) across the Property; and iv) an offer to pay the appraised value of $37,600 in exchange for the easements. The easements contained the precise metes and bounds descriptions of the lands needed for the public improvements. g• On August 15, 2019 the City notified Owner that it would be considering a resolution to authorize eminent domain at the August 27, 2019 meeting, and that the Owner has the right to appear and be heard with respect to the acquisition. h. All conditions precedent to commencing eminent domain, as provided by U.C.A. § 78B- 6-504, 505, and other applicable law, have been satisfied. 1 Now therefore, the City of Moab resolves as follows: 1. The taking of real property for the construction of public sanitary sewer facilities is a use authorized by law. 2. The acquisition of the easements across the Property is necessary for the completion of the Project. 3. The City is prepared to timely commence construction of the Project by the end of 2019 or the first quarter of 2020, and it will use all of the lands encompassed within the easements sought to be acquired. The City has negotiated in good faith and will continue to do so with the Owner. 5. The Owner has been given the opportunity to appear and address the Council on this subject. The Council considered the comments of the Owner, if any. 6. The Council concludes that the acquisition is reasonable and necessary for the completion of the Project. 7. The City is hereby authorized to commence eminent domain proceedings to acquire easements across the Owner's Property. PASSED AND APPROVED by a majority of the City Council August 27, 2019. By: Emily S. Niehaus, Mayor Date Attest: By: Sommar Johnson, Recorder Date 2 ATTACHMENT 2 • May 22, 2019 Correspondence, with attachments DUFFORD WALDECK illAa4 MILBURN & KROHN LLF Attorneys at Law Partners Barbara R. Butler William S. DeFord Nathan A. Keever Michael A. Kuzminski' Christopher G. McAnany' Annie D. Murphy' - John R. Pierce+ Sam D. Starritt+ Of Counsel Shelly S. Dackonish Joseph H. Skinner Associates Jon T. Burtard Kate Jaquith Lauren F. O'Dell' Bruce C. Walters Retired Partners William H.T. Frey Richard H. Krohn Laird T. Milburn D. J. Dufford (1919-1998) William G. Waldeck (1923.2009) + Also admitted in Oregon Also admitted in Utah — Also admitted in Wisconsin 4 Also admitted in Wyoming GRAND JUNCTION, COLORADO 744 Horlmn Caun suhe 30C Grand Junction Colorado, 81505 Tel. 970,241.5500 Fax 970 243.7738 wtVw,dwmls cam May 22, 2019 James P. Koehler Moab Lodging LLC P.O. Box 15 Aberdeen, SD 57042 Christopher G. McAnany Direct Dial Phone: (970) 248-5862 Email Address: mcananyAdwmk.com Re: Holiday Inn Express/City of Moab North Trunk Sewer Extension Dear Mr. Koehler: I represent the City of Moab. As you may know, the City is well underway in its planning and design process for the north area trunk sewer project. This project will extend sanitary sewer service and upgrade existing service to several properties on the north end of Moab, particularly those on the west side of Highway 191. The design and alignment of the extension is described generally in the design documents, Attachment 1, enclosed. The City hopes to start construction of the new pipeline in early 2020. My reason for writing is that the planned alignment for the sewer line would cross a portion of the Moab Lodging property near the west side of the parcel. To complete the project the City will need to secure an easement from Moab Lodging, and we request that it grant such an easement. I enclose a proposed form of temporary construction easement and a permanent easement for your review, Attachments 2, 3, enclosed. Please review these documents and let me know if you have any concerns or comments. My understanding is that the Holiday Inn Express is currently served by a smaller diameter pipe and lift station that pumps to the east across Highway 191. There are concerns as to the capacity of that existing sewer, and we believe that the new trunk line will offer a better long-term sewer system for the Moab Lodging property. Accordingly, we believe it is in the mutual best interest of the City and Moab Lodging that it grant the easements. Last, for reference we enclose copies of the Amendment to the Pre - Annexation Agreement between you and the City, dated April 8, 2008. Attachment 4. Pursuant to that agreement the City offered substantial impact fee concessions to you in exchange for your commitment to grant future easements to the City when and if the north corridor sewer line is extended to the area. We James P. Koehler May 22, 2019 Page 2 believe the easements we are requesting are within the scope of that earlier agreement and, as successor in title, that Moab Lodging, LLC is bound by that commitment. Please consider this information and give me a call to discuss this at your earliest convenience. For technical questions, you may wish to contact the City Engineer, Chuck Williams, at (435) 259-4941. Thanks for your attention to this. I look forward to hearing from you soon. Sincerely, Christopher G. McAnany Enclosures xc; Chuck Williams Attachment 1 A. � 31 I .1L 1 P_ w mill �' _i_- � •••411-d (V PA] 9 6N. ..In • r L.' 4 1 lIl u . ..._ _ N ... I ....._ lE ter Our to J566.111 —It r a (NI 5666_01 ir 6" 04 (N4 ]565.10(s1UB1 -- P • rr a •r-- ( - • - - q - 6; ; I ' • f1t+ram __-- . __ �. _ r ..._... _ r) r su. a :i:�(E ste l'ILm y E I -Qf q \ - r; f� 'J %� .,ra`, __ y...• 1 Xa J rorc .. ^ ".aC7Q1i , ,..) rS r. --- I�Ihump 5U110H [r Lffir -. —' VANE 00X SIOIUS _,r,9lk0.RA �E•144 AfON 7 �^ � • — T 1 /' - 1 / - --'. `: .51 1:7} �/( -�� I' .: Y. ... w-- s.r]- •'7�.•` t 3_ _ - 'j Y:'. '. e� k {l 1! '....r�iEtirz " 11M 4 - li'rn „Sf. y i j1 s i � afrf sxf �. :N l --A.0. � { • J =SEC DDANINC t� 11-01 I 4 ]. JJ (. `!� {_S. i T r r ' I P rC1' MIL Or 00.1. 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NORTH SEWER LINE PROJECT K ..,,. —'— — — -- — — 'r �• A f • !fir` s , BOWEN COLLINS IIEfAM �,o. cfl6u� K...r DLl•.EW .<•f.s N:>ui Ircunr tem.11 N. , r. a.o...,o....� —'• {� 1�Y" w_. �,...-. - ..,... ... - eta, Y..1 MOAB LODGING LLC PO BOX 15 ABERDEEN SD 0.42 acres 1515 N RIVERVIEW DR MOAB, UT R� PILLES LEWIE L Address1: 1225 E SEQUIOA DR. PHOENIX AZ 1-.ddress2: 2031 W DEER VALLEY RD. PHOENIX AZ 2.7 acres 1263 N MAIN STMOAB, UT o N 1 ii i 4 tl N s-: ,, J `r'': - s 1 55YN-I (5' tj, j r— Y g k 2 iS _ _, -- IC IV pt (. a5es.on iC u• CV {sy 111$5,75 61 n}iia} POWER • -r-... Il�—•-. =NA POWER IO 9Ii_sq' 1fi'1t1110 Wt4IRwi.. .. .� _ - I 1 _ .I f 1 -_ram.-- ..��._� � < I — . .. Uw'ult !MUM. W31oPOWER e-r S ,9_",..- 1 �' 1 ^alir _ _.�. I ixi51143 m t DPries ^�^r �'' �' '''° PL'' v" I I 8- i 4 _... 8 '° 13 �. •Imo„ i5%11-5 3' vo �_ ' / ' _ — _ — ex14, I. ia g ICi 15' C;-,1.- ifi�t.kt—.�-.� r A.Ssq�lt .. )0R5.e] s _ :fi ��,�:.1 I. 1 I -- ; - , � r.._ . r 1 M ' �i �-a ta'WS- j., :,- a 'i�pKt.. 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J 1='..i±ur_v —L _ ilev• Ir, � ri "-'�, HOW EN COLLINS Attachment 2 When Recorded Mail to: City of Moab 217 East Center Street Moab, UT 84532 TEMPORARY CONSTRUCTION EASEMENT AND AGREEMENT THIS TEMPORARY CONSTRUCTION EASEMENT AND AGREEMENT (the "Agreement") is made and entered into as of the date(s) set forth below by and between Moab Lodging, LLC, a South Dakota limited liability company, the owner of record, ("Grantor"), and the City of Moab, a municipal corporation ("Grantee"). In consideration of the mutual promises and obligations contained herein, the receipt of which is hereby acknowledged, Grantor and Grantee agree as follows: 1. Grant of Easement. Grantor hereby grants to Grantee, its successors and assigns, a temporary construction easement in the SE '/4 of the SW 1/4 of Section 26, T 25 S, R 21 E SLB&M, Moab City, Grand County, Utah: Beginning at a point on grantor's boundary said point being North 48°38'11" West 824.03 feet and North 72°55'00" East 22.45 feet from the North Quarter corner of Section 35, Township 25 South, Range 21 East, Salt Lake Base and Meridian, and running thence North 44°06'40" West 28.55 feet; thence North 44°06'40" West 158.54 feet to grantor's north boundary; thence with said boundary North 53°35'00" East 30.27 feet; thence South 44°06'40" East 154.49 feet; thence South 44°06'40" East 43.85 feet to grantor's south boundary; thence along said boundary South 72°55'00" West 33.68 feet to the point of beginning, having an area of 5,782 square feet, 0.13 acres (the "Easement Area"). 2. Purpose. This Agreement is granted for the purpose of installing and constructing sanitary sewer lines, along with associated surface structures including manholes, control boxes, cables, and such other surface and sub -surface appurtenances as may be deemed necessary for the intended use. This includes, but is not limited to, the transport and storage of constriction materials, soil, equipment, and vehicles. Grantee shall have reasonable access to the Easement Area as necessary to carry out the purposes of this Agreement. Grantee shall be solely responsible for the maintenance of any improvements, strictures, or equipment it constricts within the Easement Area. 3. Temporary Easement. This Agreement shall be temporary in duration, commencing upon the date of execution of this Agreement and continuing for the duration of the construction project, but not to exceed January 1, 2021. After construction and restoration is complete, Grantee covenants and agrees that it shall have no further right or interest as to the real property comprising the same. 1 4. Non-exclusive Use; Removal of. Encroachments. Grantor expressly reserves and shall have the right to use the Easement Area in a manner that does not impair or harm the grant or use by Grantee. 5. Restoration. Upon completion of any construction work contemplated by this Agreement, Grantee agrees to promptly restore the surface to a condition equal or superior to that existing prior to any disturbance. All restoration work within or upon the Easement Area shall be undertaken at the sole cost of Grantee. Upon completion of the restoration, the Grantee shall remove all equipment and materials from the Easement Area. 6. Warranty of Title and Authority. The Grantor warrants that it has full right and lawful authority to make the grant contained herein, and promises and agrees to defend the Grantee in the exercise of its rights hereunder against any defect in Grantor's title to the lands subject to this Agreement. 7. Sole Agreement; Modifications. This Agreement constitutes the sole and complete agreement between the parties and no additional or different oral representation, promise or agreement shall be binding on any of the parties with respect to the subject matter of this instrument. No modification to this Agreement shall be binding unless it is in writing and duly executed by both parties. 8. Governing Law and Venue. This Agreement is governed by Utah law; the sole venue for any dispute arising from this Agreement shall be the courts of Grand County, Utah. 9. Remedies. In the event of any breach of the provisions of this Agreement, the non - breaching party may enforce same in an action for damages, specific performance, or both. In any such proceeding arising under this Agreement the prevailing party shall be entitled to recover its reasonable attorney fees and court costs, in addition to any other remedies or relief. 10. Notices. Any notice shall be sent by first class mail, postage prepaid, or delivered by courier, to the addresses for the parties as specified below: Grantee: Grantor: City of Moab Moab Lodging, LLC Attn: City Manager Attn: James P. Koehler 217 East Center St. P.O. Box 15 Moab, UT 84532 Aberdeen, SD 57042 This Agreement is binding and effective as of the date(s) of execution by the parties, below. 2 Moab Lodging, LLC /City of Moab Temporary Utility Easement Signature Page, Contd. Grantor: Moab Lodging, LLC By: Moab Lodging, LLC By: James P. Koehler, Manager STATE OF COUNTY OF ) ss. The foregoing Agreement was acknowledged and executed before me by Moab Lodging, LLC, acting by and through, James P. Koehler, Manager this day of 2019. Witness my hand and official seal. My commission expires: Notary Public, State of Address: Grantee: By: Emily Niehaus, Mayor of the City of Moab Attest: Sommar Johnson, Recorder Date -End of Document- 3 Attachment 3 When Recorded Mail to: City of Moab 217 East Center Street Moab, UT 84532 UTILITY EASEMENT AND AGREEMENT THIS UTILITY EASEMENT AND AGREEMENT (the "Agreement") is made and entered into as of the date(s) set forth below by and between Moab Lodging, LLC, a South Dakota limited liability company, the owner of record, ("Grantor"), and the City of Moab, a municipal corporation ("Grantee"). In consideration of the mutual promises and obligations contained herein, the receipt of which is hereby acknowledged, Grantor and Grantee agree as follows: 1. Grant of Easement_ Grantor hereby grants to Grantee, its successors and assigns, a permanent easement in the SE 1/4 of the SW 1/4 of Section 26, T 25 S, R 21 E SLB&M, Moab City, Grand County, Utah: Beginning at a point on grantor's boundary said point being North 48°04'39" West 824.03 feet from the North Quarter corner of Section 35, Township 25 South, Range 21 East, Salt Lake Base and Meridian, and running thence North 44°06'40" West 18.35 feet; thence North 44°06'40" West 161.24 feet to grantor's north boundary; thence with said boundary North 53°35'00" East 20.18 feet; thence South 44°06'40" East 158.54 feet; thence South 44°06'40" East 28.55 feet to grantor's south boundary; thence with said boundary South 72°55'00" West 22.45 feet to the point of beginning, having an area of 3,667 square feet, 0.08 acres (the "Easement Area"). 2. Purpose. This Agreement is granted for the purpose of establishing, installing, constructing, maintaining, enlarging, and repairing sanitary sewer lines, along with associated surface structures including manholes, control boxes, cables, and such other surface and sub- surface appurtenances as may be deemed necessary for the intended use. Grantee shall have reasonable access to the Easement Area as necessary to carry out the purposes of this Agreement. Grantee shall be solely responsible for the maintenance of any improvements, structures, or equipment it constructs within the Easement Area. 3. Non-exclusive Use; Removal of Encroachments. Grantor expressly reserves and shall have the right to use the Easement Area in a manner that does not impair or harm the grant or use by Grantee. Grantor shall not construct any buildings, structures, or other permanent improvements within the Easement Area, and any such improvements or encroachments may be subject to removal without compensation. 1 4. Restoration. Upon completion of any repair or maintenance work contemplated by this Agreement, Grantee agrees to promptly restore the surface to a condition equal or superior to that existing prior to any disturbance. 5. Abandonment. This Agreement shall only be deemed abandoned upon lawful execution and recording of a written grant by Grantee conveying and abandoning this Agreement. 6. Warranty of Title and Authority. Grantor warrants that it has full right and lawful authority to make the grant contained herein, and promises and agrees to defend the Grantee in the exercise of its rights hereunder against any defect in Grantor's title to the lands subject to this Agreement. 7. Binding in Perpetuity. This Agreement is irrevocable and shall bind the subject property in perpetuity, and all of the benefits and burdens of this Agreement shall inure to and be binding upon the respective legal representatives, heirs, executors, administrators, successors, and assigns of the parties. 8. Sole _Agreement;. Modifications. This Agreement constitutes the sole and complete agreement between the parties and no additional or different oral representation, promise or agreement shall be binding on any of the parties with respect to the subject matter of this instrument. No modification to this Agreement shall be binding unless it is in writing and duly executed by both parties. 9. Governing Law and Venue. This Agreement is governed by Utah law; the sole venue for any dispute arising from this Agreement shall be the courts of Grand County, Utah. 10. Remedies. In the event of any breach of the provisions of this Agreement, the non - breaching party may enforce same in an action for damages, specific performance, or both. In any such proceeding arising under this Agreement the prevailing party shall be entitled to recover its reasonable attomey fees and court costs, in addition to any other remedies or relief. 11. Notices. Any notice shall be sent by first class mail, postage prepaid, or delivered by courier, to the addresses for the parties as specified below: Grantee: Grantor: City of Moab Moab Lodging, LLC Attn: City Manager Attn: James P. Koehler 217 East Center St. P.O. Box 15 Moab, UT 84532 Aberdeen, SD 57042 This Agreement is binding and effective as of the date(s) of execution by the parties, below. 2 Moab Lodging, LLC/City of Moab Utility Easement Signature Page, Contd. Grantor: Moab Lodging, LLC By: Moab Lodging, LLC By: James P. Koehler, Manager STATE OF COUNTY OF ) ss. The foregoing Agreement was acknowledged and executed before me by Moab Lodging, LLC, acting by and through, James P. Koehler, Manager this day of a 2019. Witness my hand and official seal. My commission expires: Notary Public, State of Address: Grantee: By: Emily Niehaus, Mayor of the City of Moab Attest: Sommar Johnson, Recorder Date -End of Document- 3 Attachment 4 �at812—MAY-200B�1�:42At1 //8 Fee: None Filed By: MMD MERLENE MOSHER DALTON Recorder GRAND COUNTY CORPORATION For: MOAB CITY AMENDMENT TO PRE -ANNEXATION AGREEMENT Holiday Inn Express City of Moab, Utah THIS AMVDMENT is made and entered into this 8th day of April, 200$, by and between the CITY OF MOAB, a Utah municipal corporation ("the City"), acting through its City Council, and HOLIDAY INN EXPRESS AND SUITES, and JAMES P. KOEHLER INDIVIDUALLY ("Holiday inn Express"): A. James P. Koehler owns a parcel of real property situated in Grand County, Utah. The parcel is more particularly described in Exhibit A hereto.' The parcel is referred to herein as "the Property". B. The Property is subject to a Pre -annexation Agreement, executed on August 28, 2002, by and between the City of Moab and the City and Holiday Inn Express, hereinafter "the Agreement". C. The parties wish to amend the Agreement to clarify that the Property is subject to the rights and privileges of other properties in the North Corridor that are subject to pre -annexation agreements with respect to connection to the City sanitary sewer system. NOW, THEREFORE, in consideration of the mutual promises and covenants herein, and for other good and valuable consideration, Holiday Inn Express and the City of Moab agree that Section 1.4 of the Agreement shall be amended to read as follows: 1.4 The parties acknowledge that the existing Holiday Inn Express Hotel is served by a septic system located on the Property. The parties hereby agree that the Property may continue to use the existing septic system or a newly constructed septic system in lieu of connection to the City sanitary sewer system, provided that the septic system used for the hotel has received and continues to receive the approval of the State of Utah for the contemplated use. The parties agree at such time that the City of Moab sanitary sewer system is established within 200 feet of the Property boundary, that any new development on the Property that is not currently connected to the existing septic system shall be connected to the City sanitary sewer system. Holiday Inn Express agrees to grant to the City the easements necessary for the extension of the main sewer line through the Property' ' 1.4.1 The parties acknowledge that the City does not currently have sanitary sewer mains adjacent to the Property. The parties understand that Holiday Inn Express may elect to connect the Property to the City sewer system at such time as sewer is extended to the Property, subject to the payment of all applicable connection and impact fees assigned to Property 1 1.4.2 Holiday True Express hereby agrees to pay any and all costs associated with constructing and extending necessary sewer service lines to the Property, including construction, engineering and testing, should Holiday Inn Express elect to extend City sanitary sewer services to the Property prior to the City's extending sanitary sewer services to the Property. Holiday Inn Express further agrees that the design and construction of any sewer lines shall be subject to the approval and inspection of the City Public Works Director. All sewer service lines within the property shall remain under the ownership of Holiday Inn Express. 1.4.3 The City agrees that upon connection to the City sanitary sewer system, the Property will be able to discharge into that system, waste water currently generated by the existing hotel as well as any future development defined and approved by the City Planning Commission. 1.4.4 The parties agree that Holiday Inn Express shall pay all applicable impact fees upon connection to the city sewer system, provided that Holiday Inn Express may elect to pay said fee over 20 years at an interest rate of 4.5% interest per year. Any payment arrangement must be executed through the City Treasurer's Office. IN WITNESS WHEREOF, this Amendment to Agreement has been executed by the City of Moab, acting by and through the Moab City Council, which has duly authorized execution, and by a duly authorized representative of Holiday Inn Express, as of the date(s) specified below. o� Mayor David L. Sakrison ATTEST: Rachel :,,City Recorficr r� �0300� Date Ent 486210 Bk 0728 Pg 0116 a HOLIDAY INN EXPRESS g4sor Date State of Utah County of Grand On the 8`' day oF_?-Y; l acrM , personally appeared before me Dav; d L. RACHEL E. ELU3ON Notary Pttilia Blois of Utah Nr Comm. Expire(' Jun 30, 2010 217E Cantor sI Maw Ut E4594 My Commission Expires: State of South Dakota County of Brown who duly acknowledged to me that they executed Pes., .e 4, • (9.0„.„.‘• Notary Public Residing in: Grand County On the a S day of NIA'•\ , personally appeared before me --5c,41.-.35 9. }.0.0.„\-=.r , who duly acknowledged to me that they executed the same. My Commission Expires: -1\d \\ ....... ;�F�,:. , Notary Public Residing in: Brown County 3 Ent 486210 Bic 0728 Pf 0117 LXMBIT A The property description of the parcel owned by James P. Koehler which is referred to as the Holiday inn Express 'site, is as follows; Parcel No.02`126-0142 Bunning at a point which bears North 49°38" West 1011.8 feet from the South quarter corner of Section 26, Township 25 South, Range 21 East, Salt Lake Base,and Meridian; thence North 53°35' East 700.9 feet, along the Westerly ri tht of way of Highway 191; thence South 47°40' East 439.7 feet; thence South 72°55' West 847.9 feet; thence North 31 °20' West 151.3 feet to the point of beginning. County of Grand, State of Utah. Eet 486E10 Bk 0728 Pi 0118 E 45.53.4T5 H 4C0S61E, P :1.35. Date 3.-5EP-E002 16:13pm 6Fee• No Fee Cash i 1 MERLEME MOSHER, Recorder Filed By MM For MOAR CITY GRAND COUNTY CORPORATION PRE -ANNEXATION AGREEMENT Holiday Inn Express City of Moab, Utah Sc io-za-k For valuable consideration, the sufficiency of which is hereby acknowledged, this agreement is entered into this? day ofgicf s--- , 2002, between the CITY OF MOAB, a Utah municipal corporation ("the City"), acting through its City Council, and JAM>;S P. KOEHLE•R, d/b/a Holiday Inn Express and Suites ("Koehler"), as follows: RECITALS: A. tarries P. Koehler owns a parcel of real property situated in Grand County, Utah and more particularly described in. Exhibit A, attached (the "Property"). Koehler proposes to develop the site as a 79 room hotel in accordance with the site plan attached as Exhibit B ("Site Plan"). B. The Property is located in an unincorporated area of Grand County, Utah. Koehler intends to develop its property according to Grand County or City of Moab regulations, whichever is more restrictive. C. Koehler intends to connect to the City Water System and pay all construction costs associated with upgrading and extending the City water line to the Property. D. Koehler agrees to the annexation of the Property into City limits according to the terms and conditions of this agreement and Utah law. F. The City of Moab Planning Commission and the Moab City Council, being fully advised and having considered the matters at duly noticed public meetings, have concluded that it is in the best interests of the City of Moab to enter into this Agreement and have made all necessary findings of fact and conclusions of law in support thereof. AGREEMENT: Water and Sever Service_ The City hereby agrees to provide culinary and fire flow water service to the property at Koehler's request and in accordance with standard municipal rates and charges. Koehler shall coinpiete an application for water service and shall pay all applicable connection and impact fees. Upon completion of construction Koehler shall pay charges for services outside of City limits for service to the Property, until such time as the Property is lawfully annexed into City limits. Upon payment ofall appl icable connection and impact fees Koehler shall be permitted to connect the Project to the City culinary water system,. The City agrees to make application to the Utah Department of Transportation for a right-of-way for the water line extension to the Koehler Property. Koehler hereby agrees to pay all costs associated with upgrading and extending the City water line to the Property, including construction, engineering, testing and sterilization. Koehler agrees that the design and construction of the water line shall be subject to the approval and inspection of the City Public Works Director, and shall be conducted in accordance wilb the design :Teri II cat inns and plans shown in Exhibit C, attached. Upon completion and acceptance of the construction, Koehler hereby 1 agrees to dedicate and transfer title to the water line to the City, together with any necessary water line or access easements, subject only to the warranty as stated in this agreement. 1.3 Koehler warrants that all improvements constructed pursuant to this agreement and dedicated to the City shall be constructed in a workmanlike manner, in accordance with approved plans and specification, and that all such improvements shall be free of all defects in materials and workmanship for a period of one (1) year from the date of acceptance of same. Koehler, or his designee, shall promptly repair or replace any defective work following receipt of written notice under this warranty from the City. 1.4 The parties acknowledge that the City of Moab Sanitary Sewer System does not currently extend far enough to serve the Property. At such time that City of Moab sewer service is established within hvo hundred (200) feel of the Property boundary, Koehler shall connect to the City sewer system,lds currently provided for in the Moab City Municipal Code, and be subject to the applicable connection and sewer impact fees. Koehler shall be solely responsible for all costs associated with design and construction of Project Improvements necessary to connect to the sewer system. All other provisions of this Section applicable to culinary water line construction shall be applicable to sewer line construction at such time as Koehler shall be required to connect to the sewer system. iei czazirdnnce 1441/4 0.r-G��w Plai4S. 1.5 Koehler hereby agrees to develop the Project inaccordance with City of Moab o Grand County development standards, whichever is more restrictive, and i accordance with the Site Plan attached as Exhibit B. The Site Plan shall be recorded with this Agreement and shall contain a dedication whereby Koehler dedicates to public use certain pedestrian and bicycle paths, as well as the frontage road specified therein. 2.1 Cost Reimbursement and Construction. The parties shall execute a Cost Reimbursement Agreement, shown in Exhibit 13, contemporaneous with the execution of this Agreement. The Cost Reimbursement Agreement shall govern the conditions under which Koehler may be entitled to recover from third parties the costs incurred for construction of water improvements in excess of Project Improvements necessary to serve the Property. 2.2. Koehler shall deliver to the City an irrevocable letter of credit from a regional batik in an amount equal to the mutually approved costs of all culinary water improvements required by this agreement. The letter of credit shall be in a form acceptable to the City's counsel, shall name the City as beneficiary, and shall be held to secure performance and payment for all improvements required by this Agreement. The letter of credit shall be delivered to the City prior to the commencement of construction of the water line improvements. Koehler shall be solely responsible for payment to all general contractors, subcontractors, laborers and material suppliers for all costs of construction required herein. 2.3 Construction of the water improvements specified in Exhibit C shall be complete no later than one calendar year from the effective date of this Agreement. E 458145 B 058E, P 13e 3.1 Annexation. Koehler, his successors, grantees, and assigns irrevocably consents to and petitions for the annexation of the Property and releases any right of protest or opposition to any future annexation of the Property, or any portion thereof, pursuant to the terms of this Agreement. 3.2 The City agrees to initiate annexation proceedings at such time as the Property meets all legal requirements for annexation. At such time, Koehler agrees to execute any supplemental documents necessary to give effect to this agreement and facilitate the lawful annexation of the Property. The parties agree that the ultimate decision to annex shall rest in the sound discretion of the City Council. At such time as an annexation ordinance is adopted the owner shall be entitled to all rights, and shall be subject to all other responsibilities, applicable generally to other persons and properties within the City municipal limits, e.g. sales taxation, police protection, code enforcement, and the life. 3.3. Contemporaneous with the execution of this Agreement Koehler agrees to execute a restrictive covenant in the form contained in Exhibit E, which covenant shall bind the property and inform all successors and assigns that the property is subject to annexation when legally feasible. The covenant shall be recorded in the Grand County land records. 4.1 General Provisions. This Agreement shall be binding on and inure to the benefit of the successors and assigns of Koehler in the ownership or development of all or any portion of the property. Prior to assigning any or all of his rights and duties under this Agreement, including all related attachments, Koehler shall obtain from any transferee a written assumption acknowledging and agreeing to be bound by this Agreement, the Restrictive Covenant, the Cost Reimbursement Agreement, and any related obligations. 4.2 This Agreement is the product of mutual bargaining. All terms shall be construed in accordance with their plain meaning, regardless of the extent to which either party participated in the drafting. 4.3 Failure of party to exercise any right under this Agreement shall not be deemed a waiver of any such right, nor shall any course of dealing or previous action or inaction be deemed a waiver of any rights or claims arising with respect to later or subsequent breaches, acts or omissions. 4.4 The term "Agreement" includes this Pre -Annexation Agreement and all exhibits and attachments, which shall constitute the sole and complete agreement between the parties. The Agreement shall supercede all prior agreements or representations, however evidenced. No modifications to any ofthe terms of this Agreement shall be binding, unless reduced to writing anti Iawfully executed by both parties. 4.5 The place of performance of this Agreement is Grand County, Utah. In the event of any legal dispute concerning the subjects of this Agreement, including all attachments, the parties stipulate to venue in the Seventh Judicial District Court, Grand County, Utah. In any such proceeding the parties waive trial to a jury on all claims and agree that the action shall be tried to the court. 3 E 458145 H osae, p 1.37 4.6 In any legal proceeding concerning the terms of this Agreement the substantially prevailing party shall be entitled to recover its reasonable attorney fees and court costs in addition to any other relief authorized herein. 4.7 This Agreement shall be governed by Utah law. 4.8 This Agreement does not create any third party beneficiary rights. It is specifically understood by the parties that; (a) the Project is a private development; (b) the City of Moab has no interest in, responsibilities for, or duty to third parties concerning any improvements to the Property, unless the City accepts the improvements pursuant to this Agreement; and (c) Koehler shall have full power and exclusive control of the Property, subject to the conditions of this Agreement. 49 In the event of any dispute concerning this Agreement the parties agree to deliver written notice to the other party describing the act, omission, or breach, which notice shall allow the party in default a period of not more than thirty (30) days in which to cure or abate the breach or violation. In addition, prior to filing suit concerning any breach of this Agreement the parties agree to attempt resolution through mediation or an informal settlement conference. 4.10 The provisions of this Agreement are severable, and if any portion should be held to be void or unenforceable, then the remainder of this Agreement shall be construed to be in full force without reference to the invalid provision. 4.11 In any legal action under this Agreement any party may seek declaratory and/or injunctive relief, including speci Cc performance, as well as recovery of compensatory damages resulting. In no instance shall either party be liable for consequential damages, lost profits, or delay related damages of any kind. 4.12 All notices under this Agreement be given in writing by first class or certified mail, postage prepaid, and delivered to the following addresses: To the City of Moab: City of Moab 115 West 200 South Moab, Utah 84532 Attn: City Manager To Koehler: James P. Koehler 415 N. 4's Street Aberdeen, SD 57401 Notice may be delivered to such other parties or addresses as the parties may designate in writing from time to time. 4 E 438145 P O -88 P 138 4.13 This Pre -Annexation Agreement, including Exhibits A, B, and E, shall be recorded in the Grand County land records. The remaining provisions of the Agreement shall beheld by the City of Moab Recorder. IN WITNESS WHEREOF, this Agreement has been executed by the City of Moab, acting by and through the Moab City Council, which has duly authorized execution, and by James P. Koehler, as of the date(s) specified below. CITYOF MOAB lt�ai� 'r ad-L. akrison A s�� C../2 A•irt �el�e�-Ek�is�a•�'� KOEHLER vr-A- 4 STATE OF SOU=FtI DA14 OTA co YCt..ycl COUNTY OF B-R-erkkP& } }s.s. 27 adtJ2- Date ce) Date -,27 6.2 Date Subscribed to and executed before me by James P. Koehler this r2` I --day of Att.-+ MO?. Witness my hand and official seal. My commission expires: - a -9..ezt T RACHEL E. ELLISON Notary Public Slate of Utah My Comm. Eapiroe Jun 2,200E 11511WN=Stain McrbUT64.►i2 5 Notary Public, State of<-30 11-Baheta. Addr .ss: L W. 0 I) 5 0. Jii )1-I a E 45$1-4E; $ °sae. P 139 Resolution 28-2002 A RESOLUTION APPROVING A PRE -ANNEXATION AGREEMENT BETWEEN THE CITY OF MOAB AND HOLIDAY INN EXPRESS WHEREAS, Holiday Inn Express owns property in the area north of Moab City Limits; and WHEREAS, Holiday Inn Express desires to receive culinary water and sanitary sewer services for the Holiday Inn Express property; and WHEREAS, the City of Moab currently owns, operates and maintains a culinary water and sanitary sewer system; and WHEREAS, Holiday Inn Express desires to receive culinary water and sanitary sewer services from the City of Moab; and WHEREAS, Holiday Inn Express and the City of Moab desire that the Iioliday Inn Express property will eventually be annexed into the City; and WHEREAS, the Pre -annexation Agreement, Cost Reimbursement Agreement and Restrictive Covenant, along with their exhibits, have been presented to this meeting of the Moab City Council. NOW THEREFORE, we, the Governing Body of the City of Moab do hereby resolve to approve the Pre -annexation Agreement, Cost Reimbursement Agreement, Restrictive Covenant and all exhibits in substantially the form presented at the meeting of the ivIoab City Council, and direct the appropriate parties to execute and deliver said documents. This resolution shall take effect immediately upon passage. Passed and adopted by action of the Governing Body of the City of Moab in open session this 27th day of August, 2002. CITY OF iti OAB David L. Sakrison Mayor Rachel Ellison City Recorder Holiday Inn Express Pre -annexation Resolution Resolution #28-2002 SCHEDULE OF EXHIBITS Exhibit A - Legal Description of Koehler Property Exhibit B - Site Plan of the Holiday Inn Express Exhibit C - Water Line Design Specifications Exhibit D - Cost Reimbursement Agreement Exhibit E- Restrictive Covenant for Annexation E 458145 b 0."86 N 140 EXHIBIT A The property description of the parcel owned by James P. Koehler which is referred to es the Holiday Inn Express site, is as follows; Parcel No.02-126-0162 Beginning at a point which bears North 49°38" West 1011.8 feet from the South quarter comer of Section 25, Township 25 South, Rangy 21 East, Salt bake Base,and Meridian; thence North 53°35' East 700.9 feet, along the Westerly right of way of Highway 191; thence South 47°40' East 439.7 feet; thence South72°55' West 847.9 feet; thence North 31 °20' West 151.3 feet to the point of beginning_ County of Grand, State of Utah. E 45814B 05$E, P 141 SCpxylv-.6_, Lo- 24-� 4 cr Exhibit "E" WHEN RECORDED MAIL TO: City of Moab 115 West 200 South Moab, Utah 84532 RESTRICTIVE COVENANT FOR ANNEXATION AND MUNICIPAL WATER AND SEWER SERVICE CONNECTIONS WHEREAS, James P. Koehler ("Declarant") is the owner of certain lands, more particularly described in Exhibit "A", which property is located in the unincorporated area of Grand County, Utah; WHEREAS, Decl Grant and the City of Moab, a Utah municipality (the "City"), have entered into a Pre -Annexation Agreement providing for the provision of municipal culinary water service and sewer service, when technically feasible, and, in consideration of same, the Declarant has agreed to annex his property into the municipal limits at such time as the property is legally eligible for annexation; NOW THEREFORE, the Declarant, stipulates and agrees as follows: 1. All of the property described in Exhibit "A" is subject to a Pre -Annexation Agreement with the City of Moab. 2. Declarant, his successors, and assigns, irrevocably consents to and petitions For annexation as provided under Utah law. Declarant, his successors, and assigns hereby waives any pretest of annexation. Declarant shall execute any supplementary documents, including an annexation petition as provided in the Pre -Annexation Agreement. 3. Subject to the terms of the Pre -.Annexation Agreement, the City shall provide municipal services to the Properly. 4. Annexation shall be committed to the discretion of the City and may only occur in conformity with the provisions of Utah law. 5. This covenant shall not be construed to obligate the City to appropriate funds or other.vise engine in capital facilities construction. The decision to extend, replace, enlarge, or otherwise construct capital facilities shall be committed to the sole discretion of the City. 6_ In the event that Declarant should fail or refuse to execute necessary documents, or otherwise cooperate: in annexation as provided herein, the City may specifically enforce this covenant in a court of eempetent jurisdiction. In any legal proceeding to enforce this covenant the City shall be entitled to recover its reasonable attorney fees and court costs. 7. This covenant shall attach to, and run with the lands described, and shall bind any grantees or successors in interest. This covenant shall terminate automatically uppn the completion of annexation for all of the lands described herein. 1 E 4581 •45 B o588 P 1 42 RESTRICTIVE COVENANT FOR ANNEXATION AND MUNICIPAL WATER AND SEWER SERVICE CONNECTIONS Signature Page APPROVED AND ACCEPTED ON THE DATE SET FORTH BELOW. Declarant: P. Koehler dfbla Ho ay Inn Express Llka.lh STATE OF COUNTY OF BROWN CQ rcvv+d ) ss, Subscribed to and acknowledged before me by .lames P. Koehler this r day of rz.}- , 2002. Witness my landand official seal. My commission expires: 6--a=2-001-P 2 2&-ts Notary Public, State ofEeutb-Etaketa Address: 60-) W U.07.) Ste• AA(d- ct.L► Q1.-15 E 4�8145 B 0586 P 143 EXHIBIT A The property description of the parcel owned by _Tames P. Koehler which is referred to as the Holiday Inn Express site, is as follows; Parcel No.02-126-0142 Be�sinning at a point which bears North 49°38" West 1011.8 feet from the South quarter corner of Section 26, Township 25 South, Range 21 East, Salt Lake Base and 'Meridian; thence North 53°35' East 700.9 feet, along the Westerly right of way of Highway 191; thence South 47°40' East 439.7 feet; thence South 72°55' West 847.9 feet; thence North 31°20' West 151.3 feet to the point of beginning. County of Grand, State of Utah. E 4581 rr5 B O586 P 1.44 Exhibit "D" v w-e d 10 4 cs COST REIMBURSEMENT AGREEMENT 12 INCH WATER MAIN EXTENSION AND UPGRADE This Agreement is entered into by James P. Koehler ("Koehler") and the City of Moab, a Utah municipality ("City") as follows: RECITALS: A. Koehler owns a parcel of real property in Grand County, Utah which he intends to develop as a hotel. Koehler has requested that the City provide culinary water service that will meet expected demand and requirements for fire flow needed by the development. ]3. The City has agreed to provide culinary water service outside of municipal limits, subject to the terms of a Pre -annexation Agreement and with the understanding that the property will annex into the City when legally feasible, C. It will be necessary to extend and enlarge existing culinary water service lines in order to provide service to the Koehler property. The area to be served is within the City's "North Corridor" and is planned for long term capital facilities expansion. D Koehler is willing to initially bear the cost of extending and enlarging water service lines to his property, with the understanding that he may be reimbursed for the increment of costs in excess of those necessary to provide minimum water service to his development. Reimbursement will occur overtime as new development connects to the extension. AGREEMENT: 1.1 Prnicct Construction. Koehler agrees to construct a twelve inch diameter water main extension in accordance with the plans and specifications attached to the Pre - annexation Agreement (the "Extension"). Koehler shall pay for all costs of construction, including costs for engineering, material, labor, testing, and sterilization of the line. 1.2 Koehler shall solicit bids for the water line extension from licensed and reputable contractors, and shall submit to the City for approval a total cost of the project based upon the bid of the lowest mutually acceptable and responsible bidder. Koehler shall certify, under penalty of perjury, that the bid is true and correct and represents the actual cost to be expended on the project. The written approval of that bid by the City shall be the basis of reimbursement herein ("Project Cost"). The City, in its sole discretion, may obtain confirmation from Koehler or the contractor that all sums bid are actually expended on the Extension. 1.3 Any change to the scope of the work or the Project Cost shall not be subject to reimbursement under this Cost Reimbursement Agreement unless a written change order is approved in advance by the City and Koehler. Change orders will only be approved for changes in the scope of the work resulting from unforseen and/or unanticipated conditions. 1.4 A record of the Project Cost shall be maintained by the City for a period of not to exceed ten (10) years from the date of acceptance by the City of the improvements. 1.5 The reimbursement obligations herein shall terminate upon the occurrence of the following conditions, whichever first occurs: 1) payment in full of the Reimbursable Cost, as defined below; 2) abandonment or non-use of the improvements to be installed under this Agreement; or 3) ten (10) years from the date of acceptance of the improvements by the City. 2.1 Reimbursement Calculation. The increment of the Project Cost which is subject to reimbursement (the "Reimbursable Cost") shall be calculated by multiplying the Project Cost by a fraction, the numerator of which is the available total of peak instantaneous demand capable of being served by the Extension and not consumed by the Koehler development or required fire flow capacity, measured in gallons per minute ("GPM"), and the denominator of which is the total of peak instantaneous demand capable of being served by the Extension, exclusive of required fire flow capacity, measured in GPM. For purposes of this calculation, the parties agree that peak instantaneous demand for fire flow is 1,500 GPM; peak instantaneous demand for the Holiday Inn Express (indoor plus irrigation) is 147 GPM; and total peak instantaneous demand capacity for the Extension is 4,458 GPM. 2.2 As new customers request service from the Extension they shall be assessed at the time of connection a proportionate share of the Reimbursable Cost based upon the percentage of available peak instantaneous demand to be consumed by that customer, plus interest on that sum at the rate of five percent (5%) per annum from the date of acceptance of the Extension by the City. The City agrees to administer and collect these funds from new customers as a condition precedent to connecting to the Extension. 2.3 Reimbursement shall be made by the City to Koehler no later than thirty (30) days from receipt of the funds from the customer. 2 3.1 General Provisions. Nothing in this Cost Reimbursement Agreement shall be construed to be a payment guarantee or promise on the part of the City that Koehler will be repaid the total Reimbursable Cost or accrued interest. The obligation to pay shall be determined solely by demand for service from the Extension. 3.2 Koehler may assign his rights under this Cost Reimbursement Agreement, in whole or in part, to any successor in title to the Property, as defined in Exhibit A of the Pre -Annexation Agreement. Prior to assigning Koehler shall first deliver written notice of same to the City. 3.3 This Cost Reimbursement Agreement shall not apply to collection by the City of any Connection Fees, as defined in Municipal Code § 13.25.010, or any other Impact Fees otherwise applicable to new connections and not related to the Extension. Reimbursement as provided herein shall only apply to culinary water Project Improvements for new development in the form of connections to the Extension. Nothing in this agreement shall be construed to require the City to seek reimbursement from water customers in the north corridor existing and connected to the City water system as of the effective date of this agreement, except to the extent that such customers increase their water demands as a result of new connections to the Extension or capacity upgrades to existing water taps. The parties agree that all such existing and connected customers who do not seek service or capacity upgrades shall be entitled to connect to the Extension upon abandonment of old service lines without paying a portion of the Reimbursable Cost. 3.4 If all or any portion of this Cost Reimbursement Agreement shall be declared void or unenforceable by any court of competent jurisdiction the parties shall be released of their obligations herein to that extent. 3.5 The City agrees to provide advance notice of the terms of this Cost Reimbursement Agreement to property owners likely to be affected by the reimbursement obligation. A condition precedent to the enforcement of the reimbursement obligation under this agreement is the adoption by the City of amendments to the impact fee ordinance as provided under §13.25.010, et seg., of the Moab Municipal Code. Those amendments will implement the provisions of this agreement and should be adopted contemporaneous with the approval of the Project Cost, as specified in § 1.2, herein. If an implementing impact fee ordinance is not approved as provided by this section either party may withdraw from this agreement, which will then terminate. 3.6 Il is expressly agreed that the withdrawal by either or both parties from this Cost Reimbursement Agreement as provided under § 3.5, supra, will not 3 COST REIMBURSEMENT AGREEMENT 12 INCH WATER MAIN EXTENSION AND UPGRADE Signature Page impair or abrogate the terrns of the Pre -Annexation Agreement or the Restrictive Covenant for Annexation executed contemporaneous with this document. All such agreements shall remain in full force and effect. In the event of withdrawal, it is the intent of the parties to renegotiate in good faith an agreement regarding construction costs for the Extension. 3.7 There are no third party beneficiaries intended to have rights enforceable under this Cost Reimbursement Agreement. Title to the Extension shall vest solely in the City upon acceptance of same, free of any liens or encumbrances. 3.8 Except as otherwise expressly agreed in writing, nothing herein shall be construed to obligate the City to provide culinary water service to persons outside of the City limits. The decision to provide such service shall rest solely in the sound discretion of the City Council. 3.9 This agreement shall be construed in accordance with the laws of the state of Utah. APPROVED AND ACCEPTED ON THE DATE SET FORTH BELOW. CITY OF MOAB yti Mayor ]_ K id L. Salcrison A' oy: Rachel Ellison City Recorder KOEHLER InnP. Koehler state a Mei County of brand Subscribed and awornlaMmied to before me on tirb - -- day al b's' r ,by k.z: L NoUry PtlDlle /i r %•.F•Q ,. {�( �,,,. i 4 (1,:r_c.—), 27 2c0v Date U q.) —6 a Date Date RACHEL E. ELLISON Notary Publle State of Utah My Comm. Expires Jun 2,2006 115 WbetZt SaSi Moab UT 6492 ATTACHMENT 3 • August 7, 2019 Correspondence • Easement • Appraisal • Related Documents " P a r t n e r s B a r b a r a R . B u t l e r W i l l i a m S . D e F o r d N a t h a n A . K e e v e r M i c h a e l A . K u z m i n s k i ' C h r i s t o p h e r G M c A n a n y ' A n n i e D . M u r p h y ' - J o h n R . P i e r c e + S a m D . S t a r r i t t 4 O f C o u n s e l S h e l l y S D a c k o n i s h J o s e p h H . S k i n n e r A s s o c i a t e s J o n T B u r t a r d K a l e J a q u i t h L a u r e n F O ' D e l l ' B r u c e C . W a l t e r s R e t i r e d P a r t n e r s W i l l i a m H . T . F r e y R i c h a r d H . K r o h n L a i r d T . M i l b u r n D J . D u t f o r d ( 1 9 1 9 . 1 9 9 8 ) W i l l i a m G . W a l d e c k ( 1 9 2 3 - 2 0 0 9 ) �% A l s o a d m i t t e d i n O r e g o n ' A l s o a d m i t t e d i n U t a h A l s o a d m i t t e d i n W i s c o n s i n S A l s o a d m i t t e d i n W y o m i n g G R A N D J U N C T s O N , C O L O R A D O 7 4 4 H o r t o n C o u r t 5 u l t e 3 0 0 G r a n d J u n c t i o n C e l e r a d a , 8 1 5 0 G 7 c i 9 7 0 2 4 1 5 5 0 0 F 8 s 9 7 0 . 2 4 1 / 7 3 8 w w w d w m k G , o m D U F F O R D W A L D E C K M I L B U R N & K R O H N L L P A t t o r n e y s a t L a w A u g u s t 7 , 2 0 1 9 J a m e s P . K o e h l e r M o a b L o d g i n g , L L C 2 0 1 1 8 t h A v e n u e N E A b e r d e e n , S D 5 7 4 0 1 C h r i s t o p h e r G . M c A n a n y D i r e c t D i a l P h o n e : ( 9 7 0 ) 2 4 8 - 5 8 6 2 E m a i l A d d r e s s : m c a n a n y @ d w r a k . c o m B y : F e d e r a l E x p r e s s R e : C i t y o f M o a b N o r t h T r u n k S e w e r E x t e n s i o n , H o l i d a y I n n E x p r e s s D e a r M r . K o e h l e r T h a n k s f o r t a l k i n g t o m e t o d a y . A s I m e n t i o n e d , t h e C i t y o f M o a b ( C i t y ) i s w e l l u n d e r w a y i n i t s p l a n n i n g a n d d e s i g n p r o c e s s f o r t h e n o r t h a r e a t r u n k s e w e r p r o j e c t . T h i s p r o j e c t w i l l e x t e n d s a n i t a r y s e w e r s e r v i c e a n d u p g r a d e e x i s t i n g s e r v i c e t o s e v e r a l p r o p e r t i e s o n t h e n o r t h e n d o f M o a b , i n c l u d i n g t h e H o l i d a y I n n E x p r e s s p a r c e l . I a m w r i t i n g t o a g a i n r e q u e s t t h a t y o u g r a n t a n e a s e m e n t t o t h e C i t y f o r t h e p u r p o s e o f t h e i n s t a l l a t i o n o f a s a n i t a r y s e w e r p i p e l i n e a c r o s s y o u r p r o p e r t y a t 1 5 1 5 N o r t h M a i n S t r e e t i n M o a b . I . V o l u n t a r y C o n v e y a n c e a n d P r o j e c t B e n e f i t s O u r b a s i s f o r r e q u e s t i n g t h e g r a n t o f a n e a s e m e n t w a s o u t l i n e d t o y o u i n m y l e t t e r o f M a y 2 2 , 2 0 1 9 , a c o p y o f w h i c h ( w i t h e n c l o s u r e s ) I a g a i n e n c l o s e . E x h i b i t 1 . A s n o t e d , y o u p r e v i o u s l y a g r e e d , p u r s u a n t t o t h e A m e n d m e n t t o t h e P r e - a n n e x a t i o n A g r e e m e n t , d a t e d A p r i l 8 , 2 0 0 8 , t o g r a n t a s e w e r e a s e m e n t t o t h e C i t y a t s u c h t i m e a s t h e n o r t h c o r r i d o r t r u n k s e w e r i s e x t e n d e d t o y o u r p r o p e r t y . W e c o n t i n u e t o b e l i e v e t h i s i s a b i n d i n g c o m m i t m e n t . T h e C i t y i s p l a n n i n g t o c o m m e n c e c o n s t r u c t i o n o n t h e n o r t h c o r r i d o r s e w e r l i n e p r o j e c t t h i s f a l l . T h i s e x t e n s i o n w i l l o f f e r s u b s t a n t i a l b e n e f i t s t o t h e H o l i d a y I n n E x p r e s s p a r c e l . M o s t n o t a b l y , t h e p r o j e c t p l a n s a n t i c i p a t e d i s c o n n e c t i n g t h e H o l i d a y I n n E x p r e s s p a r c e l f r o m i t s e x i s t i n g p r i v a t e l i f t s t a t i o n t h a t f e e d s i n t o a n u n d e r s i z e d p r i v a t e w a s t e w a t e r l i n e o n t h e e a s t s i d e o f H i g h w a y 1 9 1 . A s s u m i n g t h a t M o a b L o d g i n g L L C g r a n t s t h e n e c e s s a r y e a s e m e n t s f o r n o a d d i t i o n a l c o n s i d e r a t i o n , t h e C i t y w i l l i n s t a l l t h i s n e w c o n n e c t i o n a s p a r t o f t h e p r o j e c t i m p r o v e m e n t s , a v a l u e o f F I F T Y - T W O T H O U S A N D D O L L A R S ( S 5 2 , 0 0 0 ) . C o n v e r s e l y , i f M o a b L o d g i n g i n s i s t s o n p a y m e n t f o r t h e n e c e s s a r y e a s e m e n t s , t h e James P. Koehler August 7, 2019 Page 2 City will not include this connection work in the project, and Moab Lodging will have to shoulder the cost of connecting to the trunk line in the future. The City is willing to negotiate with you with respect to any concerns you may have pertaining to the proposed easement. Alternatively, and assuming that Moab Lodging is not willing to convey easements for no consideration, the City is prepared to commence an eminent domain proceeding to obtain the necessary right-of-way. As part of that negotiation, we provide you with the following disclosure, as required by Utah law, U.C.A. § 78B-6-505. II. Eminent Domain Disclosure Although this letter is provided as part of an attempt to negotiate with you for the sale of your property or an interest in your property without using the power of eminent domain, the City of Moab may use that power if it is not able to acquire the property by negotiation. Because of that potential, the person negotiating on behalf of the entity is required to provide the following disclosures to you. 1. You are Entitled to Just Compensation for Your Property. 2. You are Entitled to An Opportunity to Negotiate with the Agency Over the Amount of Compensation for Your Property Before Any Legal Action is Filed. a. You are Entitled to an Explanation of How the Compensation Offered for Your Property was Calculated. b. If an Appraiser is Asked to Value Your Property, You are Entitled to Accompany the Appraiser During an Inspection of the Property. 3. You are Entitled to Discuss the Matter with the Attorneys at the Office of the Utah Property Rights Ombudsman. 4. The Office of the Property Rights Ombudsman is a Neutral tate Office Staffed by Attorneys Experienced in Eminent Domain. Their Purpose is to Assist Citizens in Understanding and Protecting Their Property Rights. You are Entitled to Request an Explanation of Your Legal Options. 5. In a Dispute with a Condemning Agency, a Property Owner Has the Right to Request Free Mediation or Arbitration Through the Office of the Property Rights Ombudsman. As Part of Mediation or Arbitration, you are Entitled to Request a Free Independent Evaluation of the Property. 6. Oral Representations and Promises Made by an Agency During the Negotiation Process are Not Binding Upon the Agency Seeking to Acquire the Property by Eminent Domain. James P. Koehler August 7, 2019 Page 3 Additionally, as provided by U.C.A. § 78B-6-505(1)(b)(i), I enclose a copy of a document published by the Utah Real Property Ombudsman entitled "Your Guide to Just Compensation. " Exhibit 2. This document is intended to provide you with additional information in connection with the possible acquisition of your property via eminent domain, should that become necessary. III. Transmittal of Appraisal I enclose a copy of the appraisal report prepared by Van Drimmelen & Associates, Inc., dated June 3, 2019. Exhibit 3. The appraisal describes in detail the methodology and conclusions as to the fair market value of a temporary construction easement and a permanent easement crossing your property. According to the appraisal, the fair market value of the requested easement is THIRTY-SEVEN THOUSAND SIX HUNDRED DOLLARS ($37,600) (the Appraised Value). IV. Proposed Easements The City has prepared deeds of easement for the temporary and permanent easements that would allow construction and permanent installation of the new pipeline. Copies of the draft easements, as well as a map depicting the areas to be occupied are attached as addenda to the appraisal. The easement would be twenty feet in width, with up to thirty feet being necessary for the construction phase. The permanent easement is non-exclusive, meaning that you would still be able to use the easement area for any purposes that do not conflict with the underground pipeline; the City would be solely responsible for maintenance of the pipeline improvements. V. Offer of Appraised Value The City offers to pay you Appraised Value specified above in exchange for the conveyance by you (and execution by co -owners of record, if any) of easements substantially conforming to those enclosed. As noted above, if you require payment for the easement the City will not pay for connecting the Moab Lodging property to the new sewer line as part of the project improvements. Payment would be made via wire transfer or certified funds simultaneously with the execution and recording of the easements in proper form. -Remainder of Page Intentionally Lett Blank- James P. Koehler August 7, 2019 Page 4 Please consider this offer carefully and advise us how you wish to proceed. Because this is a time -sensitive matter, please let us know of your response no later than fifteen (15) days from the date of this letter. We would be happy to meet with you in Moab or confer with you by telephone; about any specific questions you have with respect to project or the proposed easement acquisition. As I mentioned, it may be helpful to include the City Engineer, Chuck Williams, in on future conversations, as he is able to answer questions you may have about the technical details of the project. Please give me a call at your earliest convenience; my contact information is stated above. Thank you for your attention to this. I look forward to talking with you soon. Sincerely, Christopher G. McAnany Enclosures xc: City of Moab 8/8/2019 Track your package or shipment with FedEx Tracking 0 811002476865 Delivered Thursday 8/08/2019 at 9:51 am DELIVERED Signed for by: K.HOOS GET STATUS UPDATES OBTAIN PROOF OF DELIVERY FROM GRAND JUNCTION, CO US Shipment Facts TRACKING NUMBER SERVICE WEIGHT 811002.476865 FedEx Standard Overnight 2 Ibs / 0.91 kgs DELIVERED TO TOTAL SHIPMENT WEIGHT TERMS Receptionist/Front Desk 2 Ibs / 0 91 kgs Shipper TO SD US PACKAGING SPECIAL HANDLING SECTION STANDARD TRANSIT FedEx Pak Deliver Weekday 8/08/ 2019 by 3:00 pm SHIP DATE ACTUAL DELIVERY CJ Thu 8/08/2019 9.51 am Wed 8/07/2019 Travel History Thursday , 8/08/2019 9:51 am SD Delivered 9:21 am ABERDEEN, SD On FedEx vehicle for delivery 8:27 am ABERDEEN, SD At local FedEx facility 5:56 am SIOUX FALLS, SD At destination sort facility 4:08 am MEMPHIS, TN Departed FedEx location Local SCOn Time hllps://www.fedex com/apps/fedextrack/?tracknumbers=8110 0247 6865 1/2 8/8/2019 Track your package or shipment with FedEx Tracking 12:22 am MEMPHIS, TN Arrived at FedEx location Wednesday , 8/07/2019 5:56 pm GRAND JUNCTION, CO Picked up htlps://www.fedex.com/apps/fedextrack/?lracknumbers=8110 0247 6865 2/2 Your Guide to Just Compensation What to do when the government wants to acquire your land State of Utah Office of the Property Rights Ombudsman Your Guide to Just Compensation: What to do when the government wants to acquire your land Office of the Property Rights Ombudsman State of Utah Department of Commerce 160 East 300 South, Second Floor Salt Lake City, UT 84111 Mailing Address: Office of the Property Rights Ombudsman PO Box 146702 Salt Lake City, UT 84114-6702 (801) 530-6391 in Salt Lake City 1-877-882-4662 (1-877-UTAH OMB) — Toll free statewide Fax: (801) 530-6338 Email: propertyrights cr,utah.gov Website: https://propertyrights.utah.goy February 2018 Coved Photo: "Blue Housetop and Mountain," © Dean Durhak, used with permission. Images on pages 4, 6, 10, 12 © Dean Durhak, used with permission. 1 DISCLAIMER: The views, opinions, statements and legal conclusions contained in this publication are those of the authors, and do not represent official statements of the State of Utah or the Utah Department of Commerce. Any errors or misstatements in this publication are solely those of the authors. This document is not legal advice and does not remove the need to consult with your own attorney. ACKNOWLEDGEMENTS: This edition was initially revised and formatted by Richard Plehn (BYU Law School, Class of `17), and ongoing revisions are made by the legal staff of the Utah Office of the Property Rights Ombudsman. Special gratitude goes to Craig M. Call, former Utah Property Rights Ombudsman, who laid the foundation for the material in this booklet. We also express gratitude to the Utah Department of Commerce and the Land Use and Eminent Domain Advisory Board for their ongoing support and assistance. Statutory Requirements: By delivering a complete printed copy of this document to property owners as early as practical in the negotiation process, a condemning authority will comply with the express duty to provide property owners with materials referred to in UTAH CODE § 78B-6-505(1) (b) (i) and UTAH CODE § 78B-6-505(3)(b)(i). ii Table of Contents Your Rights as a Property Owner 1 What Is Happening? 3 What Is Just Compensation? 5 What Is the Process? 7 How Will This Affect Me and My Land? 9 What Does the Ombudsman's Office Do? 11 Further Questions 13 Glossary .14 How to Contact the Office of the Property Rights Ombudsman 15 Sources of Law 16 iii Your Rights As a Property Owner Facing Eminent Domain Both the U.S and the Utah Constitutions allow the taking of private property for public use, but only for a "public purpose" and the government must pay you 'just compensation." The following is a summary of your rights with respect to the acquisition of your property through eminent domain in Utah. A more detailed discussion follows. ➢ You have the right to ask questions about eminent domain in order to understand how it will affect you. ➢ You have the right to consult with and seek the assistance of the Office of the Property Rights Ombudsman at any time during the eminent domain process and without cost or penalty from the acquiring agency. ➢ You have the right to engage the services of a private attorney to represent you and to protect your interests. ➢ You have the right to know the public purpose for which your property is being acquired, and to challenge the necessity of the acquisition. ➢ You have the right to examine and copy public documents involving your project, and to be shown precisely what is being acquired from you. ➢ You have the right to receive just compensation when an agency acquires your property for public use. ➢ You have the right to know how the acquiring agency calculated the compensation for your property, and to request a copy of the appraisal report they obtained. �' Y o u h a v e t h e r i g h t t o t h e o p p o r t u n i t y t o a c c o m p a n y t h e a p p r a i s e r h i r e d b y t h e a g e n c y d u r i n g h i s o r h e r i n s p e c t i o n o f y o u r p r o p e r t y , a n d t o t a l k t o t h e a p p r a i s e r b e f o r e a v a l u e i s r e a c h e d . �' Y o u h a v e t h e r i g h t t o n e g o t i a t e w i t h t h e a c q u i r i n g a g e n c y o v e r t h e a m o u n t o f c o m p e n s a t i o n y o u r e c e i v e , a n d t o p r o v i d e e v i d e n c e t o t h e a c q u i r i n g a g e n c y i n s u p p o r t o f y o u r j u s t c o m p e n s a t i o n c l a i m s . �' Y o u h a v e t h e r i g h t t o a t t e m p t t o r e s o l v e e m i n e n t d o m a i n d i s p u t e s o u t o f c o u r t , t h r o u g h f r e e m e d i a t i o n o r a r b i t r a t i o n w i t h t h e O f f i c e o f t h e P r o p e r t y R i g h t s O m b u d s m a n . Y o u h a v e t h e r i g h t t o r e q u i r e m e d i a t i o n a n d a r b i t r a t i o n e v e n i f t h e a c q u i r i n g a g e n c y o b j e c t s . �' Y o u h a v e t h e r i g h t t o r e q u e s t , a s p a r t o f m e d i a t i o n t h r o u g h t h e O f f i c e o f t h e P r o p e r t y R i g h t s O m b u d s m a n , a n a d d i t i o n a l a p p r a i s a l o f y o u r p r o p e r t y a t t h e a g e n c y ' s e x p e n s e . �' Y o u h a v e t h e r i g h t t o d e m a n d t h a t a n y o r a l r e p r e s e n t a t i o n s o r p r o m i s e s b y t h e a c q u i r i n g a g e n c y b e m a d e i n w r i t i n g a n d s i g n e d b y s o m e o n e w i t h a u t h o r i t y t o d o s o . �' Y o u h a v e t h e r i g h t t o r e c e i v e d u e p r o c e s s . I f t h e a c q u i r i n g a g e n c y t a k e s y o u t o c o u r t t o c o n d e m n y o u r p r o p e r t y , y o u h a v e a r i g h t t o n o t i c e , t o r e q u e s t t r i a l b y j u r y , t o p r e s e n t e v i d e n c e a n d t o e x a m i n e w i t n e s s e s . Y o u a l s o r e t a i n t h e r i g h t t o n e g o t i a t e w i t h t h e c o n d e m n i n g a g e n c y o v e r j u s t c o m p e n s a t i o n a f t e r l i t i g a t i o n b e g i n s . F o r m o r e d e t a i l s c o n c e r n i n g t h e s e r i g h t s , o r i f y o u h a v e q u e s t i o n s , p l e a s e c o n t a c t t h e O f f i c e o f t h e P r o p e r t y R i g h t s O m b u d s m a n . 2 What Is Happening? What is eminent domain? Eminent domain is the government's power to acquire private property for a public use or purpose. This is called a "taking" or "condemnation." Both the Utah and U.S. Constitutions require a condemning authority to pay property owners "just compensation" for land taken. What is a public purpose? Eminent domain is available only where the property is needed for a "public purpose." Governments provide many public services that require property and facilities, such as police departments, fire stations, schools, roads, and utilities. Utah statutes specify the public purposes for which eminent domain may be used to acquire property. Who can take my property? Although eminent domain is a government power, private non- governmental entities such as public utilities, mining companies, or railroads can also use the power of eminent domain to acquire private property because the services they provide will be for a "public purpose." Can I stop (or change) the project? Eminent domain power is inherent in government, and is important to accomplish various public services. As long as the condemnation process complies with statutory requirements, it is unlikely you can stop or alter the project. However, you do have the right to obtain an additional appraisal and resolve the issues of just compensation outside of court. If you cannot come to an agreement, the *agency may use legal proceedings in court to condemn the property, where a judge or jury will determine your just compensation. *From here on, the condemning authority — whether public or private — will be referred to as "agency." 3 Can they take immediate possession of my property? The acquiring agency must give you the opportunity to negotiate before taking legal action. You have the right to know about and examine any evidence used to establish the amount of just compensation before any formal mediation, arbitration, or trial. When a local government —such as a city or school district — wishes to take your land, a public meeting is required. The agency's need to condemn your property will be discussed. You must be notified of that meeting before the agency starts any legal action. If the agency determines that good faith negotiations have reached an impasse, they may theta attempt to take possession of your property through court action. If you are required to move, you also have the right to receive 90 days written notice before moving, unless an emergency exists. Can I believe what the agency tells me? It is a good idea to obtain verification in writing of any promises made by the agency. Only written promises, signed by someone with authority, can bind the agency. You have the right to consult at any time with the Office of the Property Rights Ombudsman about your rights in eminent domain proceedings. The attorneys at the Office of the Property Rights Ombudsman can help verify the information the agency tells you. 4 What Is Just Compensation? How is just compensation determined? Just compensation is the fair market value of the property acquired. The value may be determined through an appraisal, which analyzes the property's value and the effect of the taking. What is fair market value? The fair market value of property and improvements is determined by calculating what a reasonable and well-informed buyer would pay to purchase property from a reasonable and well-informed seller. This is usually estimated by looking for recent sales of similar property, although other methods may be used. What are severance damages? When only a portion of a property is taken, the remainder may be damaged because the portion has been separated, or "severed" from the rest of the property. Severance damages are awarded when the value of the remaining portion is reduced because of the taking's effects. Severance damages may be reduced by the value of any benefits to the property from the public project. 5 What is not considered just compensation? Just compensation does not include sentimental value, historical interest, long-time ownership, unique need or use, or emotional trauma for having to sell. Other unavoidable aspects or inconveniences of construction that affect all properties, such as noise and dust, are also not considered. May I dispute the compensation amount? Condemning agencies must attempt to negotiate the purchase of your property before filing an eminent domain action. They may establish the price through their negotiations with you. You have the right to reject any offer for any reason, or to request more information if unable to decide due to insufficient facts. The agency has the right to use the court for resolution if good faith negotiations reach an impasse. Can I get attorneys' fees? Legal fees of a landowner incurred by going to court over a condemnation are not recoverable in Utah, except in certain very limited circumstances. You may contact the Office of the Property Rights Ombudsman for more specific details related to your particular situation. 6 What Is the Process? What will happen if we cannot agree on compensation? If you and the agency are unable to reach an agreement on the amount of just compensation, the agency will likely use its eminent domain power by filing a condemnation action in court. Even if this happens, you still retain the right to continue negotiations and use the services of our office. The Office of the Property Rights Ombudsman may assist by mediating settlement discussions, or by deciding the value in arbitration. What is a right of occupancy agreement? A right of occupancy agreement may be negotiated between you and the agency as an alternative to legal action. This usually gives you more time to reach a resolution before the agency files a condemnation action. The agency will agree to pay their estimate of just compensation —usually into escrow —in exchange for you permitting the agency to occupy your property and begin the project. The agreement usually includes a waiver of your right to challenge any aspect of the condemnation in court, except for issues of additional just compensation. Can I get another appraisal? You may be eligible to receive an additional appraisal at the agency's expense if requested through the Office of the Property Rights Ombudsman, if the additional appraisal is reasonably necessary to resolve a dispute over just compensation. You may also obtain additional appraisals at your own cost to use in negotiation, arbitration, or trial. 7 Is the appraiser required to contact me? Yes. You have the right to be informed of the agency's designated appraiser's inspection of your property, and to obtain information about the appraisers, such as names and addresses. The appraiser must give you the opportunity to accompany the appraiser during the property inspection and to talk to him or her before a value is reached. Homeowners are entitled to a copy of the appraisal on request. Business and farm owners are entitled to know what appraisals exist and why they are not allowed to see their during negotiations. You will be entitled to see the appraisal before a formal mediation, arbitration, or trial. Can I negotiate directly with the agency? Yes. You always have the ability to negotiate directly with the agency during any step of the process, whether or not our office is involved, or even if the case is already in court. During negotiations, be aware that while agency representatives will try to answer questions and explain the project, they may not have the power to promise you anything that binds the agency. In making any decision based on something you have been told, be sure to (1) get those promises or representations in writing, and (2) get them signed by someone having authority to bind the agency acquiring your land. 8 How Will This Affect Me and My Land? What if access to my land becomes more difficult? If a project on part of your property interferes with direct access to the remainder of your property, you may be entitled to severance damages. Severance damages are only awarded when the remaining portion of your property's value has been reduced because of the taking's effects. For specific questions regarding damages for loss of access, view, visibility, or traffic flow, please contact the Office of the Property Rights Ombudsman. Can I require the agency to buy the whole property instead of a portion? Although an agency may not be required to purchase all of your property, you can always request that they do so. In any event, an agency must compensate you for the full loss of value to any of your remaining property by reason of its severance from the property acquired by the agency. Please contact the Office of the Property Rights Ombudsman to discuss your particular situation. What is the agency's obligation for improvements that they remove or damage? Improvements on property such as buildings, landscaping, fences, etc., generally contribute value to the property, although not always. Improvements are not separately assessed but are usually calculated into the fair market value of the property based on what they contribute to the overall value. Where only part of a property is taken, the agency has a legal obligation to replace, repair, or pay for any damage done to the property or improvements. In cases of temporary construction easements, any damage to improvements or fixtures are assessed and compensated. 9 The construction will impact my business. Can I get compensated for that? Typically the agency does not need to compensate you for any business losses in addition to what it must pay as just compensation. Please contact the Office of the Property Rights Ombudsman regarding your specific circumstance. If I need to move, am I entitled to relocation expenses? You may be eligible to receive relocation expenses if the agency requires you to move your home, farm, or small business. Federal and state laws and regulations determine relocation amounts, and you must comply with the conditions imposed by those laws to be eligible. Contact the Office of the Property Rights Ombudsman for more information. What is a temporary construction easement? Not all takings are permanent. It is often necessary for the agency to temporarily use or access your property for a constriction project. For example, a small portion of your property may be needed temporarily to work on a sidewalk, even though your property will not be used for the sidewalk itself. A temporary constriction easement gives the agency the right to come onto your property to do their work. You are still entitled to compensation for that temporary use of your property, as well as for any damage done to your property as a result. 10 What Does the Ombudsman's Office Do? What service can you provide? The Office of the Property Rights Ombudsman can advise you about your rights in the condemnation process. The Ombudsman's office can also help facilitate negotiations between you and the agency, order an additional appraisal of your property at the agency's expense, or conduct a formal mediation or arbitration to resolve a dispute outside of court. Are you my lawyer? No. The Office of the Property Rights Ombudsman is a neutral, non -partisan state agency, and does not represent individuals. The attorneys that staff the Ombudsman's office can assist you through advising, educating, and facilitating your negotiation with the condemning agency through mediation or arbitration. However, we cannot represent you or act as your attorney. If you retain your own attorney to represent you in your property matter, you may still utilize the services of the Ombudsman's office. Will you help me negotiate? The Office of the Property Rights Ombudsman can be a liaison between you and the agency to discuss a matter or potential dispute. The Ombudsman's office will attempt to help everyone understand the perspective of the others involved, and try to find an acceptable resolution. 11 What are mediation and arbitration? Mediation is a face-to-face meeting between the parties, led by a neutral third party. An Ombudsman, acting as the mediator, will assist all parties to evaluate facts and issues to reach a resolution. Mediation is voluntary; there is no obligation to settle, and you can walk away at any time. Arbitration is more formal than mediation. Parties can present evidence and the arbitrator, like a judge, will issue a decision to resolve the dispute. The arbitration process is much faster and less formal than a court proceeding. The decision of the arbitrator is non -binding, but may become binding if neither party makes a timely appeal to a court. Both mediation and arbitration are voluntary and property owners are not required to participate even if the agency requests it. If you, however, want to mediate or arbitrate and the Ombudsman's office detennines it to be appropriate, the agency involved must participate. How much does it cost? The mediation and arbitration services provided by the Office of the Property Rights Ombudsman are free. 12 Further Questions The following are additional common questions not addressed in this material. You may contact the Office of the Property Rights Ombudsman concerning these or any other questions you may have about the condemnation process. What Is Happening? What about crops or income from the property? Do they owe me for property shown on my deed that is under an existing road? Who will pay transaction costs? What if the project adds value to my land? What is the highest and best use of my property? What Is the Process? Can I make changes to the documents that they gave me? Do I have to let the surveyor on my land? Do I have to let the appraiser on my land? Can I see other appraisals in the project? Can I get access to the project records? Can I deal with a different agent? How much will court cost? Can this go to ajury? How Will This Affect Me and Alv Laird? What if I have a tenant on this property? What about greenbelts? What about property taxes? What happens with nonconforming lots and uses afterwards? What if they build or trespass outside of their easement? What if they want to take more land than they need? What if the remainder of the property is useless now? Will this affect my mortgage? What if the project will affect my view? Can they take my water rights? 13 Glossary Appraisal: The process of estimating fair market value in a property or property interest. A qualified state -certified appraiser does this valuation. Condemnation: The acquisition of private property for a public use, for just compensation. Condemnation is used when attempts to reach an agreement have failed. Condemnation actions are brought under the power of eminent domain. Eminent Domain: The legal process by which a government or private entity acquires property by condemnation for a public use and pays the owner just compensation. Fair Market Value: The sale price that a willing and informed seller and buyer would agree upon within a reasonable time. The price is usually arrived at by an analysis of values of comparable properties in the area. Just Compensation: The price a condemning agency must pay for property as a result of the eminent domain process. Just compensation is the established fair market value as of the date that is fixed by law that the acquisition became sure. Unless otherwise negotiated, this is the date that a summons was served on those holding an interest in the property. Ombudsman: an independent public official appointed to investigate and address complaints by individuals against public bodies. Property Owner: The person or entity that owns or leases land subject to eminent domain proceedings. Right of Occupancy Agreement: An agreement entered into by the owner with the condemning agency, giving the agency the right to occupy the property prior to finalizing an agreement over the amount of just compensation. Severance Damages: An amount owed to a property owner if only part of the property is acquired for a project, and the remainder suffers a net loss of value because of the project. Taking: A legal term used to describe the agency's acquisition of property through the power of eminent domain, for a public use, and requiring just compensation. Uneconomic Remnant: The portion of a property owner's property that remains after a taking which is determined to be of little value or utility. 14 How to Contact the Office of the Property Rights Ombudsman In Person: Office of the Property Rights Ombudsman Department of Commerce 160 East 300 South, Second Floor Salt Lake City, UT 84111 By Mail: Office of the Property Rights Ombudsman PO Box 146702 Salt Lake City, UT 84114-6702 By Phone: (801) 530-6391 in Salt Lake City (877) 882-4662 Toll free statewide By Fax: (801) 530-6338 By Email: propertyrights@utah.gov Online: https:llpropertyrights.utah.gov. 15 Sources of Law Referred to in This Booklet The following statutes and laws are available online at both the Utah Legislature's website as well as the website for the Office of the Property Rights Ombudsman. Utah State Legislature: https:llle.utah.gov Office of the Property Rights Ombudsman: https://propertyrights.utah.gov Utah Constitution: Eminent domain powers: Article I, Section 22. Utah Code: Eminent Domain: Sections 78B-6-501 thru 522. Relocation Assistance: • Sections 57-12-1 thru 14. Property Acquisition Procedures: • Section 78B-6-505. • Section 57-12-13. Dispute Resolution: • Section 78B-6-522. ■ Section 57-12-14. Property Rights Ombudsman: ■ Sections 13-43-101 thru 206. 16 .rttiss��♦d f / (� i' ° 44"*.°#1°4. a - � ir;if '�A �h� �1. ti � Nek �, l ili4 i �., !� ... % � iii .. • A T �• �rrrsrAOf°s •• ,/AP Ar If Office of the Property Rights Ombudsman State of Utah Department of Commerce 160 East 300 South, Second Floor Salt Lake City, UT 84111 Mailing Address: Office of the Property Rights Ombudsman PO Box 146702 Salt Lake City, UT 84114-6702 (801) 530-6391 in Salt Lake City 1-877-882-4662 (1-877-UTAH OMB) — Toll free statewide Fax: (801) 530-6338 Email: propertvrightsCa)utah.v,ov Website: http5:11propertyrights.h.gov February 2018 VAN DRIMMELEN & ASSOCIATES, INC. REAL ESTATE APPRAISERS 1 CONSULTANTS AN APPRAISAL REPORT OF A PERPETUAL EASEMENT AND TEMPORARY CONSTRUCTION EASEMENT WITHIN PROPERTY OWNED BY MOAB LODGING, LLC LOCATED AT ±1515 NORTH MAIN STREET (US-191), MOAB, UTAH PREPARED FOR MOAB CITY c/o Mr. Chuck Williams, P.E. City Engineer PROJECT IDENTIFICATION MOAB CITY SEWER IMPROVEMENT PROJECT PREPARED BY KENDALL S. MITCHELL,MAI CERTIFIED GENERAL APPRAISER DATE OF INSPECTION MAY 18, 2019 EFFECTIVE DATE OF VALUATION MAY 19, 2019 DATE OF THE REPORT JUNE 3, 2019 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com VAN DRIMMELEN & ASSOCIATES, INC. REAL ESTATE APPRAISERS CONSULTANTS June 3, 2019 Project: Moab City Sewer Improvement Project The Moab City Mr. Chuck Williams, P.E. City Engineer 217 East Center Street Moab, Utah 84532 Re: An Appraisal Report of a perpetual easement and temporary construction easement within property located at 1515 North Main Street (US-191), Moab, Utah. Recorded Ownership: Moab Lodging, LLC; Project Description: Moab City Sewer Improvement Project; Project Parcel No.:Moab Lodging (appraisal reference purposes only); Appraisal Report File #2026km0519. Dear Mr. Williams, P.E.: At your request, I have spoken with a qualified ownership representative and inspected the property owned by Moab Lodging, LLC, located at ±1515 North Main Street (US- 191), Moab, Utah. The purpose of the inspection and subsequent investigation and analysis is to estimate market value of the property, as of the specified date of valuation, for the proposed acquisition of the property rights specified for a state or federally assisted project. Reportedly, the perpetual easement and temporary construction easement are to be acquired by Moab City through negotiations and/or possible condemnation proceedings incident to the Moab City Sewer Improvement Project in northern Moab City. The defined larger parcel is identified as all of Grand County parcel number 01-126- 0005, which is ±4.90 acres in size and is improved with a Holiday Inn Express Hotel. The subject is being affected by easements only, and the proposed easements are in the rear (west) and undeveloped portions of the larger parcel. The Holiday Inn Express Hotel will not be impacted by the proposed easements and will remain in the after condition with similar and unchanged setbacks and the overall use and utility of the site and improvements will not be negatively impacted by the imposition of the acquisitions. As such, no damages to the hotel is necessary and the vertical improvements are excluded from this analysis and have not been inspected, appraised or otherwise considered herein. The market value(s) outlined herein represent the underlying land value(s) only. 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com Mr. Chuck Williams, P.E. June 3, 2019 Page 2 The perpetual easement, identified as Project Parcel No.: PE is within the west portion of the larger parcel and is west of the hotel and related landscaping/parking lot improvements within undeveloped open space. The shape of the easement is mostly rectangular. It has a reported uniform depth of 20.00 feet, with a maximum length of 161.24 feet along the west border. Please refer to the maps and documents in the report for further clarification. The area contained within the perpetual easement is 3,667 square feet, or 0.084 acre. The purpose of Parcel PE is defined in the legal description provided by the client for "establishing, installing and constructing maintaining, enlarging and repairing sewer lines, along with associated surface structures including manholes, control boxes, cables and such other surface and sub- surface appurtenances as may be deemed necessary for the intended use." Additionally, the legal description states that the easement shall be non-exclusive, and the Grantor (property owner) shall have the right to use the easement in a manner that does not impair or harm the grant or use by Grantee. Moab Lodging, LLC will retain ownership of the area to be encumbered by the easement. The easement appears to be both an underground and above ground easement, given the stated purpose for underground sewer lines and above ground associated surface structures. The temporary construction easement, identified as Project Parcel No.: TCE is also within the western portion of the larger parcel and is adjacent east of the perpetual easement. The temporary easement is reported to be a uniform 30 feet in width, with a maximum length of 158.54 feet along the west border of the easement. Please refer to the maps and documents in the report for further clarification. According to legal descriptions provided by the client, Project Parcel No. TCE is 5,782 square feet, or 0.133 acre. The temporary easement will be used during the construction phase of the project so that workers can access the area to construct the sewer line. The client reports that the easement will expire on January 1, 2021, which date is ±19 months from the effective date of valuation and the easement will effectively be for a 1.6 year term. Moab Lodging, LLC will retain ownership of the area to be encumbered by the easement and the temporary easement will expire. No other acquisitions/easements are proposed and the size of the remainder in the after condition will be 213,444 square feet, or 4.900 acres, which unchanged relative to the before condition and the overall utility and market value of the remainder is not significantly impacted by the imposition of the acquisition. It is noted that the easements are contained within a portion of the larger parcel that is not developed and is within a 100-year flood zone associated with the Colorado River westerly. Right-of-way appraisal dictates that the acquisitions be appraised and valued as part of a larger whole parcel, and not the specific and isolated portion that is being proposed for acquisition. The defined larger parcel comprises all of Grand County parcel number 01-126-0005, which is ±4.90 acres and the majority of the site is not in the flood plain and is near fully developable/developed. The flood plain designated 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com Mr. Chuck Williams, P.E. June 3, 2019 Page 3 portion encumbers ±10-15% of the whole site. Open space is generally required by most municipalities for development, and the amount of flood zone area is not significant and does not represent a major obstacle to development, particularly considering that the majority of the site is out of the flood plain and fronts to Main Street. Thus, the acquisitions are valued as part of a larger whole parcel which is developable and functional with wide market appeal, and the acquisitions are not appraised as the specific portion of the site within the 100-year flood plain. Meeting with Property Owner: The reported property owner representative and contact person for negotiations is Mr. Tim Koehler (605-530-7775 (cell)). Mr. Koehler lives in South Dakota and was contacted by telephone on May 9, 2019. Copies of the project maps and legal descriptions for the acquisitions were emailed to him (jimk(a tkohoteis.com) shortly after the conclusion of our telephone conversation. Mr. Koehler is currently going through the same right-of-way process with the UDOT Main Street project and is familiar with the process. He understood the nature of the acquisitions and did not have any major concerns. He did not feel the need to meet with me and gave me permission to inspect the property on my own. We discussed the timing for completion of the appraisal and start of negotiations, and I stated that he would likely be provided with a copy of the appraisal during the negotiation process. Mr. Koehler was cordial and stated he would wait to hear from Moab City in the near future. After analyzing all of the data presented in the report, I am of the opinion that the market value of the perpetual easement and temporary construction easement — As Is — of the fee simple interest (as defined in the attached Report and subject to the definitions, certifications, assumptions, and limiting conditions set forth) including any necessary severance/proximity damages, site improvements taken and/or cost to cure considerations, as of May 19, 2019, is: THIRTY-SEVEN THOUSAND SIX HUNDRED DOLLARS ($37,600) i Definitions of market value and the fee simple estate are included in the attached document. An appraisal was performed in accordance with Standards Rule 1 as defined by the Uniform Standards of Professional Practice (USPAP). The attached report is an Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of USPAP. This appraisal report conforms with and is subject to the 2018-2019 Uniform Standards of Professional appraisal Practice (USPAP) of the Appraisal Foundation, the Uniform Act, C.F.R. 24.103, the Utah Relocation Assistance Act, Utah Code Section 57-12, Utah State Code Title 78B, the Code of Professional Ethics, UDOT appraisal requirements/scope of work 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com Mr. Chuck Williams, P.E. June 3, 2019 Page 4 agreement and applicable Uniform Appraisal Standards for Federal Land Acquisitions, where applicable. As is typical of right-of-way appraisal assignments, this report presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop an opinion of market value. Supporting documentation is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client. This report has been prepared for your use. As is customary in assignments of this nature, neither my name, my company name, nor the material submitted may be included in any prospectus, in newspaper publicity, or as part of any printed material; or used in offerings or representations with the sale of securities or participation interests to the public. No parts of this written report, including my name/company name or any value conclusions and/or explanations may be disseminated online or in other medium intended for general public consumption without prior written permission. The use of this appraisal report, by the client or by a third party, will mean acceptance of all assumptions and limiting conditions contained in the Letter of Transmittal, Preface, and attached report. The appraiser is not responsible for unauthorized use of this report. The value given is subject to the general assumptions and limiting conditions, and specific extraordinary assumptions stated in the attached report and outlined in the addendum. It is important that the reader of this report review and understand all general and specific assumptions and limiting conditions. This letter must remain attached to the report in order for the value opinion set forth to be considered valid. The effective date of value is May 19, 2019. The date of the report is June 3, 2019. Your attention is invited to the attached appraisal report, which outlines the data collected and the methods used to formulate an opinion of the market value of the subject property and the perpetual easement and temporary construction easement. If you have any questions, please do not hesitate to contact me. Respectfully submitted, Kendall S. Mitchell, MAI Utah State Certified General Appraiser License #5499885-CGOO Expires 4-30-20 Enc. 774 East 2100 South Salt Lake City, Utah 84106 Phone 801.483.3000 www.valueutah.com i Table Of Contents Certification of Value Summary of Salient Facts and Conclusions iv Subject Photographs 3 Introduction 8 Scope of Work 8 Larger Parcel Determination 10 Meeting with Property Owners 11 Purpose of the Appraisal, Property Rights Appraised, Effective Date(s) and Definitions 11 Factual Data - Before Acquisition 14 Identification Of Property 14 Summary of Area Information 15 Area Map 25 Neighborhood Description 26 Neighborhood Map 31 Site Description 32 Description of Improvements 38 Recent History of the Property 38 Real Estate Taxes & Assessments 38 Data Analysis and Conclusions -Before Acquisition 39 Highest and Best Use 39 Market Overview - commercial 43 Land Valuation 47 Proposed Project & Factual Data After Acquisition 60 Description of Proposed Project 60 Description of Property — After Acquisition 65 Highest and Best Use — After Acquisition 66 Valuation of the Perpetual Easement 66 Data Analysis & Conclusions — After Acquisition 69 Valuation of Site Improvements Impacted 69 Damages to the Remainder 69 Valuation of the Temporary Easement 71 Cost to Cure 73 Special Benefits 74 Summary Of Values 75 Reconciliation and Final Estimate of Value 76 Exhibits & Addendum 77 Location Map Plat Map Aerial Map Flood Map Zoning Map Comparable Land Sales Data Sheets Ownership Records / Legal Descriptions County Information Assumptions and Limiting Conditions Qualifications of Appraiser Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC ii Certification Re: An Appraisal Report of a perpetual easement and temporary construction easement within property located at 1515 North Main Street (US-191), Moab, Utah. Recorded Ownership: Moab Lodging, LLC; Project Description: Moab City Sewer Improvement Project; Project Parcel No.:Moab Lodging (appraisal reference purposes only); Appraisal Report File #2026km0519 I certify that to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analysis, 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 appraised that is the subject of this report, and no personal interest with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice (USPAP). 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 10. Kendall Mitchell, MAI has made a personal inspection of the property that is the subject of this report. 11. Jennifer Adams provided factual data research and significant real property appraisal assistance to the person signing this certification. She did not inspect the property. 12. I have complied with the Appraisal Standards of USPAP and the Appraisal Institute in conducting the research and analysis, and in formulating the value conclusion(s) contained in this report. 13. The Ethics Rule of the Uniform Standards shall be enforced solely by enforcement of the Code of Professional Ethics under the existing enforcement procedures of the Appraisal Institute. 14. As of the date of this report, Kendall Mitchell, MAI is licensed by the State of Utah, Department of Commerce, Division of Real Estate. Under the state's licensing regulations, Kendall Mitchell, MAI is a Certified General Appraiser and my license has not been revoked, suspended, canceled, or restricted. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Letter of Certification (Continued) 15. The undersigned hereby acknowledge that I have the appropriate education and experience to complete the assignment in a competent manner. The reader is referred to the appraiser's statements of qualifications found in the addendum of this report. 16. I previously appraised the subject in March/April of 2019, identified by my appraisal file number 1997kmO419 related to the UDOT Main Street improvement project. This is a new assignment with a different client. Other than this previous appraisal, I have not appraised or provided other professional services related to the subject property within the last three (3) years. 17. As of the date of this report, Kendall Mitchell, MAI has completed the continuing education requirements for Designated Members of the Appraisal Institute. Dated: June 3, 2019 iv\kAlt( Kendall S. Mitchell, MAI Utah State Certified General Appraiser Certificate #5499685-CGOO, Expires 04-30-20 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC iv Summary of Salient Facts and Conclusions TYPE OF PROPERTY APPRAISED: ADDRESS: PURPOSE OF THE APPRAISAL: PROPERTY RIGHTS APPRAISED: OWNER OF RECORD: COUNTY PARCEL NUMBER(S): SITE/IMPROVEMENT SUMMARY (BEFORE): Gross Land Size: Area within Existing R/W: Land Size: (Net of Existing R/W) Zoning: Improvements: HIGHEST AND BEST USE (BEFORE): As Vacant As Improved PROJECT DESCRIPTION: DESCRIPTION OF ACQUISITION(S): AREA OF ACQUISITION(S): Perpetual Easement (PE) Temporary Easement (TCE) A ±4.90 acre commercial lot. 1515 North Main Street (US-191), Moab, Utah. To estimate market value of the property, as of the specified date of valuation, for the proposed acquisition of the property rights specified for a state or federally assisted project. Fee simple Moab Lodging, LLC 01-126-0005 ±213,444 square feet, or 4.90 acres (none reported) - extracted ±213,444 square feet, or 4.90 acres — net of ROW RC (Regional Commercial); Holiday Inn Express Hotel (excluded) For commercial development as demand is manifest N/A — The vertical improvements are excluded. Moab City Sewer Improvement Project A perpetual easement and temporary construction easement. 3,667 square feet, or 0.084 acre 5,782 square feet, or 0.133 acre Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC v Summary of Salient Facts and Conclusions (Continued) SITE/IMPROVEMENT SUMMARY (AFTER: Land Size: ±213,444 square feet, or 4.900 acres Improvements: Holiday Inn Express Hotel. HIGHEST AND BEST USE (AFTER): As Vacant For commercial development as demand is manifest. As Improved N/A — The vertical improvements are excluded from this analysis. CONCLUDED MARKET VALUES A) Market Value of the Whole: $ 3,628,548 B) Value of the Acquisition(s): $ 24,936 C) Value of the Remainder as part of the Whole: $ 3,603,612 D) Value of the Remainder after the Acquisition: $ 3,603,612 E) Value of Damages/Cost To Cure $ 12,582 F) Special Benefits $ 0 G) TOTAL AWARD Partial Fee Acquisition(s) $ 0 Perpetual Easement(s) $ 24,936 Temporary Easement(s) $ 12,582 Improvements Acquired $ 0 Severance Damages $ 0 Less: Special Benefits ($ 0) Cost To Cure $ 0 Total $ 37,518 ROUNDED: $ 37,600 DATE OF VALUATION: "As Is" May 19, 2019 DATE OF THE REPORT: June 3, 2019 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC vi SUMMARY OF COMPENSATION Moab C'ty - Sewer Improvement Project o CT Q -o as J Parcel # Owner(s) Acquisition (SF) Easement (SF) $/Unit Factor Factor Sub -Total TOTAL(S) PE Moab Lodging, LLC 3,667 $17.00 0.40 1.00 $24,936 TCE Moab Lodging, LLC 5,782 $17.00 0.08 1.60 $12,582 $37,518 u) a) > o o_ Parcel # Improvements Acquired Unit Quantity Unit Price Deprec. Adj. $/Unit Totals TOTAL(S) Moab Lodging None necessary $0 $0 a) D U 0 H �, o U Parcel # Cost -to -Cure Unit Quantity Unit Price Factor Adj. $/Unit Totals TOTAL(S) Moab Lodging None necessary $0 $0 a) m E a3 0 Parcel# Damages Totals TOTAL(S) Moab Lodging None necessary $0 Total $0 w a c a) m m .0 a) Q Parcel # Special Benefits Unit Price Factor Factor Totals TOTAL(S) Moab Lodging None necessary $0 $0 3 Q o F' Total Award Moab Lodging Subtotal $37,518 Total, Rounded Off/Up + $82 $37,600 Project Desc: Moab City Sewer Improvement Project Ownership: Moab Lodging, LLC VAN DRIMMELEN & ASSOCIATES, INC. 1 Project Maps i ROTECr PISTING 24" CMP. PARCEL LINE (lYP) - STOR1.1 pRAIN Q ® `' AND WRAP -1 A51 r4 ac x � � Gl SU x EXISTING %�r'� c ` . n wETLANDS.® ` ; z AND DITCH -._,f % ff jj�l x •x h � rp7 t---- r - PUMP SrAM SITE PLAN SSiMI4-7 (5' OIA7 0 srn 32+89.6 CONTRACTOR ' E 2191174,90 ORANGE CON N 6E53238.83 FENCING ARC DURING CON:: PROTECT Etta -11 o CICONCRETE P t : o 0 a 1- a _� I �. r ..�_-_.__._; 1 _ — -.__! i_ • 1 _.r- _ ▪ _ _ Nay. I.5 ISEWER UNE ` �' ° ,i�OAB LD AGING Lf_C j �;� 1 2 5- -NEW sEy4ER �. + 5.LpIA) L'1 Q g 9 TRENCH/ DIX �'� S<AT10N a r, (TtP � 3) QO ,25•1411.15. EXISTING ..25+88.47 •' �• EK1EXI S Ul'lLY4 r• 15 (TYP OF 3} Fi.SE�I"=N1 .27 QIII ` l}BRi 35 PVC y y 1 •'.,C p1 FOR: HOLIDAY INN t lf] y Z - SEWER::ERAL .I,Q FRTES MOAB Ir �� ! 1-A'fEXTENSION, MART{ i DWG NO: C-05 — HOLIDAY 0 ) FOR PARCHWAY INN LATERAL ExTENS1011, DWG ND. C-06 j•. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 2 CASA DE AMIGOS LLC 01-126-0006 N 53°35'00" E 30.27' N 53°35'00" E 20.18' 20' SEWER LINE EASEMENT *5SIONAlt ' h q� tii s � NO. 7540504 •' z 'i LUCAS ,m BLAKE ; 116119 •'. - , S LEGEND 30' TEMPORARY CONSTRUCTION EASEMENT \ \ ♦ d' \ \ vv.. \ \\ 0y� ♦♦+v \ \'F° \fie ♦ v \ cgs ♦�'r ♦v. \v �� \ os \n, •\ • v \ v \fi \9 \0" \ rs� \ \� \.t� \ \ r� \ \ \ r' \ \ \ le. \ N 44°06'40" W 18.35' POB J SEWER EASEMENT O. Property Corner MOAB LODGING LLC 01-126-0005 POB 'TEMPORARY EASEMENT S 44°06'40" E 43.85' S 72°55'00" W 33.68' S 44°06'40" E PA ♦ 28.55' D5 ♦ S 72°55'00" W /,y,.♦22.45' NATURE CONSERVANCY c/ sip \ 01-126-0004 00,\ \ Ni CORNER, SECTION 35, T25S, R21 E, SLB&M (FOUND REBAR) \ y"K. T Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 3 Subject Photographs View of West Portion of Larger Parcel Project Desc: Moab City Sewer Improvement Project Ownership: Moab Lodging, LLC VAN DRIMMELEN & ASSOCIATES, INC. 4 Easements Looking Southerly from NWC Project Desc: Moab City Sewer Improvement Project Ownership: Moab Lodging, LLC VAN DRIMMELEN & ASSOCIATES, INC. 5 South Portion of Easements Lookin • West from SWC Easements Looking Northerly from SWC Project Desc: Moab City Sewer Improvement Project Ownership: Moab Lodging, LLC VAN DRIMMELEN & ASSOCIATES, INC. 6 Street Scene: Interior Driveway Looking North Street Scene: Main Street (Highway 191) Lookinc,� North Project Desc: Moab City Sewer Improvement Project Ownership: Moab Lodging, LLC VAN DRIMMELEN & ASSOCIATES, INC. 7 Street Scene: Main Street (Highway 191) Looking South Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 8 CLIENT: APPRAISER: SUBJECT: Introduction Moab City Mr. Chuck Williams, P.E. City Engineer 217 East Center Street Moab, Utah 84532 Kendall S. Mitchell, MAI Utah State Certified General Appraiser Van Drimmelen & Associates, Inc. 774 East 2100 South Salt Lake City, Utah 84106 A perpetual easement and temporary construction easement located within Grand County Assessor's Parcel Number(s) 01-126-0005. Scope of Work The purpose of the appraisal is to estimate market value of the property, as of the specified date of valuation, for the proposed acquisition of the property rights specified for a state or federally assisted project. The subject comprises a ±4.90 acre commercial lot improved with a Holiday Inn Express Hotel. The subject is being affected by easements only, and the proposed easements are in the rear (west) and undeveloped portions of the larger parcel. The Holiday Inn Express Hotel will not be impacted by the proposed easements and will remain in the after condition with similar and unchanged setbacks and the overall use and utility of the site and improvements will not be negatively impacted by the imposition of the acquisitions. As such, no damages to the hotel is necessary and the vertical improvements are excluded from this analysis and have not been inspected, appraised or otherwise considered herein. The market value(s) outlined herein represent the underlying land value(s) only. In preparing this appraisal, the following steps were taken: • Inspected the subject neighborhood, vertical improvements, site and site improvements; • Gathered information on comparable land sales as well as any applicable site improvement and/or cost to cure costs; Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 9 • Confirmed and analyzed the data and applied the Sales Comparison Approach in estimating land value before the acquisition (value as a whole as a total acquisition); • Reconciled the value of the perpetual easement and temporary construction easement; • Estimated any contributory value of any site improvements acquired; and ■ Examined potential severance damage to the remainder, special benefits, and cost to cure if applicable. The commercial improvements will not be negatively impacted and have been excluded from this analysis. The market value(s) contained herein represents land only. The market value estimate of the land for the appraised property is based on the traditional approach to land value, namely the Sales Comparison approach. The Cost Approach is not an applicable approach for the valuation of vacant land and insufficient land lease data is available for the development of the Income Approach. Therefore, these two approaches are not applicable and the Income and/or Cost Approaches have not been completed herein. Items considered furniture, fixtures, and equipment (FF&E), and/or personal property are expressly excluded from the scope of the appraisal, and have not been appraised. To formulate the opinion of value the appraiser performed an appraisal as defined by the Appraisal Foundation's Uniform Standards of Professional Appraisal Practice.» The report has been prepared in compliance with reporting requirements established by USPAP, Federal Regulations, and UDOT appraisal guidelines/requirements for right-of- way appraisals. This Appraisal Report is a summary recapitulation of the appraiser's data, analyses and conclusions. Supporting documentation is retained in the appraiser's file. Jennifer Adams provided report writing, factual data research, and significant assistance to the person(s) signing the report. 1 Uniform Standards of Professional Appraisal Practice, Appraisal Foundation, 2018-2019 Edition. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 10 Larger Parcel Determination In typical right-of-way appraisal assignments, it is necessary to determine and clearly define the larger parcel of which the acquisition(s) are a part of. The definition of larger parcel as per the Dictionary of Real Estate Appraisal, sixth edition (2015) is as follows: • Larger Parcel 1. In governmental land acquisitions, the tract or tracts of land that are under the beneficial control of a single individual or entity and have the same, or an integrated, highest and best use. Elements for consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use. In most states, unity of ownership, contiguity, and unity of use are the three conditions that establish the larger parcel for the consideration of severance damages. In federal and some states cases, however, contiguity is sometimes subordinated to unitary use. Additionally, the Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book - Part III, Section A-14) states that: "Essential in the appraiser's conclusion of highest and best use is the determination of the larger parcel. The appraiser must make a larger parcel determination in every appraisal conducted under these Standards, even in the case of a minor partial acquisition where the client agency has determined a completed before and after appraisal is not necessary" The main areas of consideration for determination of the larger parcel include contiguity, unity of ownership, and unity of use (highest and best use). In the case of the subject, the perpetual easement and temporary construction easement are wholly contained within Grand County parcel number(s) 01-126-0005. This tax parcel represents a commercial lot with stand alone development utility and is under the recorded ownership of Moab Lodging, LLC. No other abutting parcels under the same ownership that would share in unity of use are apparent. Please refer to the aerial parcel maps, plat maps and zoning maps contained in the addendum of the report for further clarification. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 11 Meeting With Property Owner(s) The reported property owner representative and contact person for negotiations is Mr. Tim Koehler (605-530-7775 (cell)). Mr. Koehler lives in South Dakota and was contacted by telephone on May 9, 2019. Copies of the project maps and legal descriptions for the acquisitions were emailed to him (jimk@tkohotels.com) shortly after the conclusion of our telephone conversation. Mr. Koehler is currently going through the same right-of-way process with the UDOT Main Street project and is familiar with the process. He understood the nature of the acquisitions and did not have any major concerns. He did not feel the need to meet with me and gave me permission to inspect the property on my own. We discussed the timing for completion of the appraisal and start of negotiations, and I stated that he would likely be provided with a copy of the appraisal during the negotiation process. Mr. Koehler was cordial and stated he would wait to hear from Moab City in the near future. Purpose of the Appraisal, Property Rights Appraised, Effective Date(s) and Definitions PURPOSE OF THE APPRAISAL: The purpose of this appraisal is to estimate market value of the property, as of the specified date of valuation, for the proposed acquisition of the property rights specified for a state or federally assisted project as of the effective valuation date. CLIENT: The defined client of this report is Moab City as well as their agents and/or assignees. INTENDED USER: The intended user(s) of this report is/are Moab City as well as their agents and/or assignees. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 12 INTENDED USE OF THE REPORT: The intended use of this report is to assist the client in the acquisition of the appraised property through negotiation and/or condemnation proceedings incident to the Moab City Sewer Improvement Project. It is acknowledged that the client may provide the property owner(s) with a copy of the report for courtesy review purposes only. The property owner is not the client. Use of this appraisal by the property owners or any other persons not named in the report for mortgage lending/collateral, refinancing, selling/listing, internal partnership allocation or pending contract renegotiation purposes is strictly prohibited, as defined by State and Federal law. This appraisal report cannot be re -addressed to, or relied upon by other parties not named as the defined client(s) herein. PROPERTY RIGHTS/INTEREST(S) APPRAISED: Fee simple. The definition of this estate is contained below. PERSONAL PROPERTY, FIXTURES, AND INTANGIBLE ITEMS: No personal property, equipment, detached fixtures, or intangible items are included in the appraised values. EFFECTIVE DATE(S) OF VALUATION: The property was last inspected on May 19, 2019, which is the effective valuation date for the subject "As Is". The date of the report is June 3, 2019. SUBJECT STATUS APPRAISED: As per the client's request, the subject is valued in its As Is condition as of the date of inspection. This and other general definitions that may be used within the narrative of the report are outlined below. DEFINITIONS: • Definition of Value "As Is" The value of specific ownership rights to an identified parcel of real estate as of the effective date of the appraisal; relates to what physically exists and is legally permissible and excludes all assumptions concerning hypothetical market conditions or possible rezoning.2 2 The Dictionary of Real Estate Appraisal, (Sixth Edition) The Appraisal Institute, Chicago, Illinois, 2015. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 13 • DEFINITION OF LARGER PARCEL The larger parcel is defined as that tract, or those tracts, of land, which possess a unity of ownership and have the same, or an integrated, highest and best use. Elements of consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use.3 • DEFINITION OF HIGHEST AND BEST USE "The highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonable near future...." 4 • DEFINITION OF EXTRAORDINARY ASSUMPTION An assignment specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. Comment: Uncertain information might include physical, legal or economic characteristics of the subject property, or conditions external to the property, such as market conditions or trends, or the integrity of data used in the analysis. 5 • DEFINITION OF HYPOTHETICAL CONDITION A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. COn7n1e17t: Hypothetical conditions are contrary to known facts about physical, legal or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of the data used in the analysis.6 • DEFINITION OF JURISDICTIONAL EXCEPTION 3 Definition of Larger Parcel; Uniform Standards for Federal Land Acquisitions; 3rd Edition, 2000. 4 Uniform Standards for Federal Land Acquisitions; 3rd Edition, 2000. 5 Uniform Standards of Professional Appraisal Practice (USPAP); The Appraisal Foundation, 2018-2019 Edition 6 Uniform Standards of Professional Appraisal Practice (USPAP); The Appraisal Foundation, 2018-2019 Edition Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 14 An assignment condition established by applicable law or regulation, which precludes an appraiser from complying with part of USPAP. 7 Factual Data — Before Acquisition IDENTIFICATION OF PROPERTY: ADDRESS: 1515 North Main Street (US-191), Moab, Utah LOCATION: West side of Main Street (US-191) at ±1515 North. PARCEL NUMBER(S): 01-126-0005 OWNER(S) of RECORD: Moab Lodging, LLC LEGAL DESCRIPTION: A legal description for the entire larger parcel was provided by the client and is assumed to be correct. A legal description was also obtained from the Grand County Recorder's Office. Specific reliance is made herein on the legal description and size estimates provided by the client, which is assumed to be correct. No responsibility is assumed for any inaccuracies that may exist. Copies of the legal descriptions are contained in the addendum of this report. Review of an A.L.T.A. Survey for the subject property is recommended. 7 Uniform Standards of Professional Appraisal Practice (USPAP); The Appraisal Foundation, 2018-2019 Edition Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 15 SUMMARY OF AREA INFORMATION There are social, economic, governmental, and environmental forces, which influence the value and marketability of the subject of this report. The main focus of this section of the analysis is in regard to the overall economic condition of the state of Utah including population trends/demographics; employment; wages, taxable sales; construction and tourism. A more specific analysis of the subject neighborhood of Moab City and surrounding areas in Grand County will follow in the summary of neighborhood information section. Population Trends/Demographics: The 2019 Economic Report to the Governor (ERG) states that Utah's population grew by 52,664 persons and reached 3,166,647 by July 1, 2018, according to estimates prepared by the Utah Population Committee (UPC). Net migration (in -migration minus out -migration) plateaued in 2018, contributing 23,248 new residents or 44 percent of growth. Natural increase declined slightly from 2017, and still contributed more than half of the new growth (56 percent or 29,416 persons). Utah's rate of natural increase remains the highest among all states, at 10.5 per 1,000 population between 2017 and 2018. This high rate of natural increase has occurred even as Utah's fertility rate has continued in decline over the past decade. While Utah's total fertility rate has long been the highest in the nation, the slow decline in 2017 resulted in Utah continuing with the second highest rate behind South Dakota. While lower than in the past, Utah's total fertility rate remained above the national average in 2017 (2.12 compared to 1.77). Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 16 im Net Migration •Nt,ti• Natural Increase .� Population Change Source: 2019 Utah Economic Report to the Governor The Utah Population Committee (UPC) estimates indicate Utah County experienced the largest population growth between 2017 and 2018, with 15,847 new residents. This was a shift from the previous year, in which Salt Lake County saw higher absolute growth. Salt Lake County realized significant growth, with the addition of 13,806 people. The Wasatch Front (Davis, Salt Lake, Utah, and Weber) still comprises a majority of the state's population (2,341,480 residents or 75.3 percent). Salt Lake County maintains its position as the largest county (1,142,077 residents). Iron County had the highest rate of growth (3.6 percent), followed by Piute (3.5 percent), and Washington (3.3 percent), according to the UPC estimates. Additionally, ring counties (counties that neighbor the urban core like Tooele and Juab) continue to experience solid population growth. Only two counties are estimated to have lost population: Emery (-0.04 percent) and Garfield (-0.19 percent). The 2019 Economic Report to the Governor (ERG) projects that Utah will continue to experience population growth at a moderate 1.7 percent pace to reach 3,219,116 by July 2019 on account of in -migration and a slightly higher natural increase. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 17 Employment: The 2019 ERG states "The state's labor force grew by roughly 2.8 percent over the year, stretching its ranks to over 1.6 million in order to meet the growing demands of Utah's employers. Prime economic conditions drew new entrants to the labor force but did not raise the rate at which adults in the state participated in the labor market. Labor force participation remained unchanged from last year at 69.4 percent and still below the state's pre -Great Recession rate of 72.1 percent. Given that 2017 saw a small surge in the participation rate, it was anticipated that the acceleration would continue through 2018." According to the 2019 ERG report, "As expected with a growing economy, the unemployment rate remained low throughout the year, ending at an average of 3.1 percent which equates to fewer than 50,000 unemployed individuals per month throughout the year. Demand for skilled workers was especially high. Utahns with a Bachelor's degree or higher experienced an unemployment rate well under 2.0 percent in 2018." 2018 Federal tax changes also impacted Utah. The 2019 Economic Report to the Governor concluded: "Changes to federal tax policy appear to have had a positive effect on workers' paychecks. The average annual wage for payroll employees in the state was $47,441, a $1,715 increase from the prior year and a full percentage point higher than the prior year's increase." Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 18 States with Strongest Job Growth 2017-2018 Source: 2019 Utah Economic Report to the Governor Utah Employment Growth, Level and Percent 2017-2018 Mining IIn(2A%) Construction 6,303 (6.5%) Manufacturing - 3,402 (2.6%) Trade. Trans., Utilities 9,359 (3.4%) Information NM 1,972 (5.1 %1 Financial Activity =NM 2.729 (3.2%) Professional & Business Services 6,714 (3.2%) Education & Health Servkes 7,649 (3.9%) Leisure & Hospitality 4.664 (33%) Other Servkes 1.1991 (2.596) Government 4,690 (1.996) Total 48,843 (33%) Source: 2019 Utah Economic Report to the Governor The 2019 ERG report projects the following outlook for employment in Utah; "Lack of labor supply will continue as a point of concern in 2019 and may likely cause job growth to slow unless labor force participation is stimulated or population in migration increases. Housing affordability could influence both but in dissimilar ways. The need to increase household income to afford the purchase of a home could draw more Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Moab Lodging, LLC 19 individuals into the labor market. In migration, on the other hand, could put more upward pressure on housing prices, eventually making further in -migration a costly trend. Wages should further rise as employers continue to struggle filling positions, although 2019 should not be as strong as 2018 which was stimulated by federal tax cuts." Additionally, the report states "Policy decisions at the national level will continue to be a significant, yet unknown factor in predicting the economic trajectory for Utah in 2019. Trade policy is in flux, with tariffs now an emerging tool for shaping relationships between the United States and our trade partners." Personal Income: Utah's total personal income in 2018 was an estimated $143.1 billion, a 6.1 percent increase from $134.8 billion in 2017. Utah's estimated 2018 per capita income was $45,174, up 3.9 percent from $43,459 in 2017. Both measures of personal income growth in Utah were higher in 2018 than in 2017, in which total personal income grew by 5.0 percent and per capita income grew by 3.0 percent. Utah's 2018 growth in personal income and per capita income were higher than national averages. Taxable Sales: The 2019 Economic Report to the Governor (ERG) states in 2019, total taxable sales in Utah increased by approximately 6.9 percent to an estimated $65.2 billion. A labor market that is among the best in the nation and solid gains in wages and personal income were among the primary drivers of growth. High levels of both consumer and business confidence and a strong tourism industry were also factors propelling the economy. Each major component of Utah taxable sales increased in 2018. Business investment increased the most at 9.8 percent, followed by retail sales at 6.0 percent and taxable services at 5.2 percent. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 20 The 2019 ERG report indicates, "retail sales, buoyed by strong consumer spending, increased 6.0 percent to an estimated $33.7 billion. This growth outpaced the estimated 5.3 percent increase in U.S nontaxable and taxable retail sales in 2018. Factors that affect the health of the consumer balance sheets, such as employment and personal income, posted solid gains in 2018, which in turn led to strong growth in retail sales. Trends in the sector are particularly important as retail sales account for over half of all taxable sales (51.7 percent in 2018)." According to ERG, "For the second consecutive year, business investment purchases posted significant increases over the prior year. In 2018, business investment purchases increased by 9.8 percent to an estimated $10.0 billion. The largest increases in business investment purchases were from the construction, manufacturing, and wholesale trade industries." The ERG report states, "Utah's strong labor economy should drive another year of solid growth in Utah taxable sales. Total taxable sales are forecasted to increase by 6.0 percent to $69.1 billion in 2019. However, given that we are late in the business cycle, the likelihood of a slowdown or downturn is increasing. The slowing in the rate of growth for total taxable sales from 6.9 percent in 2018 to 6.0 percent in 2019 communicates this potential risk." The 2019 ERG report concludes, "New Utah legislation passed in 2018 will significantly affect taxable sales in 2019. Beginning January 1, 2019, remotes sellers without physical nexus in the state are required to remit sales tax to the state. The forecasted increase in retail sales of 9.2 percent in 2019 includes the increase in taxable sales expected from this legislative change." The legislative changes are expected to have an impact on taxable business investment purchases as well "with a forecasted decline by 6.4 percent in 2019." "Robust economic conditions in 2018 led to significant growth in taxable sales. Although business cycle and other risks to the projections exist, the outlook for 2019 is positive with steady growth in Utah taxable sales expected to continue in 2019." Construction: Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 21 The value of permit -authorized construction in 2018 in Utah was $8.0 billion, the third highest year ever in current dollars and the sixth highest year in inflation -adjusted dollars. The peak construction value was in 2006, in the run-up to the Great Recession, when permit -authorized construction inflation -adjusted value totaled $9.2 billion. The 2018 estimate includes the value of residential and nonresidential construction and additions, alterations and repairs. Residential construction is the largest sector in the construction industry accounting for 58.6 percent of total construction value. In 2018, the value of residential construction was $4.7 Billion, 0.5 percent higher than in 2017. The number of residential units receiving building permits increased from 22,292 in 2017 to 24,000 in 2018, a 4.7 percent increase. Single-family construction increased to 12,960 units from 12,052 units in 2017 while the number of multifamily units increased from 10,553 in 2017 to 10,800 in 2018. Product shifts in the multifamily market are driving the growth as the share of condominium and townhomes increased, for the first time, to more than 50.0 percent of multifamily units. While Utah's housing market continues to be strong, it has many challenges regarding affordability and availability. Particularly, the increase in median sales prices is drastically outpacing the increase in median household incomes. While the median sales price increased 44.0 percent between 2013 and 2018, household incomes grew by 20.8 percent. Additionally, The 2019 Economic Report to the Governor (ERG) includes the impact of housing affordability and a housing shortage, "at 4.5 percent the 30-year mortgage rate for 2018 is the highest since 2010, when it was 4.7 percent. The combination of rising prices and interest rates has increased the median mortgage payment from $1,343 in 2013 to $1,965 in 2018, an increase of 46.0 percent. To keep the mortgage payment at 30.0 percent of household income, a $1,343 monthly mortgage payment requires an annual household income of $53,717, while a monthly mortgage payment of $1,965 requires an annual income of $78,637." Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 22 "Historically, the number of new housing units exceeds the increase in households by about ten percent due to vacancies and second home construction. This has been the case over the past forty years. However, in the last few years the increase in households has been greater than the increase in housing units, which explains, at least in part, the tight housing market. A market characterized by very low apartment vacancy rates and rising rental rates as well as a limited number of "for sale" listings of existing homes. Homebuilders also complain that labor shortages, land availability, and municipal regulations are creating bottlenecks that are reducing the supply of new homes. These market conditions strongly suggest that Utah may have a housing shortage, which limits housing opportunities for both renters and homebuyers." "The value of Utah's permit authorized nonresidential construction in Utah in 2018 was $2.1 billion, the seventh highest year on record (inflation adjusted). Utah nonresidential construction sector, while down just slightly from record setting 2016, was led by office and industrial construction. The industrial sector grew approximately 4.0 percent in 2018 driven by several large manufacturing projects, along with permits associated with the Salt Lake City International Airport expansion." "In summary the $8.0 billion in permit authorized construction activity in 2018 includes $4.7 billion of residential construction, $2.1 billion of nonresidential construction and $1.2 billion of additions, alterations and repairs." Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Moab Lodging, LLC Utah Value of New Construction ($ millions) $1 0,000 $8,000 $6,000 $a/a00 $2.000 So • 1 11' Residential Additions/Alterations/Repairs !11/11 Y/ f. Nonresidential Total Value gel a r as Y,/laYd/IY//1 f/Il Yf 71/aF1 Yi/I:d•11// Y f1Y /a!i! Mall/ 11Y 40 Ps eV Q Q O g g Q g § g O 0 O 4 4 C Q Q O N N N N N N N N N N N N N NNNNNN Source: 2019 Utah Economic Report to the Governor Tourism: 23 Tourism economic data gleaned from the 2019 ERG report states, "Utah's tourism and travel sector experienced continued economic growth in 2018, including record -level visitor spending, jobs and wages, state and local tax revenue, and park visits... year-to- date travel -related sales tax revenues, such as transient room, restaurant, and resort communities' sales, were trending 5.0 percent higher than 2017 revenues. During the first three quarters of 2018, 26 of Utah's 29 counties experienced year -over -year increases in transient room tax revenue. Additionally, total taxable sales in the leisure and hospitality sector increased 7.0 percent during the first half of 2018, while gas station, grocery store, and other travel -related retail sales increased around 6.0 percent...first-half of 2018, travel -related jobs in Utah's private leisure and hospitality sector experienced a 3.5 percent year -over -year increase (slightly lower than all other sectors combined) and wages increased 6.8 percent (compared to 8.9 percent for all other sectors)." Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 24 Conclusion and Outlook: The economy of Utah in 2018 was healthy and continued to show signs of growth in most sectors of the market. Strong job growth, low unemployment and rising population all led to a robust economy in 2018. 2019 is expected to show continued growth at a slower pace with anticipated business cycle downward shifts in some Utah industries. Because of Utah's diverse mix of industries, the state economy is expected to weather economic fluctuations better than the national economy with industries such as construction, durable manufacturing, retail, and finance representing a slightly heavier footprint in Utah than in the national landscape. According to the 2019 ERG report, Utah's potential for continued growth is sustainable given that Utah leads the nation as the most diverse economy with a Hachman Economic Diversity Index score of 96.9 ahead of Arizona (95.7) and Colorado (93.6). Utah continues to attract organizations from across the country and globe, a trend which is expected to continue in 2019. It is important to note that the 2019 ERG report indicates that much of the potential growth for 2019 and continued years will, however, hinge on potential changes in national economic and political factors that would affect macro -economic policy or macro- economic climate. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 'r-DELORME DeLorme Street Atlas USA® 2015 East Carbon Clty Columbia an f �r e t Cre nl Junction �7A9 _%_ • r r 4.01 1 lj Moab .\ Mack Lome Frusta Palisade f Grand Junction :.I• Clifton Colorado NM Whitewater Dan.- H++r Menti• a -Sal rr.t GAteway • ranIaLaaaI Nawonaill.0 I forest I Paradox •r--ti UraVan •�. Bedrock 1 R[ a�A� �J f Nude 1 G>�nW • It . Canyoalanda HP r d ratio r a I rnfv�f . r: ofrh n! r gnrr i DBfk CarsYon I Pfimilive Arao r� G and ti•n?LAIliela Vets Inon kfwY Data use subject to license. DeLorme. DeLorme Street Atlas USA® 2015. www.delorme.com Dark Canyon VViIdernosr TN* AN!t0.0"F] i • I; Neradla 5 � � wit-•\ I � 1 Slick Rock ' r lEgnar Dove Creek — 1 ' Cahone i • • - • . • �fciher Rn..rivir Canyon Of The Ancients NM Corte/ fT Scale 1 : 1,200.000 1--.— m +u /11 1' 18.94 mi 'A 4 J Data Zoom 7-4 26 NEIGHBORHOOD DESCRIPTION Neighborhood characteristics impact the value of real estate. Therefore, an overview of the subject neighborhood is presented below. Moab and Grand County are located in south central Utah. The city of Moab is further referenced as being located nearly adjacent to both Arches and Canyonlands National Parks. It has the distinction of being the only city in Utah located alongside the Colorado River. Grand County contains a total of 2,362,880 acres or 3,692 square miles. Of this amount 86% is under the management of State and Federal governments. Moab is 244 miles southeast of Salt Lake City, 360 miles west of Denver and 336 miles northwest of Albuquerque. Grand County lies in the heart of the Colorado Plateau. The community of Moab is at an elevation of about 4,000 feet. The general area is a key component of Southern Utah's widely acclaimed "red rock" country. The La Sal Mountains are some 18 miles east of Moab rising to as high as 13,000 feet above sea level. The La Sal mountains are a prominent feature of the visual skyline seen from Moab. Proximity The subject is on the west side of Main Street (US-191) at ±1515 North within Moab City in Grand County. The Colorado River runs north and west of Moab City, with Arches and Canyonlands National Parks nearly adjacent north of the city borders. The subject neighborhood is ±240-250 miles southeast of Salt Lake City's central business district (CBD). Boundaries and AccessibilitV Boundaries of the neighborhood are generally defined by the incorporated city boundaries of Moab City and the immediate surrounding unincorporated areas of the county. Main Street (US-191) is a major north/south interstate freeway that connects the southeast Utah area and National Parks with central and northern Utah to the north, Arizona and New Mexico to the south, and Colorado to the east. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 27 Other major roadways into the immediate area include SR-128, SR-279, 500 West, 400 North, and Center Street. All roads are asphalt paved and publicly maintained. Jurisdiction The neighborhood is within the jurisdiction of Moab City, Grand County and the other surrounding municipalities previously named. The county and the towns/cities within the neighborhood provide all major services and control development within their respective borders. Construction: Construction activity had been active in the residential sector and peaked in 2005. Building has gradually slowed from 2008 to 2013 due to the recession. From 2014 to present, demand for commercial development has increased with several projects that have recently taken place. Commercial development occurs as needed, typically with two or three buildings being constructed per year. Recently, several lodging projects have come on board, indicating that the local economy which is primarily based on tourism is doing well. There are plans of several more lodging facilities in the works. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 28 Land Use Characteristics Development within the defined boundaries comprises a mixture of residential, agricultural, commercial, industrial and retail uses. Commercial uses are primarily located along major roadways previously mentioned and interstate/interchange frontage. Residential uses are interspersed throughout the subject neighborhood, primarily along secondary transportation routes. Residential developments are comprised mainly of multi -family units, including condominiums and apartments. Some single-family uses are present on secondary roadways. Agricultural uses are primarily located near the peripheries of development. The subject fronts to Main Street (Highway 191) in north Moab in an area that is well developed with commercial, light industrial, and some single family residences. Moab is the county seat and main population center of Grand County. The Colorado River is north and acts as a northern boundary for Moab City which is is a major regional and national tourist destination. As a result, Main Street and the other major roadways mentioned are well developed with a wide variety of commercial, hotel/motel and other lodging, restaurant, and recreational support establishments including off road vehicle rentals, bike shops and rentals, whitewater rafting, etc. Downtown Moab is heavily developed and development along Main Street is almost exclusively commercial and office, with some office and residential on the secondary roads. Residential development is mainly on the secondary roadways and generally comprises a mix of older homes interspersed with newer residential dwellings. Developable land is limited in Moab City limits, and development within the Moab CBD is characterized more by smaller commercial buildings on smaller lots and higher coverage ratios. The Main Street portion of the CBD is near fully developed. The north portion of Main Street is more lightly developed in comparison to the CBD, but is still an expanding and desirable commercial location. Northern Main Street (US-191) is flanked by slickrock hills to the east which does limit building in this area. The Main Street (US- 191) and 500 West intersection near the subject is well developed with a Denny's, Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 29 Super 8 Motel and Motel 6. Further north there are multiple hotels/motels and RV parks with several tracts of vacant land remaining. There are some limited tracts of vacant land suitable for development remaining, but much of the land is within the Colorado River flood plain and/or comprised of steep, rocky terrain and the majority of the developable land is built upon. Commercial support services are in adequate proximity, and linkages into the area are average with SR-128, SR-279, 500 West, 400 North, and Center Street located nearby. Overall, the immediate neighborhood is approximately 70-7543/0 developed. Adjacent Properties Adjacent properties are generally compatible with the subject as follows: North Archway Inn South Vacant land proposed for lodging development East Main Street ROW/Vacant (steep) Land West Vacant Land in Colorado River flood plain Influences Positive influences stem primarily from the relative strong growth of the southern Utah area in general with respect to strong job formation and population growth over the past several years and projections for continued population growth in the state. Other positive influences include the relatively stable demand for commercial developments in comparison to the residential market sector. In general, market conditions and real estate activity have been positive over the last 5-7 years with strong real estate activity and sustained appreciation. The residential market (land and improvements) was particularly strong during 2016-2017 but recent indicators suggest that market conditions are moderating, but still positive, in comparison. Projections are that growth trends will continue into 2019. No negative influences are apparent. Conclusion Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 30 In summary, the subject is centrally located within the northern incorporated portions of Moab City in southeast Utah. Surrounding development is tourist, commercial, and light industrial in nature, interspersed with some limited tracts of vacant land. The area in general is in a stability/growth stage and vacant land is being absorbed at a steady rate. Access to primary transportation routes is considered to be average with SR-128, SR- 279, 500 West, 400 North, and Center Street all located nearby. Commercial support services are in adequate proximity. The long-term outlook is for a relatively stable growth pattern with stabilizing/improving property values. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 'IDELORME DeLorme Street Atlas USA® 2015 kl Vet' ll Neighborhood Map Virallay 1..lorai Park Portal Rv Resort Sick Rock Camineocase - 2 :2 ----- Y.; t- til ,.,,.: ' MI- i in ---K I- '-'.. n WIIESAP.C.1.17,t .. RUSALIE•CT '=1. T., r 0 Lel -- 1- -- ". 1-t-i Kil -1.• '3, ..'. U. .1 .... I ". \\.''' 4- LI '.,.: -3- - ey . L(1— --- _. „xz .7 . 0 1 3 r,3 —1 .,.. ,-:.>j,,=-.--.1. ' al il. ii. 7p .1 ...„1=4. 1,- lAr 4On !,1 W...A91:ttlfir 400 N,... - W 400..k lx:.en W.100 Pi _ W lgt04 ... _.......5 ---'''''' t'' 2 !LA:„ 7 ' ' [ Y-1—.' IP 1y,! Moue lax tateCarc ... I of t - . I ,e• _ -_' al' - =="13. _il • 91 I , L,.A p, . •.- 1,1 .... 1F BAliTIATT..L FR ...^.! 200 NI . ..T • LIN -- kA. _ ... 1'1 . -,-1:10iri.k7iitiTuriilL:ii. . VI 1»...,..1.',1 , i i'g • .8AFET ETT St - , .1 Data use subject to license. O DeLorme. DeLorme Street Atlas USA® 2015. www.delorme.com Scale 1 . 20,800 141) 1200 ;:100 3003 ISO 360 .0 720 000 1" = 1,733.3 ft Data Zoom 13-3 32 SITE DESCRIPTION Please see the property plat(s) attached to the addenda of the report. The larger subject parcel comprises one tax parcel identified as Grand County parcel number 01-126-0005, which contains ±213,444 square feet, or 4.90 acres of land. Review of an A.L.T.A. Survey of the subject property is recommended. General Site Data: - Land Area Gross Land Size Area within ROW Net Land Size ±213,444 square feet, or 4.90 acres — gross land size (none reported) - extracted ±213,444 square feet, or 4.90 acres — net effective land size - County Parcel No(s). 01-126-0005 - Street Orientation Interior lot - Shape Mostly rectangular. - Frontage ±450 linear feet on Main Street (US-191) - Access Adequate and legal access is assumed from Main Street (US-191). - Depth ±847 linear feet on the south border; see plat map. - Topography Mostly level but moderately slopes to the west; generally at to below street grade with Main Street (US-191). Approximately 10-15% of the larger whole parcel is within the Special Hazard flood zone associated with the Colorado River to the west. The site has sufficient area not within the Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 33 flood zone to accommodate most types of development, and the flood zone does not represent a significant impediment to development. -Drainage Natural drainage appears westerly. -Soil Soil studies have not been made available to the appraiser. Soil stability is assumed to be adequate for slab on grade construction. Review of a geo-technical investigation prepared by a qualified engineer/firm is recommended. -Wetland Areas A GIS aerial overlay and wetland study indicating the existence of wetlands as defined by the US Army Corps of Engineers was not provided. Determination of wetlands is well beyond my area of expertise. There was some obvious evidence of wet areas and/or possible wetlands in the western portion of the subject that generally coincides with the available flood maps. However, without a wetlands study, the existence of defined wetlands cannot be definitively ascertained. This analysis is therefore based on the extraordinary assumption that there are no wetland areas contained within the subject. Review of a wetlands investigation by a qualified firm is strongly recommended. -Adjacent Properties Adjacent properties are as follows: North: Archway Inn South: Vacant land proposed for lodging development East: Main Street ROW/Vacant (steep) Land West: Vacant Land in Colorado River flood plain -Street Improvements Main Street (US-191) is a two-lane (one lane per direction of travel) asphalt paved street with a center turn lane. The Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 34 - Traffic Counts - Utilities - Abutting Right -of -Way - Easements, Restrictions and Encroachments frontage of the subject with Main Street is improved with curb, gutter, and sidewalk. Annual Average Daily Traffic (AADT) counts are f13,000 cars per day on Main Street (US-191). Given the centralized and built-up nature of the immediate area, it is assumed that all pertinent utilities are provided to the immediate subject area and/or site, and are adequate to support development. Main Street (US-191). No title policy was provided for review in conjunction with this report. It is assumed that typical public utility easements (P.U.E.'s), drainage, and/or public street easements exist along one or more of the site's borders, and/or traverse portions of the site. No unusual easements, restrictions, and/or encroachments are indicated in the legal description for the subject parcel(s). No unusual encumbrances or encroachments were noted during inspection. The plat map does not identify any unusual easements and/or rights -of - way traversing the site. It is assumed that typical public utility, street, and drainage easements and/or any other undisclosed easements and/or rights -of -way would not adversely impact the development potential of the subject site. With regard to the assumed public street, drainage, canal, and/or public utility easements, without an A.L.T.A Survey, Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 35 and/or a legal description describing the precise boundaries of these various easements, this analysis, and value conclusions contained herein, assume that the area(s) of the proposed acquisition(s) is/are held in fee simple ownership in the before condition by the indicated owner of record. Review of an A.L.T.A survey, and/or complete title report specific to the subject property is recommended. -Special Hazards Flood Zone: The subject is mainly contained within a Zone X (outside 100 year flood zone) & Zone A (Special Flood Hazard zone); panel number 49019C1775D; effective date April 4, 2009. The client (Moab City) also provided an aerial overlay showing the Colorado River flood plain that generally correlates to the FEMA map. It does appear that a small area along the western border (±10% to 15% of the larger parcel) is within the 100-year flood plain associated with the Colorado River and associated wetlands/wet areas westerly. The area within the 100-year is relatively minor and could still be used for ancillary purposes, such as parking, landscaping, storage, zoning compliance, etc. It is concluded that the negative impact, if any, of the area within the flood plain is negligible and does not significantly impact development options. No deduction for the flood plain is necessary applied herein, as more than sufficient land area exists outside the flood plain to physically permit any number of development options and the flood plain area has secondary/support use potential. Please see the FEMA flood map and client provided flood Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 36 Environmental: -Zoning map overlay contained in the addendum for further information. There is no direct current evidence of environmental problems associated with the subject. The client has not provided Phase I or Phase II Environmental Site Assessments relative to the subject. Without Phase I and Phase II Environmental Site Assessments, this analysis assumes that no environmental hazards/contamination exists on the subject premises. Should a Phase I or II Environmental Site Assessment be provided indicating the existence of environmental contamination/hazards and detailing remediation costs associated with the contamination, the value estimate conclusions contained herein may need to be reevaluated and would likely be lowered. Review of a complete Phase I Environmental Site Assessment specific to the subject property, performed by a qualified engineer/firm is strongly recommended. The subject is zoned RC (Regional Commercial). According to Moab City zoning ordinance, the purpose of the RC zone is as follows: 17.31.010 Objectives and characteristics. The RC, Resort Commercial District is intended site design concepts that implement the Moab/Grand County North Gateway Plan (`Gateway Plan'), an amendment to the City of Moab General Plan. The district is designed to create a positive first impression of the City of Moab and Grand County and to encourage mixed residential and commercial development, including resort guest -oriented and local - oriented commercial uses in an urban setting. In addition to the use and area regulations of this section, development in the RC, Resort Commercial Zone shall be in compliance with all other applicable provisions of this code. If conflict arises between this chapter and other parts of the City code, the more restrictive shall apply. (Ord. 02-04 (part), 2002) Project Desc: Moab City Sewer Improvement Project Ownership: Moab Lodging, LLC VAN DRIMMELEN & ASSOCIATES, INC. 37 -Site Utility The RC zone is a Regional Commercial zone which permits a wide variety of commercial development, including hotel/motel, convenience store/gas station, retail, restaurant, office/professional office, two -household dwellings and other similar uses. The minimum lot size for development is 10,890 square feet, or 0.25 acre. The zoning ordinance outlines 0 foot front yard setback requirements next to Main Street/US-191, and 25 feet for other streets. with zero side and rear lot line setbacks. The gross land size of the subject, at 4.90 acres, is well over the minimum required lot size with regard to existing improvements and lot coverage and is therefore assumed to be a legally conforming lot. It is noted that the master plan zoning designation is Commercial, which is similar to the existing zone. Please see the current and future land use zoning maps contained in the addendum. A full copy of the zoning ordinance can be accessed online at the Moab City website. The subject represents a medium/large sized, mostly rectangular shaped parcel on the west side of Main Street (US-191) at ±1515 North. Adequate access is assumed from Main Street (US-191). The site is mostly level in topography and is generally at to below street grade with Main Street (US-191). It is assumed that all necessary utilities are available nearby that would be sufficient for development to the concluded highest and best use. It is of sufficient size to accommodate a variety of uses and has apparent adequate load bearing capacity. Overall, utility of the site is rated as average. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 38 IMPROVEMENT DESCRIPTION The subject is improved with a Holiday Inn Express Hotel. As discussed throughout the report, the commercial improvements will not be adversely impacted by the imposition of the easements and has been expressly excluded from this analysis. Thus, this area of descriptive analysis is not necessary. RECENT HISTORY OF THE PROPERTY: USPAP requires a three (3) year reporting history for the appraised property, while UDOT right-of-way appraisal guidelines dictate a five (5) year reporting history requirement. The current owner of record is Moab Lodging, LLC, represented by Mr. Tim Koehler. Mr. Koehler does not report any sales, listings or unsolicited offers to purchase within the last five years. A search of the Wasatch Front MLS system does not indicate any sales or listings of the subject property within the last five years. Thus, no sales, listings or unsolicited offers of any portion of the defined subject property within the last five years are known. REAL ESTATE TAXES & ASSESSMENTS: Real estate tax information for the subject for 2018 is shown in the following table.6 Current Assessment and Tax Information: FY 2018 Assessed Value Taxable Value Total Taxes Parcel Land Improvem ents Total Total Taxable Tax rate Ad Valorem Tax' Special I Assess ments2 Total Tax 01-126-0005 $927,246 $11138, 270 $12,065, 516 $12,065, 516 0.010532 , $127,074. 01 $0 $127,074. 01 'Applies to real estate only. Taxes on personal property, improvement fixtures, etc., if any are excluded. 2Special assessments include bond payments and/or other taxes that do not vary according to assessed value. Source: Grand County 6 Taxes in Utah are calculated by applying a tax rate to taxable value. Taxable value is a percentage of the assessor's estimate of market value. The percentage is 100 percent for commercial properties and about 67 percent for residential properties. The tax rate varies depending on a given county's budget. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 39 All taxes appear to be current, and no delinquencies are reported. The assessed value for the land is significantly lower than the appraised market value outlined herein. This appraisal analyzes current market data and makes specific adjustments to each sale in order to derive an indication of a specific market value for the subject. The assessed value is typically computer generated and is not specific in adjustments. Additionally, the market value contained herein for the land is based on the highest and best use of the site for commercial development and is more specific to the subject property. Thus, limited to no weight is placed on the assessed value as a true market value indicator. Data Analysis and Conclusions — Before Acquisition ANALYSIS OF HIGHEST AND BEST USE: The definition of highest and best use as defined by the Dictionary of Real Estate Appraisal, Appraisal Institute, 5th Edition, is: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. Additionally, the definition of Highest and Best Use as per the Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) is included. Highest and Best Use is defined in the Yellow Book as: "...the highest and most profitable use for which the property is adaptable and needed or likely to be needed in the near future. "8 Two procedures are used to determine a property's highest and best use. The first is an analysis of the site as if vacant. The second is an analysis of the proposed or existing improvements and their influence upon the site's highest and best use. The use(s) concluded in the analyses to be highest and best must meet the criteria of being 1) physically possible, 2) legally permissible, 3) financially feasible, and 4) maximally productive. Highest and Best Use of the Subject As Vacant 8 "Olson v. United States", 292 U.S. 246, 255 (1934)., Page 8, "Uniform Appraisal Standards for Federal Land Acquisitions". Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 40 Physically Possible/Suitable The defined larger parcel is on the west side of Main Street (US-191) at ±1515 North in Moab, Utah. The total land size is ±213,444 square feet, or 4.90 acres. The site is mostly rectangular in shape with mostly level topography. Natural drainage appears to be westerly. The larger parcel has frontage of ±450 linear feet on Main Street (US-191), with a adequate depth to facilitate vertical construction. The site is an interior lot with frontage and primary access that is assumed to legally compliant and sufficient for development from Main Street (US-191). Main Street (US-191) is a two-lane (one lane per direction of travel) asphalt paved street with a center turn lane. The frontage of the subject with Main Street is improved with curb, gutter, and sidewalk. The amount of land within the 100-year flood zone is area is minor and does not represent a major obstacle to development. The size and shape of the subject, at approximately ±213,444 square feet, or 4.90 acres, could physically accommodate a number of developments. No major physical limitations to development are apparent. Legally Permissible There are generally two areas of concern regarding legally allowable improvements to a property. The first is associated with title or deed restrictions, which can limit the potential uses of a property. The second is associated with zoning ordinances, which often limit both the type and size of development constructed on a site. No deed restrictions, easements, or rights -of -way are believed to exist that would restrict the development of the parcel. Potential uses are limited only by permissible and legal uses allowed in the zoning classification for the subject property. As noted previously, the subject property is under the jurisdiction of Moab City and is zoned RC (Regional Commercial). This zone is regional commercial zone that permits a wide variety of commercial uses, including retail, hotel/motel, RV park, restaurant, service -oriented, office/professional office, 2-family dwellings and other similar uses. The minimum lot size is 10,890 square feet, or 0.25 acre. The front yard setback in this Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 41 zone for parcels fronting to Main Street is 0 feet, with 25 feet required on all other city streets. The subject is over the minimum lot size in the before condition and appears to be a legally conforming lot. The master plan zoning designation is for similar Commercial uses. With respect to legal and neighborhood conformance standards, the subject could accommodate most types of commercial uses as outlined under the RC zoning designation. • Financial Feasibility A financially feasible use must be one that can provide the highest return on an improvement over a prolonged period of time. The use will be constrained by zone restrictions and the physical characteristics of the land. Also considered are current economic trends, neighborhood influences, and existing supply/demand characteristics, as they pertain to real estate. Currently, market conditions are positive and have been strong for the last 5-7 years since the significant market turndown/recession experienced from 2008-2012. Real estate construction and investment has been strong since this time, with continued and sustained appreciation for all submarkets (i.e. residential, commercial, multi -family, industrial, etc.) noted throughout the Wasatch Front. Location is a significant determinant and plays a large role in the highest and best use conclusion. The subject fronts to Main Street (Highway 191) in north Moab in an area that is well developed with commercial, light industrial, and some single family residences. Moab is the county seat and main population center of Grand County. The Colorado River is north and acts as a northern boundary for Moab City which is is a major regional and national tourist destination. As a result, Main Street and the other major roadways mentioned are well developed with a wide variety of commercial, hotel/motel and other lodging, restaurant, and recreational support establishments including off road vehicle rentals, bike shops and rentals, whitewater rafting, etc. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 42 Downtown Moab is heavily developed and development along Main Street is almost exclusively commercial and office, with some office and residential on the secondary roads. Residential development is mainly on the secondary roadways and generally comprises a mix of older homes interspersed with newer residential dwellings. Developable land is limited in Moab City limits, and development within the Moab CBD is characterized more by smaller commercial buildings on smaller lots and higher coverage ratios. The Main Street portion of the CBD is near fully developed. The north portion of Main Street is more lightly developed in comparison to the CBD, but is still an expanding and desirable commercial location. Northern Main Street (US-191) is flanked by slickrock hills to the east which does limit building in this area. The Main Street (US- 191) and 500 West intersection near the subject is well developed with a Denny's, Super 8 Motel and Motel 6. Further north there are multiple hotels/motels and RV parks with several tracts of vacant land remaining. There are some limited tracts of vacant land suitable for development remaining, but much of the land is within the Colorado River flood plain and/or comprised of steep, rocky terrain and the majority of the developable land is built upon. Commercial support services are in adequate proximity, and linkages into the area are average with SR-128, SR-279, 500 West, 400 North, and Center Street located nearby. Overall, the immediate neighborhood is approximately 70-75% developed. None of the regional brokerages compile commercial market data in the Moab area, and commercial market indicators (i.e. commercial vacancy rates, occupancy, construction, lease rates, etc.) are not available for the Moab market. Multiple area real estate agents interviewed for this assignment report that conditions are positive and that demand for larger tracts of land that can facilitate hotel/motel construction is strong. Indications are that at least 4 new hotels are either under construction or are proposed. Some indication of commercial market growth in a given area can be derived from residential market information, as residential growth and appreciation/depreciation Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 43 factors would logically suggest the need and/or demand for commercial support services. For secondary support to the commercial market, WFMLS data concerning residential factors is more closely considered: Market Overview - Moab City Residential Market Market information and trends for finished residential product can give an indication of a local commercial market. Declining market conditions would suggest reduced consumer spending and demand for commercial support services, while increasing residential market conditions could suggest positive commercial market conditions. The estimated population of Moab proper as of 2018 is 5,253 full time residents. The 2010 population as per the US Census Data was 5,046 persons showing nominal positive growth of ±4% in the eight year span. The following graph was obtained from the Wasatch Front MLS and illustrates commercial market trends within the subject neighborhood of Moab City, effective to the 4Q of 2018. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 44 Search Criteria: State is Utah, Property Type is Single Family. County is Grand, City is Moab Crick and drag area inside of graph to zoom Median Sold Price (in 51,000 Increments) Home Sales Per Quarter $375k -- $350k -- $325k 4 $300k — $7.75k $250k - 70 $225k Z 10 1200k .• P P ,T P r4-, h ^'-7 ' �'1 b to *sv 4;* �J Pam, y ryC 4 P Quarter ct. co co ,VO ,y0 ry0 ry0 ry0 '10 ry0 0 ry + Median Sold Pnce (in $)-+- Total Number Of Homes Sold- Total Number Of Homes Listed 0 As shown in the graph above, the median sale price of a single-family residence within Moab City has steadily increased over the last five years. Over the last three (3) years, the median sale price has increased ±30.7% (±10.2% annually) from $235,000 as of 4Q 2015 to a current median sale price of $339,000 as of 4Q of 2018. Within the last year, the median sale price has actually declined slightly, from $343,000 (4Q 2017) to $339,000 as of 4Q of 2018. The trendline for the number of sold homes has been fairly stable over the last three years, and the figure of 36 closed transactions as of 2Q 2016 represents the highest number of sold homes within the five year period. The number of closed transactions over the last year has ranged from 15 to 29 and has generally been in -line with previous years. The number of active listings has fluctuated dramatically and generally follows seasonal trends that are typical for the market. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 45 This residential market information is of limited usefulness for the commercial market, but it does show that Moab City has experienced modest population growth, as well as fairly strong residential growth over the last several years and strong appreciation for residential improvements is apparent. Absolute reliance on this limited information is not recommended, as appreciation is influenced by numerous other factors including specific location, surrounding development, linkages and other factors. Given the centralized and advantageous location along the main commercial corridor in Moab (Main Street/Highway 191), mainly commercial surrounding development and RC zoning designation, the most likely financially feasible use is for commercial development. Maximally Productive Use and Conclusion (As Vacant) In summary, the concluded highest and best use as vacant is for commercial development as outlined under the RC zone. The most probable buyer would be a local, regional or even national developer/investor or end user. Given current market conditions and lack of developable commercial land along Main Street, the timing for development would be immediate, if the subject were vacant. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 46 Highest and Best Use of the Site As improved N/A - The Holiday Inn Express Hotel on the property has been excluded from this analysis. Only the underlying land is appraised. Therefore, completion of this section is not necessary. However, it is noted that the existing improvements are in conformance with the highest and best use as vacant conclusion. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 47 LAND VALUATION The method used to assist in formulating the appropriate market land value is based on the traditional approach to land value, namely the Sales Comparison Approach. This involves obtaining land sales with similar characteristics and comparing those sales to the subject site. Adjustments are made to the comparables for differing features. The adjusted values of the comparables are then reconciled into a single estimate of value for the subject land. The unit of comparison referred to herein is the price per square foot. This unit is chosen to maintain consistency with the unit as outlined on the legal descriptions for right-of-way acquisitions. The concluded highest and best use is for commercial development. Thus commercial lot sales in Moab City and the surrounding area of Grand County were researched. The following table is a summary of the land sales used in this report. All sales are in the subject neighborhood of Moab City. It is noted that Sale #1 was obtained from a source who requested that any identifying details of the property be kept confidential. All pertinent information concerning this sale is known and sufficient for adjustment, but the details cannot be outlined herein. The complete data sheets with plat maps and additional information are contained within the addenda of the report. Further information is retained in the appraisal workfile. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 48 ID Subject Address City/Utah Parcel# Land Size (Acres) Land Size (Sq.FL)-Est Shape 1515 N. Main St. Moab 01-126-0005 4.90 213,444 Mostly rectangular 1 Confidential - North Main St. Moab N/A 10.00 435,600 Mostly rectangular 2 76 E. Nob Hill (300 N.) Moab 01-0001-0062 &-0063 1.66 72,310 Mostly rectangular 3 938 S. Main St. Moab 02-0012-0011 0.50 21,780 Rectangular 4 655 N. Main St. Moab 01-0MUT-0090; -0091 0.80 34,848 Mostly rectangular 5 1431 N. Main St. Moab 01-0126-0019 3.20 139,392 Mostly rectangular 6 998 N. Main St. Moab 01-036-0031 1.49 64,904 Rectangular Street Orientation Topography Utilities Interior Mostly level All available nearby Interior Mostly level All available nearby Interior Mostly level All available nearby Interior Mostly level All available nearby Interior Mos tly level/below grade All available nearby Interior Mostly level All available nearby Interior Mostly level All available nearby Zoning Date of Sale Sales Price Sales Price/Acre Sales PriceiSq.FL RC N/A WA N/A WA RC Jan-18 $5,250,000 $525,000 $12.05 C-5 Feb-17 $7413,100 $450,663 $10.35 GC Nov-17 $450,000 $900,000 $20.66 C-1 Mar-16 $250,000 $312,500 $7.17 RC Jan-18 $2,360,000 $737,500 $16.93 C-4 Under contract $1,505,400 $1,010,336 $23.19 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 1 DELORME DeLorme Street Atlas USA® 2015 • .061Subjectf •-• L., ,:. /' �J�� .2B - i. I !ter ' The Portal • Data use subject to license. © DeLorme. DeLorme Street Atlas USA® 2015. www.delorme.com Sales Map Portal Rv Resort Ski{ Rock Campground L A �y..L. _� _9 c•�� 8 4.N v 1— ROe 'p a • o• i—---�CLR=i,r in` } . tn al 5 6, u. wi,q..A )TEVE •G • } 2, 'p a xrQ�l iii 3 Av Ix ,I 11 .� v.�_ m., - _ _� I' -gyp ' �"' '. ❑. eAR,7ldjciR 8 _ — i .F lL 111 i', i..,, wILLUAN.S'VJAY z -- tomb Nngl anal V,11LL1AMS WAY..: � Moab Mospita� .._-_ i 1 - 4l'A �'54. . kAry ,y �3 11-�1-I!d $1� w 2{Ifl,s v �a '4 SIB Sale #4 Sale #21 E 30014 3 X-Dn-' fJ?c �_RpFip,.1.5E'JRL[E LN `•= . IN F..GG S -7, uNE]lAL oR c� 6OWEM 0R i4�.?• +vxu iCRN L:11_,1ST_iN•- � > "' .,7-v - • 'l' `, �"+y� �� `^ C6VERiI7GE DR Ol1k �� f ,. -�•Y.•• C� C�in a aw m • ',.• Ne • fir. ' �ruuro�Sale #3 j� 3 y _ lj en 1 r F'� • 1�f y�4 to ti, tin TN* MN (9.ME) A wIJ a w. inns �� s 100 Nt ienf� s 206 s tri r II• )181 il--jo:---e,_ �T ut 0 o m Scale 1 : 25,000 LAGAi. RG GOO 1200 ,JUO MOO 3000 n 09u - -- mo MO - .w ,wn • 1" = 2,083.3 ft Data Zoom 13-0 March 4, 2019 Parcel: Name: c/o Name: Address 1: Address 2: City State Zip: Mortgage Co Status: GRAND COUNTY CORPORATION Tag Roll Master Record 01-0126-0005 Serial #:25-21-26-16.3. Entry:518608 MOAB LODGING LLC PO BOX 15 ABERDEEN Active Owners SD 57042-0015 Property Address - RIVERVIEW DR 1515 N MOAB Acres: 4.85 84532-0000 Year: 2019 District: 001 MOAB CITY 0.010532 11:26:57AM Interest Entry Date of Filing Comment MOAB LODGING LLC Property Information 518608 11/15/2016 (0842/0282) 2019 Values & Taxes 2018 Values & Taxes Units/Acres Market Taxable Taxes Market Taxable Taxes BC09 MOTEL / HOTEL LC01 COMMERCIAL IMPROVED Totals: 0.00 11,138,270 11,138,270 117,308.26 4.85 927,246 927,246 9,765.75 11,138,270 11,138,270 117,308.26 927,246 927,246 9,765.75 4.85 12,065,516 12,065,516 127,074.01 Property Type Year Built Square Footage Basement Size 12,065,516 12,065,516 127,074.01 Building Type BC09 MOTEL / HOTEL 2003 62,319 0 **** SPECIAL NOTE **** Tax Rates for 2019 have NOT BEEN SET OR APPROVED! Any levied taxes or values shown on this printout for the year 2019 are SUBJECT TO CHANGE!! (Using Proposed Tax Rate) 2019 Taxes: 127,074.01 Special Fees: 0.00 Penalty: 0.00 Abatements: ( 0.00) Payments: ( 0.00) Amount Due: 127,074.01 2018 Taxes: 127,074.01 Review Date 05/15/2018 NO BACK TAXES! NO BACK TAXES GRAND COUNTY TREASURER / DEPUTY signature DO NOT USE THIS TAXING DESCRIPTION FOR LEGAL PURPOSES OR OFFICIAL DOCUMENTS. For taxing purposes only. Consult property deeds for full legal description. Taxing Description BEG AT POINT WHICH BEARS N 49°38'W 1011.8 FT FROM S1/4 COR SEC 26 T25S R21E SLB&M & PROC N 53°35'E 700.9 FT; ALONG W'LY RNV U.S. HWY 191 S 47°40'E 439.7 FT; S 72°55'W 847.9 FT; N 31°20'W 151.3 FT TO POB 4.85 AC — WATER RIGHT ASSOCIATED WITH THIS PROPERTY HAS BEEN SOLD TO CLUB UTAH SUBJECT TO A CROSS ESMNT AGREEMENT EN 450279 BK 542 PG 118-130 History OLD NUMBER 03-026-0142 Page: 631 of 8568 i ANALYSIS AND RECONCILIATION OF LAND SALES Market evidence and appraiser judgment determined the degree of adjustment made to each sale. Each adjustment made reflects careful consideration and analysis of various factors. The factors considered in any adjustment include an analysis of paired sales data, when they are available, and information acquired from market participants. Also considered are the costs associated with bringing a site to a developable condition. It is believed that the adjustments made correspond closely with the thinking of market participants and allow for a tighter frame of reference when comparing sales data to the subject site. The unit of comparison referred to herein is the price per square foot. This unit of comparison is chosen for consistency purposes due to the square foot unit as indicated on the right-of-way documents for the acquisitions. If needed, dollar adjustments were made in the areas of property rights conveyed, conditions of sale, and financing. The resulting value reflects the "normal sales price" of the comparable. Percentage adjustments were then made to account for market conditions that change over time. Thereafter, additive percentage adjustments were made in each of the remaining areas of analysis. This is described in detail below. PROPERTY RIGHTS CONVEYED: Each sale reportedly included the transfer of a fee simple title to the buyer(s). The property rights conveyed were similar to those appraised. Therefore, none of the comparables require an adjustment for property rights. FINANCING TERMS: The value shown for a comparable is a cash -equivalent value. When a seller writes a contract with a buyer and the seller has financing terms better than those available in the market, the seller is often paid a higher price for the property. These circumstances require an adjustment to the sale. All sales were sold on a cash - to -seller basis or similar terms and no adjustments are necessary. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC li CONDITIONS OF THE SALE: The listing agent for Sale #4 reports that this property was listed and/or under contract for an extended time period, and that the buyer was particularly motivated to sell. Sale #4 was adequately marketed with a listing price of $350,000 but was under contract for almost a year before selling for $250,000. Sale #4 is in the immediate subject neighborhood but is the lowest sales on a per square foot basis and it does appear that it may have sold at below market conditions. Sale #4 is adjusted upward by 20%. The remaining comparable sales were reportedly arms - length transactions with no unusual conditions of sale reported. Thus, no adjustment is necessary in this area of consideration. EXPENDITURES IMMEDIATELY AFTER SALE: Sale #2 was improved with an older residence that was reportedly not attributed any value in this transaction. The house has reportedly been vacant and the buyers are responsible for the demolition. As this was a known and anticipated expense, the estimated cost of demolition is added into the sale price for Sale #2. No other unusual expenditures after the purchase are reported and no further adjustment is not necessary. MARKET CONDITIONS: Market conditions refer to price changes occurring over time due to various market forces. As has been discussed throughout the report, market conditions along the Wasatch Front and State of Utah in general have been strong the last 5-7 years, with elevated real estate investment/construction and sustained appreciation for all submarkets. Limited commercial data is available in the Moab City area but two of the local real estate agents interviewed for this appraisal assignment stated that conditions have been relatively strong and that there is a lack of developable land, particularly larger parcels that can facilitate lodging related improvements. As outlined in the Residential Overview section of the report, the median sale price of a single-family residence within Moab City has steadily increased over the last five years. Over the last three (3) years, the median sale price has increased ±30.7% (±10.2% annually) from $235,000 as of 4Q 2015 to a current median sale price of $339,000 as of Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 4Q of 2018. Within the last year, the median sale price has actually declined slightly, from $343,000 (4Q 2017) to $339,000 as of 4Q of 2018. All the comparable sales are fairly recent transactions and took place within the last three (3) years, from March of 2016 to two sales in January of 2018 and a pending contract sale. Based on the available market information and data outlined in the Highest and Best Use section of the report, adjustment is applied at 4% annual appreciation (0.25% per month) for those sales older than one quarter (3 months) from the effective date of valuation. Sale #6 is a pending contract sale and is not adjusted. Upward adjustment of 4% per annum is necessary for the remaining sales, rounded to the nearest 0.25%. LOCATION FACTORS: Location refers to access, exposure, attractiveness of surrounding properties, proximity to surrounding support services, linkages and other factors that have a value influence on land. The subject is located at 1515 North Main Street (US-191) in Moab. The subject fronts to Main Street (Highway 191) in north Moab in an area that is well developed with commercial, light industrial, and some single family residences. Moab is the county seat and main population center of Grand County. The Colorado River is north and acts as a northern boundary for Moab City which is is a major regional and national tourist destination. As a result, Main Street and the other major roadways mentioned are well developed with a wide variety of commercial, hotel/motel and other lodging, restaurant, and recreational support establishments including off road vehicle rentals, bike shops and rentals, whitewater rafting, etc. Downtown Moab is heavily developed and development along Main Street is almost exclusively commercial and office, with some office and residential on the secondary roads. Residential development is mainly on the secondary roadways and generally comprises a mix of older homes interspersed with newer residential dwellings. Developable land is limited in Moab City limits, and development within the Moab CBD Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC is characterized more by smaller commercial buildings on smaller lots and higher coverage ratios. The Main Street portion of the CBD is near fully developed. The north portion of Main Street is more lightly developed in comparison to the CBD, but is still an expanding and desirable commercial location. Northern Main Street (US-191) is flanked by slickrock hills to the east which does limit building in this area. The Main Street (US- 191) and 500 West intersection near the subject is well developed with a Denny's, Super 8 Motel and Motel 6. Further north there are multiple hotels/motels and RV parks with several tracts of vacant land remaining. There are some limited tracts of vacant land suitable for development remaining, but much of the land is within the Colorado River flood plain and/or comprised of steep, rocky terrain and the majority of the developable land is built upon. Commercial support services are in adequate proximity, and linkages into the area are average with SR-128, SR-279, 500 West, 400 North, and Center Street located nearby. Overall, the immediate neighborhood is approximately 70-75% developed. All of the comparable sales are within the immediate neighborhood of Moab City and five of the sales front to Main Street (Highway 191). The CBD is heavily developed and land values clearly decline the further north or south from the CBD a given Main Street parcel is. In the immediate subject neighborhood, development becomes less intensive north of the intersection of Main Street with 500 West and there are several large tracts of vacant land remaining. Sales #1, #4, #5 and #6 are in the immediate area along northern Main Street and are similar in location and not adjusted. Sale #2 is within the CBD, but is setback off of Main Street and does not benefit from direct Main Street visibility/exposure. Nob Hill (300 North) is a short, dead end road that is lightly traveled. Given the commercial use, Sale #2 is concluded to be inferior in location given the lack of Main Street frontage and upward adjustment is necessary. Sale #3 is on southern Main Street, close to the south of the CBD. This location is concluded to be superior in comparison to the subject, due to the more developed nature of this area, closer proximity to the CBD and higher traffic Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Iiv counts on Main Street south of the Moab CBD vs. traffic counts north of the CBD. Sale #3 is adjusted downward. PHYSICAL CHARACTERISTICS: The physical characteristics of the subject property are similar to many of the physical features of the comparables. Adjustments were made in the following areas: • Size: In terms of commercial land, Small land parcels often sell for a higher unit price than do large ones, as they are less risky to develop. Development risk increases in proportion to the difficulty of maximizing the development potential of a parcel of land. Larger tracts of land often require the construction of a larger building or even multiple structures in order to maximize development potential. Also, the time frame for con- struction generally increases, which often puts the developer at a greater risk. Consequently, developers are often willing to pay a higher unit price for smaller, less risky parcels of land. However, the Moab area market appears to be unique in this aspect. There is strong demand for both multi-family/affordable housing and lodging establishments that require larger tracts of land. The majority of the most recent commercial construction has been for hotels/motels and other lodging structures, and at least two (2) hotels/motels and/or lodging facilities were noted to be under construction during the neighborhood inspection, and 2-3 others are proposed that are known. Other hotels/motels have been recently remodeled and/or nationally rebranded. Ms. Lenore Beeson reports that larger tracts of land are in very high demand, and that there are very limited tracts of well located land that is adequately sized for lodging and larger scale multi -family housing development. She felt that any influence of size in the Moab area would be reduced, as there is sufficient supply of smaller lots under 1.00 acre, but very strong demand and limited supply of larger lots over 1.00 acre, particularly along the Main Street corridor. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Iv The subject represents a ±4.90 acres tract of land that is well bracketed by the comparable sales, which range from 0.50 acre to 10.00 acres. Adjustment for size is still necessary, but the degree of adjustment is reduced significantly after consideration of the primary market drivers in the Moab area (lodging/multi-family residential) that require larger tracts of land and supply/demand factors for large tracts of land appear unbalanced. Sale #1 is significantly larger and upward adjustment is applied. Sale #3 and #4 are under 1.00 acre and are smaller and modest downward adjustment is necessary. Based on the available market data and information, no further adjustment for size is necessary. • Shape: Shape refers to the physical shape or layout of a site or parcel of raw land. Typically, rectangular, square, or even moderately irregular configurations are more desirable than severely irregular configurations because they allow the developer to maximize the potential development of the land with the least amount of wasted or excess land. The larger parcel is mostly rectangular in shape with no areas of restrictive apparent. All of the sales have a similar rectangular/mostly rectangular shape and adjustment is not necessary. • Street Orientation: Street orientation is another factor that can influence the price a buyer is willing to pay for commercial lots. Primary corners at signalized or high -traffic intersections typically command higher prices due to the increased visibility/exposure from multiple roadways, as well as the increased ease of access. Corner parcels are particularly important for impulse -oriented retail, gas stations/convenience stores, fast food and other uses that rely on high visibility, and street orientation can have a strong effect on the market value of a given parcel of land. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Ivi The subject has frontage of ±450 linear feet on Main Street (US-191) and is an interior lot. All of the sales are interior lots and no adjustment is necessary in this area of consideration. • Topography/Developability: Adjustments made for this area of consideration recognize those differences in a site's topography and/or need of fill in order to accommodate development. Typically, sites that are relatively level with stable and adequate fill conditions, sell for a higher per unit basis. The reason is that there is less site work cost incurred on a buyer's part in bringing these sites into a developable condition versus a site that has a sloping or undulating terrain and/or one that is in need of fill. The subject consists of mostly level topography. Sale #1 did include significant areas of undevelopable flood plain. However, the verification source reports that they attributed little to no value to the undevelopable area and only considered the developable area in the transaction. As such, only the reported useable/developable land size has been considered for adjustment. Sale #1 is not adjusted. Sale #4 is slightly below grade and an above average degree of earthwork and/or fill will likely be necessary. Sale #4 is inferior and adjusted upward. The remaining sales have similar level/mostly level topography and no further adjustment is necessary in this area of consideration. • Utilities: The subject property has all pertinent utilities necessary for development available to the site. All of the comparable sales are centrally located within well -developed suburban areas and are assumed to have adequate access to all pertinent utilities that would be sufficient for development. No adjustment is necessary. • Zoning. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Ivii The subject is zoned RC, which is a commercial zone. All of the comparable sales are centrally located within Moab and are within similar commercial zones. No adjustment is necessary. • Other In all other areas, the comparables appear to be similar to the subject and no further adjustments are necessary. The complete adjustment grid is on the following page. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC LAND ADJUSTMENT GRID COMPARABLES SALES Subject 1 2 3 4 5 6 Address City/Utah 1515 N. Main St. Moab Confidential - North Main St. Moab 76 E. Nob Hill (300 N.) Moab 938 S. Main St. Moab 655 N. Main St. Moab 1431 N. Main St. Moab 998 N. Main St. Moab Sales Price Adjustments: $5,250,000 5748,100 $450,000 $250,000 $2,360,000 51,505,400 Property Rights Adjusted Price 50 55-250,000 50 $748,100 50 $450,000 50 $250,000 50 S2,360,008 $0 $1,508,400 Financing Terms Condition of Sale Expenditures Adjusted Price SO 50 50 55,250,000 $0 50 $10,000 5758,100 $0 50 50 $450,000 $0 550,000 50 5300,000 50 50 50 52,360,000 50 50 $0 $1.505,400 Date of Sale Market Conditions Adjusted Price Jan-18 5.25% $5,525,625 Feb-17 8.50% 5822,539 Nov-17 5.50% $474;750 Mar-16 8.25% $324.750 Jan-18 5.25% 52,483,900 Under contract 0.00% 51.505,400 Unit of Comparison Square Feet (SF) Price per SF 213,444 435,600 512.69 72,310 511.38 21,780 521.80 34,848 $9.32 139,392 $17.82 64,904 $23.19 Other Adjustments: Location 0% 15% -15% 0% 0% 0% Physical Charatterislics 213,444 10% 435,600 0% n.717 -10% 21780 -5% 34,648 0% 2309Z 0% 64,904 Size Shape Mostlyrectangular 0% Moo fly recfanobv 0% M to a:7yreetanpftix 0% Rectangular 0% Rf ea flyreCliMpllfar 0% M eetlyrectengulnr 0% Rectangular Street Orientation Interior 0% Inferior 0% Interior 0% Interior 0% Interior 0% Inferior 0% Interior Topography Maafi ieWei 0% f.l oarlyyraf 0% Moa Ilykrd 0% Mo'Wine ef 10% M a 3./P0orehbdu ivg.de 0% Mcaflyfered. 0% Mo sNylevet Utilities Available An evbilablypeerby 0% Aff availab.e nearby 0% All available nearby 0% All available nearby 0% All available nearby 0% All available nearby 0% All available nearby Zoning/H&B Use RC 0% RC 0% C-5 0% GC 0% C-1 0% RC 04. C-4 Adjusted Price Per SF $13.95 513.08 $16.35 $9.78 517.82 $23.19 Total % Change Gross %Change 16% 10% 26% 15% -21% 25% 36% 35% 5% 0% 0% 0% 'Adjusted Value Range Low High Mean Median $15.15 $9.78 $23.19 $15.70 Project Desc: Moab City Sewer Improvement Project Ownership: Moab Lodging, LLC VAN DRIMMELEN & ASSOCIATES, INC. 59 RECONCILIATION OF LAND VALUE — BEFORE ACQUISITION Before adjustment, the comparable sales range from a low of $7.17 per square foot to a high of $23.19 per square foot. After making adjustments, the adjusted sales indicate a much tighter value range of $9.78 to $23.19 per square foot. The adjusted median is $15.15 per square foot with an adjusted mean of $15.70 per square foot. All of the sales are very recent transactions in the immediate subject neighborhood of Moab and all the sales required gross adjustment at or under 35%. Two of the sales required 0% gross adjustment. Sale #4 is the lowest adjusted sale on a per unit basis and required the highest percentage of gross adjustment. Sale #4 is given reduced consideration, indicating that a market value conclusion above the adjusted average may be necessary. Sales #1 and #5 are the two most recent closed transactions, are within northern Moab in the immediate area and required among the lowest percentages of gross adjustment. The adjusted average of Sales #1 and #5 is $15.88 per square foot, indicating that a value conclusion near the mean is necessary. Sale #5 is one of the most recent closed sales, is in close proximity to the subject and required 0% gross adjustment and Sale #5 is given significant consideration in the final value conclusion. Sale #6 is also in the immediate neighborhood within the project area and required the lowest percentage of gross adjustment along with Sale #5. This sale went under contract in late 2018 and represents the most recent market activity. Although there is some risk that this transaction may not close as scheduled, it is an arms -length transaction between two knowledgeable and willing parties, is in the immediate subject neighborhood and does indicate that a value conclusion above the mean may be necessary. After reviewing the characteristics of the subject and the comparable sales and giving reduced consideration to Sale #4 and higher consideration to Sales #1, #5 and #6 which are all within the immediate project area, the concluded market value is $17.00 per square foot for the subject land. This is calculated below. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 60 Subject Land -- ±213,444 square feet SF x $17.00 per square foot = $3,628,548* * This value typically would be rounded. However, as per UDOT appraisal instructions and for summary valuation purposes in determining the total award, the indicated contributory values are not rounded for valuation purposes pertaining to the partial fee acquisition. MARKET VALUE OF WHOLE — BEFORE ACQUISITION The total indicated value of the land is $3,628,548. The vertical improvements will not be negatively impacted and have been excluded and are not appraised herein. Thus, the contributory value of the improvements is shown as $0. The market value of the whole is calculated as follows: Subject Lot — ±213,444 square feet x $17.00 per square foot = $3,628,548 Contributory Value of the improvements (N/A) = $ 0 Total Market Value — Before Acquisition = $3,628,548* Proposed Project DESCRIPTION OF PROPOSED PROJECT: The proposed project consists of the Moab City Sewer Improvement Project. Reportedly, Moab City is extending an additional sewer line through multiple parcels in northern Moab to a point close to the south of the Colorado River. The sewer line is west of the Main Street/SR-191 roadway and generally within undeveloped land within the 100-year flood plain. A small number of properties along this corridor will be impacted by the project. Construction is anticipated to begin during 2019. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 61 DESCRIPTION OF ACQUISITION(S): a PERPETUAL EASEMENT(S) The perpetual easement, identified as Project Parcel No.: PE is within the west portion of the larger parcel and is west of the hotel and related landscaping/parking lot improvements within undeveloped open space. The shape of the easement is mostly rectangular. It has a reported uniform depth of 20.00 feet, with a maximum length of 161.24 feet along the west border. Please refer to the maps and documents in the report for further clarification. The area contained within the perpetual easement is 3,667 square feet, or 0.084 acre. The purpose of Parcel PE is defined in the legal description provided by the client for "establishing, installing and constructing maintaining, enlarging and repairing sewer lines, along with associated surface structures including manholes, control boxes, cables and such other surface and sub- surface appurtenances as may be deemed necessary for the intended use." Additionally, the legal description states that the easement shall be non-exclusive, and the Grantor (property owner) shall have the right to use the easement in a manner that does not impair or harm the grant or use by Grantee. Moab Lodging, LLC will retain ownership of the area to be encumbered by the easement. The easement appears to be both an underground and above ground easement, given the stated purpose for underground sewer lines and above ground associated surface structures. • TEMPORARY CONSTRUCTION EASEMENT(S) The temporary construction easement, identified as Project Parcel No.: TCE is also within the western portion of the larger parcel and is adjacent east of the perpetual easement. The temporary easement is reported to be a uniform 30 feet in width, with a maximum length of 158.54 feet along the west border of the easement. Please refer to the maps and documents in the report for further clarification. According to legal Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 62 descriptions provided by the client, Project Parcel No. TCE is 5,782 square feet, or 0.133 acre. The temporary easement will be used during the construction phase of the project so that workers can access the area to construct the sewer line. The client reports that the easement will expire on January 1, 2021, which date is ±19 months from the effective date of valuation and the easement will effectively be for a 1.6 year term. Moab Lodging, LLC will retain ownership of the area to be encumbered by the easement and the temporary easement will expire. No other acquisitions or easements are proposed. The following shows the project map with the subject (Project parcel Moab Lodging) and proposed location of the perpetual easement and temporary construction easement. Legal descriptions are located in the addenda. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 63 Project Maps (r i,PROTECT �(i5T1NG 24 " pARCEL LINE [TvF9 STORM DRAIN ` •NsiD RIPRAP nml x 1• ,`? � QI % ,1 j �y1 x +ni�c EXISTING wElLAN05 0 AND DITCH -� -q7 �-1 o m• }-Pw Q 5iATION 25+81.15 k-25+88.07 S5 (TlP .27 DR 35 PVC (BY c� CHIP 0 r; ; FOR,: HOLIDAY.. INN SEWER LATERAL EXTENSION. -SEE j DWG NO, C-05 -- HOLIDAY INN PUMP STATIO SITE PLAN SSMH-7 f5' SiA 32}$9.55 " • CONTRACTQROR,ANGE CON N 6663238.53 FENCING ARG £ 2191 T7s.90 DURING COW PROTECT EXI a CONCRETE .P 0 a (=> NEW_.15 SEWER LINE— ® -6..) FOR AARCHWAY INN LATERAL EXTENSION. nviG NO. C-DS CASA DE AMIGO Oi `_126--0C Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 64 LEGEND CASA DE AMIGOS LLC 01-126-0006 N 53°35'00" E 30.27' 30' TEMPORARY N 53°35'00" E CONSTRUCTION 20.18' EASEMENT 1, \ d' \. \ 9v., \ 20' SEWER LINE EASEMENT \ � \ .7• N. \ �y N. s� \ p*J}, \ \ 76' \ \�' \ \ �Fj \ \ \ r: \�� �s� \ 13� \ Qs \ 60 ti �+o �SSioNa�.��'1� o '� Q ; • • , • w. ' NO. 7540504• : � i y G. z LUCAS m u BLAKE m ; i '. 118119 •' '�1 4' o_ S 44°06'40" E 18.35' J r pi4 ` ` 28.55' $ \ S 72°55'00" W 22.45' NATURE CONSERVANCY 01-126-0004 \ \ u^ `\ \ \ 7y \� \ v. \ � ` \1. \sr \ qn \ . O Property Corner MOAB LODGING LLC 01-126-0005 POB . TEMPORARy EASEMENT S 44°06'40" E 43.85' S 72°55'00" W — 33.68' POB - ',EWER EASEMENT \ • \ Ni CORNER, SECTION 35, T25S, R21 E, SLB&M (FOUND REBAR) Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 65 DESCRIPTION OF PROPERTY — AFTER ACQUISITION: The perpetual easement and temporary construction easement are within Grand County parcel number(s) 01-126- 0005. As the subject will be impacted by a perpetual easement and temporary construction easement only, the size of the remainder will be unchanged at 213,444 square feet, or 4.900 acres. Discussions of the major land characteristics that will be altered by the acquisitions are listed below. Any item, or land characteristic, not addressed below is assumed to have remained unchanged from the description of the land before the acquisition. Lor AREA: Before the acquisition, the defined larger parcel contains ±213,444 square feet, or 4.90 acres. As only easements are proposed and Moab Lodging, LLC will retain ownership of the easements, the size of the remainder will be unchanged at ±213,444 square feet, or 4.900 acres. The remainder will be able to accommodate commercial development as outlined in the Highest and Best use as vacant section of the report and continued use of the site will not be restricted. SHAPE: The shape will be mostly rectangular in the after condition and will be unchanged relative to the before condition. The overall depth and shape of the remainder will be suitable for development and does not restrict future or continued use of the site. ACCESS: The subject presently has direct access from Main Street (US-191). The acquisitions are in the rear (west) portion and the amount of frontage will not be reduced or altered and access will remain unchanged. TOPOGRAPHY: The topography will be mostly level and is unchanged from the before condition. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 66 HIGHEST AND BEST USE — AFTER ACQUISITION: This section of the report addresses any changes to the highest and best use after the acquisition from the highest and best use before the acquisition. There are no major physical changes to the remainder. The subject is located along the primary north/south traffic artery and main commercial corridor in the northern incorporated portions of Moab City. The remainder, at 213,444 square feet, or 4.900 acres in the after condition is unchanged relative to the before condition and is adequately sized and shaped to facilitate stand alone commercial development if vacant, as outlined in the highest and best use section of the report. The highest and best use in the after condition is not altered by the acquisitions and remains for commercial development and is unchanged relative to the before condition. Data Analysis and Conclusions — After Acquisition VALUATION OF THE PERPETUAL EASEMENT(S): As part of the project, there will be a perpetual easement within the subject property. The perpetual easement, identified as Project Parcel No.: PE is within the west portion of the larger parcel and is west of the hotel and related landscaping/parking lot improvements within undeveloped open space. The shape of the easement is mostly rectangular. It has a reported uniform depth of 20.00 feet, with a maximum length of 161.24 feet along the west border. Please refer to the maps and documents in the report for further clarification. The area contained within the perpetual easement is 3,667 square feet, or 0.084 acre. The purpose of Parcel PE is defined in the legal description provided by the client for "establishing, installing and constructing maintaining, enlarging and repairing sewer lines, along with associated surface structures including manholes, control boxes, cables and such other surface and sub -surface appurtenances as may be deemed necessary for the intended use." Additionally, the legal description states that the easement shall be non-exclusive, and the Grantor (property owner) shall have the right to use the easement in a manner that Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 67 does not impair or harm the grant or use by Grantee. Moab Lodging, LLC will retain ownership of the area to be encumbered by the easement. The easement appears to be both an underground and above ground easement, given the stated purpose for underground sewer lines and above ground associated surface structures. As value is directly related to functional utility, a diminution of value is anticipated if utility of a given parcel is negatively affected by the proposed easement. The resulting impact can vary significantly depending on the type of easement and highest and best use conclusion of a property both before and after the acquisition. For example, if a property supports development either in the short or medium term, and if the easement precludes such development, substantial diminution of value can be realized. On the other hand, if a parcel's primary utility is unaffected by the acquisition, highest and best use before and after the taking would remain largely unchanged, and the value diminution would be less. The purpose of Parcel PE is defined in the legal description provided by the client for "establishing, installing and constructing maintaining, enlarging and repairing sewer lines, along with associated surface structures including manholes, control boxes, cables and such other surface and sub -surface appurtenances as may be deemed necessary for the intended use." Additionally, the legal description states that the easement shall be non-exclusive, and the Grantor (property owner) shall have the right to use the easement in a manner that does not impair or harm the grant or use by Grantee. Moab Lodging, LLC will retain ownership of the area to be encumbered by the easement. The easement appears to be both an underground and above ground easement, given the stated purpose for underground sewer lines and above ground associated surface structures. The compensation to purchase the easement is usually a percentage of the fee. In speaking with representatives of the different utilities in the area, it was found that payment for easements varies depending on whether it is underground or overhead. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 68 Generally, an underground easement is less costly to purchase than an overhead easement. Most easements used for underground purposes are based at 33% to 50% of the fee. Overhead easements, such as for power lines or access easements, range from 50% to 75% of the fee depending on the type of and size of the lines. High-tension power lines (i.e. metal, etc.) with multiple lines would be at the upper end of the range, while typical wood power poles with single track overhead lines would be at the lower end. Thus, a typical range for a perpetual easement is 33% to 75%, depending on the development restrictions created by the easement. The recorded owners will be able to utilize the area contained within the perpetual easement for setback, parking, open space compliance and other secondary uses, but will not be able to construct permanent structures within the area to be encumbered by the easement. However, the perpetual easement is within the 100-year flood plain that could not reasonably be developed with significant site costs. Development in the area to be encumbered by the easement is highly unlikely. As indicated, the easement is within the west portions of the larger parcel within undeveloped flood plain and is separated from the Main Street corridor. This area would be more difficult to develop and less desirable for commercial development due to the reduced Main Street visibility. The easement is mainly for underground purposes, but also includes surface rights. Considering the use and the location of the perpetual easement, the estimated percentage value is forty percent (0.40). This amount appears to be reasonable given the purpose of the easement and location within less developable flood plain area with reduced Main Street visibility/exposure. The market value of the fee simple interest of the land has been concluded at $17.00 per square foot. The market value of the perpetual easement is calculated by multiplying the area of the easement x the price per square foot x the above determined discount. This is calculated as follows: Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 69 Project Parcel No.: PE 3,667 square feet x $17.00/SF x 0.40 (easement factor) = $24,936 DESCRIPTION AND VALUATION OF THE IMPROVEMENTS ACQUIRED/IMPACTED: As per Federal and State right-of-way appraisal requirements, the contributory value of all landscaping and site improvements within the acquisitions is to be included in the compensation. Contributory value is a real estate term that refers to the contribution that a particular component (i.e. fences, landscaping, trees, etc.) has to the overall value of the whole property. Contributory value takes into consideration the degree of depreciation for a particular site improvement item/component as well as the added value of that component to the value of the whole and differs from replacement cost new. This area of consideration focuses on those site/landscaping improvements that do not need to be replaced, or cannot reasonably be replaced. Deduction for depreciation is necessary when considering site improvement acquired items. As noted throughout the report, the subject comprises a mostly rectangular shaped parcel that is improved with a Holiday Inn Express Hotel and related landscaping/site improvements. The area of the easements is un-developed, and any vegetation present is growing wild and does not represent vested landscaping improvement. Additionally, There are no acquisitions, and any site and/or landscaping improvements within the easements will be discussed and addressed in the cost to cure section to follow. Thus, site improvements acquired is not necessary and is shown herein as $0. DAMAGES TO THE REMAINDER: In cases involving a partial acquisition, an analysis of damages and special benefits is necessary for the remaining portion of the parcel to determine if there is any loss in value to the remainder of the subject property in the after condition as a result of the partial acquisition, and/or if there are any special benefits resulting from the partial acquisition that may be used to offset damages. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 70 Severance damages can sometimes result in right-of-way acquisition situations. The International Right of Way Association defines severance damages as: "In condemnation, the loss in value to the remainder in a partial taking of a property. Generally, the difference between the value of the whole property before the taking and the value of the remainder after the taking is the measure of value of the part taken and the damages to the remainder. "9 • Land The size of the remainder parcel is 213,444 square feet, or 4.900 acres and is unchanged relative to the before condition. As only easement(s) are proposed, all other physical aspects will also remain unchanged. The subject is over the minimum required lot size under the RC (Regional Commercial) zone, and will remain well in excess of the minimum required lot size in the after condition. It will remain a mostly rectangular shaped parcel with assumed adequate and legal access from Main Street (US-191). The amount of frontage and access will not be altered. Considering typical lot size and setback standards, the remainder will have similar utility in comparison to the before condition and will be adequate for commercial development as outlined in the Highest and Best Use as Vacant section of the report. The value of the land remainder is estimated at $17.00 per square foot and is unchanged from the before condition and no further diminution in value beyond what has been compensated for is apparent for the land. • Vertical Improvements: The subject is being affected by easements only, and the proposed easements are in the rear (west) and undeveloped portions of the larger parcel. The Holiday Inn Express Hotel will not be impacted by the proposed easements and will remain in the after condition with similar and unchanged setbacks and the overall use and utility of the site 9 Principles of Right of Way, International Right of Way Association, Torrance, California, 2001, pg.208 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 71 and improvements will not be negatively impacted by the imposition of the acquisitions. As such, no damages to the hotel is necessary and the vertical improvements are excluded from this analysis and have not been inspected, appraised or otherwise considered herein. The market value(s) outlined herein represent the underlying land value(s) only. Thus, proximity or other damages to the vertical improvements are not apparent and damages are shown as $0 herein. VALUATION OF THE TEMPORARY EASEMENT(S): The location of Project Parcel No(s). TCE has been previously outlined. The temporary easement will be used during the construction phase of the project so that workers can access the area to construct the sewer line. The client reports that the easement will expire on January 1, 2021, which date is ±19 months from the effective date of valuation and the easement will effectively be for a 1.6 year term. The size of Project Parcel No(s). TCE is 5,782 square feet, or 0.133 acre. In order to formulate an opinion of the market value for the temporary construction easement, the land lease rate is first calculated. The lease rate is a rate of return on the fee value of the easement land area based on a one-year period. Several sales of leased properties have been located to derive an appropriate ground rent capitalization rate. As shown below, the rates from the sales range from 5.25 to 7.51 percent, with an average of 6.47 percent. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 72 Summary of Ground Rent Cap Rates 1D Tenant Location Data or Sala Sale%Prka Acres Tenn PricerSF NOI Cao Rate 1 Wendy's SWC SR-72 8 SR-68, Saratoga Springs, Utah Dec-13 51,809,000 0.60 15 Years + 20 years in options 569.21 595,000 5.25 2 Burger King 1466 East 3500 North, Lehi, Utah Mar-11 51,865,000 0.81 30 Years 552.86 5140,000 7.51 3 Retail Strip 1135 South 100 West, Logan, Utah Feb-11 51,023,300 0.76 20 Years 530,91 565,000 6.35 4 Smith's 4006 South 5600 West, West Valley City Utah Aug-10 57,250,000 6.70 30 Years 524.84 5491,550 6-78 5 Wendys 5592 West 13400 South (NEC). Herriman. UT Mar-10 5700,000 681 10 Years 519.84 549,500 7 07 6 Wells Fargo 639 North State Street, Sep-08 Lindon, Utah 52,213,000 0 96 43 Years 552 92 5130,003 5 87% Summary Analysis - AWL Low HIg1+ Median Average 5.25% 7.61 % 6.5T::: 1),.I7 ::. In addition to the above sales, investor surveys performed by our office have been reviewed. It is noted that land lease rates are typically based on net lease assumptions with no expenses, such as management, vacancy, etc. According to most market participants surveyed, land lease capitalization rates typical range from 5-8 percent depending on a number of factors such as location, tenant credit, land size, etc. Sales of land leases are rare as these types of leases typically bring a low -risk investment to the leased fee interest owner, or lessor. Mr. Mike Barry, Staff Appraiser with Wal-Mart Realty, Inc., was contacted regarding land lease rates for tracts of land throughout the United States. Mr. Barry stated that land lease rates took a downward trend beginning in about 2004 and have since varied from about 6 to 8 percent. He stated that most investors around the country now use an estimate of 6-8 percent for most land leases. The rate depends on a number of factors such as location, access, surrounding development, etc. There are several land leases that he has been involved with and indicated that rates are generally in the 6-8 percent range. Other local brokers confirmed that the land lease rates are generally between 6 and 8 percent. Considering the above, it is concluded that an annual lease rate of 8% is appropriate for the temporary easements proposed on the subject property. The annual Project Desc: Moab City Sewer Improvement Project VAN DR/MMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 73 payment attributed to the temporary easement is calculated by an 8 percent rental rate times the value of the land within the easement. A typical land easement is usually paid on an annual basis for the duration of the lease. Since the owner will be compensated for the easement in one payment up front, the present value of the future cash payments is calculated. A present value factor PVF) is often used to calculate the net present value of the annual lease payments for the duration of the lease. However, the term of the temporary easement is for approximately 19 months, or ±1.6 years, which is a relatively short term, and it is possible, but somewhat unlikely that a discount for the time value of the money would be considered by investors. As such, a present value factor is not necessary and is shown herein as 1.60. The total area of the temporary construction easement is 5,782 square feet, or 0.133 acre. The market value of the fee simple interest of the land has been concluded at $17.00 per square foot. The market value of the temporary easement is then calculated by multiplying the area of the easement x $17.00/square foot x the above determined land lease rate or eight percent (0.08) x the present value factor of 1.60. The total combined value of the temporary easement is $12,582 and is calculated as follows: Parcel No(s). TCE 5,782 SF x $17.00/Sq.Ft. = $98,294 x 0.08=$7,863.52 x 1.60 = $12,582 Cosr To CURE: Cost to cure refers to the estimated cost to replace landscaping and/or site improvement components once the project is complete. Cost to cure considerations would typically be included so that the property owners could replace necessary landscaping/improvement items within easements/acquisitions after the completion of the project such as mailboxes, fencing, sprinkler systems, hardscaping items, ground cover plants, small trees, shrubs/bushes, etc. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 74 Moab City officials report that the project contractor will repair/replace any fencing, and no cost to cure is necessary for any fencing that may be present. All other items are included for cost to cure consideration. As mentioned, the easements are within an undeveloped area of the larger whole parcel that is within the 100-year flood plain and may be have some wetlands. Any fencing will be replaced by the project contractor. There is a large amount of vegetation that is growing wild and does not constitute vested landscaping improvements. In the event that this portion of the larger parcel were developed, the vegetation would be removed. Thus, cost to cure is not necessary and is shown as $0 herein. SPECIAL BENEFITS: In the subject jurisdiction, special benefits are generally used to offset severance damages resulting from a partial acquisition. The International Right of Way Association defines special benefits as "advantages accruing from a given highway improvement to a specific property and not to others generally. "10 In the State of Utah, special benefits can only be used to offset any damages and cannot be used to offset compensation for the acquisitions. No damages have been concluded and any potential offsetting benefits cannot be considered. Thus, special benefits are not necessary and are shown as $0 herein. 10 Principles of Right of Way, International Right of Way Association, Torrance, California, 2001, pg.216 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 75 Summary of Values A.) VALUE OF THE SUBJECT AS A WHOLE PROPERTY Subject Land -- ±213,444 square feet SF x $17.00 per square foot Value of Improvements (Not appraised) Total B.) VALUE OF THE ACQUISITIONS: (A-C) Partial Fee Acquisitions Perpetual Easement: - Parcel No: PE Site Improvements Acquired: Total C.) VALUE OF THE REMAINDER AS PART OF THE WHOLE (A-B) Land: 213,444 SF - 0 SF = 213,444 SF @ $17.00 per square foot Improvements Contributory Value Less: Perpetual Easements Less: Site Improvements Acquired Total D.) VALUE OF THE REMAINDER AFTER THE ACQUISITION (C-D+E) Remainder as part of the whole Less: Severance Damages Value of Remainder Parcel E.) DAMAGES Temporary Construction Easements Severance Damages: Cost To Cure: Total F.) SPECIAL BENEFITS Special Benefits: G.) TOTAL AWARD (A-F) Partial Fee Acquisition Perpetual Easements Temporary Construction Easements Improvements Acquired Severance Damages Less: Special Benefits Cost To Cure Total Award Rounded to _ $3,628,548 _ $ 0 - $3,628,548 _ $ 0 $ 24,936 _ $ 0 _ $ 24,936 - $3,628,548 = $ 0 - $ (24,936) = $ (0) = $3,603,612 = $3,603,612 = $ (0) = $3,603,612 _ $ 12,582 $ 0 - $ 0 _ $ 12,582 - $ 0 $ 0 $ 24,936 $ 12,582 $ 0 $ 0 ($ 0) $ 0 $ 37,518 $ 37,600 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC 76 Reconciliation and Final Estimate of Value The Sales Comparison Approach was used to formulate an opinion of the market value of the subject land. This method adequately accounts for investor motivation, which is directly tied to the principle of substitution, which states that a potential buyer will pay no more for a property than he or she would for a similar property with comparable characteristics and utility. After analyzing all of the data presented in the report, I am of the opinion that the market value of the perpetual easement and temporary construction easement, including land and any site improvements acquired, severance damages and/or cost to cure considerations, as necessary, as of May 19, 2019, is: THIRTY-SEVEN THOUSAND SIX HUNDRED DOLLARS ($37,600) i Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Exhibits & Addenda Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda AERIAL PARCEL MAP Parcel # 01-126-0005 *Boundary lines are per the County website and may not be precise. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda PARCEL/PLAT MAP F � . 16.3.6.1 2" W 2687.28' 7" W 2687.78' • rs r.EJTIE.'`.4-• ti ''4 5 .. 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Had bn.Roo w 1..no06o0.rp I.nrapndpd min. moral by and w npdwpy p.maa Flood Zone: Zone X (outside 100 year flood zone) & Zone A (Special Flood Hazard zone) Panel Number: 49019C1775D Effective Date: April 4, 2009 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda CLIENT PROVIDED FLOOD MAP Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda ZONING MAP �+ IS Moab Clry Zoning: RC I ID 0.00 ZONQ_CODE RC Aree_SoFt 6,756,915.87 • Areajtc 155.12 Min_Lot_Area See Moab City Code Mirk HIdO_Footprint N/A Front_Setbadc See Moab City Code Rear_Setbadc See Moab City Code Side Setback See Moab City Code Side_Setbadc_Comer See Moab :8am m Jurisdiction/Source: Moab City Zoning: RC (Regional Commercial) Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda MASTER PLAN ZONING MAP i a Jurisdiction/Source: Moab City Master Plan Zonin•: Commercial Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda LEGEND ir�r!,3 City Limas Future Annexation Paved Pair Dirt Trait Downtown Peripheral 0 ,Zone t1i2 Mile Rastiust Doarrtolom Innuanco Zone Existing or potential Tralin oad Complete Streets ,�..r Enhanced Traver Corridor X institutional Hub * Future Retail Ili Downtown Core ' Future Commercial Futura ftesl0ential tLW ed USA Future Land Use Sensitivq Area Re sort Open Land, Park - Public Laird: Argricurture Retidensini Civic Commercial Indusinat Resort Commerclst Mobile dome Flo odr, ey Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Comparable Land Sales Land Comparable #1 Identification: Location Confidential — Main Street Commercial Land City/State Moab, Utah Parcel # Confidential Aerial Parcel Map Retained In Appraisal Workfile Land Description: Land Size 19.13 acres, or ±833,303 square feet — gross ±10.00 acres, or 435,600 square feet - useable Shape Mostly rectangular Street Orientation/Access Interior/Adequate from Main Street (US-191) Topography Mostly level but ±9.00 acres are within the Colorado River floodplain, potential wet and/or wetlands and undevelopable Utilities All available Zoning RC — Regional Commercial Transaction: Date of Sale January 2018 Conditions Arms -Length Sales Price $5,250,000 Financing Cash to seller Cash Equivalent Sales Price $5,250,000 Listing Price N/A Marketing Period N/A Grantor Confidential Grantee Confidential Verification Confidential; seller Unit of Comparison: Sales Price/Useable SF $12.05 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Remarks: This is a recent sale of a larger tract of commercial land with extensive Main Street frontage and access. This parcel is on the northern half of the SR-191/Main Street project. Of the total land size, the buyer reports that ±9.00 acres were within the Colorado River flood plain. Although the future development may utilize a small portion of the flood plain area for secondary uses (open space, landscaping, parking, etc.) the buyer stated that he always viewed this transaction as if he was purchasing 10 acres, and that he attributed no value to the flood plain area. All details of this sale, including the location, buyer/seller, conditions of sale and the buyers intended development plans were divulged by the verification source and are known by the appraiser. The source requested that all specific identifying details concerning this sale be kept confidential due to confidentiality agreements. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Lana Comparable #2 Identification: Location City/State Parcel # Land ❑escription: Land Size Shape Street Orientation Topography Utilities Zoning ±76 East Nob Hill (300 North) Moab, Utah 01-0001-0062 & -0063 1.66 acres, or 72,310 square feet Mostly rectangular Interior Level All available C-5 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Comparable Sale #2 - Continued Transaction: Date of Sale Conditions Sales Price Financing Cash Equivalent Sales Price Listing Price Marketing Period Grantor Grantee Verification Unit of Comparison: Sales Price/Sq.Ft. Remarks: February 2017 Arms -Length $748,100 Cash to seller $748,100 $750,000 160 DOM David K. Lyle Four Corners Community Behavioral Health Lenore Beeson; real estate agent Wasatch Front MLS County records $10.35 This sale is more centrally located within the CBD of Moab but is one parcel east of Main Street and this site does not benefit from direct Main Street/US-191 visibility/exposure or access. Nob Hill is a short, dead end road with nominal traffic counts. Commercial development surrounds this site to the north, west and south. At the time of the transaction, it was within both the R-3 and C-3 zone, but the entire site has been rezoned C-5 zone, which is defined as a neighborhood commercial zone. Ms. Beeson confirmed that the sale was contingent upon a commercial rezone. There was an older home on the site that was reportedly not attributed any value in the transaction, which is for the underlying land only. Ms. Beeson reports that the house has been vacant since and will be demolished by the buyers. The buyers intend to develop the site with a medical office on the east portion, and employee housing on the western perimeter. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Land Comparable #3 Identification: Location City/State Parcel # Land Description: Land Size Shape Street Orientation Topography Utilities Zoning 938 South Main Street (Highway 191) Moab, Utah 02-0012-0011 0.50 acre, or 21,780 square feet Rectangular Interior Level All available GB — General Business Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Comparable Sale #3 - Continued Transaction: Date of Sale Conditions Sales Price Financing Cash Equivalent Sales Price Listing Price Marketing Period Grantor Grantee Verification Unit of Comparison: Sales Price/Sq.Ft. Remarks: November 2017 Arms -Length $450, 000 Cash to seller $450, 000 $500,000 155 DOM Terryl Dickerson A&B Moab Hotels, LLC Randy Day; real estate agent Wasatch Front MLS County records $20.66 This sale is in southern Moab on the west side of Main Street near retail and office development. It was purchased for speculative lodging. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Land Comparable #4 Identification: Location City/State Parcel # Land Description Land Size Shape Street Orientation Topography Utilities Zoning 655 North Main Street (Highway 191) Moab, Utah 01-0MUT-0090, -0091 0.80 acre; 34,848 square feet Mostly rectangular Interior Mostly level but below street grade All available C-1 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Comparable Sale #4 - Continued Transaction: Date of Sale Conditions Sales Price Financing Cash Equivalent Sales Price Listing Price Marketing Period Grantor Grantee Verification Unit of Comparison: Sales Price/Sq.Ft. Remarks March 2016 Arm's length $250, 000 Cash or cash equivalent $250,000 $350,000 113 days William F. Birsfield Scott Newton Rick Lamb; real estate agent WFMLS County Records $7.17 This sale is an older transaction for two contiguous lots on the west side of Main Street. The property was listed for about 3 months and the agent reports that it was a "motivated seller". Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN 8 ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Land Comparable #5 Identification: Location City/State Parcel # Land Description: Land Size Shape Street Orientation Topography Utilities Zoning Transaction: Date of Sale Conditions Sales Price Financing Cash Equivalent Sales Price Listing Price Marketing Period Grantor Grantee Verification Unit of Comparison: Sales Price/Sq.Ft. 1431 North Main Street Moab, Utah 01-0126-0019 3.20 acres, or ±139,392 square feet Mostly rectangular Interior Mostly level All available RC — Regional Commercial January 2018 Arms -Length $2, 360, 000 Cash to seller $2, 360, 000 N/A N/A Gardiner Properties, LLC Moab Hospitality, LLC Review of Settlement Statement (by other) $16.93 Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Remarks: This is a recent sale of a commercial lot on the west side of Main Street in northern Moab. It is in the process of being developed with a Marriott Courtyard Inn in partnership with the owners to the north. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Land Comparable #6 Identification: Location City/State Parcel # Land Description: Land Size Shape Street Orientation Topography Utilities Zoning Transaction: Date of Sale Conditions Sales Price Financing Cash Equivalent Sales Price Listing Price Marketing Period Grantor Grantee Verification 998 North Main Street Moab, Utah 01-036-0031 1.49 acres, or 64,905 square feet Rectangular Interior Mostly level All available C-4 Under contract Arms -Length $1,505,400 Cash to seller $1,505,400 N/A N/A Casey Williams; Conservator of Soo Bok Park & Austin Park; Estate of Tammy Park Vinod Patel Review of REPC (other) Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Unit of Comparison: Sales Price/Sq.Ft. $23.19 Remarks: This is a pending sale of a 1.49 acre parcel on the east side of Main Street near 3 other hotels (Motel 6, Super 8 and Moab Gateway Inn) in and around the intersection of 500 West and Main Street. It was purchased for future development with a 104 room hotel. It is still under contract pending approval from the city. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Moab City Legal Descriptions Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC When Recorded Mail to: City of Moab 217 East Center Street Moab, UT 84532 UTILITY EASEMENT AND AGREEMENT THIS UTILITY EASEMENT AND AGREEMENT (the "Agreement") is made and entered into as of the date(s) set forth below by and between Moab Vacation Lodging, LLC, a Utah limited liability company, the owner of record, ("Grantor"), and the City of Moab, a municipal corporation ("Grantee"). In consideration of the mutual promises and obligations contained herein, the. receipt of which is hereby acknowledged, Grantor and Grantee agree as follows: 1. Grant of Easement. Grantor hereby grants to Grantee, its successors and assigns, a permanent easement in the SE % of the SW % of Section 26, T 25 S, R 21 E SLB&M, Moab City, Grand County, Utah: Beginning at a point on grantor's boundary said point being North 48°04'39" West 824.03 feet from the North Quarter corner of Section 35, Township 25 South, Range 21 East, Salt Lake Base and Meridian, and running thence North 44°06'40" West 18.35 feet; thence North 44°06'40" West 161.24 feet to grantor's north boundary; thence with said boundary North 53°35'00" East 20.18 feet; thence South 44°06'40" East 158.54 feet; thence South 44°06'40" East 28.55 feet to grantor's south boundary; thence with said boundary South 72°55'00" West 22.45 feet to the point of beginning, having an area of 3,667 square feet, 0.08 acres (the `Basement Area"). 2. Purpose. This Agreement is granted for the purpose of establishing, installing, constructing maintaining, enlarging, and repairing sewer lines, along with associated surface structures including manholes, control boxes, cables, and such other surface and sub -surface appurtenances as may be deemed necessary for the intended use. Grantee shall have reasonable access to the Easement Area as necessary to carry out the purposes of this Agreement. Grantee shall be solely responsible for the maintenance of any improvements, structures, or equipment it constructs within the Easement Area. 3. Nan -exclusive Use: Removal of Encroachments. Grantor expressly reserves and shall have the right to use the Easement Area in a manner that does not impair or harm the grant or use by Grantee. Grantor shall not construct any buildings, structures, or other permanent improvements within the Easement Area, and any such improvements or encroachments may be subject to removal without compensation. 1 4. Restoration. Upon completion of any repair or maintenance work contemplated by this Agreement, Grantee agrees to promptly restore the surface to a condition equal or superior to that existing prior to any disturbance. 5. Abandonment. This Agreement shall only be deemed abandoned upon lawful execution and recording of a written grant by Grantee conveying and abandoning this Agreement. 6. Warranty of Title and Authority. Grantor warrants that it has full right and lawful authority to make the grant contained herein, and promises and agrees to defend the Grantee in the exercise of its rights hereunder against any defect in Grantor's title to the lands subject to this Agreement. 7. Binding in Perpetuity. This Agreement is irrevocable and shall bind the subject property in perpetuity, and all of the benefits and burdens of this Agreement shall inure to and be binding upon the respective legal representatives, heirs, executors, administrators, successors and assigns of the parties. 8. Sole Agreement;. Modifications. This Agreement constitutes the sole and complete agreement between the parties and no additional or different oral representation, promise or agreement shall be binding on any of the parties with respect to the subject matter of this instrument. No modification to this Agreement shall be binding unless it is in writing and duly executed by both parties. 9. Governing Law and Venue. This Agreement is governed by Utah law; the sole venue for any dispute arising from this Agreement shall be the courts of Grand County, Utah. 10. Remedies. In the event of any breach of the provisions of this Agreement, the non - breaching party may enforce same in an action for damages, specific performance, or both. In any such proceeding arising under this Agreement the prevailing party shall be entitled to recover its reasonable attorney fees and court costs, in addition to any other remedies or relief. 11. Notices. Any notice shall be sent by first class mail, postage prepaid, or delivered by courier, to the addresses for the parties as specified below: Grantee: Grantor: City of Moab Moab Vacation Lodging, LLC Attn: City Manager Attn: 217 East Center St. Moab, UT 84532 This Agreement is binding and effective as of the date(s) of execution by the parties, below. 2 Moab Vacation Lodging, LLC/City of Moab Utility Easement Signature Page, Contd. Grantor: Moab Vacation Lodging, LLC By: Moab Vacation Lodging, LLC By: , Manager STATE OF UTAH ) ss. COUNTY OF GRAND The foregoing Agreement was acknowledged and executed before me by Moab Vacation Lodging, LLC, acting by and through, , Manager this day of , 2019. Witness my hand and official seal. My commission expires: Grantee: By: Emily Niehaus, Mayor of the City of Moab Attest: Notary Public, State of Utah Address: Sommar Johnson, Recorder Date -End of Document- 3 When Recorded Mail to: City of Moab 217 East Center Street Moab, UT 84532 TEMPORARY CONSTRUCTION EASEMENT AND AGREEMENT THIS TEMPORARY CONSTRUCTION EASEMENT AND AGREEMENT (the "Agreement") is made and entered into as of the date(s) set forth below by and between Moab Vacation Lodging, LLC, a Utah limited liability company, the owner of record, ("Grantor"), and the City of Moab, a municipal corporation ("Grantee"). In consideration of the mutual promises and obligations contained herein, the receipt of which is hereby acknowledged, Grantor and Grantee agree as follows: 1. Grant of Easement. Grantor hereby grants to Grantee, its successors and assigns, a temporary construction easement in the SE'/a of the SW 'A of Section 26, T 25 S, R 21 E SLB&M, Moab City, Grand County, Utah: Beginning at a point on grantor's boundary said point being North 48°38'11" West 824.03 feet and North 72°55'00" East 22.45 feet from the North Quarter corner of Section 35, Township 25 South, Range 21 East, Salt Lake Base and Meridian, and running thence North 44°06'40" West 28.55 feet; thence North 44°06'40" West 158.54 feet to grantor's north boundary; thence with said boundary North 53°35'00" East 30.27 feet; thence South 44°06'40" East 154.49 feet; thence South 44°06'40" East 43.85 feet to grantor's south boundary; thence along said boundary South 72°55'00" West 33.68 feet to the point of beginning, having an area of 5,782 square feet, 0.13 acres (the `Basement Area"). 2. Purpose. This Agreement is granted for the purpose of establishing, installing, constructing sewer lines, along with associated surface structures including manholes, control boxes, cables, and such other surface and sub -surface appurtenances as may be deemed necessary for the intended use. This includes but is not limited to, the transport and storage of construction material, soil, equipment, and vehicles. Grantee shall have reasonable access to the Easement Area as necessary to carry out the purposes of this Agreement. Grantee shall be solely responsible for the maintenance of any improvements, structures, or equipment it constructs within the Easement Area. 3. Temporary Easement. This Agreement shall be temporary in duration, commencing upon the date of execution of this Agreement and continuing for the duration of the construction project, but not to exceed January 1, 2021. After construction and restoration is complete, Grantee covenants and agrees that it shall have no further right or interest as to the real property comprising the same. 1 4. Non-exclusive Use; Removal of Encroachments. Grantor expressly reserves and shall have the right to use the Easement Area in a manner that does not impair or harm the grant or use by Grantee. 5. Restoration. Upon completion of any repair or maintenance work contemplated by this Agreement, Grantee agrees to promptly restore the surface to a condition equal or superior to that existing prior to any disturbance. All restoration work within or upon the Easement Area shall be undertaken at the sole cost of Grantee. Upon completion of the restoration, the Grantee shall remove all equipment and materials from the Easement Area. 6. Warranty of Title and Authority. The Grantor warrants that it has full right and lawful authority to make the grant contained herein, and promises and agrees to defend the Grantee in the exercise of its rights hereunder against any defect in Grantor's title to the lands subject to this Agreement. 7. Sole Agreement; Modifications. This Agreement constitutes the sole and complete agreement between the parties and no additional or different oral representation, promise or agreement shall be binding on any of the parties with respect to the subject matter of this instrument. No modification to this Agreement shall be binding unless it is in writing and duly executed by both parties. 8. Governing .Law and Venue. This Agreement is governed by Utah law; the sole venue for any dispute arising from this Agreement shall be the courts of Grand County, Utah. 9. Remedies. In the event of any breach of the provisions of this Agreement, the non - breaching party may enforce same in an action for damages, specific performance, or both. In any such proceeding arising under this Agreement the prevailing party shall be entitled to recover its reasonable attorney fees and court costs, in addition to any other remedies or relief. 10. Notices. Any notice shall be sent by first class mail, postage prepaid, or delivered by courier, to the addresses for the parties as specified below: Grantee: Grantor: City of Moab Moab Vacation Lodging, LLC Attn: City Manager Attn: 217 East Center St. Moab, UT 84532 This Agreement is binding and effective as of the date(s) of execution by the parties, below. 2 Moab Vacation Lodging, LLC /City of Moab Temporary Utility Easement Signature Page, Contd. Grantor: Moab Vacation Lodging, LLC By: Moab Vacation Lodging, LLC By: , Manager STATE OF UTAH COUNTY OF GRAND The foregoing Agreement was acknowledged and executed before me by Moab Vacation Lodging, LLC, acting by and through, , Manager this day of , 2019. Witness my hand and official seal. My commission expires: Notary Public, State of Utah Address: Grantee: By: Emily Niehaus, Mayor of the City of Moab Attest: Sommar Johnson, Recorder Date -End of Document- 3 CASA DE AMIGOS LLC 01-126-0006 N 53°35'00" E 30.27' N 53°35'00" E 20.18' 20' SEWER LINE EASEMENT GRAPHIC SCALE 0 60 120 1" (INCH) = 60' (FEET) LEGEND 30' TEMPORARY CONSTRUCTION EASEMENT \ \ \s \ \ vv. \ \ °S \ \ S' \ ]7 Oh \\ \\ 06,, \\�7S \ as. \a4 \ v \ rr \� \ \a � \ xd8 \ \ \•$� \ \ ,67 \ \ \�• \ •\ S 44°06'40" E \ 43.85' O Property Corner MOAB LODGING LLC 01-126-0005 \ N 44°06'4D" W 18.35' POB EWER EASEMENT POB TEMPORARY EASEMENT S 72°55'00" W 33.68' S 44°06'40" E \ 28.55' "o~\ S 72°55'00" W `7,9°\ 22.45' NATURE CONSERVANCY 2p , 01-126-0004 N. NI CORNER, SECTION 35, T25S, R21 E, SLUM (FOUND REBAR) RED D Land Suxvayzug 30 South 100 East Moab, UT 84532 435.259.8171 EXHIBIT C 1 (-Project 067-18-\ 20' SEWER EASEMENT, 30' TEMPORARY CONSTRUCTION EASEMENT Sheet 1 OF 1 } Date 2/16/19 Addenda County Information Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Assumptions and Limiting Conditions Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda ASSUMPTIONS AND LIMITING CONDITIONS This is an Appraisal Report, which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. Based on the Scope of Work, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not responsible for unauthorized use of this report. 2. For purposes of this appraisal, any marketing program for the sale of the property would assume cash or its equivalent. No detailed soil studies covering the subject property were available for this appraisal. It is therefore assumed that soil conditions are adequate to support standard construction consistent with highest and best use. The date of value to which the conclusions and opinions expressed in this report apply, is set forth in the letter of transmittal. Further, the dollar amount of any value opinion rendered in this report is based upon the purchasing power of the American dollar existing on that date. 5. The appraisers assume no responsibility for economic or physical factors, which may affect the opinions in this report that occur after the valuation date. 6. The appraisers reserve the right to make such adjustments to the analyses, opinions and conclusions set forth in this report as may be required by consideration of additional data or more reliable data that may become available. No opinion as to title is rendered. Data relating to ownership and legal description was obtained from the client or public records and is considered reliable. Title is assumed to be marketable and free and clear of all liens, encumbrances, easements and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management, and available for its highest and best use. 8. If no title policy was made available to the appraisers, they assume no responsibility for such items of record not disclosed by customary investigation. The appraisers assume no responsibility for hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for arranging for engineering studies that may be required to discover them. 10. The property is appraised assuming it to be in full compliance with all applicable federal, state, and local environmental regulations and laws, unless otherwise stated. 11. The property is appraised assuming that all applicable zoning and use regulations and restrictions have been complied with, unless otherwise stated. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda ASSUMPTIONS AND LIMITING CONDITIONS (CONTINUED) 12. The property is appraised assuming that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government 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, unless otherwise stated. 13. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separated allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 14. No engineering survey has been made by the appraiser. Except as specifically stated, data relative to size and area was taken from sources considered reliable and no encroachment of real property improvements is considered to exist. 15. No opinion is expressed as to the value of subsurface oil, gas or mineral rights or whether the property is subject to surface entry for the exploration or removal of such materials except as is expressly stated. 16. Maps, plats and exhibits included in this report are for illustration only as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced, or used apart from the report. 17. No opinion is intended to be expressed for matters which require legal expertise or specialized investigation or knowledge beyond that customarily employed by the real estate appraisers. 18. Possession of this report, or copy of it, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with proper written qualification and only in its entirety. 19. Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal, unless such arrangements are made a reasonable time in advance. 20. The appraisers have personally inspected the subject property and found no obvious evidence of structural deficiencies, except as may be stated in this report; however, no responsibility for hidden defects or conformity to specific governmental requirements, such as fire, building and safety, earthquake or occupancy codes can be assumed without provision of specific professional or government inspections. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda ASSUMPTIONS AND LIMITING CONDITIONS (CONTINUED) 21. Unless otherwise noted, no consideration has been given in this appraisal to the value of the property located on the premises which is considered by the appraisers to be personal property, nor has consideration been given to the cost of moving or relocating such personal property; only the real property has been considered. 22. Information obtained for use in this appraisal is believed to be true and correct to the best of our ability; however, no responsibility is assumed for errors or omissions, or for information not disclosed which might otherwise affect the valuation estimate. 23. Unless otherwise stated in this report, the appraisers signing this report have no knowledge concerning the presence or absence of toxic materials in the improvements and/or hazardous waste on the land. No responsibility is assumed for any such conditions or for any expertise or engineering to discover them. 24. Disclosure of the contents of this appraisal report is governed by the Bylaws and Regulations of the Appraisal Institute. 25. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser or the firm with which he is connected, or any reference to the Appraisal Institute) 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 appraiser. CONSIDERATION OF HAZARDOUS SUBSTANCES IN THE APPRAISAL PROCESS Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraisers become aware of such during the appraiser's inspection. The appraisers have no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraisers, however, are not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda AMERICANS WITH DISABILITIES ACT The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine 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 we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of ADA in estimating the value of the Property. SPECIFIC LIMITING CONDITIONS AND EXTRAORDINARY ASSUMPTIONS This report has been prepared during the month(s) of May/June of 2019. The market was characterized by below average market conditions and general declining property values from 2007-2012, but has been strong over the last 5-6 years. The indicated value is based on current market conditions as of the time the report was prepared. The appraiser's cannot be held responsible for unforeseeable events that alter market conditions subsequent to the date of the appraisal. 2. This analysis assumes no environmental hazards exist on site that would adversely affect the final value estimate. Review of a Phase I Environmental Site Assessment performed by a qualified engineer/firm is recommended. 3. An extraordinary assumption is made that the information received from the client, property owners as well as county and city officials that was relied upon to formulate an opinion of value is correct and reliable. Mr. Tim Koehler is reported to be a qualified representatives of the recorded ownership group. Mr. Koehler provided extensive historical and factual information concerning the subject property. An extraordinary assumption is made that Mr. Tim Koehler is qualified to represent the ownership group, and that all verbal and written information obtained from Mr. Tim Koehler and any other property owner representatives is true and correct. As of the date of inspection on May 18, 2019, the area of the acquisition(s) had not been staked. The inventory of any site improvements impacted and/or cost to cure items is based on careful review of the right-of-way map delineating the boundaries of proposed acquisitions provided by the client, as well as physical inspection of the site. For the purpose of this appraisal, an extraordinary assumption is made that the inventory of site improvements impacted is correct. 5. An extraordinary assumption is made that all public utility and other easements (i.e. power, telephone, sewer, water, storm water drainage, etc.) and the related improvements within these easements will be maintained and replaced/relocated as a construction item during the project. Thus, no consideration is given herein to potential damage to utility and/or municipal related items within these easements. 6 In situations where the land size and/or legal descriptions differ (UDOT ownership records vs. County information), specific reliance is made on the information provided by Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda UDOT and an extraordinary assumption is made that the size and legal descriptions provided by the client (UDOT) are true and correct. No responsibility is assumed for any inaccuracies that may exist. 7. According to the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 (P.L. 91-646) 42.11(c)(1), under eminent domain appraisal, "the appraiser shall disregard any decrease or increase in the fair market value of real property, prior to the date of valuation, caused by the project for which the property is to be acquired, or by the likelihood that the property would be acquired for the project other than that due to physical deterioration within the reasonable control of the owner." As project influence is to be disregarded in the before condition, a hypothetical condition is made that there is no proposed project in the before condition. Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda Qualifications of Appraiser Project Desc: Moab City Sewer Improvement Project VAN DRIMMELEN & ASSOCIATES, INC. Ownership: Moab Lodging, LLC Addenda QUALIFICATIONS OF APPRAISER KENDALL S. MITCHELL, MAI ken@valueutah.com EDUCATION/TRAINING SA; Family Economics & Consumer Studies - Emphasis of Market Research Techniques - Emphasis on Statistical Analysis University of Utah; June 1996 - Emphasis on Economic Principles Emphasis on Financial Theory Fundamental Appraisal (101) Appraising Residences (102) Standards of Professional Practice (USPAP) Residential Case Study 2-4 Units (104) Basic Income Capitalization (310) Advanced Cost and Sales Approach (530) Eminent Domain for Appraisers and Attorneys Highest and Best Use & Market Analysis (520) Advanced Income Capitalization (510) National USPAP 7-hour Update Course UDOT Right of Way Appraiser Seminar Utah Law of Eminent Domain Appraising from Blueprints and Plans Small Hotel/Motel Valuation; Limited Lodging Report Writing and Valuation Analysis (540) Appraisal Institute Symposium Eminent Domain Seminar Legislative Report to Appraisers Utah Appraiser Supervisor & Trainee Course Reviewing Appraisals in Eminent Domain (410) Rates & Ratios: Making sense ofGIM's, OAR's, DCF Business Practices and Ethics Eminent Domain and Condemnation Advanced Concepts and Case Studies Advanced Income Capitalization Advanced Market Analysis & Highest and Best Use (test) Quantative Analysis Yellow Book Changes/Updates Webinar General Demonstration Report -Capstone O'Brien Real Estate School; May2001 O'Brien Real Estate School; June 2001 O'Brien Real Estate School; February2001 O'Brien Real Estate School; April 2001 Appraisal Institute; October 2002 Appraisal Institute; May2003 National Highway Institute; January2004 Appraisal Institute; June 2005 Appraisal Institute; September 2005 Every two (2) years as required since 2004 UDOT; May2006 Utah Land Use Institute; February2008 Appraisal Institute; March 2008 Appraisal Institute; March 2008 Appraisal Institute; January2009 Appraisal Institute; March 2010 The Utah Land Use Institute; February2011 Utah Association of Appraisers; April 2012 Appraisal Institute; February of 2014 IRWA; March 2014 Appraisal Institute; April 2014 Appraisal Institute; January2016 Appraisal Institute; January 2016 Appraisal Institute; April 2016 Appraisal Institute; May2016 Appraisal Institute; June 2016 Appraisal Institute; July 2016 Appraisal Institute;_January 2017 Appraisal Institute; September 2017 PROFESSIONAL EXPERIENCE Researcher and Market Analyst Bodell Van Drimmelen; August 2000 - September 2002 Licensed Appraiser & Market Analyst Bodell Van Drimmelen; September 2002 - April 2004 Certified General Appraiser/Market Analyst Van Drimmelen & Associates, Inc. April 2004 - Presen PROFESSIONAL AFFILIATIONS/LICENSES Utah State Certified General Appraiser License # 5499685-0000; exp 4-30-2020 Designated Member (MAI) Appraisal Institute - Utah Chapter (2019) Advisor to Candidates for Designation Appraisal Institute - Utah Chapter (2019) Project Desc: Moab City Sewer Improvement Project Ownership: Moab Lodging, LLC VAN DRIMMELEN & ASSOCIATES, INC. Addenda APPRAISAL EXPERIENCE I began as a Start I-4es.earcherl I rainee for 13od.eil Van Unrnmeten in August of 2044, and became a Licensed Appraiser in late 2002. I have been a Utah State Certified General Appraiser employed by Van Drimmelen & Associates, Inc. since April 2004. I have specialized in right-of-way appraisals my entire career and am on the UDOT approved appraiser lists for State and Local right-of-way (ROW) projects for complex ROW Appraisal Services, ROW Appraisal Review Services and Residential Appraisal/Review Services. In addition to specializing in land and right-of-way appraisals, I have extensive experience in a wide range of office, industrial, retail, residential and vacant land appraisals. I became an NIAI designated member of the Appraisal Institute in early 2019, A small sampling of some of the differing types of properties that I have appraised are below. Residential Subdivisions Office Buildings Hazardous Waste Facility Service/Gas Stations Retail Buildings Intelligent Buildings/Data Restaurants/Bars Bank/Credit Union Buildings Land Leases Churches/Religious Buildings Historic buildings Animal Control Facilities Public Parks/Municipal Uses Landlocked land parcels Pow er/Canal/Trail Corridors Day Care Facilities Eminent Domain Appraisals Farm/Ranch Property Strip Retail Shopping Centers Partial Fee Acquisitions Vacant Industrial land Full Service Autobile Dealerships Tow nhome/Condo Subdivisions Residential Land and Lots Recreational Cabins Perpetual/Temporary Easements Con-mercial land Duplexes, Triplexes, Fourplexes Severed Tracts/Damages Recreational land Convenience Stores Federal Yellow Book Medical Office Buildings RV Sales and Services Sites Campgrounds/RV Parks Drive-in Theater Multi -tenant Industrial Buildings Bars/Taverns Day Spas Residential Paper Lots Retirement Communities Fitness Centers Airplane Hangars Valuation of Life Estates Dive Shop Power, Utility/Irrigation corridors Single Family Residences (URAR) Water Rights Office/VVarehouse Buildings Multi -unit apartment complex Auto Repair Shops CLIENT LIST (PARTIAL) First National Bank Cache Valley Bank UDOT First Community Bank Envision Lending Group Orem City Jordan Credit Union Logan City Grand County Amegy Bank Murray School District Lindon City Zions Bank Sunfirst Bank South Jordan City Bank of Utah Frontier Bank UTA (Utah Transit Authority) Deseret First Credit Union NAI Utah Real Estate Division Granite School District Bona Vista Water District JUB Engineers Sandy City Castleview Hospital (Price) CIT Financial Ogden City Central Bank Kaysville City South Salt Lake City Celtic Bank Snell & Wilmer Law Firm Clinton City Home Savings Bank Maughan Law Firm Tooele City Kenw orth Trucking Co. West Valley City Herriman City Eagle Mountain City Saratoga Springs City West Jordan City Bonneville Mortgage H.W. Lochner Engineers Lehi City ANB Financial Corporation Envirocare of Utah SITLA Frontier Bank Salt Lake City RDA BLM (Federal) Wells Fargo Bank Enterprise Financial Wellington City America West Bank Staker Parsons Group Tooele County `Numerous private investors, developers, landowners, etc. Project Desc: Moab City Sewer Improvement Project Ownership: Moab Lodging, LLC VAN DRIMMELEN & ASSOCIATES, INC. Addenda STATE OF UTAH DEPARTMENT OF COMMERCE DIVISION OF REAL ESTATE ACTIVE LICENSE DATE ISSUED: 04/12/2018 EXPIRATION DATE: 04/30/2020 LICENSE NUMBER: 5499685-CG00 LICENSE TYPE: Certified General Appraiser ISSUED TO: KENDALL S MITCHELL 774 EAST 2100 SOUTH SALT LAKE CITY UT 84106 1, RChL ESTATE DIVISION DIRECTOR Project Desc: Moab City Sewer Improvement Project Ownership: Moab Lodging, LLC VAN DRIMMELEN & ASSOCIATES, INC.