prior to the regularly scheduled meeting. agenda ......special note: commissioners will tour...
TRANSCRIPT
SPECIAL NOTE Commissioners will tour Scarpino 329 N West Ave at 100 pm prior to the regularly scheduled meeting
AGENDA ADVERTISING AND PROMOTION COMMISSION
April 9 2012 200 pm Fayetteville Town Center I Call to Order ndash Maudie Schmitt
II Reports
A Approval of Minutes for March monthly meeting B Addition to By-Laws of Open and Responsive Operation C Financial Report
1 HMR Revenues ndash Marilyn Heifner 2 Financial Statements - Keith Glass 3 Update from City Attorney re delinquent tax collection efforts ndash Kit
Williams D Departmental Reports
1 Clinton House Museum 2 Convention and Visitors Bureau 3 Town Center 4 Executive Director
E Advertising Agency Report ndash Mike Sells
III Old Business
AOld Post Office 1 Appraisal 2 Hiring Real Estate Attorney
B Scarpino
IV New Business ANational Park Service public input session on Butterfield Overland Mail Route
National Trail ndash 41112 ndash 10 am until noon City Hall Room 326
V Adjourn
ADVERTISING AND PROMOTION COMMISSION
REGULAR MEETING
March 12 2012
Commissioners Present Bob Davis Lioneld Jordan Brandon Karn Bill Lyle Maudie Schmitt and Justin
Tennant
Commissioners Absent Hannah Mills
Staff Present Sandra Bennett
CALL TO ORDER
Maudie Schmitt called the regular monthly meeting of the Fayetteville Advertising and Promotion
Commission to order on March 12 2012 at 200 pm
MINUTES
Davis moved to approve the minutes of Januaryrsquos meeting second by Jordan Motion carried
HMR REPORT
It was reported that HMR was up 1281 with total collections of $178289 Last year same time
increase was 980
FINANCIAL REPORT
Keith Glass presented the financial report Final Financials for December show the asset component
reclassified Through month of January HMR revenue is up $1400000 CVB shows $30000 loss as a
result of store inventory The difference in salaries is because of timing of pay day being on weekend
which sometimes pushes it into the next month
DELINQUENT TAX COLLECTIONS
Kit Williams reported $1228144 in collections in February 2012 with a year to date total of
$1893493 Of the 29 cases more than half show a zero balance
CLINTON HOUSE MUSEUM
2000 tulip bulbs were planted as part of their Plant the Town RED program Free admission February
20th in honor of Presidentrsquos Day
CONVENTION VISITORS BUREAU
Visitor Center had $454824 in sales There were 1024 visitors during the month of February
TOWN CENTER
Sandra reported that the Town Center was up in almost every category from last year Town Center staff
is working on University events community and non-profit events
AD AGENCY
Mike Sells reported for the Agency They are currently working on the Fayetteville guide January ndash
February has shown an increase of web activity Theyrsquove expanded geographical region and all areas
show an increase Drew presented the new First Thursday logo
OLD BUSINESS
Quotes for appraisals of Old Post Office
Mark Riskrsquos quote for $200000
Parrishrsquos quote Restricted use - $150000 USPAP $250000
Restricted Use = Simple cut and dry report with value of property
USPAP = In-depth exposition of material that elaborates on the restricted use report Land sales lease
analysis and retail business
Motion to have Parrish appraise Old Post Office using the Restricted Use Report for $150000 by Davis
second by Tennant
Motion carried
NEW BUSINESS
Gina Scarpino amp Richard Berquist offered their building as an alternative for a venue for the Fayetteville
Underground They invited Commissioners to come to the space and look at it and consider it as a
location instead of the Old Post Office It could be used as an event venue and artist studios Itrsquos over
6000 square feet they are asking for $99000000
Commissioners discussed meeting at 100 pm on April 8th at Scarpinorsquos before the 200 pm meeting
Hiring an attorney for negotiations on purchase of Old Post Office
Kit recommended the Commission select an attorney experienced in real estate to draft documents and
be involved in all negotiations
Sandra was asked to place an Ad in paper to solicit legal services
Davis moved to look for an attorney with real estate experience second by Jordan
Motion carried
Applications for AampP Commission
Two applicants disqualified because they did not fulfill the requirements for the open positions
Tennant moved to go into executive session second by Davis
After executive session Maudie called meeting back to order
Karn moved to accept Bill Lyle to second term second by Tennant
Motion carried
There being no further business the meeting was adjourned
Respectfully submitted
Sandra Bennett
Facilities Manager
Fayetteville Town Center
Current Year HMR Collected (21200912410100) 20229179$ Prior Year Collected (21200912410101) (127630)$ First Security Investment Interest Revenue (21200912470800) 88054$
Total Revenues 20189603$
Annual Bond Audit Expense (21209120760260) -$ Collection Expense (21209120533300) (402175)$ Bank of OK Quarterly Fee (21209120571200) -$ Town Center Bond Payment (21209120571200) (5613399)$ 2010 Property Taxes on Town Center (21209120760260)
Total Expenses (6015574)$
Total Check to AampP 14174029$
~ This report represents HMR collections through the end of the monthThese figures may include past due amounts
For month of March 2012Advertising and Promotion Commission
City of Fayetteville ArkansasMonthly HMR Tax Collections 2008-2011
2009 2010 2010 2011 2011 2012 2012 Total Total Change Over Total Change Over Total Change Over
HMR Taxes HMR Taxes Prior Year HMR Taxes Prior Year HMR Taxes Prior Year
January $166214 $166645 000 $179546 774 $205939 1470
February $167141 $143940 -1388 $158037 980 $178289 1281
March $180027 $172662 -409 $169093 -206 $201015 1888$506675
April $191542 $187730 -200 $187976 000
May $190320 $185096 -274 $188149 165
June $190237 $184371 -308 $205700 1157
July $180944 $196323 008 $205438 460
August $167897 $180741 765 $189839 503
September $176463 $184471 454 $195427 594
October $189728 $195169 287 $214713 1001
November $190887 $213494 1184 $203529 -467
December $174568 $171511 -018 $202027 1779
Total $ $2165969 $2182155 075 $2806149 538 $585243 1551
filename
Departmental CorrespondenceFa~ettevitle LEGAL
wwwaccessfayettevilleorg DEPARTMENT
Kit Williams City Attorney
Jason B Kelley TO Mayor Jordan 4ssistant City Attorney
AampP Commissioners
CC Don Marr Chief of Staff Casey Jones Prosecuting Attorney -J
FROM Kit Williams City Attorney _~L-_--A__xJmiddot--+-____
DATE April 3 2012
RE Overdue HMR collection efforts
The City Prosecutors Office collected $745846 of overdue HMR taxes in March of 20 12 Thus for the first quarter of 20 12 the City Prosecutors Office has collected $2639339 in overdue Hotel Motel and Restaurant taxes
Seven of the 29 open cases showed a zero delinquent balance at this time Unfortunately no case was closed and seven show a delinquent balance in excess of$IOOOOO Only one of those seven is for an operating business
MANDY FINKLEA CLINTON K JONES OFFICE ADMINISTRATOR Emiddotmail hotcheckltifayettevillearus CITY PROSECUTOR Ole PHONE (479) 575-8377 BRIAN THOMAS (479) 575-8378
ARKANSAS Hot Checks (479) 575middot8254 DEPUTY CITY PROSECUTOR FAX (479) 575-8373
OFFICE OF CITY PROSECUTOR
MEMO
TO K Williams Fayetteville City Attorney
FROM Casey Jones Fayetteville City Prosecutor
DATE April 2 2012
RE Status of Active HMR cases
When a Criminal Summons is issued for a violation and the Defendant subsequently pays the delinquent balance the Criminal Summons remains active and is then routinely dismissed by the Judge at arraignment ifthe Defendant is still current and not in violation
1 Acambaro Four Business Closed
Jesus Socarro Active Criminal Summons Delinquent Balance $146804
2 Antoinettes Special Cakes amp Catering
Antoinette R Harris Jami A Harris
Active Criminal Summons Active Criminal Summons Delinquent Balance -0shy
3 Brendas Drive-In Collin L Wilkins Active Criminal Summons Delinquent Balance -0shy
4 Butcher Block Business Closed
Gary W Bell Active Contempt of Court Delinquent Balance $187128
5 Cafe Delta Soul Michael L Vaughn Trial date 52112 Delinquent Balance $198000
6 Dickson Dining (Joses)
Sidney O Crawford Jr Paid -0shyDelinquent Balance No Forms
7 Dominoes Pizza Business Closed
Lloyd W Hardison Active Criminal Summons Delinquent Balance $439066
8 GreenRoom Laurie L Fuller Rustin E Fuller
Arraignment 4612 Arraignment 4612 Delinquent Balance -0shy
Telecommunication Device for the Deaf TOO (479) 521middot1316 176 South Church Suite 2 - Fayetteville AR 72701
15
Kit Williams April 2 2012 Page 2
9 Hogwild Pizzeria Business Closed
13 Mama Deans
Neon Ice
16 Northern Exposure Business Closed
19 Rowdy Beaver Den
21 Seafood Market BarGrill Business Closed
22 Shanghai Chinese and China Garden Businesses Closed
23 Sipamouane Twin Kitchen
24 Soul Restaurant amp Lounge Business Closed
27 Tims Pizza (North) Business Closed
28 Uncle Gaylords Business Closed
29 WOW Japanese Bistro Business Closed
David S Mackey
Meneria D Morrison Terry L Morrison
Brandon S Pooree William S Pooree
Kevin M Laughlin
Amber M Biason-Dunn
Craig Dowd
Hsiao L J Shen
Jeffrey Sipamouane
Casey E Dighero
Michael A Stephens
Hiram F Brandon
ChongN Kim
TOTAL $745846
Letter Delinquent Balance $133000
TD 44112 TD 44112 Delinquent Balance -0shy
Active Criminal Summons Active Criminal Summons Delinquent Balance No Forms
Arraignment 427112 Paid $655349 (issued new check-cleared) Delinquent Balance No Forms
Active Criminal Summons Paid $90497 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $436760
Active Contempt of Court Delinquent Balance $309000
Arraignment 49112 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $11864
Active Criminal Summons Delinquent Balance -0shy
FTA Warrant Delinquent Balance No Forms
FTA Warrant Delinquent Balance $204200
CLINTON HOUSE MUSEUM
MONTHLY REPORT MARCH 2012
The Clinton House Museum had a total of 323 visitors in the month of March
MUSEUM ACTIVITIES AND EVENTS
March and the spring weather increased traffic dramatically in the House this month In addition to having five group tours on the schedule we continually see visitors from all over the world Spring Break has also brought in many families from around northwest Arkansas neighboring states and those from coast to coast Additional inventory in the gift shop has increased sales as well The First Ladies Garden is blooming making the Clinton House a ldquomust stoprdquo for visitors and locals alike
March 3rd ndash GROUP TOUR ndash Arkansas Historical Society Living History Tour ndash 12 visitors
March 6th ndash GROUP TOUR ndash Arkadelphia AR ndash 30 visitors
March 14th ndash GROUP TOUR ndash Salvation Army Spring Campaign ndash 15 visitors
March 22nd ndash GROUP TOUR ndash Backyard Billionaire Tour ndash 57 visitors
March 23rd ndash GROUP TOUR ndash Heritage Club FAM Tour ndash 35 visitors
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Totals $186393 $454824 $451675
2011 Totals $85492 $126224 $245088 $522072 $737000 $635651 $570779 $965033 $518226 $722130 $479754 $1074122
Change
from 2011 1180 2603 843 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000
Visitor Count 686 1043 1213
2011 Totals 295 238 691 1301 1454 1463 1441 1457 1313 1189 1103 1283
Change
from 2011 13254 33824 7554 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000
2011 Goal = $30000year or $2500month 2011 Totals
$6681571 $1092892
13228 2942
Change = divide the difference between the two numbers by the 2010 numberthen move the decimal two spaces right
2011 monthly sales average= $556798 2012 monthly sales average= $364297
2011 monthly visitor average= 1102 2012 monthly visitor average 981
2011 sales per visitor = $505 2012 sales per visitor = $371
Fayetteville Visitor Center - 2012 Sales amp Visitor Count
SalesSales
Visitors Visitors
2012 Totals
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
ADVERTISING AND PROMOTION COMMISSION
REGULAR MEETING
March 12 2012
Commissioners Present Bob Davis Lioneld Jordan Brandon Karn Bill Lyle Maudie Schmitt and Justin
Tennant
Commissioners Absent Hannah Mills
Staff Present Sandra Bennett
CALL TO ORDER
Maudie Schmitt called the regular monthly meeting of the Fayetteville Advertising and Promotion
Commission to order on March 12 2012 at 200 pm
MINUTES
Davis moved to approve the minutes of Januaryrsquos meeting second by Jordan Motion carried
HMR REPORT
It was reported that HMR was up 1281 with total collections of $178289 Last year same time
increase was 980
FINANCIAL REPORT
Keith Glass presented the financial report Final Financials for December show the asset component
reclassified Through month of January HMR revenue is up $1400000 CVB shows $30000 loss as a
result of store inventory The difference in salaries is because of timing of pay day being on weekend
which sometimes pushes it into the next month
DELINQUENT TAX COLLECTIONS
Kit Williams reported $1228144 in collections in February 2012 with a year to date total of
$1893493 Of the 29 cases more than half show a zero balance
CLINTON HOUSE MUSEUM
2000 tulip bulbs were planted as part of their Plant the Town RED program Free admission February
20th in honor of Presidentrsquos Day
CONVENTION VISITORS BUREAU
Visitor Center had $454824 in sales There were 1024 visitors during the month of February
TOWN CENTER
Sandra reported that the Town Center was up in almost every category from last year Town Center staff
is working on University events community and non-profit events
AD AGENCY
Mike Sells reported for the Agency They are currently working on the Fayetteville guide January ndash
February has shown an increase of web activity Theyrsquove expanded geographical region and all areas
show an increase Drew presented the new First Thursday logo
OLD BUSINESS
Quotes for appraisals of Old Post Office
Mark Riskrsquos quote for $200000
Parrishrsquos quote Restricted use - $150000 USPAP $250000
Restricted Use = Simple cut and dry report with value of property
USPAP = In-depth exposition of material that elaborates on the restricted use report Land sales lease
analysis and retail business
Motion to have Parrish appraise Old Post Office using the Restricted Use Report for $150000 by Davis
second by Tennant
Motion carried
NEW BUSINESS
Gina Scarpino amp Richard Berquist offered their building as an alternative for a venue for the Fayetteville
Underground They invited Commissioners to come to the space and look at it and consider it as a
location instead of the Old Post Office It could be used as an event venue and artist studios Itrsquos over
6000 square feet they are asking for $99000000
Commissioners discussed meeting at 100 pm on April 8th at Scarpinorsquos before the 200 pm meeting
Hiring an attorney for negotiations on purchase of Old Post Office
Kit recommended the Commission select an attorney experienced in real estate to draft documents and
be involved in all negotiations
Sandra was asked to place an Ad in paper to solicit legal services
Davis moved to look for an attorney with real estate experience second by Jordan
Motion carried
Applications for AampP Commission
Two applicants disqualified because they did not fulfill the requirements for the open positions
Tennant moved to go into executive session second by Davis
After executive session Maudie called meeting back to order
Karn moved to accept Bill Lyle to second term second by Tennant
Motion carried
There being no further business the meeting was adjourned
Respectfully submitted
Sandra Bennett
Facilities Manager
Fayetteville Town Center
Current Year HMR Collected (21200912410100) 20229179$ Prior Year Collected (21200912410101) (127630)$ First Security Investment Interest Revenue (21200912470800) 88054$
Total Revenues 20189603$
Annual Bond Audit Expense (21209120760260) -$ Collection Expense (21209120533300) (402175)$ Bank of OK Quarterly Fee (21209120571200) -$ Town Center Bond Payment (21209120571200) (5613399)$ 2010 Property Taxes on Town Center (21209120760260)
Total Expenses (6015574)$
Total Check to AampP 14174029$
~ This report represents HMR collections through the end of the monthThese figures may include past due amounts
For month of March 2012Advertising and Promotion Commission
City of Fayetteville ArkansasMonthly HMR Tax Collections 2008-2011
2009 2010 2010 2011 2011 2012 2012 Total Total Change Over Total Change Over Total Change Over
HMR Taxes HMR Taxes Prior Year HMR Taxes Prior Year HMR Taxes Prior Year
January $166214 $166645 000 $179546 774 $205939 1470
February $167141 $143940 -1388 $158037 980 $178289 1281
March $180027 $172662 -409 $169093 -206 $201015 1888$506675
April $191542 $187730 -200 $187976 000
May $190320 $185096 -274 $188149 165
June $190237 $184371 -308 $205700 1157
July $180944 $196323 008 $205438 460
August $167897 $180741 765 $189839 503
September $176463 $184471 454 $195427 594
October $189728 $195169 287 $214713 1001
November $190887 $213494 1184 $203529 -467
December $174568 $171511 -018 $202027 1779
Total $ $2165969 $2182155 075 $2806149 538 $585243 1551
filename
Departmental CorrespondenceFa~ettevitle LEGAL
wwwaccessfayettevilleorg DEPARTMENT
Kit Williams City Attorney
Jason B Kelley TO Mayor Jordan 4ssistant City Attorney
AampP Commissioners
CC Don Marr Chief of Staff Casey Jones Prosecuting Attorney -J
FROM Kit Williams City Attorney _~L-_--A__xJmiddot--+-____
DATE April 3 2012
RE Overdue HMR collection efforts
The City Prosecutors Office collected $745846 of overdue HMR taxes in March of 20 12 Thus for the first quarter of 20 12 the City Prosecutors Office has collected $2639339 in overdue Hotel Motel and Restaurant taxes
Seven of the 29 open cases showed a zero delinquent balance at this time Unfortunately no case was closed and seven show a delinquent balance in excess of$IOOOOO Only one of those seven is for an operating business
MANDY FINKLEA CLINTON K JONES OFFICE ADMINISTRATOR Emiddotmail hotcheckltifayettevillearus CITY PROSECUTOR Ole PHONE (479) 575-8377 BRIAN THOMAS (479) 575-8378
ARKANSAS Hot Checks (479) 575middot8254 DEPUTY CITY PROSECUTOR FAX (479) 575-8373
OFFICE OF CITY PROSECUTOR
MEMO
TO K Williams Fayetteville City Attorney
FROM Casey Jones Fayetteville City Prosecutor
DATE April 2 2012
RE Status of Active HMR cases
When a Criminal Summons is issued for a violation and the Defendant subsequently pays the delinquent balance the Criminal Summons remains active and is then routinely dismissed by the Judge at arraignment ifthe Defendant is still current and not in violation
1 Acambaro Four Business Closed
Jesus Socarro Active Criminal Summons Delinquent Balance $146804
2 Antoinettes Special Cakes amp Catering
Antoinette R Harris Jami A Harris
Active Criminal Summons Active Criminal Summons Delinquent Balance -0shy
3 Brendas Drive-In Collin L Wilkins Active Criminal Summons Delinquent Balance -0shy
4 Butcher Block Business Closed
Gary W Bell Active Contempt of Court Delinquent Balance $187128
5 Cafe Delta Soul Michael L Vaughn Trial date 52112 Delinquent Balance $198000
6 Dickson Dining (Joses)
Sidney O Crawford Jr Paid -0shyDelinquent Balance No Forms
7 Dominoes Pizza Business Closed
Lloyd W Hardison Active Criminal Summons Delinquent Balance $439066
8 GreenRoom Laurie L Fuller Rustin E Fuller
Arraignment 4612 Arraignment 4612 Delinquent Balance -0shy
Telecommunication Device for the Deaf TOO (479) 521middot1316 176 South Church Suite 2 - Fayetteville AR 72701
15
Kit Williams April 2 2012 Page 2
9 Hogwild Pizzeria Business Closed
13 Mama Deans
Neon Ice
16 Northern Exposure Business Closed
19 Rowdy Beaver Den
21 Seafood Market BarGrill Business Closed
22 Shanghai Chinese and China Garden Businesses Closed
23 Sipamouane Twin Kitchen
24 Soul Restaurant amp Lounge Business Closed
27 Tims Pizza (North) Business Closed
28 Uncle Gaylords Business Closed
29 WOW Japanese Bistro Business Closed
David S Mackey
Meneria D Morrison Terry L Morrison
Brandon S Pooree William S Pooree
Kevin M Laughlin
Amber M Biason-Dunn
Craig Dowd
Hsiao L J Shen
Jeffrey Sipamouane
Casey E Dighero
Michael A Stephens
Hiram F Brandon
ChongN Kim
TOTAL $745846
Letter Delinquent Balance $133000
TD 44112 TD 44112 Delinquent Balance -0shy
Active Criminal Summons Active Criminal Summons Delinquent Balance No Forms
Arraignment 427112 Paid $655349 (issued new check-cleared) Delinquent Balance No Forms
Active Criminal Summons Paid $90497 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $436760
Active Contempt of Court Delinquent Balance $309000
Arraignment 49112 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $11864
Active Criminal Summons Delinquent Balance -0shy
FTA Warrant Delinquent Balance No Forms
FTA Warrant Delinquent Balance $204200
CLINTON HOUSE MUSEUM
MONTHLY REPORT MARCH 2012
The Clinton House Museum had a total of 323 visitors in the month of March
MUSEUM ACTIVITIES AND EVENTS
March and the spring weather increased traffic dramatically in the House this month In addition to having five group tours on the schedule we continually see visitors from all over the world Spring Break has also brought in many families from around northwest Arkansas neighboring states and those from coast to coast Additional inventory in the gift shop has increased sales as well The First Ladies Garden is blooming making the Clinton House a ldquomust stoprdquo for visitors and locals alike
March 3rd ndash GROUP TOUR ndash Arkansas Historical Society Living History Tour ndash 12 visitors
March 6th ndash GROUP TOUR ndash Arkadelphia AR ndash 30 visitors
March 14th ndash GROUP TOUR ndash Salvation Army Spring Campaign ndash 15 visitors
March 22nd ndash GROUP TOUR ndash Backyard Billionaire Tour ndash 57 visitors
March 23rd ndash GROUP TOUR ndash Heritage Club FAM Tour ndash 35 visitors
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Totals $186393 $454824 $451675
2011 Totals $85492 $126224 $245088 $522072 $737000 $635651 $570779 $965033 $518226 $722130 $479754 $1074122
Change
from 2011 1180 2603 843 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000
Visitor Count 686 1043 1213
2011 Totals 295 238 691 1301 1454 1463 1441 1457 1313 1189 1103 1283
Change
from 2011 13254 33824 7554 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000
2011 Goal = $30000year or $2500month 2011 Totals
$6681571 $1092892
13228 2942
Change = divide the difference between the two numbers by the 2010 numberthen move the decimal two spaces right
2011 monthly sales average= $556798 2012 monthly sales average= $364297
2011 monthly visitor average= 1102 2012 monthly visitor average 981
2011 sales per visitor = $505 2012 sales per visitor = $371
Fayetteville Visitor Center - 2012 Sales amp Visitor Count
SalesSales
Visitors Visitors
2012 Totals
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
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RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
OLD BUSINESS
Quotes for appraisals of Old Post Office
Mark Riskrsquos quote for $200000
Parrishrsquos quote Restricted use - $150000 USPAP $250000
Restricted Use = Simple cut and dry report with value of property
USPAP = In-depth exposition of material that elaborates on the restricted use report Land sales lease
analysis and retail business
Motion to have Parrish appraise Old Post Office using the Restricted Use Report for $150000 by Davis
second by Tennant
Motion carried
NEW BUSINESS
Gina Scarpino amp Richard Berquist offered their building as an alternative for a venue for the Fayetteville
Underground They invited Commissioners to come to the space and look at it and consider it as a
location instead of the Old Post Office It could be used as an event venue and artist studios Itrsquos over
6000 square feet they are asking for $99000000
Commissioners discussed meeting at 100 pm on April 8th at Scarpinorsquos before the 200 pm meeting
Hiring an attorney for negotiations on purchase of Old Post Office
Kit recommended the Commission select an attorney experienced in real estate to draft documents and
be involved in all negotiations
Sandra was asked to place an Ad in paper to solicit legal services
Davis moved to look for an attorney with real estate experience second by Jordan
Motion carried
Applications for AampP Commission
Two applicants disqualified because they did not fulfill the requirements for the open positions
Tennant moved to go into executive session second by Davis
After executive session Maudie called meeting back to order
Karn moved to accept Bill Lyle to second term second by Tennant
Motion carried
There being no further business the meeting was adjourned
Respectfully submitted
Sandra Bennett
Facilities Manager
Fayetteville Town Center
Current Year HMR Collected (21200912410100) 20229179$ Prior Year Collected (21200912410101) (127630)$ First Security Investment Interest Revenue (21200912470800) 88054$
Total Revenues 20189603$
Annual Bond Audit Expense (21209120760260) -$ Collection Expense (21209120533300) (402175)$ Bank of OK Quarterly Fee (21209120571200) -$ Town Center Bond Payment (21209120571200) (5613399)$ 2010 Property Taxes on Town Center (21209120760260)
Total Expenses (6015574)$
Total Check to AampP 14174029$
~ This report represents HMR collections through the end of the monthThese figures may include past due amounts
For month of March 2012Advertising and Promotion Commission
City of Fayetteville ArkansasMonthly HMR Tax Collections 2008-2011
2009 2010 2010 2011 2011 2012 2012 Total Total Change Over Total Change Over Total Change Over
HMR Taxes HMR Taxes Prior Year HMR Taxes Prior Year HMR Taxes Prior Year
January $166214 $166645 000 $179546 774 $205939 1470
February $167141 $143940 -1388 $158037 980 $178289 1281
March $180027 $172662 -409 $169093 -206 $201015 1888$506675
April $191542 $187730 -200 $187976 000
May $190320 $185096 -274 $188149 165
June $190237 $184371 -308 $205700 1157
July $180944 $196323 008 $205438 460
August $167897 $180741 765 $189839 503
September $176463 $184471 454 $195427 594
October $189728 $195169 287 $214713 1001
November $190887 $213494 1184 $203529 -467
December $174568 $171511 -018 $202027 1779
Total $ $2165969 $2182155 075 $2806149 538 $585243 1551
filename
Departmental CorrespondenceFa~ettevitle LEGAL
wwwaccessfayettevilleorg DEPARTMENT
Kit Williams City Attorney
Jason B Kelley TO Mayor Jordan 4ssistant City Attorney
AampP Commissioners
CC Don Marr Chief of Staff Casey Jones Prosecuting Attorney -J
FROM Kit Williams City Attorney _~L-_--A__xJmiddot--+-____
DATE April 3 2012
RE Overdue HMR collection efforts
The City Prosecutors Office collected $745846 of overdue HMR taxes in March of 20 12 Thus for the first quarter of 20 12 the City Prosecutors Office has collected $2639339 in overdue Hotel Motel and Restaurant taxes
Seven of the 29 open cases showed a zero delinquent balance at this time Unfortunately no case was closed and seven show a delinquent balance in excess of$IOOOOO Only one of those seven is for an operating business
MANDY FINKLEA CLINTON K JONES OFFICE ADMINISTRATOR Emiddotmail hotcheckltifayettevillearus CITY PROSECUTOR Ole PHONE (479) 575-8377 BRIAN THOMAS (479) 575-8378
ARKANSAS Hot Checks (479) 575middot8254 DEPUTY CITY PROSECUTOR FAX (479) 575-8373
OFFICE OF CITY PROSECUTOR
MEMO
TO K Williams Fayetteville City Attorney
FROM Casey Jones Fayetteville City Prosecutor
DATE April 2 2012
RE Status of Active HMR cases
When a Criminal Summons is issued for a violation and the Defendant subsequently pays the delinquent balance the Criminal Summons remains active and is then routinely dismissed by the Judge at arraignment ifthe Defendant is still current and not in violation
1 Acambaro Four Business Closed
Jesus Socarro Active Criminal Summons Delinquent Balance $146804
2 Antoinettes Special Cakes amp Catering
Antoinette R Harris Jami A Harris
Active Criminal Summons Active Criminal Summons Delinquent Balance -0shy
3 Brendas Drive-In Collin L Wilkins Active Criminal Summons Delinquent Balance -0shy
4 Butcher Block Business Closed
Gary W Bell Active Contempt of Court Delinquent Balance $187128
5 Cafe Delta Soul Michael L Vaughn Trial date 52112 Delinquent Balance $198000
6 Dickson Dining (Joses)
Sidney O Crawford Jr Paid -0shyDelinquent Balance No Forms
7 Dominoes Pizza Business Closed
Lloyd W Hardison Active Criminal Summons Delinquent Balance $439066
8 GreenRoom Laurie L Fuller Rustin E Fuller
Arraignment 4612 Arraignment 4612 Delinquent Balance -0shy
Telecommunication Device for the Deaf TOO (479) 521middot1316 176 South Church Suite 2 - Fayetteville AR 72701
15
Kit Williams April 2 2012 Page 2
9 Hogwild Pizzeria Business Closed
13 Mama Deans
Neon Ice
16 Northern Exposure Business Closed
19 Rowdy Beaver Den
21 Seafood Market BarGrill Business Closed
22 Shanghai Chinese and China Garden Businesses Closed
23 Sipamouane Twin Kitchen
24 Soul Restaurant amp Lounge Business Closed
27 Tims Pizza (North) Business Closed
28 Uncle Gaylords Business Closed
29 WOW Japanese Bistro Business Closed
David S Mackey
Meneria D Morrison Terry L Morrison
Brandon S Pooree William S Pooree
Kevin M Laughlin
Amber M Biason-Dunn
Craig Dowd
Hsiao L J Shen
Jeffrey Sipamouane
Casey E Dighero
Michael A Stephens
Hiram F Brandon
ChongN Kim
TOTAL $745846
Letter Delinquent Balance $133000
TD 44112 TD 44112 Delinquent Balance -0shy
Active Criminal Summons Active Criminal Summons Delinquent Balance No Forms
Arraignment 427112 Paid $655349 (issued new check-cleared) Delinquent Balance No Forms
Active Criminal Summons Paid $90497 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $436760
Active Contempt of Court Delinquent Balance $309000
Arraignment 49112 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $11864
Active Criminal Summons Delinquent Balance -0shy
FTA Warrant Delinquent Balance No Forms
FTA Warrant Delinquent Balance $204200
CLINTON HOUSE MUSEUM
MONTHLY REPORT MARCH 2012
The Clinton House Museum had a total of 323 visitors in the month of March
MUSEUM ACTIVITIES AND EVENTS
March and the spring weather increased traffic dramatically in the House this month In addition to having five group tours on the schedule we continually see visitors from all over the world Spring Break has also brought in many families from around northwest Arkansas neighboring states and those from coast to coast Additional inventory in the gift shop has increased sales as well The First Ladies Garden is blooming making the Clinton House a ldquomust stoprdquo for visitors and locals alike
March 3rd ndash GROUP TOUR ndash Arkansas Historical Society Living History Tour ndash 12 visitors
March 6th ndash GROUP TOUR ndash Arkadelphia AR ndash 30 visitors
March 14th ndash GROUP TOUR ndash Salvation Army Spring Campaign ndash 15 visitors
March 22nd ndash GROUP TOUR ndash Backyard Billionaire Tour ndash 57 visitors
March 23rd ndash GROUP TOUR ndash Heritage Club FAM Tour ndash 35 visitors
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Totals $186393 $454824 $451675
2011 Totals $85492 $126224 $245088 $522072 $737000 $635651 $570779 $965033 $518226 $722130 $479754 $1074122
Change
from 2011 1180 2603 843 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000
Visitor Count 686 1043 1213
2011 Totals 295 238 691 1301 1454 1463 1441 1457 1313 1189 1103 1283
Change
from 2011 13254 33824 7554 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000
2011 Goal = $30000year or $2500month 2011 Totals
$6681571 $1092892
13228 2942
Change = divide the difference between the two numbers by the 2010 numberthen move the decimal two spaces right
2011 monthly sales average= $556798 2012 monthly sales average= $364297
2011 monthly visitor average= 1102 2012 monthly visitor average 981
2011 sales per visitor = $505 2012 sales per visitor = $371
Fayetteville Visitor Center - 2012 Sales amp Visitor Count
SalesSales
Visitors Visitors
2012 Totals
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
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RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Current Year HMR Collected (21200912410100) 20229179$ Prior Year Collected (21200912410101) (127630)$ First Security Investment Interest Revenue (21200912470800) 88054$
Total Revenues 20189603$
Annual Bond Audit Expense (21209120760260) -$ Collection Expense (21209120533300) (402175)$ Bank of OK Quarterly Fee (21209120571200) -$ Town Center Bond Payment (21209120571200) (5613399)$ 2010 Property Taxes on Town Center (21209120760260)
Total Expenses (6015574)$
Total Check to AampP 14174029$
~ This report represents HMR collections through the end of the monthThese figures may include past due amounts
For month of March 2012Advertising and Promotion Commission
City of Fayetteville ArkansasMonthly HMR Tax Collections 2008-2011
2009 2010 2010 2011 2011 2012 2012 Total Total Change Over Total Change Over Total Change Over
HMR Taxes HMR Taxes Prior Year HMR Taxes Prior Year HMR Taxes Prior Year
January $166214 $166645 000 $179546 774 $205939 1470
February $167141 $143940 -1388 $158037 980 $178289 1281
March $180027 $172662 -409 $169093 -206 $201015 1888$506675
April $191542 $187730 -200 $187976 000
May $190320 $185096 -274 $188149 165
June $190237 $184371 -308 $205700 1157
July $180944 $196323 008 $205438 460
August $167897 $180741 765 $189839 503
September $176463 $184471 454 $195427 594
October $189728 $195169 287 $214713 1001
November $190887 $213494 1184 $203529 -467
December $174568 $171511 -018 $202027 1779
Total $ $2165969 $2182155 075 $2806149 538 $585243 1551
filename
Departmental CorrespondenceFa~ettevitle LEGAL
wwwaccessfayettevilleorg DEPARTMENT
Kit Williams City Attorney
Jason B Kelley TO Mayor Jordan 4ssistant City Attorney
AampP Commissioners
CC Don Marr Chief of Staff Casey Jones Prosecuting Attorney -J
FROM Kit Williams City Attorney _~L-_--A__xJmiddot--+-____
DATE April 3 2012
RE Overdue HMR collection efforts
The City Prosecutors Office collected $745846 of overdue HMR taxes in March of 20 12 Thus for the first quarter of 20 12 the City Prosecutors Office has collected $2639339 in overdue Hotel Motel and Restaurant taxes
Seven of the 29 open cases showed a zero delinquent balance at this time Unfortunately no case was closed and seven show a delinquent balance in excess of$IOOOOO Only one of those seven is for an operating business
MANDY FINKLEA CLINTON K JONES OFFICE ADMINISTRATOR Emiddotmail hotcheckltifayettevillearus CITY PROSECUTOR Ole PHONE (479) 575-8377 BRIAN THOMAS (479) 575-8378
ARKANSAS Hot Checks (479) 575middot8254 DEPUTY CITY PROSECUTOR FAX (479) 575-8373
OFFICE OF CITY PROSECUTOR
MEMO
TO K Williams Fayetteville City Attorney
FROM Casey Jones Fayetteville City Prosecutor
DATE April 2 2012
RE Status of Active HMR cases
When a Criminal Summons is issued for a violation and the Defendant subsequently pays the delinquent balance the Criminal Summons remains active and is then routinely dismissed by the Judge at arraignment ifthe Defendant is still current and not in violation
1 Acambaro Four Business Closed
Jesus Socarro Active Criminal Summons Delinquent Balance $146804
2 Antoinettes Special Cakes amp Catering
Antoinette R Harris Jami A Harris
Active Criminal Summons Active Criminal Summons Delinquent Balance -0shy
3 Brendas Drive-In Collin L Wilkins Active Criminal Summons Delinquent Balance -0shy
4 Butcher Block Business Closed
Gary W Bell Active Contempt of Court Delinquent Balance $187128
5 Cafe Delta Soul Michael L Vaughn Trial date 52112 Delinquent Balance $198000
6 Dickson Dining (Joses)
Sidney O Crawford Jr Paid -0shyDelinquent Balance No Forms
7 Dominoes Pizza Business Closed
Lloyd W Hardison Active Criminal Summons Delinquent Balance $439066
8 GreenRoom Laurie L Fuller Rustin E Fuller
Arraignment 4612 Arraignment 4612 Delinquent Balance -0shy
Telecommunication Device for the Deaf TOO (479) 521middot1316 176 South Church Suite 2 - Fayetteville AR 72701
15
Kit Williams April 2 2012 Page 2
9 Hogwild Pizzeria Business Closed
13 Mama Deans
Neon Ice
16 Northern Exposure Business Closed
19 Rowdy Beaver Den
21 Seafood Market BarGrill Business Closed
22 Shanghai Chinese and China Garden Businesses Closed
23 Sipamouane Twin Kitchen
24 Soul Restaurant amp Lounge Business Closed
27 Tims Pizza (North) Business Closed
28 Uncle Gaylords Business Closed
29 WOW Japanese Bistro Business Closed
David S Mackey
Meneria D Morrison Terry L Morrison
Brandon S Pooree William S Pooree
Kevin M Laughlin
Amber M Biason-Dunn
Craig Dowd
Hsiao L J Shen
Jeffrey Sipamouane
Casey E Dighero
Michael A Stephens
Hiram F Brandon
ChongN Kim
TOTAL $745846
Letter Delinquent Balance $133000
TD 44112 TD 44112 Delinquent Balance -0shy
Active Criminal Summons Active Criminal Summons Delinquent Balance No Forms
Arraignment 427112 Paid $655349 (issued new check-cleared) Delinquent Balance No Forms
Active Criminal Summons Paid $90497 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $436760
Active Contempt of Court Delinquent Balance $309000
Arraignment 49112 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $11864
Active Criminal Summons Delinquent Balance -0shy
FTA Warrant Delinquent Balance No Forms
FTA Warrant Delinquent Balance $204200
CLINTON HOUSE MUSEUM
MONTHLY REPORT MARCH 2012
The Clinton House Museum had a total of 323 visitors in the month of March
MUSEUM ACTIVITIES AND EVENTS
March and the spring weather increased traffic dramatically in the House this month In addition to having five group tours on the schedule we continually see visitors from all over the world Spring Break has also brought in many families from around northwest Arkansas neighboring states and those from coast to coast Additional inventory in the gift shop has increased sales as well The First Ladies Garden is blooming making the Clinton House a ldquomust stoprdquo for visitors and locals alike
March 3rd ndash GROUP TOUR ndash Arkansas Historical Society Living History Tour ndash 12 visitors
March 6th ndash GROUP TOUR ndash Arkadelphia AR ndash 30 visitors
March 14th ndash GROUP TOUR ndash Salvation Army Spring Campaign ndash 15 visitors
March 22nd ndash GROUP TOUR ndash Backyard Billionaire Tour ndash 57 visitors
March 23rd ndash GROUP TOUR ndash Heritage Club FAM Tour ndash 35 visitors
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Totals $186393 $454824 $451675
2011 Totals $85492 $126224 $245088 $522072 $737000 $635651 $570779 $965033 $518226 $722130 $479754 $1074122
Change
from 2011 1180 2603 843 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000
Visitor Count 686 1043 1213
2011 Totals 295 238 691 1301 1454 1463 1441 1457 1313 1189 1103 1283
Change
from 2011 13254 33824 7554 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000
2011 Goal = $30000year or $2500month 2011 Totals
$6681571 $1092892
13228 2942
Change = divide the difference between the two numbers by the 2010 numberthen move the decimal two spaces right
2011 monthly sales average= $556798 2012 monthly sales average= $364297
2011 monthly visitor average= 1102 2012 monthly visitor average 981
2011 sales per visitor = $505 2012 sales per visitor = $371
Fayetteville Visitor Center - 2012 Sales amp Visitor Count
SalesSales
Visitors Visitors
2012 Totals
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
City of Fayetteville ArkansasMonthly HMR Tax Collections 2008-2011
2009 2010 2010 2011 2011 2012 2012 Total Total Change Over Total Change Over Total Change Over
HMR Taxes HMR Taxes Prior Year HMR Taxes Prior Year HMR Taxes Prior Year
January $166214 $166645 000 $179546 774 $205939 1470
February $167141 $143940 -1388 $158037 980 $178289 1281
March $180027 $172662 -409 $169093 -206 $201015 1888$506675
April $191542 $187730 -200 $187976 000
May $190320 $185096 -274 $188149 165
June $190237 $184371 -308 $205700 1157
July $180944 $196323 008 $205438 460
August $167897 $180741 765 $189839 503
September $176463 $184471 454 $195427 594
October $189728 $195169 287 $214713 1001
November $190887 $213494 1184 $203529 -467
December $174568 $171511 -018 $202027 1779
Total $ $2165969 $2182155 075 $2806149 538 $585243 1551
filename
Departmental CorrespondenceFa~ettevitle LEGAL
wwwaccessfayettevilleorg DEPARTMENT
Kit Williams City Attorney
Jason B Kelley TO Mayor Jordan 4ssistant City Attorney
AampP Commissioners
CC Don Marr Chief of Staff Casey Jones Prosecuting Attorney -J
FROM Kit Williams City Attorney _~L-_--A__xJmiddot--+-____
DATE April 3 2012
RE Overdue HMR collection efforts
The City Prosecutors Office collected $745846 of overdue HMR taxes in March of 20 12 Thus for the first quarter of 20 12 the City Prosecutors Office has collected $2639339 in overdue Hotel Motel and Restaurant taxes
Seven of the 29 open cases showed a zero delinquent balance at this time Unfortunately no case was closed and seven show a delinquent balance in excess of$IOOOOO Only one of those seven is for an operating business
MANDY FINKLEA CLINTON K JONES OFFICE ADMINISTRATOR Emiddotmail hotcheckltifayettevillearus CITY PROSECUTOR Ole PHONE (479) 575-8377 BRIAN THOMAS (479) 575-8378
ARKANSAS Hot Checks (479) 575middot8254 DEPUTY CITY PROSECUTOR FAX (479) 575-8373
OFFICE OF CITY PROSECUTOR
MEMO
TO K Williams Fayetteville City Attorney
FROM Casey Jones Fayetteville City Prosecutor
DATE April 2 2012
RE Status of Active HMR cases
When a Criminal Summons is issued for a violation and the Defendant subsequently pays the delinquent balance the Criminal Summons remains active and is then routinely dismissed by the Judge at arraignment ifthe Defendant is still current and not in violation
1 Acambaro Four Business Closed
Jesus Socarro Active Criminal Summons Delinquent Balance $146804
2 Antoinettes Special Cakes amp Catering
Antoinette R Harris Jami A Harris
Active Criminal Summons Active Criminal Summons Delinquent Balance -0shy
3 Brendas Drive-In Collin L Wilkins Active Criminal Summons Delinquent Balance -0shy
4 Butcher Block Business Closed
Gary W Bell Active Contempt of Court Delinquent Balance $187128
5 Cafe Delta Soul Michael L Vaughn Trial date 52112 Delinquent Balance $198000
6 Dickson Dining (Joses)
Sidney O Crawford Jr Paid -0shyDelinquent Balance No Forms
7 Dominoes Pizza Business Closed
Lloyd W Hardison Active Criminal Summons Delinquent Balance $439066
8 GreenRoom Laurie L Fuller Rustin E Fuller
Arraignment 4612 Arraignment 4612 Delinquent Balance -0shy
Telecommunication Device for the Deaf TOO (479) 521middot1316 176 South Church Suite 2 - Fayetteville AR 72701
15
Kit Williams April 2 2012 Page 2
9 Hogwild Pizzeria Business Closed
13 Mama Deans
Neon Ice
16 Northern Exposure Business Closed
19 Rowdy Beaver Den
21 Seafood Market BarGrill Business Closed
22 Shanghai Chinese and China Garden Businesses Closed
23 Sipamouane Twin Kitchen
24 Soul Restaurant amp Lounge Business Closed
27 Tims Pizza (North) Business Closed
28 Uncle Gaylords Business Closed
29 WOW Japanese Bistro Business Closed
David S Mackey
Meneria D Morrison Terry L Morrison
Brandon S Pooree William S Pooree
Kevin M Laughlin
Amber M Biason-Dunn
Craig Dowd
Hsiao L J Shen
Jeffrey Sipamouane
Casey E Dighero
Michael A Stephens
Hiram F Brandon
ChongN Kim
TOTAL $745846
Letter Delinquent Balance $133000
TD 44112 TD 44112 Delinquent Balance -0shy
Active Criminal Summons Active Criminal Summons Delinquent Balance No Forms
Arraignment 427112 Paid $655349 (issued new check-cleared) Delinquent Balance No Forms
Active Criminal Summons Paid $90497 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $436760
Active Contempt of Court Delinquent Balance $309000
Arraignment 49112 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $11864
Active Criminal Summons Delinquent Balance -0shy
FTA Warrant Delinquent Balance No Forms
FTA Warrant Delinquent Balance $204200
CLINTON HOUSE MUSEUM
MONTHLY REPORT MARCH 2012
The Clinton House Museum had a total of 323 visitors in the month of March
MUSEUM ACTIVITIES AND EVENTS
March and the spring weather increased traffic dramatically in the House this month In addition to having five group tours on the schedule we continually see visitors from all over the world Spring Break has also brought in many families from around northwest Arkansas neighboring states and those from coast to coast Additional inventory in the gift shop has increased sales as well The First Ladies Garden is blooming making the Clinton House a ldquomust stoprdquo for visitors and locals alike
March 3rd ndash GROUP TOUR ndash Arkansas Historical Society Living History Tour ndash 12 visitors
March 6th ndash GROUP TOUR ndash Arkadelphia AR ndash 30 visitors
March 14th ndash GROUP TOUR ndash Salvation Army Spring Campaign ndash 15 visitors
March 22nd ndash GROUP TOUR ndash Backyard Billionaire Tour ndash 57 visitors
March 23rd ndash GROUP TOUR ndash Heritage Club FAM Tour ndash 35 visitors
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Totals $186393 $454824 $451675
2011 Totals $85492 $126224 $245088 $522072 $737000 $635651 $570779 $965033 $518226 $722130 $479754 $1074122
Change
from 2011 1180 2603 843 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000
Visitor Count 686 1043 1213
2011 Totals 295 238 691 1301 1454 1463 1441 1457 1313 1189 1103 1283
Change
from 2011 13254 33824 7554 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000
2011 Goal = $30000year or $2500month 2011 Totals
$6681571 $1092892
13228 2942
Change = divide the difference between the two numbers by the 2010 numberthen move the decimal two spaces right
2011 monthly sales average= $556798 2012 monthly sales average= $364297
2011 monthly visitor average= 1102 2012 monthly visitor average 981
2011 sales per visitor = $505 2012 sales per visitor = $371
Fayetteville Visitor Center - 2012 Sales amp Visitor Count
SalesSales
Visitors Visitors
2012 Totals
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Departmental CorrespondenceFa~ettevitle LEGAL
wwwaccessfayettevilleorg DEPARTMENT
Kit Williams City Attorney
Jason B Kelley TO Mayor Jordan 4ssistant City Attorney
AampP Commissioners
CC Don Marr Chief of Staff Casey Jones Prosecuting Attorney -J
FROM Kit Williams City Attorney _~L-_--A__xJmiddot--+-____
DATE April 3 2012
RE Overdue HMR collection efforts
The City Prosecutors Office collected $745846 of overdue HMR taxes in March of 20 12 Thus for the first quarter of 20 12 the City Prosecutors Office has collected $2639339 in overdue Hotel Motel and Restaurant taxes
Seven of the 29 open cases showed a zero delinquent balance at this time Unfortunately no case was closed and seven show a delinquent balance in excess of$IOOOOO Only one of those seven is for an operating business
MANDY FINKLEA CLINTON K JONES OFFICE ADMINISTRATOR Emiddotmail hotcheckltifayettevillearus CITY PROSECUTOR Ole PHONE (479) 575-8377 BRIAN THOMAS (479) 575-8378
ARKANSAS Hot Checks (479) 575middot8254 DEPUTY CITY PROSECUTOR FAX (479) 575-8373
OFFICE OF CITY PROSECUTOR
MEMO
TO K Williams Fayetteville City Attorney
FROM Casey Jones Fayetteville City Prosecutor
DATE April 2 2012
RE Status of Active HMR cases
When a Criminal Summons is issued for a violation and the Defendant subsequently pays the delinquent balance the Criminal Summons remains active and is then routinely dismissed by the Judge at arraignment ifthe Defendant is still current and not in violation
1 Acambaro Four Business Closed
Jesus Socarro Active Criminal Summons Delinquent Balance $146804
2 Antoinettes Special Cakes amp Catering
Antoinette R Harris Jami A Harris
Active Criminal Summons Active Criminal Summons Delinquent Balance -0shy
3 Brendas Drive-In Collin L Wilkins Active Criminal Summons Delinquent Balance -0shy
4 Butcher Block Business Closed
Gary W Bell Active Contempt of Court Delinquent Balance $187128
5 Cafe Delta Soul Michael L Vaughn Trial date 52112 Delinquent Balance $198000
6 Dickson Dining (Joses)
Sidney O Crawford Jr Paid -0shyDelinquent Balance No Forms
7 Dominoes Pizza Business Closed
Lloyd W Hardison Active Criminal Summons Delinquent Balance $439066
8 GreenRoom Laurie L Fuller Rustin E Fuller
Arraignment 4612 Arraignment 4612 Delinquent Balance -0shy
Telecommunication Device for the Deaf TOO (479) 521middot1316 176 South Church Suite 2 - Fayetteville AR 72701
15
Kit Williams April 2 2012 Page 2
9 Hogwild Pizzeria Business Closed
13 Mama Deans
Neon Ice
16 Northern Exposure Business Closed
19 Rowdy Beaver Den
21 Seafood Market BarGrill Business Closed
22 Shanghai Chinese and China Garden Businesses Closed
23 Sipamouane Twin Kitchen
24 Soul Restaurant amp Lounge Business Closed
27 Tims Pizza (North) Business Closed
28 Uncle Gaylords Business Closed
29 WOW Japanese Bistro Business Closed
David S Mackey
Meneria D Morrison Terry L Morrison
Brandon S Pooree William S Pooree
Kevin M Laughlin
Amber M Biason-Dunn
Craig Dowd
Hsiao L J Shen
Jeffrey Sipamouane
Casey E Dighero
Michael A Stephens
Hiram F Brandon
ChongN Kim
TOTAL $745846
Letter Delinquent Balance $133000
TD 44112 TD 44112 Delinquent Balance -0shy
Active Criminal Summons Active Criminal Summons Delinquent Balance No Forms
Arraignment 427112 Paid $655349 (issued new check-cleared) Delinquent Balance No Forms
Active Criminal Summons Paid $90497 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $436760
Active Contempt of Court Delinquent Balance $309000
Arraignment 49112 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $11864
Active Criminal Summons Delinquent Balance -0shy
FTA Warrant Delinquent Balance No Forms
FTA Warrant Delinquent Balance $204200
CLINTON HOUSE MUSEUM
MONTHLY REPORT MARCH 2012
The Clinton House Museum had a total of 323 visitors in the month of March
MUSEUM ACTIVITIES AND EVENTS
March and the spring weather increased traffic dramatically in the House this month In addition to having five group tours on the schedule we continually see visitors from all over the world Spring Break has also brought in many families from around northwest Arkansas neighboring states and those from coast to coast Additional inventory in the gift shop has increased sales as well The First Ladies Garden is blooming making the Clinton House a ldquomust stoprdquo for visitors and locals alike
March 3rd ndash GROUP TOUR ndash Arkansas Historical Society Living History Tour ndash 12 visitors
March 6th ndash GROUP TOUR ndash Arkadelphia AR ndash 30 visitors
March 14th ndash GROUP TOUR ndash Salvation Army Spring Campaign ndash 15 visitors
March 22nd ndash GROUP TOUR ndash Backyard Billionaire Tour ndash 57 visitors
March 23rd ndash GROUP TOUR ndash Heritage Club FAM Tour ndash 35 visitors
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Totals $186393 $454824 $451675
2011 Totals $85492 $126224 $245088 $522072 $737000 $635651 $570779 $965033 $518226 $722130 $479754 $1074122
Change
from 2011 1180 2603 843 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000
Visitor Count 686 1043 1213
2011 Totals 295 238 691 1301 1454 1463 1441 1457 1313 1189 1103 1283
Change
from 2011 13254 33824 7554 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000
2011 Goal = $30000year or $2500month 2011 Totals
$6681571 $1092892
13228 2942
Change = divide the difference between the two numbers by the 2010 numberthen move the decimal two spaces right
2011 monthly sales average= $556798 2012 monthly sales average= $364297
2011 monthly visitor average= 1102 2012 monthly visitor average 981
2011 sales per visitor = $505 2012 sales per visitor = $371
Fayetteville Visitor Center - 2012 Sales amp Visitor Count
SalesSales
Visitors Visitors
2012 Totals
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
MANDY FINKLEA CLINTON K JONES OFFICE ADMINISTRATOR Emiddotmail hotcheckltifayettevillearus CITY PROSECUTOR Ole PHONE (479) 575-8377 BRIAN THOMAS (479) 575-8378
ARKANSAS Hot Checks (479) 575middot8254 DEPUTY CITY PROSECUTOR FAX (479) 575-8373
OFFICE OF CITY PROSECUTOR
MEMO
TO K Williams Fayetteville City Attorney
FROM Casey Jones Fayetteville City Prosecutor
DATE April 2 2012
RE Status of Active HMR cases
When a Criminal Summons is issued for a violation and the Defendant subsequently pays the delinquent balance the Criminal Summons remains active and is then routinely dismissed by the Judge at arraignment ifthe Defendant is still current and not in violation
1 Acambaro Four Business Closed
Jesus Socarro Active Criminal Summons Delinquent Balance $146804
2 Antoinettes Special Cakes amp Catering
Antoinette R Harris Jami A Harris
Active Criminal Summons Active Criminal Summons Delinquent Balance -0shy
3 Brendas Drive-In Collin L Wilkins Active Criminal Summons Delinquent Balance -0shy
4 Butcher Block Business Closed
Gary W Bell Active Contempt of Court Delinquent Balance $187128
5 Cafe Delta Soul Michael L Vaughn Trial date 52112 Delinquent Balance $198000
6 Dickson Dining (Joses)
Sidney O Crawford Jr Paid -0shyDelinquent Balance No Forms
7 Dominoes Pizza Business Closed
Lloyd W Hardison Active Criminal Summons Delinquent Balance $439066
8 GreenRoom Laurie L Fuller Rustin E Fuller
Arraignment 4612 Arraignment 4612 Delinquent Balance -0shy
Telecommunication Device for the Deaf TOO (479) 521middot1316 176 South Church Suite 2 - Fayetteville AR 72701
15
Kit Williams April 2 2012 Page 2
9 Hogwild Pizzeria Business Closed
13 Mama Deans
Neon Ice
16 Northern Exposure Business Closed
19 Rowdy Beaver Den
21 Seafood Market BarGrill Business Closed
22 Shanghai Chinese and China Garden Businesses Closed
23 Sipamouane Twin Kitchen
24 Soul Restaurant amp Lounge Business Closed
27 Tims Pizza (North) Business Closed
28 Uncle Gaylords Business Closed
29 WOW Japanese Bistro Business Closed
David S Mackey
Meneria D Morrison Terry L Morrison
Brandon S Pooree William S Pooree
Kevin M Laughlin
Amber M Biason-Dunn
Craig Dowd
Hsiao L J Shen
Jeffrey Sipamouane
Casey E Dighero
Michael A Stephens
Hiram F Brandon
ChongN Kim
TOTAL $745846
Letter Delinquent Balance $133000
TD 44112 TD 44112 Delinquent Balance -0shy
Active Criminal Summons Active Criminal Summons Delinquent Balance No Forms
Arraignment 427112 Paid $655349 (issued new check-cleared) Delinquent Balance No Forms
Active Criminal Summons Paid $90497 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $436760
Active Contempt of Court Delinquent Balance $309000
Arraignment 49112 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $11864
Active Criminal Summons Delinquent Balance -0shy
FTA Warrant Delinquent Balance No Forms
FTA Warrant Delinquent Balance $204200
CLINTON HOUSE MUSEUM
MONTHLY REPORT MARCH 2012
The Clinton House Museum had a total of 323 visitors in the month of March
MUSEUM ACTIVITIES AND EVENTS
March and the spring weather increased traffic dramatically in the House this month In addition to having five group tours on the schedule we continually see visitors from all over the world Spring Break has also brought in many families from around northwest Arkansas neighboring states and those from coast to coast Additional inventory in the gift shop has increased sales as well The First Ladies Garden is blooming making the Clinton House a ldquomust stoprdquo for visitors and locals alike
March 3rd ndash GROUP TOUR ndash Arkansas Historical Society Living History Tour ndash 12 visitors
March 6th ndash GROUP TOUR ndash Arkadelphia AR ndash 30 visitors
March 14th ndash GROUP TOUR ndash Salvation Army Spring Campaign ndash 15 visitors
March 22nd ndash GROUP TOUR ndash Backyard Billionaire Tour ndash 57 visitors
March 23rd ndash GROUP TOUR ndash Heritage Club FAM Tour ndash 35 visitors
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Totals $186393 $454824 $451675
2011 Totals $85492 $126224 $245088 $522072 $737000 $635651 $570779 $965033 $518226 $722130 $479754 $1074122
Change
from 2011 1180 2603 843 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000
Visitor Count 686 1043 1213
2011 Totals 295 238 691 1301 1454 1463 1441 1457 1313 1189 1103 1283
Change
from 2011 13254 33824 7554 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000
2011 Goal = $30000year or $2500month 2011 Totals
$6681571 $1092892
13228 2942
Change = divide the difference between the two numbers by the 2010 numberthen move the decimal two spaces right
2011 monthly sales average= $556798 2012 monthly sales average= $364297
2011 monthly visitor average= 1102 2012 monthly visitor average 981
2011 sales per visitor = $505 2012 sales per visitor = $371
Fayetteville Visitor Center - 2012 Sales amp Visitor Count
SalesSales
Visitors Visitors
2012 Totals
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
15
Kit Williams April 2 2012 Page 2
9 Hogwild Pizzeria Business Closed
13 Mama Deans
Neon Ice
16 Northern Exposure Business Closed
19 Rowdy Beaver Den
21 Seafood Market BarGrill Business Closed
22 Shanghai Chinese and China Garden Businesses Closed
23 Sipamouane Twin Kitchen
24 Soul Restaurant amp Lounge Business Closed
27 Tims Pizza (North) Business Closed
28 Uncle Gaylords Business Closed
29 WOW Japanese Bistro Business Closed
David S Mackey
Meneria D Morrison Terry L Morrison
Brandon S Pooree William S Pooree
Kevin M Laughlin
Amber M Biason-Dunn
Craig Dowd
Hsiao L J Shen
Jeffrey Sipamouane
Casey E Dighero
Michael A Stephens
Hiram F Brandon
ChongN Kim
TOTAL $745846
Letter Delinquent Balance $133000
TD 44112 TD 44112 Delinquent Balance -0shy
Active Criminal Summons Active Criminal Summons Delinquent Balance No Forms
Arraignment 427112 Paid $655349 (issued new check-cleared) Delinquent Balance No Forms
Active Criminal Summons Paid $90497 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $436760
Active Contempt of Court Delinquent Balance $309000
Arraignment 49112 Delinquent Balance -0shy
Paid -0shyDelinquent Balance $11864
Active Criminal Summons Delinquent Balance -0shy
FTA Warrant Delinquent Balance No Forms
FTA Warrant Delinquent Balance $204200
CLINTON HOUSE MUSEUM
MONTHLY REPORT MARCH 2012
The Clinton House Museum had a total of 323 visitors in the month of March
MUSEUM ACTIVITIES AND EVENTS
March and the spring weather increased traffic dramatically in the House this month In addition to having five group tours on the schedule we continually see visitors from all over the world Spring Break has also brought in many families from around northwest Arkansas neighboring states and those from coast to coast Additional inventory in the gift shop has increased sales as well The First Ladies Garden is blooming making the Clinton House a ldquomust stoprdquo for visitors and locals alike
March 3rd ndash GROUP TOUR ndash Arkansas Historical Society Living History Tour ndash 12 visitors
March 6th ndash GROUP TOUR ndash Arkadelphia AR ndash 30 visitors
March 14th ndash GROUP TOUR ndash Salvation Army Spring Campaign ndash 15 visitors
March 22nd ndash GROUP TOUR ndash Backyard Billionaire Tour ndash 57 visitors
March 23rd ndash GROUP TOUR ndash Heritage Club FAM Tour ndash 35 visitors
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Totals $186393 $454824 $451675
2011 Totals $85492 $126224 $245088 $522072 $737000 $635651 $570779 $965033 $518226 $722130 $479754 $1074122
Change
from 2011 1180 2603 843 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000
Visitor Count 686 1043 1213
2011 Totals 295 238 691 1301 1454 1463 1441 1457 1313 1189 1103 1283
Change
from 2011 13254 33824 7554 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000
2011 Goal = $30000year or $2500month 2011 Totals
$6681571 $1092892
13228 2942
Change = divide the difference between the two numbers by the 2010 numberthen move the decimal two spaces right
2011 monthly sales average= $556798 2012 monthly sales average= $364297
2011 monthly visitor average= 1102 2012 monthly visitor average 981
2011 sales per visitor = $505 2012 sales per visitor = $371
Fayetteville Visitor Center - 2012 Sales amp Visitor Count
SalesSales
Visitors Visitors
2012 Totals
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
CLINTON HOUSE MUSEUM
MONTHLY REPORT MARCH 2012
The Clinton House Museum had a total of 323 visitors in the month of March
MUSEUM ACTIVITIES AND EVENTS
March and the spring weather increased traffic dramatically in the House this month In addition to having five group tours on the schedule we continually see visitors from all over the world Spring Break has also brought in many families from around northwest Arkansas neighboring states and those from coast to coast Additional inventory in the gift shop has increased sales as well The First Ladies Garden is blooming making the Clinton House a ldquomust stoprdquo for visitors and locals alike
March 3rd ndash GROUP TOUR ndash Arkansas Historical Society Living History Tour ndash 12 visitors
March 6th ndash GROUP TOUR ndash Arkadelphia AR ndash 30 visitors
March 14th ndash GROUP TOUR ndash Salvation Army Spring Campaign ndash 15 visitors
March 22nd ndash GROUP TOUR ndash Backyard Billionaire Tour ndash 57 visitors
March 23rd ndash GROUP TOUR ndash Heritage Club FAM Tour ndash 35 visitors
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Totals $186393 $454824 $451675
2011 Totals $85492 $126224 $245088 $522072 $737000 $635651 $570779 $965033 $518226 $722130 $479754 $1074122
Change
from 2011 1180 2603 843 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000
Visitor Count 686 1043 1213
2011 Totals 295 238 691 1301 1454 1463 1441 1457 1313 1189 1103 1283
Change
from 2011 13254 33824 7554 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000
2011 Goal = $30000year or $2500month 2011 Totals
$6681571 $1092892
13228 2942
Change = divide the difference between the two numbers by the 2010 numberthen move the decimal two spaces right
2011 monthly sales average= $556798 2012 monthly sales average= $364297
2011 monthly visitor average= 1102 2012 monthly visitor average 981
2011 sales per visitor = $505 2012 sales per visitor = $371
Fayetteville Visitor Center - 2012 Sales amp Visitor Count
SalesSales
Visitors Visitors
2012 Totals
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Totals $186393 $454824 $451675
2011 Totals $85492 $126224 $245088 $522072 $737000 $635651 $570779 $965033 $518226 $722130 $479754 $1074122
Change
from 2011 1180 2603 843 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000 -1000
Visitor Count 686 1043 1213
2011 Totals 295 238 691 1301 1454 1463 1441 1457 1313 1189 1103 1283
Change
from 2011 13254 33824 7554 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000 -10000
2011 Goal = $30000year or $2500month 2011 Totals
$6681571 $1092892
13228 2942
Change = divide the difference between the two numbers by the 2010 numberthen move the decimal two spaces right
2011 monthly sales average= $556798 2012 monthly sales average= $364297
2011 monthly visitor average= 1102 2012 monthly visitor average 981
2011 sales per visitor = $505 2012 sales per visitor = $371
Fayetteville Visitor Center - 2012 Sales amp Visitor Count
SalesSales
Visitors Visitors
2012 Totals
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Inquiries by StateCountryFrom 112004 To 3292012
Showing all records
InquiriesStateCountry
20709None Entered
15671Texas
12468Missouri
8729Illinois
8706Arkansas
5210Oklahoma
4919Tennessee
4837Louisiana
4818Michigan
4567Florida
4531Kansas
4511Wisconsin
4363Ohio
4124Indiana
3851California
3123Iowa
3109Minnesota
2772Mississippi
2454New York
2197Pennsylvania
1951Georgia
1877North Carolina
1788Alabama
1631Kentucky
1373Virginia
1363Nebraska
1334New Jersey
1101Arizona
1096South Carolina
1045Colorado
897Washington
879Maryland
736Massachusetts
Page 1 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Inquiries By SourceFrom 312012 To 3312012
InquiriesSource $Inquiry
Showing all records
417Travel Guides Free $000
259Travel Informationcom $000
235 Website $000
93UA Graduate School $000
9Midwest Living $000
1013
Page 1 of 1 432012 0211 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
578Oregon
542West Virginia
496Connecticut
458Ontario
446South Dakota
414Nevada
400New Mexico
318North Dakota
302Utah
252Quebec
241New Hampshire
227Idaho
225Maine
197Montana
178Delaware
162Alaska
135Rhode Island
123Wyoming
120Hawaii
104Vermont
93Alberta
88British Columbia
81Puerto Rico
64Manitoba
51Nova Scotia
50Washington DC
48New Brunswick
32Saskatchewan
24New Foundland
20AE
19ca
18Irn
11CANADA
8AP
7Prince Edward Island
7CROATIA
5Guam
3OT
3TURKEY
3AUSTRALIA
Total 149293
Page 2 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
2Virgin Islands
2Netherlands
2Argentina
2ENGLAND
1Finland
1ENGLAND UK
1Turkey 06650
1UNITED KINGDOM
1Australia 2162
1TURKEY 06100
1Italy
1Northumberland
1Northwest Territories
1PR
1Mexico
1Russia
1Luxemborg
1Korea
1South Africa
1Thailand
1Japan
1France
1Sweden
1Indonesia
1Switzerland
1Taiwan
1Mlt
1Greece
1Germany
1The Netherlands
1Spain
Total 149328
Page 3 of 3 432012 0333 PM
Fayetteville Convention amp Visitors Bureau
21 S Block ~ Fayetteville AR 72701Phone (800) 766-4626 (479) 521-5776 ~ Fax (479) 571-4731 ~ infoexperiencefayettevillecom ~ Web
wwwexperiencefayettevillecom
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Definite Bookings By Booking Date
March 2012 Meeting Dates Attnd Peak Rooms $ Value
HootensKickoff Classic
150000830201208302012
155700050 50
15000 $15570001 MeetingsSub-Total for March 50
GRAND TOTAL 15000 50 $15570001 Meetings
Printed 432012 205PMPage 1 of 1
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
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RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Fayetteville Town Center Managerrsquos Activity Report March 1 2012 to March 31 2012 Sales
MARCH 2011 (base)
MARCH 2012
Month Change
YTD 2011
YTD 2012
YTD Change
Sales ( returned contracts by log date ndash GL) 21 14 (33) 54 41 (24)
Complete Events (PaidSponsored) (EMS Calendar) 17 21 24 44 49 11
Sales ($ returned contracts by log date ndash GL) $2718900 $2227500 (18) $7881175 $8335300 6
Collections ($ - Payment Log) $3126910 $3196807 2 $8337553 $9561543 15
$ Executed Contracts $3595000 $3455000 (4) $10858500 10535000 (3) Credit ($ - GL) -0- -0- NA -0- -0- NA
Average per event ($ Sales Sales) $129471 $159107 23 $145948 $203300 39
Operations Items o Carpet Cleaned o Getting quote on roof re-surfacing o Working with Simplex-Grinnell on trouble alarm
Sales and Coordination Fayetteville Teen Leadership-Mock Crime ScenemdashWorking with Chamber on this Non-profit organizations - Lifesource AR Support Network and the Rain Garden Academy We worked with the Visitors Bureau on coordinating and hosting the Arkansas Historical Society State
Meeting which was a three day conference filled with historical artifacts lectures and workshops University events - Kappa Kappa Gamma Sigma Chi and Sound of Africa University Relations Walton
College Business and College Education and Health Professionals Most of these events are re-bookings We have also booked NABC Conference-a 3 day full facility event with the Plant Pathology Dept Here Comes the Bride a Town Center ticketed Event ndash We had 150-200 total attendance with over 30
vendors Ticket sales were over $100000 Hospitality Summit ndash Event promoting the Hospitality industry through continuing education and networking
opportunities We worked with the Visitors Bureau and UA Hospitality students who coordinated this event Dig In ndash a nonprofit group centered on organic food and the importance of local farmers feeding the less
fortunate
Event List March 2 ndash AR Living History March 16 ndashGalbavi March 2 ndash Dig In March 17 - Galbavi March 3 ndash AR Living History March 23 - Franklin-Covey March 4 ndash AR Living History March 27 ndash Fred Pryor March 6 ndash ASCE March 28 ndash UA Industrial Engineering March 6 ndash Walton College of Business March 28 ndash Fred Pryor March 11 ndash Here Comes the Bride March 29 ndash Blue Cliff March 14 ndash Hospitality Summit March 30 ndash Irsquom with Miller March 15 ndash Fred Pryor March 31 ndash Dover March 15 ndash PepsiCo March 31 ndash West Fork Prom March 16 ndash Fred Pryor
Event Breakdown Non-profit events ndash 33 Social events ndash 14 FTC event ndash 5 UA events ndash 14 Corporate events ndash 33
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
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RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwtwncentercom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
1174 Visits
3186 Pageviews
271 PagesVisit
4540 Bounce Rate
000125 Avg Time on Site
7572 New Visits
Traffic Sources Overview
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Content Overview
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
1 Google Analytics
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwtwncentercom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
50
100
0
50
100
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 1174 visits
903 Direct Traffic
1695 Referring Sites
7402 Search Engines
Search Engines86900 (7402)
Referring Sites19900 (1695)
Direct Traffic10600 (903)
Top Traffic Sources
Sources Visits visits
google (organic) 748 6371
(direct) ((none)) 106 903
bing (organic) 58 494
facebookcom (referral) 56 477
yahoo (organic) 44 375
Keywords Visits visits
fayetteville town center 278 3199
(not provided) 132 1519
town center fayetteville ar 38 437
dogwood room fayetteville town 24 276
fayetteville ar town center 23 265
2 Google Analytics
wwwtwncentercom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
150
300
0
150
300
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 3186 times
3186 Pageviews
1449 Unique Views
4540 Bounce Rate
Top Content
Pages Pageviews Pageviews
NaN 2600 8161
180 565
weddingshtml 70 220
locationshtml 60 188
socialshtml 55 173
3 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
49651 Pageviews
328 PagesVisit
4643 Bounce Rate
000230 Avg Time on Site
7912 New Visits
Traffic Sources Overview
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pageviews
318
Content Overview
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
All traffic sources sent a total of 15155 visits
1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwtwncentercom
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150
300
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3 Google Analytics
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DashboardMar 1 2012 - Mar 31 2012
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400
800
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10
20
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10
20
Mar 5 Mar 12 Mar 19 Mar 26
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1 Google Analytics
wwwexperiencefayettevillecom
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400
800
Mar 5 Mar 12 Mar 19 Mar 26
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Search Engines934000 (6163)
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2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
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10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
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This page was viewed 318 times318 Pageviews
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000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
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RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwexperiencefayettevillecom
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Comparing to Site
0
400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
Site Usage
15155 Visits
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4643 Bounce Rate
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7912 New Visits
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Direct Traffic216500 (1429)
Content Detail 2011VisitorsGuide
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
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318
Content Overview
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1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
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400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
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1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
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fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
0
10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
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400
800
0
400
800
Mar 5 Mar 12 Mar 19 Mar 26
Visits
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1429 Direct Traffic
2408 Referring Sites
6163 Search Engines
Search Engines934000 (6163)
Referring Sites365000 (2408)
Direct Traffic216500 (1429)
Top Traffic Sources
Sources Visits visits
google (organic) 8162 5386
(direct) ((none)) 2165 1429
facebookcom (referral) 1396 921
yahoo (organic) 563 371
bing (organic) 421 278
Keywords Visits visits
(not provided) 1387 1485
fayetteville ar 779 834
things to do in fayetteville ar 649 695
fayetteville arkansas 390 418
fayetteville ar 121 130
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 1 2012 - Mar 31 2012Comparing to Site
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10
20
0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
This page was viewed 318 times318 Pageviews
291 Unique Views
000436 Time on Page
10000 Bounce Rate
5629 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 1 2012 - Mar 31 2012
Comparing to Site
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1000
2000
0
1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
Pageviews
Pages on this site were viewed a total of 49651 times
49651 Pageviews
37418 Unique Views
4643 Bounce Rate
Top Content
Pages Pageviews Pageviews
playphp 7337 1478
6639 1337
calendarphp 5680 1144
eatphp 1548 312
visitorsphp 1526 307
4 Google Analytics
wwwexperiencefayettevillecom
DashboardMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
Site Usage
3168 Visits
9594 Pageviews
303 PagesVisit
4959 Bounce Rate
000216 Avg Time on Site
7797 New Visits
Traffic Sources Overview
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Content Detail 2011VisitorsGuide
0
5
10
0
5
10
Mar 26
Pageviews
Pageviews
51
Content Overview
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
(direct) ((none)) 468 1477
facebookcom (referral) 254 802
yahoo (organic) 92 290
accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
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10
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0
10
20
Mar 5 Mar 12 Mar 19 Mar 26
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1000
2000
Mar 5 Mar 12 Mar 19 Mar 26
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Content Detail 2011VisitorsGuide
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0
5
10
Mar 26
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Content Overview
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1 Google Analytics
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
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300
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Mar 26
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Search Engines190600 (6016)
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Top Traffic Sources
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google (organic) 1695 5350
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Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
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2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
0
5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
0
1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwexperiencefayettevillecom
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1000
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Mar 5 Mar 12 Mar 19 Mar 26
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Pages on this site were viewed a total of 49651 times
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4643 Bounce Rate
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4 Google Analytics
wwwexperiencefayettevillecom
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5
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Mar 26
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eatphp 323 337
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1 Google Analytics
wwwexperiencefayettevillecom
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0
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Mar 26
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Referring Sites79400 (2506)
Direct Traffic46800 (1477)
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google (organic) 1695 5350
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(not provided) 288 1511
fayetteville ar 147 771
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2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
Mar 26 2012 - Apr 1 2012Comparing to Site
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5
10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
47 Unique Views
000326 Time on Page
10000 Bounce Rate
5882 Exit
$000 $ Index
3 Google Analytics
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
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1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
calendarphp 1169 1218
eatphp 323 337
historicalAttractionsphp 276 288
4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwexperiencefayettevillecom
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300
600
0
300
600
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5
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0
5
10
Mar 26
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300
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300
600
Mar 26
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Search Engines190600 (6016)
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2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
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5
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RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwexperiencefayettevillecom
Traffic Sources OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
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300
600
0
300
600
Mar 26
Visits
All traffic sources sent a total of 3168 visits
1477 Direct Traffic
2506 Referring Sites
6016 Search Engines
Search Engines190600 (6016)
Referring Sites79400 (2506)
Direct Traffic46800 (1477)
Top Traffic Sources
Sources Visits visits
google (organic) 1695 5350
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facebookcom (referral) 254 802
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accessfayettevilleorg (referral) 80 253
Keywords Visits visits
(not provided) 288 1511
fayetteville ar 147 771
things to do in fayetteville ar 106 556
fayetteville arkansas 74 388
fayetteville ar 26 136
2 Google Analytics
wwwexperiencefayettevillecom
Content Detail2011VisitorsGuide
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10
0
5
10
Mar 26
Pageviews
This page was viewed 51 times51 Pageviews
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3 Google Analytics
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Content OverviewMar 26 2012 - Apr 1 2012
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1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
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7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
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4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwexperiencefayettevillecom
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RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
wwwexperiencefayettevillecom
Content OverviewMar 26 2012 - Apr 1 2012
Comparing to Site
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1000
2000
0
1000
2000
Mar 26
Pageviews
Pages on this site were viewed a total of 9594 times
9594 Pageviews
7292 Unique Views
4959 Bounce Rate
Top Content
Pages Pageviews Pageviews
1431 1492
playphp 1206 1257
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4 Google Analytics
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
RESTRICTED USE REPORT
LAND AND RESTAURANTOFFICE BUILDING LOCATED AT
THE OLD POST OFFICE1 CENTER STREET FAYETTEVILLE
WASHINGTON C OTINTY ARKANSAS
FOR
SANDRA BENNETTFAYETTEVILLE ADVERTISING amp PROMOTION COMMISSION
FAYETTEVILLE ARKANSAS
AS OF
DATE OF REPORT _ MARCH 192012DATE OF INSPECTION MARCH T52OT2DATE OF VALUATION - MARCH I52OI2
BYSTUART SANDERS STATE CERTIFIED
GENERAL REAL ESTATE APPRAISER CG 1738
HANK BROYLES STATE REGISTEREDREAL ESTATE APPRAISAL TRAINEE SR 3635
PARRISH APPRAISALS INCPO BOX 846
FAYETTEVILLE ARKANSAS ]27 02
-^ itqxffr-euroi4xs48
PARRISH
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
MARCH T92OI2
Sandra BennettFayetteville Advertising amp Promotion CommissionFayetteville Town Center BuildingFayetteville AR 7210I
RE Restricted Use Report regarding the Minimum Market Value of a commercial buildingand lot located at 1 Center Street Fayetteville Washington County Arkansas
TO Sandra Bennett
Pursuant to your request I have conducted an investigation of and improved tract of land locatedat 1 Center Street Fayetteville Washington County Arkansas
The purpose of this Analysis Report is to estimate and assist the client in establishing marketvalue for use in internal decision matters as of March 152012
As per our agreement the data and analysis is presented in a Summary Format and the reportdoes deviate from the USPAP as permitted upon agreement between client and appraiser At ourclients request the results of our investigation and analyses which comprise a Restricted UseReport Estimate are being presented via a Restricted Use Report Format Therefore theappraiser invokes the departure rule as allowed under Appraisal Standards Nos 1 and 2 Rule 2-2 adopted by the Appraisal Standards Board on March 22 1994 effective July 1 7994 andrevised January 1 2000 Only the Sales Comparison Approach was deemed appropriate Theappraisers opinions and conclusions set forth in this reports may not be understood withoutadditional information in the appraisers work file A full file memorandum is maintained in myoffice
We certifu that to the best of our knowledge and belief
(1) INSPECTION-An interior and exterior inspection of the subject property was conductedon March 152012
(2) PROPERTY CHARACTERISTICS-The subject property is an improved commercial plotof land with a I4278+l-sf two-story building (includes basement) located in the city of
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Fayetteville Arkansas We are familiar with the physical and economic trends in the subjectsmarket areas from past research and experience
(3) CONDITIONS OF ASSISIGNMENT-This report is intended to assist in establishingmarket value for use in internal decision matters as of March 152012
(4) EXTENT OF RESEARCH- Based upon the requirements of the client and the intendeduse of the report the Cost Approach (Land Only) Sales Comparison Approach and the IncomeApproach to value were analyzed and are deemed to be sufficient to solve the appraisal problem
(5) EXTENT OF DATA RESEARCH - We researched the sales data for this assignmentusing county records and Sales information using the MLS system We have researched the sales
of lots and office buildings which were considered similar and arnlyzed comparable sales datainthe surrounding area
LEGAL DESCRIPTION
Apart of block 27 ofthe Original Town Plat of Fayetteville Arkansas- Beginning ata point which is 18252 feet West and 5760 feet South of the ]ortheast corner ofsaid Block 27 ta theNW comer of anow existing Old Post Office Building thencewith the foundation of said building the foliowing bearings and distances South2145 feet West 39 feet South 785 feei East 39 feet South 216 feet East 172feet South 0 feet East 63 South 2565 feet East 383 feet Norrh 42 feet East106 feetNorth 180 feet West 43 feet tlorth 105 feet East 105 feet North 655feet East39 fee North 720 feel West 39 feetNorth 244 feet East39 feet North715 feet East 39 feet North 38 feet East 23 feet West 23 feet South 5 feetWest 565 feet North 39 feet West 715 feet South 39 West 215 feet Nodh 105feet West 552 feet South 11 feet to the point of begiruring all being situated inWashi ngton County Arkansas
REAL PROPERT INTEREST APPRAISED
Fee Simple Interest
INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is for intemal decision matters as of the effective date of the
appraisal
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
EFFECTIVE DATE OF THIS APPRAISAL
The effective date of the Appraisal is March 152012
The property was inspected on March 152012
EFFECTIVE DATE OF REPORT
The effective date of the Report is March 192012
FUNCTION OF APPRAISAL
The function of this Appraisal is to estimate the Market Value of the subject property As Is
for use in intemal decision matters
HIGHEST AND BEST USE AS IMPROVED
The highest and best use for the subject properly as improved is for continued us as a commercial
restaurant offrce building
HYPOTHETICAL CONDITION(s)
NA
EXTRAORDINARY ASSUMPTIONS
The exact site size for the subject property is unknown as the client did not provide a survey
The site size is based on the legal description provided by the client which is apparently
incorrect The appraiser has estimated the site size to be 6050+- SF This is considered an
extraordinary assumption The appraiser fuither assumes that the subject improvements do in
fact lie on the subject site This is nearly impossible to determine with out a site survey If either
or both of these extraordinary assumptions prove to be untrue the appraiser reserves the right to
alter the appraisal report andlor its value conclusion
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
ANALYSIS OF CONTRACTLISTING
It is the appraisers understanding that subject property is not currently listed for sale under option
to purchase or under contract Apparently some recent offers and counter offers have been made
concerning the subject property however the appraiser has not been presented with these
contracts and is not familiar with their particular terms We can not comment conceming their
validity or whether or not they are atlbelowlabove market value The property has not changed
ownership since at least 1985
SCOPE AND BASIS OF THE APPRAISAL
This appraisal has been made in accordance with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation (12 CFR) At our clients request the results of our
investigation and analyses which comprise a Complete Appraisal are being presented via a
Restricted Use Appraisal Report Format as permitted by Standad 2-2b The value set forth
herein was estimated after application and analysis of the applicable approaches to value ie the
Cost (Land Only) Sales Comparison and Income Approaches to value were utilized in this Report
This appraisal included the inspection of the subject property on March 152012 and an analysis
of the surrounding neighborhood with recognition of existing and future trends Market data
including sales and listing of comparable properties were obtained from sources believed to
reliable There was no personal property (except minimal contributory of restaurant fixtures)
included in this valuation process
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
til
o)tFI
3 Main Level
AREA CATCULATIONS SUMMARY)ods Description
lBAl irst Floorlop Fl-oor
Net Size NetTotals
Buildinq FootprjntlasehenL
5050 3240575935 I
203297
39 x39 x39 e3-9 x
18-0 x4 2 x
4d6 xb-J x
171 x
05 x 00 x10 i
12
48 I
6135950 850 I00
5s -2
34_900
10051844As0810x
5524S 938 3
30-628L27921 9
e842r60 I
2134 0
866 18746
4455 2
13869 5
0100
424 8
762A18 1
880 2
2734O364 5
20328Nat BUILDING Area
Top Flaor 05 x 00 x
i og x oo x0 x82 r58 x
i 150 x u x Building Footlrrifci 1o xI ro n --
1 42 I 440 63 r11 ltees Not Listed
20328
Basement
Rounded) 36 ltems (Rounded)
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
LAND VALUE
The Direct Sales Approach Method was utilized to derive the value of the land as if
unimproved Land sales were located in the subject and competing market areas These sales
were compared to the subject As If Vacant and adjusted for any differences Additionally the
land value must be estimated The following table is a summary of the land sales utilized in this
analysis
SUMMARY OF LANDIMPROVED SALES
Statistical Conclusion from Market Data
Mean 51729 per sf
Median $1628 per sf
Land Value 922 SF X 6050 SF $133100 Say $133000
SaleNo
Location Sale Price Sale Date SF Land PriceSF
Subj L Center Street - Fayetteville (Land Only) 6000
I 3 East Rock Fayetteville $200000 07107 18630 $10742 305 N Universiw Favetteville $ 131000 t2lI0 5063 $2587a-l 6thStEastem Ave Fayetteville $3s0000 02109 19223 $ 1821
4 2372 Collese Ave Fayetteville $275000 02nI 19166 s 1435
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
SalePriceSquare FootageAcresPriceSF
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Market Cond
Location
Topography
Shape
Size
Road Frontage
Utilities
lmprovements
lndicated ValueSF of Adjustment
MeanMedianBest Sales
Market Value
1
$20000018630043
$1074
00
56($240)
$833
625
000
000
125
(117)
000
000
146637
$2004$1979$2ss1
$2191
2$131 000
5063012
$2587
00
16($166)
$2422
484
000
000
000
(3 15)
000
000
2591oo
3
$35000019223044
$1821
0
0
37($26e)
$1551
543
000
039
233
(186)
000
(100)
208014
4$275000
1 91 66044
$1435
0013
($075)
$1360
476
000
061
204
(10e)
000
(1 15)
187731
Say $22
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
The Subject property is Zoned Main Street Center that allows for commercial office use and the
properly is improved with a 14278+-sqft (includes basement) wood-framed and concrete
(brick) Class C commercial building on a concrete basement The effective age of the
building is 25+l- years The economic life of the building is estimated at 80 years The
structures general appeal is considered to be average
The commercial sales comps are considered similar to the subject and are to be used in the Direct
Sales Comparison Approach listed in the Summary below
SUMMARY OF IMPROVED SALES _ BUILDING ONLY
Sale Address SaleDate
Sale Price SF Bldg Sale PricePer SF
Subi I Center St -Favetteville 14278I 106 Block Fayetteville 101 1 $242000 6889 $26102 315 W Mountain Favetteville 091t1 $575000 6r44 $s843J 115 N Block St Fayetteville 12111 s425000 2705 s84804 509 Sorins St Favetteville 02t11 $ 1850000 45000 $27605 15 Church St Fayetteville 081 1 $256000 6689 $ 1065
6 113 Walnut Ave Rosers 041r1 $267000 6500 $4108
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
SalePrice
Property RightsConditions of SaleMonths Since SaleMarket Conditions
After Mkt Cond
Site ValueTime AdjustmentUpdated Site ValueSite Adjustment
Gross Building SizeBld Size Adj
Extra Features
Building Age
Building Quality
Historic Premium
Site lmprovements
lndicated Value of Adjustment
Weighted
MeanMedianWeighted Average
Market Value
1
$242000
0
0
5
$2420
$239580
130000($2600)$127400
$5600
4291$170142
$130000
$0
$16800
$30300
-$2500
$589922144
1
$716263$735320$739916
$730500
2
$575000
00
6($6900)
$568100
216000($5184)
$210816-$77816
6144$92316
$130000
$0
$53900
$71900
-$4200
$83420045
2
3$425000
0
03
($2550)
$422450
1 10000($1320)
$108680$24320
2705$236754
$109000
-$39400
$47250
$53 I 00
-$5700
$84777499
1
41850000
0013
($48100)
$1801900
600000($31200)
$568800-$435800
45292-$775950
$100000
-$218750
$93800
$231250
-$8900
$787550-57
2
5$256000
0
07
($3584)
$252416
175000
($4eoo)
$1 701 00-$371 00
6689$69426
$130000
$105000
$12200
$32000
-$8900
$555042117
1
6$267000
0
011
($5874)
$261126
26000($1 144)$24856
$1 081 44
6482$781 20
$130000
$241 00
$48200
$33400
$0
$683090156
1
10
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
INCOME APPROACH
The income approach to value is predicated on the assumption that there is a direct relationship
between the amount of income a property produces and its market value In this approach the
appraiser processes expected future income benefits into an indication of value Value is
therefore the present value of future income a property will likely generate This approach
depends upon the accuracy of three basic steps they are forecasting income and expenses
deriving a net income and selecting or developing an appropriate rate and caprtahzing the net
income at an appropriate rate of return by the property method
In applying the income approach the appraiser follows certain steps He projects the quantity of
the prospective gross income after considering the record of actual gross income in previous
years and current contract rent market rental rates for comparable space and the effect of
vacancy andor credit loss He projects the quantity of expenses after considering the record of
actual expenses for previous years and expense histories of comparable properties and by
abstraction computes the expected net operating income to be capitalized The Income Stream is
analyzed by way of several methods as follows
1 Obtain actual rent schedules for the property being appraised as well as the comparable
properties in the area then derive the gross rental data as well as projected gross income
expectancy
2 Appraiser obtains and analyzes the actual occupancy data for the subject property and for
the comparable properties in the area Then a projected occupancy rate is estimated for
the subject property which is deducted from the gross income to arrive at an adjusted
gross income estimate
3 Appraiser obtains and analyzes expense data such as taxes insurance utilities and other
pertinent costs for the property being appraised and other comparable properties in the
l1
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
area An expense estimate is derived for the property which is deducted from the
adjusted gross income to derive a net income estimate
4 An estimate of the remaining economic life is made to establish an estimated life of the
income stream
5 Appraiser selects the appropriate capitalization rate
6 Using capitalization rate appraiser derives estimated market value by way of net income
The net income is capitalized by the approprrate rate and method to derive an estimate of value
for the property being appraised by the formula Value Income divided by Rate
ANALYSIS OF GROSS ECONOMIC RENT AND iROSS INCOME ESTIMATE
The subject property is an improved restaurantoffice building Improved office rentals have
been utilized The properly is an occupied office building with parking area The typical lease
anangement for this property tlpe is a triple net agreement The Lessee pays utilities taxes and
maintenance costs and some improvement costs when desired by the tenant (Lessee) In any
event proper appraisal technique dictates that income and expenses be derived from the
marketplace
SUMMARY OF RENTAL DATA
The subject property consists of one 14218 sq ft (includes basement area) commercial
restaurantbarloffice structure to be occupied by three or more tenants The property is currently
about 10 The property is in below average condition and it is assumed that it might be leased
on a gross basis with the Lessor responsible for actual expenses including routine maintenance
and utilities
t2
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
TOTAL PROJECTED GROSS RENTAL
Listed below are the subjects actual rentals which are
RestaurantOffi ce Market
INCOME $117912
indicative of the Central Favetteville
Lessor Suite s
Vacant Basement Basement
VacantRestaurantBar Street
Projected
Monthly Rents
$2968
s4452
Square Ft RateSFYR
5936
5936
2406
$600
$900
s1200Partially Occupied
Office Space
Average Blended Rate
Level
Upper $2406
Level
$726
The subject property consists of a total of 14278 +- SF Subjects rents support a blended rate
of $726SFYR for the subject
Gross Potential Operating Income (GPI) is the total income that the properly could be expected toproduce at full (100) occupancy with no deduction for possible collection loss The subject propertywill be a mixed use building with full occupancy Projected GPI for the first (1st) year of the projected
holding period is $117912
Vacanc) amp Collection (VampC) Loss refers to the periodic loss of potential gross operating income due toa projected stabilized rate of vacancy or uncollected rents (etc) over an entire holding period It isusually stated as a percentage of potential gross operating income
When the purpose of analysis is to obtain an indicated Market Value determination of the appropriateallowance for this consideration should be based on the typical rates of vacancy andor collection loss forthe type of property being analyzed In this regard a reasonable allowance for V amp C Loss is typicallywarranted -- even if the property being analyzed has a history of 0oo V amp C Loss or is leased (at fulloccupancy) for the foreseeable future This is true for instance where typical operations of similarproperties reflect losses of potential gross income due to these causes Based on similar properties in themarket area the properly should experience approximately 82 occupancy
The subjects vacancy is actually 90+yo However the market (4th Quarter 2011 Skyline Report) as awhole is indicates avacancy of approximately l76Yo The V amp C Loss used in this analysis is 18 or
$21224
13
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Effective Gross Operating Income (EGI) is the gross income amount actually realized from operation of aproperty It is calculated by deducting anticipated market vacancy and collection loss from potentialgross operating income As illustrated by the following income and expense summary projectedEffective Gross Operating Income for the first (1st) year of the projected holding period is $96688
Variable Operating Expenses refers to those operating expenses which are often directly influenced byoccupancy andor collection levels for the property being analyzed
Variable Operating Expenses typically include such expense categories as Accounting AdministrationAdvertising Contract Services Repair amp Maintenance Management Utilities Etc In other wordsVariable Operating Expenses include any legitimate operating expense (other than Fixed OperatingExpenses and Reserves for Replacement) which would typically be incurred in operating an incomeproducing property under sound management practices As illustrated by the following income andexpense summary
Variable Operating Expense
Management (Market Rate 5 of EGI)
MaintenanceRepairs (Market Rate 5 of EGI)
$4834
s4834
Estimated Miscellaneous Expense $1000
Variable Operating Expenses for the first (1st) year of the holding period are projected at $10669
Fixed Operating Expenses refers to those operating expenses which are not usually influenced byoccupancy andlor collection levels forthe property being analyzed
Since the Assessed Value of a property and its resulting property tax liability is not usually consideredto be effected by variations in occupancy levels Property Tax is generally considered to be a FixedOperating Expense Likewise Real Estate Insurance expense is generally regarded as being a FixedExpense since it is relatively unaffected by yearly variations in a properfys occupancy level Asillustrated by the following income and expense summary
Fixed Operating Expense
Property Tax (Based on actual)
Estimated Building Insurance (Market Rate (3lsf))
$5822
$ 4400
Fixed Operating Expenses for the first (1st) year of the holding period are projected at $10222
The Replacement Reserves (Reserves) Operating Expense category is a projected allowance for periodic
14
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
replacement of short lived component parts of real estate improvements This expense category accountsfor those reasonably anticipated future expenses that normally occur less frequently than once a year
In projecting the appropriate replacement reserves allowance care has been taken to avoid duplication ofnormal repair amp maintenance expenses Expenses for such things as roof repairs interior andor exteriorpainting and other normal maintenance items are typically not considered under replacement reservesAs illustrated by the following income and expense summary projected Reserves for the first (1st) yearofthe holding period are projected at $3033
Net Operating Income NOI) is that annual income amount left over after all operating expenses havebeen deducted from effective gross operating income As shown below this income capitalizationanalysis does not consider annual debt service or income tax as operating expenses NOI for the first ( 1 st)year of the holding period is projected at$72764
An Overall Capitalization Rate (OAR) is a ratio of one years Net Operating Income to the Value of theproperty that produces that income
It is used in the Income Capitalization Approach to convert anticipated future income into an indicatedvalue When the rate is applied directly to the forecast income (dividing the income by the rate) theprocedure is called Direct Capitalization
An OAR can be obtained by various generally accepted methods andlor techniques These include theComparative Method Band-of-Investment Techniques the Built-Up Rate Method Yield AnalysisMethods and others Regardless of how its obtained an OAR is nothing more than a measure of therelationship between a properf5rs Value and its NOI for one (particular) year
Mortgage Constant (Rm) is the ratio of uniform annual mortgage payments (principal and interest) to theinitial loan amount It is analogous to a mortgage capitalization rate
An Equiqr Dividend Rate (Re) is a ratio of one years Equity Dividend to the Value of initial EquityInvestment For Appraisal Purposes the equity capitalization rate for the subject property is theanticipated return to the investor usually for the first year of the holding period
The following terms are indicated by Northwest Arkansas Financial Institutions on moftgage loans onproperties ofthe subjects nature
Typical Interest Rate (Variable)
Amortization Period
Loan to Value Ratio
Annual Constant (based on 7 5oo20 year term)
Debt Coverage Ratio
750
20Year
80
0966712
12-12s
15
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
The First Quarter issue of Valuation Insights and Perspectives published by the Appraisal Institute provides arange of 50oo to l0oh and an average of 695oh for Class A CBD Office property fype investments in the thirdquarter of 201l Subject is not Class A Space They utilize the KORPACZ REAL ESTATE INVESTOR SURVEYconducted by PricewaterhouseCoopers LLP
Band of Investment or weighted average formula for deriving at an Overall Rate when the mortgageconstant and equity dividend rates are known is
Ro MxRm+(1-M)xRerherefore
3irr1
trfo x oeo)
Utilizing the Debt Coverage Formula the following Overall Rate is indicated
Ro LN Ratio x Rm x Debt Coverage Ratio 80 x 0966712x125 096
Considering Band of Investment The Debt Coverage Fonnula and Market Abstraction anOverall Rate of 107o is considered applicable for the subject
Value Proposed Net Operating IncomeOverall Rate
ValueValueSay
9727641t0$727640$728000
SUMMARY OF INCOME APPROACH
The Mortgage Equity Capitahzation Method is being used to project expected futureincome from the subject property The estimated value of the Subject property via the IncomeApproach is $728000
Therefore the indicated value by use of the Income Approach to Value As Is as of March 15
2012 is
SEVEN HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
$728000
16
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
I certify that to the best of our knowledge and belief
(1) The statements of fact contained in this report upon which the analysis opinions andconclusions expressed herein are based are true and correct
(2) The reported analyses opinions and conclusions are limited only by the reportedassumptions and limiting conditions and is our personal unbiased professional analysesopinions and conclusions
(3) I have no present or prospective interest in the property that is the subject of this analysisand I have no personal interest or bias with respect to the property or parties involved with thisassignment
(4) My compensation is not contingent upon an action or event resulting from the analysesopinions or conclusions in or use oi this report or upon developing or reporting of apredetermined value or direction of value that favors the cause of the client the amount of thevalue opinion the attainment of a stipulated result or the occuffence of a subsequent eventdirectly related to the use of the appraisal
(5) This assignment was not based upon a requested minimum value a specific valuation orthe approval of a loan
(6) My analyses opinions and conclusions were developed and this report has been preparedin conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as
promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code ofProfessional Ethics and Standards of the National Association of Master Appraisers
I hereby certift that I have inspected the property described by way of a Complete PhysicalInspection It is felt that all data gathered by -y investigation is from sources believed reliableand true
According to Standards Rule 2-2(c) a Limited RestrictedSummary Appraisal Report shouldhave these minimum requirements
- Describe the extent of the process collecting confirming and reporting data
- State all assumptions and limiting conditions that affect the analyses opinions andconclusions
- State the appraisal procedures followed state the value conclusion and reference theexistence of specific file information in support of the conclusion
17
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
- State the appraisers opinion of highest and best use of the real estate when such an opinionis necessary and appropriate
- State the exclusion of any of the usual valuation approaches
- Contain a prominent use restriction that limits reliance on the report to the client and warnsthat the report cannot be understood properly without additional information in the work file ofthe appraiser and clearly identifu and explain permitted departures from the specific guidelinesofStandard 1
- Include a signed certification in accordance with Standards Rule 2-3
The function of this appraisal is to assist the client in determining a fair and equitable MarketValue of the subject property The value estimate is based on the real property only Nofurniture equipment or personal property is included in the value estimate
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989effective August 241990 Please refer to the definition in Exhibit A following this letter
In the accompanying report you will find the results of my investigation containing the factsanalysis and conclusions pertaining to the subject property and the final estimate of value
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe analysis supports a Land Value of
ONE HUNDRED THIRTY THREE THOUSAND DOLLARS$133000
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Sales Comparison Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS$ 731000
As a result of investigation studies and analyses of sales offers of sales and all factors inmarketplace which affect value it is the opinion and judgment of the appraiser on March 152012the Income Approach Analysis supporls an Improved Value (Land and Buitding) of
SEVEN HUNDRED TWENTYEIGHT THOUSAND DOLLARS$ 728000
thethat
l8
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
As a result of investigation studies and analyses of sales offers of sales and all factors in themarketplace which affect value it is the opinion and judgment of the appraiser on March 152012thatthe Reconciled Analysis supports an Improved Value (Land and Building) of
SEVEN HUNDRED THIRTY THOUSAND DOLLARS8 730000
Respectfully submitted
H APPRAISALSINCATE CERTIFIED GENERAL
REAL ESTATE APPRAISER GC1738
PARzuSH APPRAISSTATE REGISTEREDREAL ESTATE TRAINEE SR3635
19
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
EXHIBIT A
Market Value DefinitionFinancial Institution Reform Recovery and
Enforcement Act of 1989 (FIRREA)Effective August 24 1990
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale the buyer and seller each acting
prudently and lwtowledgeably and assuming the price is not affected by undue stimulus Implicit
in this definition are the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby
(1) Buyer and seller are typically motivated
(2) Both parties are well informed or well advised and acting in what they consider their
own best interest
(3) A reasonable time is allowed for exposure in the open market
(4) Payment is made in terms of cash in US dollars or in terms of financial arrangements
comparable thereto and
(5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale
20
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
UALIFICATIONS OF STUART H SANDERS
EDUCATION
July 1999 li atSanAntonioBachelor of Business Administration Finance Building amp Land Development Concentration
PROFESSIONAL COURSES COMPLETED
Real Estate Principles UTSA-1997 Real Estate Investments - UTSA-1998 Real Estate Appraisal UTSA-1999 Real Estate Finance - UTSA-I999 Building Construction Estimating -- UTSA-I999
The following courses and exams given by The Appraisal Institute have been successfully completed
Course 101- Uniform Standards Of Professional Appraisal Practice Update --2010Course 410 Uniform Standards Of Professional Appraisal Practice Part A -- 2000Course 310 - Basic Income Capitalization -- 2001Course 210 - Residential Case Study - 2000Course 5 10 - Advanced Income Capitalization -- 2005Course 520 - Highest and Best Use - 2003 (Course Only)Course 530 - Advanced Sales Comparison and Cost Approaches -2004Course 540 - Report Writing 2007Course 550 - Advanced Applications -2007 (Course Only)General Appraiser Market Analysis amp Highest and Best Use - 2009
WORKEXPERIENCE
August 99 - October 2005 Staff Appraiser for Reed amp Associates Inc- Springdale ARJune 06 - Present Commercial Appraiser for Parrish Appraisals Inc - Fayetteville ARCondemnation Work - Cities of Rogers Springdale Farmington Fayetteville Cave Springs amp BentonvillePublic Utilities including Beaver and Two Ton Water Districts Swepco Ozark and Carroll Electric CosArkansas State Government including Parks and Recreation Natural Heritage Commission Department ofTransportationUnited States Government including Headstart Program Veterans Administration Housing and Urban Development
RELEVANT COLLEGE COURSES
Accounting Principles I amp II Business Law Intro to Communications Intro to Microeconomics Intro toMacroeconomics Principles of Finance Information Systems Mgt Organizational Theory BusinessCommunications Strategic Management Principles of Marketing Management Science Business StatisticsPrinciples of Real Estate Real Estate Investment Real Estate Mortgage and Banking Real Estate LawConstruction I Housing and Land Development Professional Practice Arch Documents Building amp ConstructionEstimating Project Development Construction Management Urban Planning Building and Land DevelopmentPracticum Computer Applications in Design I amp II
REFERENCES
Upon Request
21
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Real Estate Legal Services Page 1 of 3
Fayetteville Town Center 15 W Mountain St
Fayetteville AR 72701
Real Estate Legal Services DATE ISSUED DEADLINE Contact Person Sandra Bennett (479) 587-9944
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Real Estate Legal Services Page 2 of 3
REQUEST FOR PROPOSAL LEGAL SERVICES
Real Estate Legal Services
The Fayetteville Town Center is requesting proposals for an attorney or law firm to serve as attorney for the Town Center for various real estate matters
Scope of Services
The Fayetteville Town Center seeks to retain the services of an independent attorney or firm to provide legal services regarding real estate transactions The selected attorney will advise in all aspects of real estate including negotiation drafting and structure of documents and enforcement of contracts or agreements including but not limited to purchase and sale agreements etc
Requirements
Applicants must be licensed to practice law in Arkansas and possess experience in the area of real estate law Applicants must include the following information with their response
a Resumes experience record etc b Representative list of clients for whom real estate law services have been performed c Fee schedule Will be considered during the negotiating process and will be a factor
in the award of any proposed contract d Past record of malpractice claims or professional conduct claims including the
outcome and resolution Selection Process
A In evaluating the qualifications of each firm or individual the following items shall be considered
(1) Specialized experience and technical competence of the firm with respect to real estate
law (2) Capacity and capability of the firm to perform the work in question including
specialized services within the time limitations fixed for the completion of the project (3) Past record of performance of the firm with respect to such factors as control of costs
quality of work and ability to meet schedules and deadlines and
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Real Estate Legal Services Page 3 of 3
(4) Firms proximity to and familiarity with the area in which the project is located (5) Pricing Schedule Terms and Conditions
1 Proposal must be submitted no later than March 30th 2012 200 PM Central Standard Time Proposals received after this date and time will not be opened or accepted for consideration
2 Proposals should be mailed or hand-delivered to
Fayetteville Town Center Attn Sandra Bennett Facilities Manager PO Box 4157
15 West Mountain Street Fayetteville AR 72701
3 One (1) copy of each proposal should be provided in addition to one (1) electronic copy The use of PDF documents is highly recommended but not required
3 Label your proposal ldquoReal Estate Legal Servicesrdquo on the outside of the sealed envelope 4 Awarded firm must provide and maintain in force at all times during the term of the
contract errors and omissions liability Proof of such shall be submitted within five (5) calendar days after contract award
5 It shall be clearly understood that any costs incurred by the Proposer in responding to
this request is at the Proposerrsquos own risk and expense as a cost of doing business and the Fayetteville Town Center is not liable for reimbursement to the Proposer for any expense so incurred regardless of whether or not the proposal is accepted
6 The competitive selection for this request for proposal shall be conducted by a review
committee
5 All questions related to Proposals should be addressed to Sandra Bennett- (479) 587-9944 or sbennetttwncentercom
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Davis Clark Butt Carithers amp Taylor PLC
Real Estate Legal Services Proposal to the
Fayetteville Advertising and Promotions Commission
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
TABLE OF CONTENTS
I Introduction
II Attorney Biographies
III Real Estate Experience
IV Representative Clients
V No Malpractice Claims
VI Fee Schedule
VII Scope of Representation
VIII Contact Information
IX Conclusion
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Real Estate Legal Services Proposal
Davis Clark Butt Carithers amp Taylor PLC (ldquoDavis Law Firmrdquo) submits this Real Estate LegalServices Proposal in accordance with the requirements outlined by the Fayetteville Advertising andPromotions Commission Davis Law Firm is equipped to provide real estate legal services to theFayetteville Advertising and Promotions Commission and would be honored to represent theCommission in that capacity
I INTRODUCTION
Davis Law Firm is one of the oldest law firms in Northwest Arkansas with over half a century ofexperience We enjoy the best attributes of both small and large firms ndash close relationships withinthe firm and with individual clients the ability to provide clients a wide array of legal services andthe ability to use a team approach with complex and multiparty litigation issues and transactionsFor every client and case our persistent goal is to obtain the very best result in an efficientprofessional manner We are deeply connected to our community providing leadership in civicorganizations and nonprofit entities We are also active in state and local bar association mattersand serve on several Supreme Court appointed committees Above all we cherish our reputation forhonesty integrity and competence built since 1953
We practice before all Arkansas local state and federal courts the United States Court of Appealsfor the Eighth Circuit and the United States Supreme Court We also regularly practice beforevarious local state and federal administrative regulatory and governing boards and agencies Ourpractice focuses in the Northwest Arkansas counties of Washington Benton Carroll and Madisonbut extends statewide We are conveniently located on Mountain Street just steps from both theFayetteville Town Center and the Fayetteville Advertising and Promotions Commissionrsquos offices
Our credentials demonstrate the quality our practice offers our clients Seven of our partners arerated ldquoAVrdquo (ldquopreeminentrdquo) and one is rated ldquoBVrdquo (ldquodistinguishedrdquo) by Martindale-Hubbell The firmis designated as among the Best Law Firms in the United States by Best Lawyers in America whichalso lists five of our partners individually in diverse practice areas and two of our lawyers asldquoLawyer of the Year 2012rdquo Mid-South Super Lawyers also lists five of our partners in variouspractice areas two being among Super Lawyersrsquo top fifty lawyers in Arkansas Two of our partnersare Fellows in the American College of Trial Lawyers
Among our diverse practice areas we have several attorneys whose practice includes real estatematters With multiple Davis Law Firm attorneys practicing in the area of real estate law theFayetteville Advertising and Promotions Commission will have ready access to an attorney to assistit with any real estate issues that may arise In addition the Fayetteville Advertising and PromotionsCommission will benefit from the combined knowledge of multiple Davis Law Firm attorneys whoare able to provide different perspectives on complex real estate issues thus alleviating the need toseek a second opinion from another law firm
-1-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
II ATTORNEY BIOGRAPHIES
The following Davis Law Firm attorneys would be the primary attorneys to assist the FayettevilleAdvertising and Promotions Commission with real estate related legal services
Constance G Clark attended Vanderbilt University from 1972 to 1974 and graduated from theUniversity of Arkansas at Fayetteville in 1976 where she was elected to membership in Phi BetaKappa She received her JD with Honors from the University of Arkansas at Fayetteville in 1979 While in law school she served as an associate editor of the Arkansas Law Review Connie joinedDavis Law Firm upon graduation from law school She has served as Secretary-Treasurer of theWashington County Bar Association and as a member of the Arkansas Bar Association serving inits House of Delegates from 1990 to 1993 She was appointed as a Special Associate Justice of theArkansas Supreme Court in 1991 and 1996 and served two terms on the Arkansas Supreme CourtCommittee on Civil Practice including as Chair of the Committee She is rated AV-Preeminent byMartindale-Hubbell and is listed in Best Lawyers in America and Super Lawyers
William Jackson ldquoJackrdquo Butt II was born in Fayetteville Arkansas in 1950 Jack was admittedto the Virginia Bar in 1975 and the Arkansas Bar in 1981 He received his BA in 1972 from theUniversity of Virginia and his JD with Honors in 1975 and LLM in Taxation in 1979 from TheNational Law Center of George Washington University He joined the firm in 1981 after four yearsrsquopractice with the Army Judge Advocate Generalrsquos Corps and two yearsrsquo private practice in FairfaxVirginia Jack regularly litigates in state and federal courts and before various administrativeagencies
He was first qualified as an Arkansas Board Recognized Tax Specialist in 1986 has been ratedAV-Preeminent by Martindale-Hubbell since 1994 was recognized by the Arkansas Timesrsquo 1995and 2000 polls as one of the top 10 business lawyers in Arkansas and is listed in Best Lawyers inAmerica in Trusts and Estates and in Super Lawyers in Commercial Litigation Jack was Presidentof the Washington County Bar Association in 1996-1997 served as President of the NorthwestArkansas Estate Planning Council from 2004-2006 and is an emeritus member of the William BPutman Inns of Court serving as President 2010-2011 He received the Arkansas Bar AssociationrsquosOutstanding Lawyer Citizen Award for 1999-2000 Jack is a member of the Washington County andArkansas Bar Associations and is admitted to practice before the United States Tax Court and theUnited States Supreme Court
Casey D Lawson graduated in 2000 from the University of Arkansas with a Bachelor of Sciencedegree in Business Administration Summa Cum Laude majoring in accounting Casey was the FirstRanked Senior Scholar and Outstanding Senior in Accounting in the business college She receivedher Juris Doctor degree Magna Cum Laude in 2003 from the University of Arkansas School of Lawat Fayetteville In law school she served on the Arkansas Law Review and was Treasurer of PhiAlpha Delta legal fraternity She received the Award for Top Student in Taxation and BusinessPlanning was awarded Best Oralist in the prize round of the Ben J Altheimer Moot Court
-2-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
Competition and was a finalist in the Spring Moot Court Competition Casey has been ratedAV-Preeminent by Martindale-Hubbell
Joshua D McFadden attended John Brown University (Bachelor of Science in BusinessAdministration Magna Cum Laude 2001 MBA 2004) He was a Soderquist Fellow at theSoderquist Center for Leadership and Ethics while earning his MBA Joshua was awarded his JurisDoctor degree Magna Cum Laude in 2007 from the University of Arkansas School of Law atFayetteville where he was an ABA Foundation Ethics Scholar served as Associate Editor of theArkansas Law Review (2006-2007) served on the Honor Council and belonged to the Phi Delta Phiinternational legal fraternity Joshua is a Barrister member of the William B Putman Inns of Courta member of the Washington County and Arkansas Bar Associations and has been ratedBV-Distinguished (44 out of 50) by Martindale-Hubbell
William F Clark was born and raised in Fayetteville Arkansas He graduated from VanderbiltUniversity in 2007 with a Bachelor of Arts in Political Science Cum Laude and received his JurisDoctor degree from the University of Arkansas School of Law at Fayetteville Magna Cum Laudein 2010 In law school Will was named the Joe C Barrett Commercial Transactions Scholar was a member of the Board of Advocates and served as an Associate Editor for the Arkansas LawReview where his case note Blazing a New Trail The Effect of Medical Liability Mutual InsuranceCo v Alan Curtis on the ldquoAmerican Rulerdquo and an Insurerrsquos Right to Attorneysrsquo Fees was publishedin 2009
III REAL ESTATE EXPERIENCE
Davis Law Firm has regularly represented residential and commercial real property owners in thenegotiation purchase sale development and leasing of real estate ranging from modest residencesto multimillion-dollar developed and undeveloped commercial property purchases and sales Thesetransactions include the Curry to U of A sale of the Razorback Road property at approximately$2500000 recent Lloyd to commercial developer for student high-rise property at the northwestcorner of Lafayette Street and West Avenue ($825000) and in and around 2000 several Ben IsraelDixie Development commercial acquisitions on both Joyce Street and Highway 71 (before themarket fell with resulting financial distress) Our firm has also regularly represented developersseeking zoning and use permits before city agencies such as Walgreens at Highway 62Walmart andthe Strip Center at the southeast corner of Sycamore Street and College Avenue We representedabout half of the medical clinics involved in the development of North Hills Medical Park (NWARadiology McDonald Eye Associates Highlands Oncology Group Ozark Orthopaedic) in theiracquisition of lots and the resulting development and construction of North Hills Medical Park More recently we represented Highlands Oncology Group in its acquisition and constructiondevelopment of its 8-figure clinic on Horse Barn Road at Pinnacle Point in Rogers In recent yearswith the severe recession in development and construction we have not represented real estateacquisition and development companies so much as regular business clients in their acquisition anddevelopment of their own business properties We have represented Coldwell Banker Harris
-3-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
McHaney Faucette Real Estate one of the two largest real estate firms in Northwest Arkansas formany years
The following is a list of the types of real estate related legal services for which our firm has beenretained
bull Drafting and review of real estate contracts including those for commercial
developments
bull Negotiation drafting and review of commercial and residential real estate leaseagreements
bull Lease disputes and related litigation
bull Reviewing real estate purchase agreements and lease agreements associated withfranchise purchases
bull Drafting deeds for the transfer of real property
bull Advising clients regarding the implications of the purchase of real estate inconjunction with the overall purchase of a business
bull Assisting subdivisions in the drafting of restrictive covenants
bull Represented developers seeking zoning and use permits
bull Land dispute litigation including easement boundary line and adverse possessionclaims
bull Real estate related litigation including
- successful unlawful detainer and ejectment actions
- successful real estate foreclosure and materialmanrsquos lien foreclosurelawsuits and
- successful defense of claims against real estate companies and theiragents
bull Appeals to Arkansas appellate courts in cases involving various real estate issues
-4-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
IV REPRESENTATIVE CLIENTS
The following are representative of those clients who have received real estate related legal servicesfrom Davis Law Firm
bull JV Manufacturing Incbull Ben Israel Dixie Developmentbull Highlands Oncology Group PA bull Transwesternbull Vista Healthbull Coldwell Banker Harris McHaney Faucette Real Estatebull Northwest Arkansas Radiology Associates PAbull McDonald Eye Associatesbull Ozark Orthopaedicbull Melodyrsquos Choicesbull N2 Yogurtbull Port Elgin Incbull Prairie Creek Veterinary Hospital PAbull Polo Country Estatesbull Walton Arts Centerbull National Association of Credit Management - Lien and Bond Servicesbull Simmons First Bank of Northwest Arkansas bull Farm Credit Services of Western Arkansas bull Western Federal Credit Unionbull Oklahoma State Bankbull Travelers Insurance Companybull Coldwell Banker Fleming-Lau Realtybull King Realty Groupbull Downum Realty Group Incbull Clark Long amp Associates Real Estate and Insurance LLCbull National Loan Investors LPbull Rajesh Rana bull Scutterrsquos Cafeacute LLCbull White River Natural Foods LLC bull Schumacher Homes of Arkansas Inc bull Scherrie L Bolinbull Cecil R Combsbull UARK Federal Credit Unionbull American Residential Communities andbull Stoneleigh Centerton Apartments
-5-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
V NO MALPRACTICE CLAIMS
The above-listed Davis Law Firm attorneys are not aware of any malpractice claims or professionalconduct claims ever being lodged against them
VI FEE SCHEDULE
The Davis Law Firm fee scale is as follows
Senior Partner Rate $25000hour(25 years plus experience)
Partner Rate $17500hour
Associate Rate $15000hour
Paralegal Rate $7500hour
Law Clerk Rate $5000hour
Attorneysrsquo fees will be charged along with expenses incurred in connection with each matter DavisLaw Firm prides itself on providing quality legal services in an economical manner While legalissues will be handled at the lowest fee level that is appropriate for a given matter you will benefitfrom the experience and insights of senior partners as dictated by the circumstances of each uniquesituation
VII SCOPE OF REPRESENTATION
Davis Law Firm is interested in representing the Fayetteville Advertising and PromotionsCommission on real estate related matters Any representation of the Fayetteville Advertising andPromotions Commission would not constitute representation of the City of Fayetteville Davis LawFirm reserves the right to represent clients that are potentially adverse to the City of Fayetteville solong as those matters do not involve issues directly related to the Fayetteville Town Center andorthe Fayetteville Advertising and Promotions Commission
VIII CONTACT INFORMATION
Joshua McFaddenDavis Clark Butt Carithers amp Taylor PLCPO Box 1688Fayetteville AR 72702-1688
Telephone (479) 521-7600Fax (479) 521-7661
jmcfaddendavis-firmcom
-6-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
VIII CONCLUSION
Davis Law Firm is particularly suited to represent the Fayetteville Advertising and PromotionsCommissionrsquos need for real estate related legal services Our attorneysrsquo legal abilities are wellrecognized and we have a strong connection and commitment to the community Our firmrsquos locationon Mountain Street gives us proximity to the Fayetteville Town Center as well as the FayettevilleAdvertising and Promotions Commission offices and a unique perspective on the dynamics ofFayettevillersquos downtown district Davis Law Firm seeks the opportunity to provide superior legalservices to the Fayetteville Advertising and Promotions Commission
-7-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
1
Jessica Edwards Leonard
From Marilyn Heifner ltmheifnertwncentercomgtSent Monday April 02 2012 1057 AMTo Jessica Edwards LeonardSubject A amp P Report 4
Scarpino Building
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
2
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
3
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
4
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
5
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
6
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
7
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
8
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
9
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-
10
- APagenda (2)
- AP Minutes - 3-12-12
- HMR Summary 2009-2012
- FAY AampP Feb 2012
- clinton_house
- Town_Center
- Analytics_wwwtwncentercom_201203_(TWNCNTER_Analytics)
- Analytics_wwwexperiencefayettevillecom_201203_(DashboardReport)
- Analytics_wwwexperiencefayettevillecom_20120326-20120401_(EXP_FAY_Stats_)
- Appraisal of Old Post Office
- Real Estate Legal Services Proposal - Davis Law Firm
- scarpino
-