ELLIS GROUP, INC. DBA INTEGRA REALITY RESOURCES

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Response to Request for Proposals (RFP) for On -Call Property Appraisal Services RFP No.: 21-103 20 Sample Fee Proposal In addition to the information provided above, you requested that we provide a sample fee proposal for two properties, 1) 1224 E. Warner Avenue and 2) 2246 S. Evergreen Street. The following addresses this request. 1224 E. Warner Avenue is the Cherry Aerospace partial acquisition. If awarded this assignment we would immediately notify the property owner, in writing, of our intent to appraise their property and invite them to be present at the time of inspection. We understand that a partial acquisition of 10 feet from the back of the sidewalk is required from this property. Based on our review of aerial photographs, this is a relatively minor acquisition in terms of its impact to the property. It appears that the structural improvements (building) will not be impacted and that pedestrian access to the property (larger parcel) will still be possible in the after condition. We do not anticipate any severance damages to the remainder and as such propose to value the property on a land only basis. That is, we would value the underlying land associated with the larger parcel in the before condition and would then use the unit value of the land that is concluded to, to value the part being acquired. We would value the land utilizing the sales comparison approach. If one assumes that the 10-foot strip is a fee acquisition, it would be valued at 100% of the underlying fee value of the land associated with the larger parcel. We would add the value of any site improvements in the acquisition area to the value of the land being taken. Based on aerial photographs these improvements appear to include landscaping, concrete and brick planter walls. For any site improvements that need to be replaced in the after condition, we will provide compensation based on replacement cost new. For site improvements that do not need to be replaced in the after condition, we would provide compensation based on depreciated replacement cost. Please note that landscaping (trees, plants and shrubs are not depreciated). We also noted that there is a chain link gate at the east side of the property. While it is not in the acquisition area, it may need to be moved to the south so as to allow for proper automobile queuing in the after condition. If this is the case, our appraisal would include compensation to move or replace the gate. Our fee to appraise this property, assuming it is the only assignment awarded to us at the time is $5,000 and our timing would be six weeks. If this assignment is awarded as part of a larger group of properties that are part of the same project, out fee would decrease substantially as we could benefit from economies of scale by conducting multiple appraisals in the immediate area at the same time. 2. 2246 S. Evergreen Street is a single-family residential property that is proposed as a full acquisition. If awarded this assignment we would immediately notify the property owner, in writing, of our intent to appraise their property and invite them to be present at the time of inspection. We would value the property as improved, based on the sales comparison approach. We would compare the value of the property as improved to the value of the underlying land and would base our concluded value on whichever is higher. That is, we would appraise the property to its highest and best use. If a furniture, fixtures and equipment appraiser is retained, we would coordinate with them to confirm that there is no double counting of items being acquired.