Appraisal reports to USPAP Standards for Fair Market Value on Conservation Easements

New Hampshire Department of Natural and Cultural Resources Request for Proposal (RFP) for an appraisal to USPAP Standards Beebe River Highlands, Towns of Campton and Sandwich, NH June 3, 2020 The Department of Natural and Cultural Resources (DNCR) Division of Forests and Lands is soliciting proposals to prepare two appraisal reports to Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) and Uniform Standards of Professional Appraisal Practice (USPAP) standards to be used to determine fair market value of two proposed conservation easements on properties located in the towns of Campton and Sandwich, NH. Closing Date: June 22, 2020 Proposal must be submitted electronically no later than June 22, 2020, 4 pm. Email proposal to both email addresses: Susan Francher: Susan.Francher@dncr.nh.gov Tracey Boisvert: Tracey.Boisvert@dncr.nh.gov Proposals

may not be mailed. Proposals that are late or incomplete will not be accepted. Contact Tracey Boisvert at 271-2214, tracey.boisvert@dncr.nh.gov Assignment Description Prepare an appraisal report for each of the two subject properties, determining the before and after fair market value of the Forest Legacy Program Conservation Easement interest in the subject property(s) that meets federal appraisal standards known as the “Uniform Appraisal Standards for Federal Land Acquisitions” (UASFLA) and the “Uniform Standards of Professional Appraisal Practice” (USPAP). Assignment Conditions This appraisal assignment deals with the proposed partial acquisition of Forest Legacy Program conservation easements for two subject properties known as the Beebe River and Spencer Brook properties, 5,441 ± acres and 954 ± acres respectively, located in the Towns of Campton and Sandwich, Grafton and Carroll Counties, NH. The two properties are part of the federally funded Beebe River Highlands Forest Legacy Project. Each property will be the subject of an appraisal report. The appraisal reports will provide an opinion of value for each of the larger parcels before the proposed acquisition, and an opinion of value for the remainder parcels after the proposed acquisition based on the Hypothetical Condition that they are encumbered with the proposed Forest Legacy Program conservation easements. A draft “Task Assignment” for each property is provided in the RFP packet. The Task Assignment may be updated and provided to the contractor after a site visit and/or in consultation with the Federal reviewer. The assignment may not begin until Department of Natural and Cultural Resources, Division of Forests and Lands has issued a notice to proceed. The contract to complete this work will be executed using the State’s P-37 Standard Contract Form and may require approval by the NH Governor and Executive Council. The appraisal report for the first property must be completed and delivered to the U.S. Forest Service within 60 days of receiving the Notice to Proceed. The appraiser shall provide the complete, signed appraisal, as an electronic copy and in PDF format, to the Forest Service reviewer for the initial review. Revisions, corrections, clarification may be requested. The contractor shall respond, in no more than thirty days, to the initial and any subsequent review comments from the Forest Service reviewer. After the Forest Service reviewer has notified the appraiser that the appraisal (with any revisions) has been approved, the appraiser shall provide within seven days of receiving final reapproval two hard copies of the final approved report and an electronic copy in PDF format to the U.S. Forest Service and one hard copy of the final approved report and an electronic copy in PDF format to the DNCR. Proposal The following attachments are provided to assist in proposal development: - Task Assignments for Property 1 and Property 2, includes Property locus map - 2016 Uniform Appraisal Standards for Federal Land Acquisitions Requirements for Appraisal Reports, rev 10/15/18 Available upon request: - Property Conservation Easement(s) - Survey(s) Proposals must include the following: - Total Fee for completion of Property 1 and Property 2 Appraisal Reports. - Available start date. - Qualifications and training of the appraiser, including: ▪ A current certified general real estate appraiser license in the State of New Hampshire. ▪ Evidence of completion of the current (2016) version of Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) also known as Yellow Book. ▪ Disclose any prior work by appraiser on the property, including the scope and nature of the work and the client. If any of the prior work was done by or on behalf of the State or landowner for the intent to assist the Forest Legacy Program application or other preservation method, this should be made clear. The Department of Natural and Cultural Resources will award any contract based on experience, availability, and cost demonstrated in the RFP and reserves the right to refuse all bids and not award any contract hereunder. United States Department of Agriculture Forest Service Eastern Region 626 E. Wisconsin Ave., Suite 600 Milwaukee, WI 53202 (414)-297-3621 (414)-944-3694 FAX America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Date ??, 2020 TBD TBD TBD TBD Dear Mr. / Ms. TBD, You have been entered into a contract with the State of New Hampshire to prepare an appraisal of lands considered for a conservation easement in the Town of Campton, Grafton County, and Town of Sandwich, Carroll County, New Hampshire. Do not deviate from these instructions unless I amend them for you in writing. Any deviation from written instructions in the appraisal will render it invalid. If additional information becomes available during the course of this assignment, which is not consistent with the information included in this task assignment, the assignment instructions may be revised. Forest Service Appraisal Case File Tracking No.: FLP20-4233-0453 Beebe River Headwaters – Tract 1 Beebe River Date: TBD, 2020 US Forest Service Review Appraiser Contact Information: Angela M. Kwasny, MAI, AI-GRS Senior Review Appraiser/Region 9 U.S. Department of Agriculture Forest Service 626 E. Wisconsin Avenue, Suite 600 Milwaukee, WI 53202 Phone: (414) 297-3621 Email: angela.kwasny@usda.gov The above stated Forest Service review appraiser is the point of contact for appraisal assignment instructions, pre-work, and communication regarding the assignment during the course of the appraisal and review. The Forest Service review appraiser needs to be contacted for a pre-work meeting to discuss basic specifications, appraisal instructions, and review procedures before beginning the assignment. As the Appraiser, disclose any services performed in conjunction with the property immediately preceding accepting the assignment, as an appraiser or in any other capacity. The non-federal appraiser shall report any conflict of interest, any potential conflict of interest, or any situation which may be perceived to result in an appearance of a conflict of interest prior to accepting the appraisal assignment. TBD Page 2 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Copies of the appraisal and any other valuation documentation or opinions of value shall be furnished to the Forest Service review appraiser. Copies of the appraisal, analyses, or opinions of value shall not be provided to the State until notification by the Forest Service reviewer that the appraisal has been reviewed and approved for Forest Service use. The property owner shall not be provided with appraisal data, analyses, opinions of value, or copies of the appraisal at any time during or after completion of the assignment. Federal appraisals are subject to disclosure under the Freedom of Information Act (FOIA). If you have any questions or comments as you conduct the analysis and prepare the report, please contact me at 414-297-3621 or angela.kwasny@usda.gov Sincerely, ANGELA M. KWASNY, MAI, AI-GRS Senior Review Appraiser cc: Susan Francher, New Hampshire Forest Legacy Program Coordinator W. Crawford, Regional Appraiser, USFS D. Urquhart, FLP Specialist TBD Page 3 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Forest Legacy Program Appraisal Assignment Instructions TAS Assignment Summary Project Identification Please include the following 6 sections on the cover and letter of transmittal verbatim. Official Case Name and Number Beebe River Headwaters Tract 1 – Beebe River Forest Service Case File Tracking No.: FLP20-4233-0453 State New Hampshire Project Name Beebe River Headwaters FLP Grant Number #17-DG-11420004-157 Location (County, State) Beebe River Headwaters Tract 1- Beebe River is 5,441.04 acres located in Campton, Grafton County and Sandwich, Carroll County, New Hampshire. Please refer to the map at the end of these instructions. *Note acres on the map were prior to the survey and have changed. Overview The ownership of The Conservation Fund contains a total of approximately 5,441.04 acres referred to as Beebe River Headwaters Tract 1 – Beebe River. Per UASFLA 2.3.6.2 damages as such are not appraised. However, the appraiser shall briefly explain any damages to the remainder property and allocate the difference in the value of the property before and after the acquisition between the value of the acquisition and the damages to the remainder. The appraiser should note the allocation is an accounting tabulation and not necessarily indicative of the appraisal method employed. If damages have been measured by a cost to cure, the appraiser must justify the cost to cure and demonstrate that the cost to cure is less than the damage would be if the cure was not undertaken. A preliminary larger parcel has not been identified. As the appraiser, you will need to determine the larger parcel based upon those tracts of land that possess a unity of ownership and have the same or integrated highest and best use (UASFLA 4.3.3). Please refer to BHR-BR Map Other Properties Owned by TCF NH 3.2020, which notes other property in the area owned by The Conservation Fund. TBD Page 4 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper The proposed acquisition is a partial interest (conservation easement) acquisition of +/- 5,441.04 acres. The remainder parcel is the same property described for the larger parcel subject to the proposed FLP Conservation Easement and Restriction (CER) over all the property. CER Acres Unencumbered Acres Total Acres 5,441.04 0 5,441.04 The value conclusions should be stated as a unit value (dollars per acre in most cases) and a total property value. The report should also state the range of units (acreage in most cases) within which the unit of value would be valid. Client, Intended Users/Intended Use Client Reference: Forest Service Manual Amendment No. 5400- 2017-1 effective May 30, 2017. In the case of a Federal acquisition, the Forest Service is the Client as defined in section 5410.5. In the case of a State acquisition under the State grant option, the State is the entity implementing the Forest Legacy Program. For this reason, for appraisals involving Federal Financial Assistance grants to the State, both the Forest Service and the State lead agency for Forest Legacy will be the Client (as defined in section 5410.5). The clients are the USDA Forest Service and the New Hampshire Department of Natural and Cultural Resources. Attention: Angela M. Kwasny, MAI, AI-GRS USDA Forest Service, Senior Review Appraiser/Region 9 Intended Users The IRS is not an intended user of this appraisal. The property owner is not an intended user of this appraisal. Only the parties specifically identified below are authorized to rely upon the appraisal. The intended users are the USDA Forest Service and the New Hampshire Department of Natural and Cultural Resources. TBD Page 5 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Intended Use The intended use of the appraisal is to assist the State of New Hampshire Department of Natural and Cultural Resources in applying for funding for the proposed acquisition from the Forest Legacy Program of the U.S. Forest Service. Professional Standards and Assignment Conditions The appraisal is to be prepared in conformance with the Uniform Appraisal Standards for Federal Land Acquisitions (Interagency Land Acquisition Conference, 2016) (UASFLA), and the Uniform Standards for Professional Appraisal Practice (The Appraisal Foundation, current edition) (USPAP). If any of the provisions of USPAP conflict with UASFLA, then the standards of UASFLA take precedence under the Jurisdictional Exception of USPAP. Legal Description(s) Lengthy legal descriptions may be attached. Refer to the 02_ConservationEasement_LegalDescription file folder on box. The legal description for the larger ownership (+/- 5,441.04 acres) is assumed to be the same as the legal description for the area proposed to be encumbered with the conservation easement as noted BRH-BR Legal Description. If you determine additional parcels are part of the larger parcel during your analysis, please contact the review appraiser to request additional legal descriptions of the other areas. Remainder Estate A legal description (subject to survey) is available for the proposed FLP CE and is included in the supporting documents on box in BRH-BR Legal Description. TBD Page 6 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Interests (Estate) Appraised The interests (estate) to be appraised are the “as is” rights, title, and interests which the property owner can convey as of the effective date of value. Refer to the title, last deed, outstanding rights, recorded and unrecorded agreements, etc. Refer to UASFLA, 1.2.6.1. Preliminary Larger Parcel: All rights, title, and interest in and to the 5,441.04-acre property owned by The Conservation Fund subject to the following outstanding rights, reservations, and/or encumbrances (based upon the legal description and title information): Campton Grafton County exceptions: EX10. Access to the insured parcel is insured via Eastern Corners Road, a public way. EX11. Reservations of flowage and other rights reserved in deed from Parker Young Company to Draper Corporation and recorded in the Grafton County Registry of Deeds at Volume 586, page 435 and Page 443. The Title Policy issued pursuant to this commitment shall provide Affirmative Coverage over the foregoing exception to be evidenced by an ALTA 34 Endorsement. EX12. Easement deed of Draper Corporation to Public Service Company of New Hampshire dated February 24, 1955, and recorded in the Grafton County Registry of Deeds in Volume 860, Page 241. EX13. Easement deed of Draper Corporation to Public Service Company of New Hampshire dated November 17, 1955, and in the Grafton County Registry of Deeds in Volume 873, Page 281. EX14. Easement deed of Draper Corporation to Public Service Company of New Hampshire dated November 17, 1955, and in the Grafton County Registry of Deeds in TBD Page 7 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Volume 873, Page 286, as amended to correct the description dated April 30, 1956, and recorded in Volume 876, Page 412. EX15. Notices of Current Use Taxation recorded in the Grafton County Registry of Deeds at Volume 1451, page 478; Volume 1562, Page 114 and Volume 1912, Page 934. EX16. Easement Deed of Yorkshire Timber Company to New Hampshire Electric Cooperative, Inc. and New England Telephone and Telegraph Company dated August 12, 1979, and recorded in the Grafton County Registry of Deeds at Volume 1388, Page 602. EX17. Easement Deed of Yorkshire Timber Company to United States of America dated March 27, 1986, and recorded in the Grafton County Registry of Deeds at Volume 1600, Page 763 for non-exclusive rights to use Beebe River Road, ditch and drainage rights and shown on plan in Volume 1600, Page 765. EX18. Agreement and Consent to Joint Use made July 19, 2017 by and between Public Service Company of New Hampshire, doing business as Eversource Energy and The Conservation Fund recorded at the Grafton County Registry of Deeds in Book 4301, Page 190 regarding the easement deed recorded at Grafton County Registry of Deeds, Book 876 Page 412. (See exception number 14 above). Sandwich Carroll County exceptions: EX19. This policy insures access to the insured property through other property of the insured located in Campton, Grafton TBD Page 8 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper County, NH which abuts Eastern Corners Road, a public way. EX20. Easement deed of Draper Corporation to Public Service Company of New Hampshire dated November 17, 19551 and recorded in the Carroll County Registry of Deeds at Volume 311, Page 312. EX21. Easement deed of Draper Corporation to Public Service Company of New Hampshire dated November 17, 1955, and recorded in the Carroll County Registry of Deeds at Volume 311, Page 535. EX22. Easement deed of Draper Corporation to Public Service Company of New Hampshire dated April 30, 1956, and recorded in the Carroll County Registry of Deeds at Volume 311, Page 536. EX23. Notice of current use taxation recorded in the Carroll County Registry of Deeds at Volume 859, page 67. EX24. Right of way easement to the United State of America, dated March 27, 1986, and recorded in the Carroll County Registry of Deeds at Volume 1106, page 99. EX25. Right of way easement to the United States of America, dated April 28, 1987, and recorded in the Carroll County Registry of Deeds at Volume 1226, Page 143. Sandwich, Carroll County and Campton, Grafton County Exceptions: EX26. Those matters as delineated on a plan entitled "Beebe River Tract, The Conservation Fund, Tax Map C6, Parcel 10- 7-4, Campton, Grafton County and Tax Map R24, Parcel 1, Sandwich, Carroll County, New Hampshire," dated June 8, 2018, to be TBD Page 9 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper recorded in the Grafton County Registry of Deeds. Copies of all the above referenced title exception deeds and a title exception memo are available via box under the 01_Title folder. Please include comments within the appraisal report regarding whether each of these items has any impact on value. Remainder Parcel: All rights, title, and interest in and to the property subject to the following outstanding rights, reservations, and/or encumbrances: All the same as the preliminary larger parcel plus the following: EX27. Performance and compliance with the covenants, restrictions and conditions set forth in the Grant of Forest Legacy Conservation Easement, insured herein. (See Hypothetical Condition). Copies of all the above referenced title exception deeds and a title exception memo are available via box under the 01_Title folder. Please include comments within the appraisal report regarding whether each of these items has any impact on value. Hypothetical Conditions The appraisal must not include any hypothetical conditions not approved in writing in advance by the reviewer. Include the following hypothetical condition in the after analysis: 1) The remainder property is encumbered with the proposed Forest Legacy conservation easement restriction as of the effective date of value. TBD Page 10 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Extraordinary Assumptions The appraisal must not include any extraordinary assumptions not approved in writing in advance by the reviewer. Include the following extraordinary assumption verbatim in your report for both the before and after analysis: 1) The property is unaffected by hazardous material, and if found to be so affected, the property shall be cleaned up or the effect of the hazardous substances or petroleum products shall be remediated prior to conveyance. Definition of Value “Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of value, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property.” * Note: The reader should note that this definition of market value, required by the Uniform Appraisal Standards for Federal Land Acquisitions, is not “linked” to a specific “exposure time” estimate as required by the Uniform Standards of Professional Appraisal Practice (USPAP, SR 1-2- c). Such estimates are inappropriate for, and should not be included in, appraisal reports prepared for federal land acquisitions under these standards (4.2.1.2, UASFLA, 2016). This appraisal therefore invokes the Jurisdictional Exception Rule and does not include an opinion of reasonable exposure time. *1.2.4, Uniform Appraisal Standards for Federal Land Acquisitions, (Interagency Land Acquisition Conference, 2016) TBD Page 11 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Larger Parcel The appraiser is ultimately responsible for the determination of the larger parcel. The information provided in this task assignment regarding ownership is intended to assist the appraiser in forming a preliminary understanding of the scope of the assignment. The appraiser should contact the reviewer to discuss the appraiser’s opinion of larger parcel early in the appraisal process. The preliminary larger parcel has not been identified. As the appraiser you will need to determine the larger parcel based upon those tracts of land that possess a unity of ownership and have the same or integrated highest and best use (UASFLA 4.3.3). Ownership Identify property held under the same ownership contiguous, in the nearby market area, or which should be considered in forming an opinion of larger parcel. The owner is The Conservation Fund and is reported to own a total of 5,441.04 acres at this location. Other properties owned by The Conservation Fund are noted on BHR-BR Map Other Properties Owned by TCF NH 3.2.2020. As the appraiser, you should confirm whether they own any other properties that could be a part of the larger parcel during the appraisal process. A conservation easement is proposed for all 5,441.04 acres. Please refer to the BRH-BR Survey 3.4.20 located on box for the location of the easement. Land/Acres 5,441.04 acres. Location Beebe River Headwaters Tract 1 is located in the Town of Campton, Grafton County, and Town of Sandwich, Carroll County, New Hampshire. Access (Legal and Physical Access) Legal and physical access to the subject property is from Beebe River Road and Eastern Corners Road. Please refer to the BRH-BR Survey_3.4.2020 and various title documents. The appraiser is required to provide a complete description of legal and physical access to the property (i.e. Tract 1 is legally and physically accessible from XYZ road, a paved county road that is accessible year-round with a standard vehicle). TBD Page 12 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Oil, Gas, Mineral, Sand/Gravel Assets No outstanding rights. No known assets. Please refer to BRH-BR Mineral Rights Letter 1.23.2020. Timber A timber cruise is not available. The appraiser is expected to determine the feasibility of timber production as part of the Highest and Best Use (HBU) analysis. If the HBU includes timber production, the appraiser shall inform the Review Appraiser and work with the State to procure a timber inventory or timber cruise under a separate contract. In using this report, the appraiser cannot merely accept such consultant report as accurate, but rather must analyze such report and adopt them only if reasonable and adequately documented and supported (UASFLA 1.13). Water Features The subject is located along the Beebe River, which bi-sects the property. Over the past few years extensive work was done to reconstruct culverts and bridges to improve access for wildlife. Please refer to the following link for additional information. https://www.conservationfund.org/projects/beebe- river-nh-reconnecting-a-river-wildlife-and-a-community-s-favorite- place Other Features No other features. Buildings and Site Improvements No buildings. Approaches to Value All appropriate approaches to value shall be considered in the appraisal. Acquisition The proposed acquisition is a partial interest acquisition of conservation easement rights to encumber 5,441.04 acres of the larger parcel (5,441.04 acres). Please refer to the Map Survey GIS folder on box, which has BRH-BR Survey_3.4.2020 for the location of the easement. Please refer to the BRH-BR CE 4.30.2020 final.pdf within the 02_Conservation Easement_Legal Description file folder on box for the conservation easement restrictions. TBD Page 13 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Remainder Property Description The remainder property is physically the same as described for the larger parcel 5,441.04 acres with 5,441.04 acres encumbered with a conservation easement. Land/Acres 5,441.04 acres. Location Same Access (Legal and Physical Access) Same Oil, Gas, Mineral, Sand/Gravel Assets Same Timber Same Water Features Same Other Features Same Buildings and Site Improvements Same as described for the preliminary larger parcel. Approaches to Value All appropriate approaches to value shall be considered in the appraisal. Contact Information State Forest Legacy Program Coordinator Contact Information Susan Francher Forest Legacy Program Coordinator New Hampshire Administrator, Planning & Community Forestry NH Division of Forests and Lands 172 Pembroke Road Concord, NH 03301 Office - 603-271-4159 Mobile - 603-419-0560 Email: susan.francher@dncr.nh.gov Tracey Boisvert Administrator, Land Management NH Division of Forests and Lands 172 Pembroke Road Concord, NH 03301 Office - 603-271-2214 Email: tracey.boisvert@dncr.nh.gov TBD Page 14 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper NGO (Third Party Facilitator) Contact Information Will be provided upon award of contract Owner or Representative Contact Information and Phone Number Will be provided upon award of contract Pre-work, Appraisal Inspection, Report Format and Delivery Pre-Work Meeting A pre-work meeting is required for this assignment. The appraiser is required to contact the Forest Service Review Appraiser to arrange a pre-work meeting, either by phone or in person during a field inspection. Field Inspection and Notice The appraiser is required to conduct a detailed field inspection of the subject property, and to inspect all comparable sales, unless directed otherwise in writing. The appraiser is instructed to provide reasonable notice of the field inspection to the landowner and/or representative and to the FS Reviewer with an invitation to attend. Written Instructions and Supplementary Information: The appraisal must include a copy of all written appraisal instructions, including this task assignment. The addenda should also include last deeds, title information, copy of the proposed conservation easement, and any consultant reports relied upon. Delivery of Appraisals/Number of Copies/PDF The appraiser shall provide the complete, signed appraisal to the Forest Service reviewer for the initial review. PDF copies are acceptable. “Draft” or unsigned appraisals will not be accepted for review. Revisions, corrections, clarification may be requested. After the Forest Service reviewer has notified the appraiser that the appraisal (with any revisions) has been approved, the appraiser shall insure that the Forest Service has 2 hard copies of the final approved report and an electronic copy in PDF format. The State will require additional copies; please refer to the contract for State requirements. TBD Page 15 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper The contract appraiser shall not provide any appraisal work product to the Intended Users until notified that the appraisal has been approved for Agency use and/or until authorized to do so by the Forest Service reviewer. Format Specifications Appraisal reports must be on 8 ½” x 11” paper, single sided (no double sided or facing pages) and bound in a comb binding. Qualifications and State- Certification The appraisal should include qualifications, a copy of the appraiser’s state certification, and verification of completion of a Uniform Standards for Federal Land Acquisitions appraisal course sponsored by a professional appraisal organization. Information Available/Provided to Appraiser The appraiser is requested to contact the review appraiser if it is determined that additional information is required to provide a credible and well supported appraisal. Legal Descriptions Preliminary Larger Parcel: The legal description for the larger ownership (+/- 5,441.04 acres) is assumed to be the same as the legal description for the area proposed to be encumbered with the conservation easement as noted BRH- BR Legal Description. If you determine additional parcels are part of the larger parcel during your analysis, please contact the review appraiser to request additional legal descriptions of the other areas. Remainder Estate A legal description (+/- 5,441.04 acres) is available for the proposed FLP CE and is included in the supporting documents on box in the 02_Conservation Easement_Legal Description file folder within BRH-BR Legal Description. Survey Please refer to the 09_MapSurveyGIS file folder on box for the BRH-BR survey_3-4-2020.pdf. Appraisal Maps (GIS, etc.) Refer to 09_MapSurveyGIS file folder on box. BRH-BR survey_3-4-2020.pdf Refer to 12_Larger Ownership file folder on box. TBD Page 16 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper BRH-BR Map Other Properties Owned by TCF-NH- 3.2020 Title Report/Deeds Refer to 01_Title file folder on box. Title Commitment, Title Exception Memo, Carroll County Deed, Grafton County Deed, Exceptions and Encumbrances, and other supporting documents. Current Contracts for Sale, Marketing Information, Listing Information None known other than for the proposed conservation easement through the Forest Legacy Program; The appraiser is required to confirm and analyze this info per USPAP. Copy of Proposed Conservation Easement Refer to within the BRH-BR CE State 4.30.2020 final.pdf within the 02_Conservation Easement_Legal Description file folder on box for the conservation easement restrictions. . Timber Cruise/Inventory and Timber Valuation Report A timber cruise is not available. The appraiser is expected to make a determination of the feasibility of timber production as part of the Highest and Best Use (HBU) analysis. If the HBU includes timber production, the appraiser shall inform the Review Appraiser and work with the State to procure a timber inventory or timber cruise under a separate contract. In using this report, the appraiser cannot merely accept such consultant report as accurate, but rather must analyze such report and adopt them only if reasonable and adequately documented and supported (UASFLA 1.13). Sub-consultant Reports None. TBD Page 17 of 17 Beebe River Headwaters Tract 1 Beebe River - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper United States Department of Agriculture Forest Service Eastern Region 626 E. Wisconsin Ave., Suite 600 Milwaukee, WI 53202 (414)-297-3621 (414)-944-3694 FAX America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Date ??, 2020 TBD TBD TBD TBD Dear Mr. / Ms. TBD, You have been entered into a contract with the State of New Hampshire to prepare an appraisal of lands considered for a conservation easement in the Town of Campton, Grafton County, New Hampshire. Do not deviate from these instructions unless I amend them for you in writing. Any deviation from written instructions in the appraisal will render it invalid. If additional information becomes available during the course of this assignment, which is not consistent with the information included in this task assignment, the assignment instructions may be revised. Forest Service Appraisal Case File Tracking No.: FLP20-4233-0454 Beebe River Headwaters Tract 2 Spencer Brook Headwaters Date: TBD, 2020 US Forest Service Review Appraiser Contact Information: Angela M. Kwasny, MAI, AI-GRS Senior Review Appraiser/Region 9 U.S. Department of Agriculture Forest Service 626 E. Wisconsin Avenue, Suite 600 Milwaukee, WI 53202 Phone: (414) 297-3621 Email: angela.kwasny@usda.gov The above stated Forest Service review appraiser is the point of contact for appraisal assignment instructions, pre-work, and communication regarding the assignment during the course of the appraisal and review. The Forest Service review appraiser needs to be contacted for a pre-work meeting to discuss basic specifications, appraisal instructions, and review procedures before beginning the assignment. As the Appraiser, disclose any services performed in conjunction with the property immediately preceding accepting the assignment, as an appraiser or in any other capacity. The non-federal appraiser shall report any conflict of interest, any potential conflict of interest, or any situation which may be perceived to result in an appearance of a conflict of interest prior to accepting the appraisal assignment. TBD Page 2 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Copies of the appraisal and any other valuation documentation or opinions of value shall be furnished to the Forest Service review appraiser. Copies of the appraisal, analyses, or opinions of value shall not be provided to the State until notification by the Forest Service reviewer that the appraisal has been reviewed and approved for Forest Service use. The property owner shall not be provided with appraisal data, analyses, opinions of value, or copies of the appraisal at any time during or after completion of the assignment. Federal appraisals are subject to disclosure under the Freedom of Information Act (FOIA). If you have any questions or comments as you conduct the analysis and prepare the report, please contact me at 414-297-3621 or angela.kwasny@usda.gov Sincerely, ANGELA M. KWASNY, MAI, AI-GRS Senior Review Appraiser cc: Susan Francher, New Hampshire Forest Legacy Program Coordinator W. Crawford, Regional Appraiser, USFS D. Urquhart, FLP Specialist TBD Page 3 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Forest Legacy Program Appraisal Assignment Instructions TAS Assignment Summary Project Identification Please include the following 6 sections on the cover and letter of transmittal verbatim. Official Case Name and Number Beebe River Headwaters Tract 2 – Spencer Brook Headwaters Forest Service Case File Tracking No.: FLP20-4233-0454 State New Hampshire Project Name Beebe River Headwaters FLP Grant Number #17-DG-11420004-157 Location (County, State) Beebe River Headwaters Tract 2 - Spencer Brook Headwaters is 954.46 acres located in Campton, Grafton County, New Hampshire. Please refer to the map at the end of these instructions. *Note acres on the map were prior to the survey and have changed. Overview The ownership of Burleigh Land Limited Partnership contains a total of approximately 954.46 acres referred to as Beebe River Headwaters Tract 2 – Spencer Brook Headwaters. Per UASFLA 2.3.6.2 damages as such are not appraised. However, the appraiser shall briefly explain any damages to the remainder property and allocate the difference in the value of the property before and after the acquisition between the value of the acquisition and the damages to the remainder. The appraiser should note the allocation is an accounting tabulation and not necessarily indicative of the appraisal method employed. If damages have been measured by a cost to cure, the appraiser must justify the cost to cure and demonstrate that the cost to cure is less than the damage would be if the cure was not undertaken. A preliminary larger parcel has not been identified. As the appraiser, you will need to determine the larger parcel based upon those tracts of land that possess a unity of ownership and have the same or integrated highest and best use (UASFLA 4.3.3). Please refer to BHR-SB Map Other Properties Owned by Burleigh Limited Partnership 2.2020, which TBD Page 4 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper notes other property in the area owned by Burleigh Land Limited Partnership. The proposed acquisition is a partial interest (conservation easement) acquisition of +/- 954.46 acres. The remainder parcel is the same property described for the larger parcel subject to the proposed FLP Conservation Easement and Restriction (CER) over all the property. CER Acres Unencumbered Acres Total Acres 954.46 0 954.46 The value conclusions should be stated as a unit value (dollars per acre in most cases) and a total property value. The report should also state the range of units (acreage in most cases) within which the unit of value would be valid. Client, Intended Users/Intended Use Client Reference: Forest Service Manual Amendment No. 5400- 2017-1 effective May 30, 2017. In the case of a Federal acquisition, the Forest Service is the Client as defined in section 5410.5. In the case of a State acquisition under the State grant option, the State is the entity implementing the Forest Legacy Program. For this reason, for appraisals involving Federal Financial Assistance grants to the State, both the Forest Service and the State lead agency for Forest Legacy will be the Client (as defined in section 5410.5). The clients are the USDA Forest Service and the New Hampshire Department of Natural and Cultural Resources. Attention: Angela M. Kwasny, MAI, AI-GRS USDA Forest Service, Senior Review Appraiser/Region 9 Intended Users The IRS is not an intended user of this appraisal. The property owner is not an intended user of this appraisal. Only the parties specifically identified below are authorized to rely upon the appraisal. The intended users are the USDA Forest Service and the New Hampshire Department of Natural and Cultural Resources. TBD Page 5 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Intended Use The intended use of the appraisal is to assist the State of New Hampshire Department of Natural and Cultural Resources in applying for funding for the proposed acquisition from the Forest Legacy Program of the U.S. Forest Service. Professional Standards and Assignment Conditions The appraisal is to be prepared in conformance with the Uniform Appraisal Standards for Federal Land Acquisitions (Interagency Land Acquisition Conference, 2016) (UASFLA), and the Uniform Standards for Professional Appraisal Practice (The Appraisal Foundation, current edition) (USPAP). If any of the provisions of USPAP conflict with UASFLA, then the standards of UASFLA take precedence under the Jurisdictional Exception of USPAP. Legal Description(s) Lengthy legal descriptions may be attached. Refer to the 02_ConservationEasement_LegalDescription on box. The legal description for the larger ownership (+/- 954.46 acres) is assumed to be the same as the legal description for the area proposed to be encumbered with the conservation easement as noted BRH-SB Legal Description 3.4.2020. If you determine additional parcels are part of the larger parcel during your analysis, please contact the review appraiser to request additional legal descriptions of the other areas. Remainder Estate A legal description (subject to survey) is available for the proposed FLP CE and is included in the supporting documents on box in BRH-SB Legal Description 3.4.2020. TBD Page 6 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Interests (Estate) Appraised The interests (estate) to be appraised are the “as is” rights, title, and interests which the property owner can convey as of the effective date of value. Refer to the title, last deed, outstanding rights, recorded and unrecorded agreements, etc. Refer to UASFLA, 1.2.6.1. Preliminary Larger Parcel: All rights, title, and interest in and to the 954.46-acre property owned by Burleigh Land Limited Partnership subject to the following outstanding rights, reservations, and/or encumbrances (based upon the legal description and title information): Campton Grafton County exceptions: EX7. Title to and rights of others entitled thereto in and to that portion of the subject property lying within the bounds of Eastern Corners Road and adjacent streets and ways. EX8. Riparian rights of others in and to the waters of Spencer Brook, and the natural flow thereof. EX9. Those matters as delineated on a plan entitled "Spencer Brook Tract, The Conservation Fund, Properties of Burleigh Land Limited Partnership, Tax Map 17, Parcel 5-7, and Tax Map 18 Parcel 1-1, Campton, Carroll County, New Hampshire", prepared by York Land Services LLC, Drawing No. 19-002, dated June 7, 2019, to be recorded in the Grafton County Registry of Deeds. EX10. Matters as delineated on plan entitled "Stone Farm, Campton, New Hampshire, App. 220 Acres" surveyed April 1968 by Arthur Morrill, Rumney, N.H. recorded at Grafton County Registry of Deeds in Plan Book 1073, Page 27 EX11. Matters as delineated on plan entitled "The Stone Farm, Campton, New Hampshire Property Owner: Jeffrey D. Grad November TBD Page 7 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper 1975 by Arthur Morrill, Rumney, N. H." recorded at Grafton County Registry of Deeds in Pocket 4, Folder 6, Plan 45. The plan shows "old logging road network" which would cross on to plan recorded at Plan Book 1074, Page 79 EX11. Excepting and reserving to Jeffrey S. Grad, his successors or assigns, the right to use, maintain and improve for both viatic and public utility purposes that portion of the road which lies north of the center line of the road as shown on the plan "The Stone Farm, Campton, New Hampshire Property Owner: Jeffrey D. GradaE: November 1975 by Arthur Morrill, Rumney, N. H." recorded at Grafton County Registry of Deeds in Pocket 4, Folder 6, Plan 45 EX12. Those matters as delineated on plan entitled "Sketch Showing about 900 acres, in Campton, N.H., Owned by E.J. and G.R. Foster, by John A. Wheeler, 294 Washington St., Boston" not recorded but as referenced in the Warranty Deed of Raymond Tilton and G. Allen Foster to Riverside Lands, Inc. dated November 1, 1968 and recorded at the Grafton County Registry of Deeds in Book 1085, Page 75 on November 4, 1968. EX13. Those matters as delineated on plan entitled "Surveyed July, August and September, 1919 by John Keniston, Land, Land Surveyor" recorded at the Grafton County Registry of Deeds in Plan Book 1074, Page 79 and marginally noted on Warranty Deed of Raymond Tilton and G. Allen Foster to Riverside Lands, Inc. dated November 1, 1968 and recorded at the Grafton County Registry of Deeds in Book 1085, Page 75 on November 4, 1968. TBD Page 8 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper EX14. Those matters as delineated on unrecorded plan entitled "Plan of Squam Mountain Acres, Campton, New Hampshire", dated January 1973 and prepared by Allan H. Swanson, Inc., Land Surveyors, Ill Lock Street, Nashua New Hampshire, as first referenced in Quitclaim Deed of Chocorua Forestlands Limited Partnership to Mount Whittier Development Company dated May 4, 1988 and recorded at Grafton County Registry of Deeds in Book 1738, Page 571 on May 17, 1988. Copies of all the above referenced title exception deeds and a title exception memo are available via box under the 01_Title folder. Please include comments within the appraisal report regarding whether each of these items has any impact on value. Remainder Parcel: All rights, title, and interest in and to the 954.46-acre property owned by Burleigh Land Limited Partnership subject to the following outstanding rights, reservations, and/or encumbrances: All the same as the preliminary larger parcel plus the following: EX15. Performance and compliance with the covenants, restrictions and conditions set forth in the Grant of Forest Legacy Conservation Easement, insured herein. (See Hypothetical Condition). Copies of all the above referenced title exception deeds and a title exception memo are available via box under the 01_Title folder. Please include comments within the appraisal report regarding whether each of these items has any impact on value. TBD Page 9 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Hypothetical Conditions The appraisal must not include any hypothetical conditions not approved in writing in advance by the reviewer. Include the following hypothetical condition in the after analysis: 1) The remainder property is encumbered with the proposed Forest Legacy conservation easement restriction as of the effective date of value. Extraordinary Assumptions The appraisal must not include any extraordinary assumptions not approved in writing in advance by the reviewer. Include the following extraordinary assumption verbatim in your report for both the before and after analysis: 1) The property is unaffected by hazardous material, and if found to be so affected, the property shall be cleaned up or the effect of the hazardous substances or petroleum products shall be remediated prior to conveyance. Definition of Value “Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of value, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property.” * Note: The reader should note that this definition of market value, required by the Uniform Appraisal Standards for Federal Land Acquisitions, is not “linked” to a specific “exposure time” estimate as required by the Uniform Standards of Professional Appraisal Practice (USPAP, SR 1-2- c). Such estimates are inappropriate for, and should not be included in, appraisal reports prepared for federal land acquisitions under these standards (4.2.1.2, UASFLA, 2016). This appraisal therefore invokes the Jurisdictional Exception Rule and does not include an opinion of reasonable exposure time. TBD Page 10 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper *1.2.4, Uniform Appraisal Standards for Federal Land Acquisitions, (Interagency Land Acquisition Conference, 2016) Larger Parcel The appraiser is ultimately responsible for the determination of the larger parcel. The information provided in this task assignment regarding ownership is intended to assist the appraiser in forming a preliminary understanding of the scope of the assignment. The appraiser should contact the reviewer to discuss the appraiser’s opinion of larger parcel early in the appraisal process. The preliminary larger parcel has not been identified. As the appraiser you will need to determine the larger parcel based upon those tracts of land that possess a unity of ownership and have the same or integrated highest and best use (UASFLA 4.3.3). Ownership Identify property held under the same ownership contiguous, in the nearby market area, or which should be considered in forming an opinion of larger parcel. The owner is Burleigh Land Limited Partnership and is reported to own a total of 954.46 acres at this location. Other properties owned by Burleigh Land Limited Partnership are noted on BHR-SB Other Properties Owned by Burleigh Land Limited Partnership 2.2.2020. As the appraiser, you should confirm whether they own any other properties that could be a part of the larger parcel during the appraisal process. A conservation easement is proposed for all the 954.46 acres. Please refer to the BRH-SB Survey 3.4.20 located on box for the location of the easement. Land/Acres 954.46 acres. Location Beebe River Headwaters Tract 2 is located in the Town of Campton, Grafton County, New Hampshire. TBD Page 11 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Access (Legal and Physical Access) Legal and physical access to the subject property is from Eastern Corners Road. Please refer to the BRH-SB Survey_3.4.2020 and various title documents. The appraiser is required to provide a complete description of legal and physical access to the property (i.e. Tract 2 is legally and physically accessible from XYZ road, a paved county road that is accessible year-round with a standard vehicle). Oil, Gas, Mineral, Sand/Gravel Assets No outstanding rights. No known assets. Please refer to BRH-SB Mineral Rights Letter 1.23.2020. Timber A timber cruise is not available. The appraiser is expected to determine the feasibility of timber production as part of the Highest and Best Use (HBU) analysis. If the HBU includes timber production, the appraiser shall inform the Review Appraiser and work with the State to procure a timber inventory or timber cruise under a separate contract. In using this report, the appraiser cannot merely accept such consultant report as accurate, but rather must analyze such report and adopt them only if reasonable and adequately documented and supported (UASFLA 1.13). Water Features The subject is located in the Beebe River watershed. Spencer Brook bi-sects the property. Over the past few years extensive work was done to reconstruct culverts and bridges to improve access for wildlife. Please refer to the following link for additional information. https://www.conservationfund.org/projects/beebe-river-nh- reconnecting-a-river-wildlife-and-a-community-s-favorite-place Other Features No other features. Buildings and Site Improvements No buildings. Approaches to Value All appropriate approaches to value shall be considered in the appraisal. TBD Page 12 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Acquisition The proposed acquisition is a partial interest acquisition of conservation easement rights to encumber 954.46 acres of the larger parcel (954.46 acres). Please refer to the Map Survey GIS folder on box, which has BRH-SB Survey_3.4.2020 for the location of the easement. Please refer to the BRH-Spencer Brook CE 4.22.2020.pdf within the 02_Conservation Easement_Legal Description file folder on box for the conservation easement restrictions. Remainder Property Description The remainder property is physically the same as described for the larger parcel 954.46 acres with 954.46 acres encumbered with a conservation easement. Land/Acres 954.46 acres. Location Same Access (Legal and Physical Access) Same Oil, Gas, Mineral, Sand/Gravel Assets Same Timber Same Water Features Same Other Features Same Buildings and Site Improvements Same as described for the preliminary larger parcel. Approaches to Value All appropriate approaches to value shall be considered in the appraisal. TBD Page 13 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Contact Information State Forest Legacy Program Coordinator Contact Information Susan Francher Forest Legacy Program Coordinator New Hampshire Administrator, Planning & Community Forestry NH Division of Forests and Lands 172 Pembroke Road Concord, NH 03301 Office - 603-271-4159 Mobile - 603-419-0560 Email: susan.francher@dncr.nh.gov Tracey Boisvert Administrator, Land Management NH Division of Forests and Lands 172 Pembroke Road Concord, NH 03301 Office - 603-271-2214 Email: tracey.boisvert@dncr.nh.gov NGO (Third Party Facilitator) Contact Information Will be provided upon award of contract Owner or Representative Contact Information and Phone Number Will be provided upon award of contract Pre-work, Appraisal Inspection, Report Format and Delivery Pre-Work Meeting A pre-work meeting is required for this assignment. The appraiser is required to contact the Forest Service Review Appraiser to arrange a pre-work meeting, either by phone or in person during a field inspection. Field Inspection and Notice The appraiser is required to conduct a detailed field inspection of the subject property, and to inspect all comparable sales, unless directed otherwise in writing. The appraiser is instructed to provide reasonable notice of the field inspection to the landowner and/or representative and to the FS Reviewer with an invitation to attend. TBD Page 14 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Written Instructions and Supplementary Information: The appraisal must include a copy of all written appraisal instructions, including this task assignment. The addenda should also include last deeds, title information, copy of the proposed conservation easement, and any consultant reports relied upon. Delivery of Appraisals/Number of Copies/PDF The appraiser shall provide the complete, signed appraisal to the Forest Service reviewer for the initial review. PDF copies are acceptable. “Draft” or unsigned appraisals will not be accepted for review. Revisions, corrections, clarification may be requested. After the Forest Service reviewer has notified the appraiser that the appraisal (with any revisions) has been approved, the appraiser shall insure that the Forest Service has 2 hard copies of the final approved report and an electronic copy in PDF format. The State will require additional copies; please refer to the contract for State requirements. The contract appraiser shall not provide any appraisal work product to the Intended Users until notified that the appraisal has been approved for Agency use and/or until authorized to do so by the Forest Service reviewer. Format Specifications Appraisal reports must be on 8 ½” x 11” paper, single sided (no double sided or facing pages) and bound in a comb binding. Qualifications and State- Certification The appraisal should include qualifications, a copy of the appraiser’s state certification, and verification of completion of a Uniform Standards for Federal Land Acquisitions appraisal course sponsored by a professional appraisal organization. Information Available/Provided to Appraiser The appraiser is requested to contact the review appraiser if it is determined that additional information is required to provide a credible and well supported appraisal. Legal Descriptions Preliminary Larger Parcel: The legal description for the larger ownership (+/- 954.46 acres) is assumed to be the same as the legal description for the area proposed to be encumbered with the conservation easement as noted BRH-SB Legal Description. TBD Page 15 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper If you determine additional parcels are part of the larger parcel during your analysis, please contact the review appraiser to request additional legal descriptions of the other areas. Remainder Estate A legal description (+/- 954.46 acres) is available for the proposed FLP CE and is included in the supporting documents on box in the 02_Conservation Easement_Legal Description file folder within BRH-SB Legal Description. Survey Please refer to the 09_MapSurveyGIS file folder on box for the 09a_BRH-SB survey_3-4-2020.pdf. Appraisal Maps (GIS, etc.) Refer to 09_MapSurveyGIS file folder on box. 09a_BRH-SB survey_3-4-2020.pdf Refer to 12_Larger Ownership file folder on box. BHR-SB Other Properties Owned by Burleigh Land Limited Partnership 2.2.2020 Title Report/Deeds Refer to 01_Title file folder on box. Title Commitment, Title Exception Memo, Grafton County Deed, Exceptions and Encumbrances, and other supporting documents. Current Contracts for Sale, Marketing Information, Listing Information None known other than for the proposed conservation easement through the Forest Legacy Program; The appraiser is required to confirm and analyze this info per USPAP. Copy of Proposed Conservation Easement Refer to within the BRH-Spencer Brook CE 4.22.2020.pdf within the 02_Conservation Easement_Legal Description file folder on box for the conservation easement restrictions. . Timber Cruise/Inventory and Timber Valuation Report A timber cruise is not available. The appraiser is expected to make a determination of the feasibility of timber production as part of the Highest and Best Use (HBU) analysis. If the HBU includes timber production, the appraiser shall inform the Review Appraiser and work with the State to procure a timber inventory or timber cruise under a separate contract. In using this report, the appraiser cannot merely accept such consultant report as accurate, but rather must analyze such report and adopt them only if reasonable and adequately documented and supported (UASFLA 1.13). TBD Page 16 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper Sub-consultant Reports None. TBD Page 17 of 17 Beebe River Headwaters Tract 2 Spencer Brook Headwaters - TAS Assignment Summary America’s Working Forests – Caring Every Day in Every Way Printed on Recycled Paper 2016 Yellowbook Requirements for Appraisal Reports, rev 10/15/18 Part I: Introduction Title Page (2.3.1.1) pg 58 ☐ Should include: ☐ Property Name ☐ Street address ☐ Agency assigned tract or parcel number ☐ Name and address of appraiser ☐ Effective date of the appraisal Letter of Transmittal (2.3.1.2) pg 58 ☐ Should include: ☐ Date of letter ☐ Identification of the property ☐ Identification of the property rights appraised ☐ A reference that the letter is accompanied by an appraisal report ☐ Effective date of appraisal ☐ Identification of hypothetical conditions ☐ Identification of extraordinary assumptions ☐ Identification of limiting conditions, or legal instructions ☐ Value opinion (in partial acquisitions, opinion of the value of the larger parcel before the acquisition and the remainder property after the acquisition, the difference) ☐ Appraiser’s signature Table of Contents (2.3.1.3) pg 58 ☐ Major parts of the report and subheadings should be listed ☐ Items in the addenda shall be listed individually ☐ inspection of the property appraised and that the property owner, or his/her designated representative, was given the opportunity to accompany the appraiser on the property on the property inspection. inspection; ☐ No one provided significant professional assistance to the appraiser. ☐ Shall include opinion of market value as of effective date of value (Before & After) ☐ Shall include appraiser’s signature ☐ The statements of fact contained in this report are true and correct. ☐ The reported analyses, opinions, and conclusions are limited only by the reported assumptions, limiting conditions, and are my personal, impartial, and unbiased professional analysis, opinions, and conclusions. ☐ I have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties involved. ☐ I have performed no (or the specified) services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. ☐ I have no bias with respect to the property that is the subject of this report or to the parties involved with the assignment. ☐ My engagement in this assignment was not contingent upon developing or reporting predetermined results. ☐ My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. ☐ No one provided significant real property appraisal assistance to the person signing this certification. (If there are exceptions, the name of the individual providing assistance must be stated.) ☐ The appraisal was developed and the appraisal report was prepared in conformity with the Uniform Appraisal Standards for Federal Land Acquisitions; ☐ The appraisal was developed and the appraisal report prepared in conformance with the Appraisal Foundation’s Uniform Standards for Professional Appraisal Practice, and complies with USPAP's Jurisdictional Exception Rule when invoked by Section 1.2.7.2 of the Uniform Appraisal Standards for Federal Land Acquisitions and; ☐ The appraiser has made a physical inspection of the property appraised and that the property owner, or [his/her] designated representative, was given the opportunity to accompany the appraiser on the property inspection. ☐ Shall include opinion of market value as of the effective date of value (Before & After) ☐ Shall include the appraiser's signature Appraiser's Certification (2.3.1.4) pg 58 2016 Yellowbook Requirements for Appraisal Reports, rev 10/15/18 2016 Yellowbook Requirements for Appraisal Reports, rev 10/15/18 Executive Summary (2.3.1.5) pg 59 ☐ Shall report the major facts and conclusions that led to the final value ☐ Identification of property appraised ☐ Highest and best use (both before & after the acquisition if a partial acquisition) ☐ Brief descriptions of improvements (both before & after the acquisition if a partial acquisition) ☐ Indicated value by each approach ☐ Sales ☐ Income ☐ Cost ☐ Final opinion of value (both before & after the acquisition if a partial acquisition) ☐ Hypothetical conditions ☐ Extraordinary assumptions ☐ Limiting Conditions or instructions ☐ Effective date of value Photographs (2.3.1.6) Pg 59 ☐ Improvements, if any, shall be of: ☐ Front elevation ☐ Any unusual features ☐ Views of abutting properties ☐ Views of the property directly opposite ☐ Interior photographs ☐ Should be numbered ☐ Should include a brief description of picture, date taken and person taking the picture ☐ Should show location of each photograph, including direction shown on a plat map, an aerial may be included Statement of Assumptions and Limiting Conditions (2.3.1.7) pg 59 ☐ Any A & L C’s that are necessary to the background of the appraisal shall be stated ☐ Any provided agency or special legal instructions shall be referenced (i.e. hypothetical conditions & extraordinary assumptions) ☐ Copy of instructions shall be included in addenda ☐ Any encumbrances against the property shall be stated ☐ All encumbrances must be identified in this portion of the report ☐ Must avoid ‘boiler-plate’ assumptions ☐ Must avoid assumptions and limiting conditions of appraiser’s own conclusion ☐ No unauthorized hypothetical conditions, assumptions or limiting conditions ☐ In partial acquisitions, the appraiser should identify those hypothetical conditions, and assumptions & limiting conditions that apply to both the before and after acquisition appraisals, those that apply only to the appraisal of the larger parcel, and those that apply only to the remainder. Scope of Work (2.3.1.8) Pg 60 Shall identify the following in this section: • Client • Intended users • Intended use • Definition of market value (1.2.4) • Effective date of value • Property Characteristics (1.2.6) o Property interests appraised o Legal description o Property Inspections o Landowner contacts • Assignment Conditions (1.2.7) 2016 Yellowbook Requirements for Appraisal Reports, rev 10/15/18 ☐ Should describe the scope of investigation and analysis of the appraisal ☐ Geographical area and time span search for market data should be included ☐ Description of the type of market data researched and the extent of market data confirmation should be included ☐ Should state references and data sources relied upon (may show within applicable approaches to value) ☐ Applicability of all standard approaches to value shall be discussed and the exclusion of any approach explained. ☐ Clear explanation and discussion of any hypothetical condition or extraordinary assumption and the implications of such use must be in this section Part II – Factual Data Legal Description (2.3.2.1) pg 61 ☐ Legal description shall be complete – if lengthy included in the addenda ☐ Should reference parcel or tract number to property if provided ☐ Legal description should be verified (1.2.6.2) ☐On the ground during physical inspection ☐With the owner of the property (if possible) ☐By comparing it with aerial or other maps available in city, county, or other governmental office ☐By comparing it with public records Area, City and Neighborhood Data (2.3.2.2) pg 61 ☐ Must be kept to absolute minimum and include only such information that directly affect the appraised property ☐ Should only include information that directly affects the subject property, together with the appraiser’s conclusions as to significant trends ☐ “Boilerplate” data should be excluded ☐ Changes in the neighborhood brought about by the government’s project shall be disregarded (see pg 61 for more info) Property Data (2.3.2.3) pg 61 Site (2.3.2.3.1) pg 61 Description of: ☐ Present Use ☐ Accessibility and road frontage ☐ Assignment conditions cont.(1.2.7) ☐ Instructions ☐ Hypothetical conditions (HC) ☐ Extraordinary assumptions (EA) ☐ Clearly identify and explain the implications of any HC and EA ☐ Jurisdictional Exceptions Shall include: • An explanation of the intended use for the appraisal. • A description of the property rights appraised. 2016 Yellowbook Requirements for Appraisal Reports, rev 10/15/18 ☐ Land contours and elevations ☐ Soils ☐ Vegetation (including timber) ☐ Views ☐ Land area ☐ Land shape ☐ Utilities ☐ Mineral deposits ☐ Water rights associated with the property ☐ Easements ☐ Hazardous substances (1.3.1.1) ☐ Affirmative statement required if the property is located within a flood hazard area (should reference FEMA map) ☐ Discussing of the beneficial and detrimental factors inherent in the location of the property ☐ Statement must be included of the existence or nonexistence of commercially valuable mineral deposits ☐ Description of all improvements in narrative or schedule form, including their: ☐ Dimensions ☐ Square foot measurements ☐ Chronological and effective age ☐ Dates of significant remodel/renos ☐ Condition ☐ Type and quality of construction ☐ Present use and occupancy ☐ Description of all site improvements, i.e., fencing, landscaping, paving, irrigation systems and domestic and private water systems ☐ Should coordinate description with pictures and a plot plan and/or floor plan ☐ Fixtures (2.3.2.3.3) pg 62 ☐ Description of all fixtures with a statement of the type and purpose of each ☐ When fixtures represent a substantial portion of the property’s value, retention of a fixture valuation specialist should be considered Use History (2.3.2.3.4) pg 62 ☐ Brief statement of use of property as vacant and improved ☐If improved, state the purpose for which the improvements were designed and the dates of original construction and major renovations, additions, and/or conversions. ☐ Ten-year record of all use and occupancy of the property ☐ If indeterminable – statement of that fact Sales History (2.3.2.3.5) pg 62 ☐ Ten-year record of all sales (including offers to buy or sell the subject if available) ☐ If none, last sale of property shall be reported ☐ Information reported shall include: ☐ Seller’s name ☐ Buyer’s name ☐ Date of sale ☐ Terms and conditions of sale ☐ Appraiser’s verifications of the sale and whether the transaction met the conditions required for a comparable sale under Section 1.5.2.2 Rental History (2.3.2.3.6) pg 63 ☐ Last three years of rental and lease history ☐ All current leases should be reported, including: ☐ Date of lease Improvements (2.3.2.3.2) pg 62 2016 Yellowbook Requirements for Appraisal Reports, rev 10/15/18 ☐ Name of tenant ☐ Rental amount ☐ Term of the lease ☐ Parties responsible for property expenses ☐ Other pertinent lease provisions ☐ Appraiser must describe the verification process and whether the lease(s) meets the conditions required or a comparable lease Assessed Value and Annual Tax Load (2.3.2.3.7) pg 63 ☐ Current assessment and dollar amount of real estate taxes ☐ If the property is not assessed, an estimate of the assessment, tax rate and estimate amount of tax should be included Zoning and Other Land Use Regulations (2.3.2.3.8) pg 63 ☐ Identify zoning, must be in descriptive terms ☐ Other local land use regulations, such as: ☐ Set-back requirements ☐ Off street parking requirements ☐ Open space requirements ☐ Should make note any master, or comprehensive land use plan that may affect the utility or value of the property ☐ Must state if the property was recently rezoned and the appraiser must determine if the rezoning was a result of the government’s project. If so, the appraiser must justify this conclusion and disregard the rezoning. ☐ If rezoning is probable, discuss in detail under Section 2.3.3.1 (HBU) The mere assertion by an appraiser that a property could be rezoned is insufficient. ☐ Must identify all other land use and environmental regulations that have an impact on the HBU and value of the property. ☐ Impact must also be discussed in the HBU analysis. ☐ Must discuss the impact of any private restrictions on the property, such as deed and/or plat restrictions. Part III – Data Analysis and Conclusions Highest and Best Use (2.3.3.1) pg 63 ☐ Must clearly support the highest and best conclusion Four Tests (2.3.3.1.1) pg 64 ☐ The four criteria must be addressed, physically possible, legally permissible, financially feasible and highest value. ☐ As improved, if applicable ☐ Must describe the analysis developed under Section 1.4 concerning HBU as if vacant ☐ Must discuss the physical characteristics of a property that may influence use and value and should be described in adequate detail ☐ Must describe the legal constraints on the property that were identified and analyzed under Sections 1.3.1.3 and 1.4.5 ☐ Should describe the zoning requirements and other legal constraints and their impacts discussed ☐ Must describe in sufficient detail if the HBU conclusion requires some other form of governmental approval and the probability of obtaining those approvals 2016 Yellowbook Requirements for Appraisal Reports, rev 10/15/18 ☐ If HBU conclusion requires rezoning, the probability of the rezoning must be thoroughly investigated, analyzed and reported ☐ Financial feasibility of those uses which are both physically possible and legally permitted should be addressed. ☐ All feasibility or comparative studies developed under Section 1 should be described here ☐ Should discuss the use of the property as if vacant, which results in the highest value, and the analysis that supports that conclusion and should identify the timing of the use and the likely purchaser and user ☐ If improved, must address the HBU following the same process as described above Larger Parcel (2.3.3.1.2) pg 65 ☐ Analysis that led to the larger parcel determination and the determination itself must be reported ☐ Each of the three tests must have sufficient detail to fully understand the conclusion ☐ Determination of the larger parcel must be describe in every appraisal assignment Applications of the Approaches to Value Land Valuation (2.3.3.2) pg 65 ☐ Shall report the opinion of value of land for its HBU as if vacant Sales Comparison Approach (2.3.3.2.1) pg 65 ☐ In reporting the results of the sales comparison approach for land valuation, shall provide detailed descriptions of confirmed sales of lands that have the same or similar HBU ☐ Description of each sale transaction used as a comparable sale should at minimum include: ☐ Date of transaction ☐ Price paid ☐ Name of Seller ☐ Name of Buyer ☐ Size of property ☐ Location ☐ Zoning or other legal constraints ☐ Description of physical characteristics ☐ The person with whom the transaction was verified with ☐ Differences shall be considered and adjustments made to the sales ☐ Adjustments must be summarized in an adjustment grid ☐ Each adjustment should be supported with market data ☐ Data and analysis must provide sufficient detail to understand the data, analysis and the logic of the determination of the market value Subdivision Development Method (2.3.3.2.2) pg 65 ☐ If HBU is for subdivision, must address all of the factors and assumptions used in sufficient detail. 2016 Yellowbook Requirements for Appraisal Reports, rev 10/15/18 ☐ Must clearly present the market support for each factor used in the analysis ☐ DCF prepared as part of the analysis must be included in the report Cost Approach (2.3.3.3) pg 66 ☐ Should be in the form of a computational data, arranged in sequence with reproduction or replacement cost and should state the source ☐ Entrepreneur’s profit must be considered and discussed and should be derived from market data whenever possible ☐ If services of a contractor or professional was retained, this data should be referenced and included in the addenda ☐ Dollar amount of depreciation from all causes shall be explained and deducted (see 1.5.3 for discussion on estimating depreciation under these Standards) Sales Comparison Approach (2.3.3.4) pg 66 ☐ Must contain a sufficient description of the comparable sales ☐ Comparable sale pictures must be included and should show the date taken and name of the person taking the picture ☐ Each comparable sale shall include: ☐ Buyer’s name ☐ Seller’s name ☐ Date of sale ☐ Legal description (may be abbreviated if lengthy or reference made to a tax parcel number) ☐ Type of sale instrument ☐ Document recording information ☐ Price ☐ Terms of sale ☐ Location ☐ Zoning ☐ Present Use ☐ Highest and best use ☐ Brief physical description of the property ☐ Plot plan or sketch of sale should be included ☐ A photograph shall be included ☐ Comparable sales map shall be included ☐ Qualitative adjustments must have more extensive discussion ☐ It is essential to have both overall superior and overall inferior sales to the subject ☐ Shall include an explanation of the comparative weight given to each sale ☐ A comparative adjustment chart or graph is required ☐ All comparable sales must be verified… typically requires confirmation by the buyer, seller or other person knowledge of the price, terms and conditions of sale. (4.4.2.3) ☐ Not all property transactions can be used as potential comparable sales in valuations for federal land acquisitions. Several types can only be used under certain circumstances or for limited purposes. Extraordinary verification must be taken for questionable sales, i.e. government sales, sales to environmental or other public interest organizations (4.4.2.4) Income Capitalization Approach (2.3.3.5) pg 67 ☐ Shall include adequate factual data to support each figure and factor used 2016 Yellowbook Requirements for Appraisal Reports, rev 10/15/18 ☐ Estimated gross economic (or market rent), or income ☐ Allowance for vacancy and credit losses ☐ An itemized estimate of total expenses ☐ Itemized estimate of the reserves for replacements, if applicable ☐ Capitalization rate of net income shall be at the prevailing rate for the particular type of property and location ☐ Subject property’s historical income and expense information (if available) should be included in this section Reconciliation and Final Value Opinion of Market Value (2.3.3.6) pg 68 ☐ Must explain: ☐ The reasoning applied to arrive at the final opinion of value ☐ How the results of each approach to value were weighed in that opinion ☐ Reliability of each approach to value ☐ Shall state the final opinion of value as a single amount, including contributory value of fixtures, timber, minerals, and water rights if any. Avoid summation appraisal. Factual Data – After Acquisition (Partial Acquisition Only) (2.3.4) Pg 68 Similar to Sections 2.3.2.1 to 2.3.3.6 but on the remainder property and includes the following: Acquisition Analysis (Partial Acquisitions Only (2.3.6) pg 70 The requirements in Sections 2.3.6.2 and 2.3.6.3 are identified to meet obligations under the Uniform Act. Recapitulation (2.3.6.1) pg 70 ☐ Must report the difference between the value of the larger parcel and the value of the remainder Allocation and Damages (2.3.6.2) pg 71 ☐ Damages, as such, are not appraised. However the appraiser shall briefly explain any damages to the remainder property and allocate the difference in the value of property before and after the acquisition between the value of the acquisition and damages to the remainder. ☐ Should note such allocation is an accounting tabulation and not necessarily indicative of the appraisal method employed. ☐ If damages have been measured by cost to cure must justify the cost to cure and demonstrate the cost to cure is less than the damage. ☐ Shall identify any special or direct benefits accruing to the remainder property and explain how and why those benefits have occurred ☐ Quantitative adjustment is appropriate when there are adequate market data to reliably quantify the effect of a sale characteristic in terms of a percentage or dollar amount. ☐ Qualitative adjustment may also be appropriate – and necessary – where market data does not support a quantitative adjustment Exhibits and Addenda (2.3.7) pg 71 Legal Instructions pg 71 ☐ Must be presented Special Benefits (2.3.6.3) pg 71 Should be arranged in detailed form to show: 2016 Yellowbook Requirements for Appraisal Reports, rev 10/15/18 Location Map pg 71 ☐ Should display the location of the appraised property with the city or area it is located ☐ Should include a north arrow and identification of the subject property Comparable Data Maps pg 71 ☐ Should include a north arrow and the locations of both the comparable sales and the subject property Detail of Comparable Sales and Rental Data pg 71 ☐ May be included in the body of the report ☐ Photographs must be included Plot Plan pg 71 ☐ Should help to visualize the property and the scope of the appraisal considerations ☐ Should depict the entire subject property, including dimensions and street frontage ☐ Structural improvements should be shown in their approximate locations ☐ Dimensions of improvements should be noted ☐ Should include a north arrow ☐ Location from which each picture was taken with an identification number and the direction should be identified ☐ In partial acquisitions: ☐ Should identify the remainder area and its dimensions. ☐ Should show any significant features of the government project Floor Plan pg 72 ☐ Only required when necessary to describe a unique property or value opinion Title Evidence Report pg 72 ☐ Title evidence report should be included if provided, if lengthy can be referenced Other Pertinent Reports and Exhibits pg 72 ☐ Any written instructions ☐ Specialist reports ☐ Pertinent title documents (leases or easements) ☐ Any charts or illustrations referenced in the body of the report Qualifications of Appraiser pg 72 ☐ Qualifications of all appraisers or technicians who made significant contributions See page 72 for leasehold acquisitions Project Appraisal Reports (2.5) pg 73 ☐ A separate opinion of market value must still be developed for each acquisition; but the results of each valuation can be in one report. See page 73 for more on the report requirements BRH Appraisal RFP 6.2.2020 BRH_Beebe River Tract 1_TAS_forRFP_5.2020 BRH_Spencer Brook Tract 2_TAS_ForRFP_5.2020 YellowbookAppraisalReportRequirements2016 Blank Page