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05/27/2008 - City of Coldwater

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Council Chamber May <strong>27</strong>, <strong>2008</strong>Henry L. Brown Municipal Building5:30 p.m.One Grand Street (517) <strong>27</strong>9-9501<strong>Coldwater</strong>, Michiganwww.coldwater.orgCALL MEETING TO ORDERPLEDGE OF ALLEGIANCEROLL CALLC I T Y C O U N C I L A G E N D ACITY OF COLDWATERREGULAR MEETING______________________________________1. Presentation <strong>of</strong> plaque to Walton Lane for service to the <strong>Coldwater</strong> Board <strong>of</strong> PublicUtilities Board <strong>of</strong> Directors.PUBLIC COMMENTSCONSENT AGENDA (Item Numbers 2-9):The items listed in the Consent Agenda are considered to be routine by the <strong>City</strong> Counciland the <strong>City</strong> Manager and will be enacted by one motion. There will be no separatediscussion <strong>of</strong> these items unless requested by a Councilmember or citizen. In this event,the item will be removed from the Consent Agenda and Council action will be takenseparately on said item. Those items so approved under the heading “Consent Agenda”will appear in the Council minutes in their proper form.2. <strong>City</strong> Council Regular Minutes <strong>of</strong> May 12, <strong>2008</strong>.3. Financial Report for April, <strong>2008</strong>.4. <strong>City</strong> Manager’s Report.5. Memo from Laurie Adams, Assessor, regarding Public Record Inspection or ExaminationPolicy – Consider adoption <strong>of</strong> Policy No. P08-03.6. Memo from Laurie Adams, Assessor, regarding Industrial Facilities Tax ExemptionCertificate revocation for Camshaft Machine Co., LLC, 491 W. Garfield Ave. – Consideradoption <strong>of</strong> Resolution No. 08-10.7. Request from Tail Gators Sports Bar & Grill, LLC, for a new Class C License with Dance-Entertainment Permit at 74 W. Chicago St. – Consider adoption <strong>of</strong> Resolution No. 08-17(revises Resolution No. 07-26).


CITY COUNCIL MEETING AGENDAMay <strong>27</strong>, <strong>2008</strong> Page 28. Memo from Dave Sattler, DMS/Recreation Director, regarding mower purchase.9. Memo from Mayor Wallace regarding appointment to the Board <strong>of</strong> Public Utilities Board<strong>of</strong> Directors.10. Bills and Accounts: $216,933.06END OF CONSENT AGENDA11. Discussion <strong>of</strong> appraisal <strong>of</strong> property at 600 W. Chicago St.12. Memo from Bill Stewart, <strong>City</strong> Manager, regarding Medical First Response.13. Memo from Paul Beckhusen, CBPU Director, regarding Authorizing Resolution AdoptingFinal S2 Project Plan – Consider adoption <strong>of</strong> Resolution No. 08-14.14. Memo from Paul Beckhusen, CBPU Director, regarding water and wastewater rateadjustments – Consider adoption <strong>of</strong> Resolution No. 08-15.15. Memo from Dave Sattler, DMS/Recreation Director, regarding additional playgroundequipment for pool area and soccer fields.PUBLIC COMMENTSUNFINISHED BUSINESSNEW BUSINESSADJOURNMENTRuth Ann Volkmer<strong>City</strong> Clerk


Council Chamber May 12, <strong>2008</strong>Henry L. Brown Municipal Building5:30 p.m.One Grand Street (517) <strong>27</strong>9-9501<strong>Coldwater</strong>, Michiganwww.coldwater.orgC I T Y C O U N C I L M I N U T E SCITY OF COLDWATERREGULAR MEETING______________________________________PLEDGE OF ALLEGIANCEMayor Gene Wallace opened the meeting with the pledge <strong>of</strong> allegiance to the flag.ROLL CALLMayor Wallace called the meeting to order with the following Councilmembers present:Councilmembers Tim Miller and Cisco Ortiz representing the 1st Ward; Councilmembers MitchRice and Chris Pierce representing the 2 nd Ward; Councilmembers Tom Kramer and MaureenPetzko representing the 3 rd Ward; and Councilmembers Randall Hazelbaker and Heather Peetrepresenting the 4 th Ward.PUBLIC COMMENTSPaul Lindner, 163 Marshall, approved <strong>of</strong> the sidewalk program as he has long been a proponent<strong>of</strong> sidewalks in front <strong>of</strong> every house. On the other hand, he wanted to state his opposition to thedecision to sign on to the coal fired power plant. Also, he asked that consideration be given toconverting our diesel generators to natural gas as a potential cost saving measure.CONSENT AGENDA (Item Numbers 1-10)The items listed in the Consent Agenda are considered to be routine by the <strong>City</strong> Counciland the <strong>City</strong> Manager and will be enacted by one motion. There will be no separatediscussion <strong>of</strong> these items unless requested by a Councilmember or citizen. In this event,the item will be removed from the Consent Agenda and Council action will be takenseparately on said item. Those items so approved under the heading “Consent Agenda”will appear in the Council minutes in their proper form.1. <strong>City</strong> Council Regular Minutes <strong>of</strong> April 28, <strong>2008</strong>.2. Planning Commission Regular Minutes <strong>of</strong> April 1, <strong>2008</strong>.3. Downtown Development Authority Regular Minutes <strong>of</strong> March 26, <strong>2008</strong>.4. Board <strong>of</strong> Public Utilities Regular Minutes <strong>of</strong> March 18, <strong>2008</strong>.


CITY COUNCIL MINUTESMay 12, <strong>2008</strong> Page 25. Michigan South Central Power Agency Regular Minutes <strong>of</strong> March 6, <strong>2008</strong>.6. Board <strong>of</strong> Public Utilities Operation Reports and Financial Statements for February, <strong>2008</strong>.7. Investment Report for March, <strong>2008</strong>.Council Action: Approved and placed on file the Minutes and Departmental Reports.8. <strong>City</strong> Manager’s Report.Council Action: Accepted and placed on file the <strong>City</strong> Manager’s Report.9. Letter from Janice Murphy, Manager/Secretary, Branch County 4-H Fair, requestingpermission to hold Annual Branch County 4-H Fair Parade on Saturday, August 2, <strong>2008</strong>.Council Action: Approved the request to hold the Annual Branch County 4-H Fair Parade onSaturday, August 2, <strong>2008</strong>.10. Memo from Mayor Wallace regarding board reappointments.Council Action: Approved the following board reappointments:Construction Board <strong>of</strong> Appeals• David Cole, term expiring May 2013Library Board• Rev. James Troust, term expiring May 2013Planning Commission• James Brown, term expiring May 2011• Alan Swain, term expiring May 2011Recreation Board• Rosemary Rial, term expiring May 2013Zoning Board <strong>of</strong> Appeals• Michael Renshaw, term expiring May 2011• Gordon Swan, term expiring May 2011• Jim Bilsborrow - Alternate, term expiring May 2011ACTION ON CONSENT AGENDAEND OF CONSENT AGENDACouncil Action: Motion by Councilmember Rice seconded by Councilmember Miller toapprove Consent Agenda Items 1-10. Motion carried.11. Bills and Accounts: $51,848.59


CITY COUNCIL MINUTESMay 12, <strong>2008</strong> Page 3Council Action: Motion by Councilmember Petzko seconded by Councilmember Rice to paybills and accounts in the amount <strong>of</strong> $51,848.59. Motion carried.12. Memo from Charlie Bauschard, Engineering Manager, regarding <strong>2008</strong>-09 Sidewalk RepairProject bids.Council Action: Motion by Councilmember Ortiz seconded by Councilmember Rice to awardthe <strong>2008</strong>-09 Sidewalk Repair Project bid to Hanshaw Construction, based on the tabulated unitprices and not to exceed $120,000.Ayes: 9Nays: 0Motion carried.13. Memo from Charlie Bauschard, Engineering Manager, regarding <strong>2008</strong>-09 New SidewalkConstruction Project bids.Staff is recommending Schley Construction for the new sidewalk construction project.Engineering Manager Bauschard indicated that even though Schley Construction was not the lowbidder; the cost difference is justified based on previous experience with this contractor inrelationship to overall project management, quality and workmanship.Council Action: Motion by Councilmember Petzko seconded by Councilmember Rice to awardthe <strong>2008</strong>-09 New Sidewalk Construction Project bid to Schley Construction, based on thetabulated unit pricing and not to exceed $80,000.Ayes: 9Nays: 0Motion carried.PUBLIC COMMENTSAdam Carpenter, 6<strong>05</strong> Blackberry, owner <strong>of</strong> Carpenter Creations, disagreed with the bidawarding for the new sidewalk and repair construction projects.UNFINISHED BUSINESS600 W. Chicago<strong>City</strong> Manager Stewart updated Council stating that the appraiser has met with <strong>City</strong> PlannerHilton and the process is underway.


CITY COUNCIL MINUTESMay 12, <strong>2008</strong> Page 4NEW BUSINESSMarmon PropertyMayor Wallace reported that environmental quality communications have taken place with theMarmon property committee. Therefore, <strong>City</strong> Manager Stewart has recommended, due to thefirm’s expertise in hazardous material issues, the appointment <strong>of</strong> Mr. Mike Ortega (Lewis Reed& Allen, P.C.) as the special city attorney for the Marmon property.Council Action: Motion by Councilmember Miller seconded by Councilmember Ortiz to acceptthe appointment <strong>of</strong> Mr. Mike Ortega (Lewis Reed & Allen, P.C.) as the attorney for the Marmonproperty project.Ayes: 9Nays: 0Motion carried.ADJOURNMENTNoting no other business to come before this Council, Mayor Gene Wallace adjourned themeeting.AdjournedRuth Ann Volkmer<strong>City</strong> Clerk


May 21, <strong>2008</strong>490-WRS-CMTO:Mayor Wallace and CouncilmembersFROM: Bill Stewart, <strong>City</strong> ManagerRE:<strong>City</strong> Manager’s ReportWe’re set for another memorable Memorial Day weekend and crossing our fingers thatMother Nature will be accommodating for a change. The DPW staff, particularly LeoStachowiak and Pat Mills, have made sure the swimming pool and water slide are readyto go. The storage shed and new pool pavilion with WiFi are ready to go, and we’rehoping for another record busting year for attendance. We’ve expanded the free access tothe entire Memorial Day weekend. It should be fun.* * *The Memorial Day and Civil War Re-enactment activities are set to go with the <strong>City</strong>providing support services where requested. The cemeteries are looking good. Specialthanks to Denny Scheidler and staff along with the support from the Correctional Facilitywork crews.* * *Over the last six years, the legislature has cut $3 billion from statutory revenue sharing tomeet the state’s budget priorities. The income tax increase along with the replacement <strong>of</strong>the Single Business Tax will not generate sufficient new revenue to <strong>of</strong>fset an anticipated$400,000,000 shortfall in the <strong>2008</strong>-09 state budget that becomes effective October 1. Theresult is that the governor’s recommended 4% increase in revenue sharing will not beforthcoming, putting additional strain on municipal budgets across the state.It has been more than a year since the governor’s task force issued its recommendationsregarding structural reforms that would address the continuing budget imbalance. Thereport was largely ignored with the focus on revenue enhancements. The governor andlegislative leaders have pledged no more tax increases. It will be interesting to see howthe revenue projections unfold over the next 12-18 months and the impact on localcommunities.* * *


2We’ve had 150 vegetation notices addressed since May 1. The staff is making anaggressive effort to preempt problems and citizen complaints that surface during the“green” time <strong>of</strong> year.* * *At the September 24, 2007, meeting, the Council authorized a $150,000 loan to WayneBabcock in support <strong>of</strong> renovation to the Kerr Building. Mr. Babcock recently made afinal commitment to do the project, and we initiated the dialog with the MEDC to gainapproval to do the loan from the non-discretionary CDBG funds the <strong>City</strong> maintains in itsreserves. After weeks <strong>of</strong> back and forth, it became apparent the MEDC was going to donothing but throw obstacles into the process, ostensibly because the feds were “crackingdown”, whatever that is supposed to mean.We have decided to extend the loan through funds in the discretionary RLF account the<strong>City</strong> maintains. It will have a balance greater than $100,000 after the loan is finalized.Mr. Babcock is eager to move forward with the project.* * *The Pedal Across Local Michigan (PALM) is again coming to <strong>Coldwater</strong>, setting upcamp June 24 on the grounds <strong>of</strong> Legg Middle School. There are more than 800 bikersregistered for the event, and we typically provide free access to the pool on that day foreveryone. If you have a chance to visit the area on that date, please do so. It is quite theevent and brings $$$ to the community. Former <strong>Coldwater</strong> police sergeant Tom Rose isa major promoter and organizer <strong>of</strong> the event.WRS/js


May 16, <strong>2008</strong>TO:Bill Stewart, <strong>City</strong> ManagerFROM: Laurie A. Adams, AssessorRE:Policy for Public Record Inspection <strong>of</strong> Assessment Rolls and AppraisalCardsPurpose & StatementThe purpose <strong>of</strong> this policy is to comply with MCL 211.10a <strong>of</strong> the General PropertyTax Act and requirements from the Michigan State Tax Commission Assessmentand Certification Division Local Unit Assessment Administration Practices,Procedures and Records that require the assessor to identify where and whenrecords are available for inspection and copying.1


P08-03CITY OF COLDWATEROffice <strong>of</strong> the <strong>City</strong> AssessorOne Grand St.<strong>Coldwater</strong>, MI 49036PUBLIC RECORD INSPECTION OR EXAMINATION POLICY____________________________________________________________I. Purpose. The purpose <strong>of</strong> this policy is to establish such procedures as are necessary tocomply with MCL 211.10a <strong>of</strong> the General Property Tax Act which requires the <strong>City</strong> <strong>of</strong><strong>Coldwater</strong> to have available for inspection or examination and copying all propertyassessment rolls and property record cards during the customary business hours.The Public Records Inspection or Examination Policy sets forth the <strong>City</strong>’s policies andprocedures regarding how requests for inspection <strong>of</strong> public records will be handled.II. Policy. It is the policy <strong>of</strong> the <strong>City</strong> to accommodate all requests to inspect and examine publicrecords under the custodian <strong>of</strong> said records and files during customary business hoursIII. Protection <strong>of</strong> Records. In order to safeguard public records and avoid unreasonableinterference with the discharge <strong>of</strong> <strong>City</strong> functions, the following guidelines shall apply whenrequests are made to examine public records.a. Records shall be made available for examination in the Municipal Building duringregular business hours and at such locations and time as will permit supervision <strong>of</strong> therecords examination by a member <strong>of</strong> <strong>City</strong> staff.b. During the examination <strong>of</strong> such records the custodian <strong>of</strong> such records will protect saidrecords and files.c. The <strong>of</strong>ficer shall prohibit the use <strong>of</strong> pen and ink in making copies or notes <strong>of</strong> recordsand files in his or her <strong>of</strong>fice. No books, records, and files shall be removed from the<strong>of</strong>fice <strong>of</strong> the custodian there<strong>of</strong>, except by the order <strong>of</strong> the judge <strong>of</strong> any court <strong>of</strong>competent jurisdiction, or in response to a subpoena duces tecum issued therefrom, orfor audit purposes conducted pursuant to 1919 PA 71, MCL 21.41 to 21.55, 1929 PA52, MCL 14.141 to 14.145, or 1968 PA 2, MCL 141.421 to 141.440a, with thepermission <strong>of</strong> the <strong>of</strong>ficial having custody <strong>of</strong> the records if the <strong>of</strong>ficial is given a receiptlisting the records being removed.d. Fees. Applied the same as FOIA Policy P06-02


May 9, <strong>2008</strong>TO:Bill Stewart, <strong>City</strong> ManagerFROM: Laurie Adams, <strong>City</strong> AssessorRE:IFT Revocation for Camshaft Machine Co., LLCCamshaft Machine Co., LLC has been unable to fulfill its obligation pursuant tothe provisions <strong>of</strong> Public Act 198 <strong>of</strong> 1974, as amended. The industrial facility wasto be located at 491 W. Garfield Rd., <strong>Coldwater</strong>. The personal propertyabatement granted consists <strong>of</strong> real and personal property. Industrial Facility TaxAbatement No. <strong>2008</strong>-007 was granted for $250,000 for 3 years for real propertyand $1,750,000 for personal property for 6 years.The following are suggested dates to consider for Council review and action:1. May <strong>27</strong>, <strong>2008</strong> – Approve resolution revoking IFT Certificate No. <strong>2008</strong>-007..1


RESOLUTION NO. 08-10<strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>Industrial Facilities Tax Exemption Certificate RevocationCamshaft Machine Co., LLC491 W. Garfield Avenue<strong>Coldwater</strong>, Michigan 49036WHEREAS, on November 12, 2007, the <strong>City</strong> Council <strong>of</strong> the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> approved anIndustrial Facilities Tax Exemption for new personal property for (6) six years in the amount<strong>of</strong> $1,750,000 and (3) three years for real property in the amount <strong>of</strong> $250,000, in favor <strong>of</strong>Camshaft Machine Co., LLC, 491 W. Garfield Avenue, <strong>Coldwater</strong>, Michigan, County <strong>of</strong>Branch, and the Michigan State Tax Commission (the “Commission) issued Certificate No.<strong>2008</strong>-007 (the “Certificate”); andWHEREAS, Public Act 198 <strong>of</strong> 1974, MCL 207.565 (the “Act) states in part that the localgovernmental unit may by resolution request the Commission to revoke a certificate if thepurpose for which the certificate was issued is not being fulfilled; andWHEREAS, Camshaft Machine Co., LLC, has not proceeded with the operation <strong>of</strong> thefacility; therefore, not fulfilling the requirements and the intent <strong>of</strong> the Act.THEREFORE, the <strong>City</strong> Council <strong>of</strong> the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> approves this Resolution revokingthe Real Property and Personal Property Industrial Facilities Tax Exemption Certificate No.<strong>2008</strong>-007.NOW THEREFORE, the <strong>City</strong> Council <strong>of</strong> the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> requests the Commission torevoke the Real Property and Personal Property Industrial Certificate No. <strong>2008</strong>-007 forCamshaft Machine Co., LLC, and requests that the Commission proceed to revoke theCertificate in accord with the Act.Ayes:Nays:Resolution Declared Adopted.Ruth Ann Volkmer, <strong>City</strong> ClerkI, Ruth Ann Volkmer, <strong>City</strong> Clerk, hereby certify that the above Resolution No. 08-10 is a trueand complete copy adopted by <strong>City</strong> Council at a Regular Meeting held May <strong>27</strong>, <strong>2008</strong>.Date: _______________________________________Ruth Ann Volkmer, <strong>City</strong> Clerk


May 20, <strong>2008</strong>TO:Bill Stewart, <strong>City</strong> ManagerFROM: Dave Sattler, DMS/Recreation DirectorRE:Mower PurchaseMower proposals were submitted to purchase three 42-44 inch mowers for use at thecemetery to replace six-year-old mowers:Following are the quotes:Seybert’s – <strong>Coldwater</strong>Gravely ZT 2444 44” $3,795.00 eachBates - <strong>Coldwater</strong>ExMark Phazer 44” 3,999.00 eachKev Kor – <strong>Coldwater</strong>Deines 48” 5,647.00 eachTrue Trim – <strong>Coldwater</strong>Walker 42” 5,885.00 eachMy recommendation is to purchase the three small mowers from Seybert’s for a total <strong>of</strong>$11,385.00. There are funds available in the cemetery budget for this.


May 13, <strong>2008</strong>TO:FROM:RE:<strong>City</strong> CouncilmembersMayor Gene WallaceAppointment to the Board <strong>of</strong> Public Utilities Board <strong>of</strong>DirectorsI am pleased to recommend the appointment <strong>of</strong> Craig Lynch to the Board <strong>of</strong>Public Utilities Board <strong>of</strong> Directors.Craig is the Executive Vice President and Chief Financial Officer forAlliance Associates, Inc., and his responsibilities include accounting, IT,HR and retail services. He has lived in <strong>Coldwater</strong> for 11 years with his wifeand family. Craig is a member <strong>of</strong> the <strong>Coldwater</strong> Noon Rotary.EFW/js


CITY OF COLDWATER Payment Approval Report by GL No - CITY Page: 1COLDWATER BD OF PUBLIC UTILITY Paid / Unpaid Invoices <strong>05</strong>/01/<strong>2008</strong> - <strong>05</strong>/31/<strong>2008</strong> May 22, <strong>2008</strong> 01:46pmReport Criteria:Invoice.Input Date = <strong>05</strong><strong>27</strong>08Invoice.GL Acct = 1010000000-4959999999, 5930000000-9999999999GL Acct No Vendor Vendor Name Description Amount101.101.7281 GENERAL FUND - LEGISLATIVE - LEGISLATIVE - MEMBERSHIP & DUES370 MICHIGAN MUNICIPAL LEAGUE <strong>2008</strong>-2009 MEMBERSHIP RENEWAL 4,698.00Total LEGISLATIVE 4,698.00101.172.7300 GENERAL FUND - CITY MANAGER - CITY MANAGER - TELEPHONE125 COLDWATER BOARD OF PUBLIC UTIL LONG DISTANCE - MANAGER 9.96 PDTotal CITY MANAGER 9.96101.215.7100 GENERAL FUND - CLERK - CLERK - OFFICE SUPPLIES520 SEAMAN OFFICE SUPPLY INC COPYHOLDER 13.97101.215.7300 GENERAL FUND - CLERK - CLERK - TELEPHONE125 COLDWATER BOARD OF PUBLIC UTIL LONG DISTANCE - CLERK 4.00 PDTotal CLERK 17.97101.253.7100 GENERAL FUND - FINANCE - FINANCE - OFFICE SUPPLIES480 QUALITY QUICKPRINT PRESSURE SENSITIVE LABEL FOR DELPP 31.50101.253.7300 GENERAL FUND - FINANCE - FINANCE - TELEPHONE1<strong>05</strong> CENTENNIAL WIRELESS CELL PHONE CHARGES 55.73125 COLDWATER BOARD OF PUBLIC UTIL LONG DISTANCE - FINANCE 12.08 PD67.81 *101.253.7420 GENERAL FUND - FINANCE - FINANCE - COMPUTER SOFTWARE & UPDATES790 EDS Micros<strong>of</strong>t Office Pr<strong>of</strong>essional Plus 2007 322.81Total FINANCE 422.12101.257.7100 GENERAL FUND - ASSESSOR - ASSESSOR - OFFICE SUPPLIES520 SEAMAN OFFICE SUPPLY INC LABELS 36.92Total ASSESSOR 36.92101.258.7100 GENERAL FUND - NETWORK ADMINISTRATOR - NETWORK ADMINISTRATOR - OFFICE SUPPLIES790 EDS Linksys Wireless-G Notebook Adapter WPC54G 2<strong>05</strong>.10101.258.7400 GENERAL FUND - NETWORK ADMINISTRATOR - NETWORK ADMINISTRATOR - EQUIPMENT REPAIRS AND MAINT790 EDS Dell M209X 3000 Hour Replacement Lamp 317.23790 EDS Dell M209X DLP Projector 1,153.<strong>27</strong>PD = Fully Paid Invoice PR = Partially Paid Invoice


CITY OF COLDWATER Payment Approval Report by GL No - CITY Page: 2COLDWATER BD OF PUBLIC UTILITY Paid / Unpaid Invoices <strong>05</strong>/01/<strong>2008</strong> - <strong>05</strong>/31/<strong>2008</strong> May 22, <strong>2008</strong> 01:46pmGL Acct No Vendor Vendor Name Description Amount1,470.50 *Total NETWORK ADMINISTRATOR 1,675.60101.262.7104 GENERAL FUND - ELECTIONS - ELECTIONS - OPERATING SUPPLIES1210 PRINTING SYSTEMS INC VOTER ID CARDS 167.521210 PRINTING SYSTEMS INC ENVELOPES FOR ABSENT BALLOTS OUTER LATE 168.301210 PRINTING SYSTEMS INC ENVELOPES FOR ABSENT BALLOT RETURN 251.95587.77 *Total ELECTIONS 587.77101.266.7252 GENERAL FUND - ATTORNEY - ATTORNEY - CONTRACTUAL SERVICES -CONTRACT65 BIRINGER HUTCHINSON LILLIS & CONTRACT SERVICES 6,993.75Total ATTORNEY 6,993.75101.<strong>27</strong>0.7100 GENERAL FUND - HLB BUILDING MAINTENANCE - HLB BUILDING MAINTENANCE - OFFICE SUPPLIES520 SEAMAN OFFICE SUPPLY INC TONER FOR CLJ3600 67.50101.<strong>27</strong>0.7104 GENERAL FUND - HLB BUILDING MAINTENANCE - HLB BUILDING MAINTENANCE - OPERATING SUPPLIES3093 HANDY LANDSCAPE SUPPLY LLC RED MULCH - HLB FLOWERBEDS 170.00101.<strong>27</strong>0.7303 GENERAL FUND - HLB BUILDING MAINTENANCE - HLB BUILDING MAINTENANCE - ELECTRIC125 COLDWATER BOARD OF PUBLIC UTIL 1 GRAND ST 3,955.99 PD125 COLDWATER BOARD OF PUBLIC UTIL 1 GRAND ST 3,786.58 PD7,742.57 *Total HLB BUILDING MAINTENANCE 7,980.07101.<strong>27</strong>6.7104 GENERAL FUND - CEMETERY - CEMETERY - OPERATING SUPPLIES1034 FAMILY FARM AND HOME LEAF RAKES 23.961034 FAMILY FARM AND HOME BOLT SNAP 5.981034 FAMILY FARM AND HOME WEED & FEED 18.001034 FAMILY FARM AND HOME GRASS SEED 50.501034 FAMILY FARM AND HOME SNAP BOLT 5.581034 FAMILY FARM AND HOME TARP 69.99174.01 *101.<strong>27</strong>6.7201 GENERAL FUND - CEMETERY - CEMETERY - MAINTENANCE151 CPS SUPPLY BOWL CLEANER 3.03151 CPS SUPPLY TOLIET PAPER 38.33151 CPS SUPPLY URNIAL BLOCKS 11.64151 CPS SUPPLY PAPER TOWELS 53.02151 CPS SUPPLY C FOLD TOWELS 53.68151 CPS SUPPLY TOLIET CLEANER 4.23163.93 *101.<strong>27</strong>6.7258 GENERAL FUND - CEMETERY - CEMETERY - CONTRACTUAL LABOR590 TIME INDUSTRIAL INC CONTRACT LABOR 480.0<strong>05</strong>90 TIME INDUSTRIAL INC CONTRACT LABOR 480.00960.00 *101.<strong>27</strong>6.7303 GENERAL FUND - CEMETERY - CEMETERY - ELECTRIC125 COLDWATER BOARD OF PUBLIC UTIL 809 W CHICAGO ST 181.36 PD125 COLDWATER BOARD OF PUBLIC UTIL 809 W CHICAGO ST 183.92 PDPD = Fully Paid Invoice PR = Partially Paid Invoice


CITY OF COLDWATER Payment Approval Report by GL No - CITY Page: 3COLDWATER BD OF PUBLIC UTILITY Paid / Unpaid Invoices <strong>05</strong>/01/<strong>2008</strong> - <strong>05</strong>/31/<strong>2008</strong> May 22, <strong>2008</strong> 01:46pmGL Acct No Vendor Vendor Name Description Amount365.28 *Total CEMETERY 1,663.22101.285.7252 GENERAL FUND - FORESTRY - FORESTRY - CONTRACTUAL SERVICES -CONTRACT42 ASPLUNDH TREE EXPERT CO TREE TRIMMERS 2,497.60Total FORESTRY 2,497.60101.299.4030 GENERAL FUND - UNALLOCATED - UNALLOCATED - CURRENT REAL PROPERTY TAX994 COLDWATER TOWNSHIP TREASURER PA 425 - LOAN OAK DEVELOPMENT 3,403.07994 COLDWATER TOWNSHIP TREASURER PA 425 - GROVES 1,482.84994 COLDWATER TOWNSHIP TREASURER PA 425 - WILLOWBROOK DEVELOPMENT LLC 2,770.71994 COLDWATER TOWNSHIP TREASURER PA 425 - REAGAN PROPERTIES 2,490.38994 COLDWATER TOWNSHIP TREASURER PA 425 - VISTA DRIVE 3,688.18994 COLDWATER TOWNSHIP TREASURER PA 425 - MEIJERS 15,378.04994 COLDWATER TOWNSHIP TREASURER PA 425 - PENNINGTON GAS 3,077.08994 COLDWATER TOWNSHIP TREASURER PA 425 - GRAHL INDUSTRIES 1,142.442576 GIRARD TOWNSHIP TREASURER PA - 425 WAL-MART DISTRIBUTION CENTER 37,548.8370,981.57 *101.299.7101 GENERAL FUND - UNALLOCATED - UNALLOCATED - POSTAGE604 UNITED PARCEL SERVICE DELIVERY CHARGES 42.85604 UNITED PARCEL SERVICE DELIVERY CHARGES <strong>27</strong>.51604 UNITED PARCEL SERVICE DELIVERY CHARGES 26.6897.04 *Total UNALLOCATED 97.04101.301.7022 GENERAL FUND - POLICE - POLICE - TRAVEL2646 JANET HOAG REIMBURSE MEAL FOR TRAINING 5.87101.301.7024 GENERAL FUND - POLICE - POLICE - TRAINING/EDUCATION1620 BEEMAN, PATRICK OUT OF TOWN TRAINING 40.722881 THORNTON, ROSE SOR TRAINING IN BATTLE CREEK 8.203580 MUSSER, KATHRYN TRAINING IN BATTLE CREEK 5.133983 MILLER, MARK ACTIVE SHOOTER INSTRUCTOR SCHOOL 29.8183.86 *101.301.7077 GENERAL FUND - POLICE - POLICE - LABOR -OPERATION1010 STATE OF MICHIGAN PUBLIC WORKS PROGRAM 250.53101.301.7103 GENERAL FUND - POLICE - POLICE - UNIFORMS838 COLDWATER CLEANERS UNIFORM CLEANING 152.001100 NYE UNIFORM COMPANY PANT 97.72249.72 *101.301.7104 GENERAL FUND - POLICE - POLICE - OPERATING SUPPLIES104 CEM SUPPLY INC PAINT FOR NEW SHOOTING RANGE 12.44101.301.71<strong>05</strong> GENERAL FUND - POLICE - POLICE - BUILDING SUPPLIES151 CPS SUPPLY TOILET PAPER 38.33245 GORDON'S CULLIGAN WATER 17.2555.58 *101.301.7252 GENERAL FUND - POLICE - POLICE - CONTRACTUAL SERVICES -CONTRACT3269 AMERICAN MESSAGING PAGER RENTAL 111.193663 STATE OF MICHIGAN LIVESCAN CHARGES 492.50PD = Fully Paid Invoice PR = Partially Paid Invoice


CITY OF COLDWATER Payment Approval Report by GL No - CITY Page: 4COLDWATER BD OF PUBLIC UTILITY Paid / Unpaid Invoices <strong>05</strong>/01/<strong>2008</strong> - <strong>05</strong>/31/<strong>2008</strong> May 22, <strong>2008</strong> 01:46pmGL Acct No Vendor Vendor Name Description Amount603.69 *101.301.7300 GENERAL FUND - POLICE - POLICE - TELEPHONE1<strong>05</strong> CENTENNIAL WIRELESS CELL PHONE CHARGES 25.54125 COLDWATER BOARD OF PUBLIC UTIL LONG DISTANCE - POLICE 189.59 PD215.13 *101.301.7303 GENERAL FUND - POLICE - POLICE - ELECTRIC125 COLDWATER BOARD OF PUBLIC UTIL 57-59 DIVISION ST 1,231.69 PD125 COLDWATER BOARD OF PUBLIC UTIL 57-59 DIVISION ST-A 43.43 PD125 COLDWATER BOARD OF PUBLIC UTIL 9 FARM LN 11.01 PD125 COLDWATER BOARD OF PUBLIC UTIL 9 FARM LN 10.89 PD125 COLDWATER BOARD OF PUBLIC UTIL 51 VANS AVE 11.25 PD125 COLDWATER BOARD OF PUBLIC UTIL 51 VANS AVE 11.13 PD125 COLDWATER BOARD OF PUBLIC UTIL 7 INDUSTRIAL AVE 11.01 PD125 COLDWATER BOARD OF PUBLIC UTIL 7 INDUSTRIAL AVE 11.13 PD125 COLDWATER BOARD OF PUBLIC UTIL 303 W CHICAGO ST .85 PD125 COLDWATER BOARD OF PUBLIC UTIL 590 RACE ST 9.90 PD125 COLDWATER BOARD OF PUBLIC UTIL 590 RACE ST 9.90 PD125 COLDWATER BOARD OF PUBLIC UTIL 307 E CHICAGO ST 11.62 PD125 COLDWATER BOARD OF PUBLIC UTIL 123 GRAND ST 19.74 PD125 COLDWATER BOARD OF PUBLIC UTIL 740 E CHICAGO ST #A 18.90 PD1,412.45 *101.301.7402 GENERAL FUND - POLICE - POLICE - BUILDING REPAIRS AND MAINT955 LARRY'S LOCK & SAFE SERVICE INSTALL MEDECO 866.87955 LARRY'S LOCK & SAFE SERVICE INSTALL SIMPLEX-PUSH BUTTON ACCESS CONTROL LEVER LO 190.00955 LARRY'S LOCK & SAFE SERVICE RECOMBINATED SIMPLEX 164.50955 LARRY'S LOCK & SAFE SERVICE REPAIR SIMPLEX PROBLEM 119.001,340.37 *Total POLICE 4,229.64101.336.7100 GENERAL FUND - FIRE - FIRE - OFFICE SUPPLIES576 TAYLOR'S STATIONERS CHAIR 130.99101.336.7103 GENERAL FUND - FIRE - FIRE - UNIFORMS838 COLDWATER CLEANERS UNIFORM CLEANING 101.50101.336.7300 GENERAL FUND - FIRE - FIRE - TELEPHONE1<strong>05</strong> CENTENNIAL WIRELESS CELL PHONE CHARGES 25.55125 COLDWATER BOARD OF PUBLIC UTIL LONG DISTANCE - FIRE 14.00 PD39.55 *101.336.7303 GENERAL FUND - FIRE - FIRE - ELECTRIC125 COLDWATER BOARD OF PUBLIC UTIL 57-59 DIVISION ST 1,231.69 PD125 COLDWATER BOARD OF PUBLIC UTIL 57-59 DIVISION ST-A 43.43 PD1,<strong>27</strong>5.12 *101.336.7400 GENERAL FUND - FIRE - FIRE - EQUIPMENT REPAIRS AND MAINT97 CARQUEST AUTO PARTS SUPER D III 40W & 15W40 181.021066 STOOPS FREIGHTLINER-FREMONT ENGINE #3 REPAIRS 1,740.091,921.11 *101.336.7402 GENERAL FUND - FIRE - FIRE - BUILDING REPAIRS AND MAINT955 LARRY'S LOCK & SAFE SERVICE REKEYED BACK DOOR, KEYS, LOCK CYLINDER 361.98955 LARRY'S LOCK & SAFE SERVICE INSTALL SIMPLEX-PUSH BUTTON ACCESS CONTROL LEVER LO 296.37658.35 *101.336.74<strong>05</strong> GENERAL FUND - FIRE - FIRE - HYDRANT RENTAL125 COLDWATER BOARD OF PUBLIC UTIL 1 GRAND ST - HYDRANTS 9,216.91 PDPD = Fully Paid Invoice PR = Partially Paid Invoice


CITY OF COLDWATER Payment Approval Report by GL No - CITY Page: 5COLDWATER BD OF PUBLIC UTILITY Paid / Unpaid Invoices <strong>05</strong>/01/<strong>2008</strong> - <strong>05</strong>/31/<strong>2008</strong> May 22, <strong>2008</strong> 01:46pmGL Acct No Vendor Vendor Name Description AmountTotal FIRE 13,343.53101.346.7104 GENERAL FUND - PUBLIC WORKS - PUBLIC WORKS - OPERATING SUPPLIES3982 BRANCH COUNTY CONSERVATION STORM DRAIN MONUMENT & MATERIALS REIMB 319 CITY PROJ 875.00101.346.71<strong>05</strong> GENERAL FUND - PUBLIC WORKS - PUBLIC WORKS - BUILDING SUPPLIES117 CINTAS CORPORATION MAT RENTAL 64.52117 CINTAS CORPORATION MAT RENTAL 57.37121.89 *101.346.7252 GENERAL FUND - PUBLIC WORKS - PUBLIC WORKS - CONTRACTUAL SERVICES -CONTRACT3856 BARONE, STEPHANIE GENERAL WORK FOR PARKS & REC DEPT 108.00101.346.7300 GENERAL FUND - PUBLIC WORKS - PUBLIC WORKS - TELEPHONE125 COLDWATER BOARD OF PUBLIC UTIL LONG DISTANCE - DMS 57.47 PD101.346.7303 GENERAL FUND - PUBLIC WORKS - PUBLIC WORKS - ELECTRIC125 COLDWATER BOARD OF PUBLIC UTIL 1776 HERITAGE PARK DR 9.90 PD125 COLDWATER BOARD OF PUBLIC UTIL 1776 HERITAGE PARK DR 10.02 PD19.92 *Total PUBLIC WORKS 1,182.28101.347.7420 GENERAL FUND - ENGINEERING - ENGINEERING - COMPUTER SOFTWARE & UPDATES790 EDS 1 GB MEMORY MODULE 141.60790 EDS 1 GB MEMORY MODULE 141.603362 MPOWER TECHNOLOGIES INTEGRATOR-SUBSCRIPTION 1,250.001,533.20 *Total ENGINEERING 1,533.20101.348.8100 GENERAL FUND - STREET LIGHTING - 101.348.8 - STREET LIGHTING125 COLDWATER BOARD OF PUBLIC UTIL 1 GRAND ST - STREETLIGHTS 15,931.42 PD142 CONSUMERS ENERGY STREETLIGHTING-0909045633007 70.4016,001.82 *Total STREET LIGHTING 16,001.82101.352.7204 GENERAL FUND - MECHANIC - MECHANIC - TIRES161 DALLY TIRE COMPANY TIRE REPAIR 45.00101.352.7208 GENERAL FUND - MECHANIC - MECHANIC - SUPPLIES REPAIR PARTS38 ARNOLD AUTO PARTS CO INC SLEEVE 32.8038 ARNOLD AUTO PARTS CO INC HOSE 280.0038 ARNOLD AUTO PARTS CO INC FITTING 16.9854 BATES TRACTOR & EQUIP INC PULLEY 40.8654 BATES TRACTOR & EQUIP INC SPINDLE 174.6754 BATES TRACTOR & EQUIP INC 11.49636 WELLS EQUIPMENT SALES INC GASKET 10.78636 WELLS EQUIPMENT SALES INC SENSOR 79.<strong>05</strong>636 WELLS EQUIPMENT SALES INC SLEEVE 12.72677 COLE/STORY RELAY - DIRECT 17.631561 C & C DISTRIBUTORS PREM STARER C 11.48PD = Fully Paid Invoice PR = Partially Paid Invoice


CITY OF COLDWATER Payment Approval Report by GL No - CITY Page: 6COLDWATER BD OF PUBLIC UTILITY Paid / Unpaid Invoices <strong>05</strong>/01/<strong>2008</strong> - <strong>05</strong>/31/<strong>2008</strong> May 22, <strong>2008</strong> 01:46pmGL Acct No Vendor Vendor Name Description Amount1561 C & C DISTRIBUTORS PREMIUM START 13.461561 C & C DISTRIBUTORS PREMIUM STARTER 20.661561 C & C DISTRIBUTORS HANDLE 10.23<strong>27</strong>60 ELECTRICAL TERMINAL SERVICE ELECTRICAL PARTS 69.142919 AUTO VALUE COLDWATER fEMALE BODY(AIRLINE COUPLER) 5.202919 AUTO VALUE COLDWATER BRAKE ROTOR 176.442919 AUTO VALUE COLDWATER NON-CHLOR BK CLN 47.762919 AUTO VALUE COLDWATER ULTRA MET PAD 24.662919 AUTO VALUE COLDWATER ROTOR 107.502919 AUTO VALUE COLDWATER BRAKE ROTOR 170.002919 AUTO VALUE COLDWATER ROTOR 107.50 -2919 AUTO VALUE COLDWATER ROTOR 21.222919 AUTO VALUE COLDWATER AIR FILTER <strong>27</strong>.322919 AUTO VALUE COLDWATER ROTOR 21.22 -2919 AUTO VALUE COLDWATER fuel filter 39.502919 AUTO VALUE COLDWATER Trailer CONNECTOR 18.312919 AUTO VALUE COLDWATER CONNECTOR 3.752919 AUTO VALUE COLDWATER REAR WHEEL SEAL 41.40 -2919 AUTO VALUE COLDWATER ULTRA MET PAD 24.66 -2919 AUTO VALUE COLDWATER SUPER COIL 29.992919 AUTO VALUE COLDWATER 12 V AUTO 78.002919 AUTO VALUE COLDWATER 12V BAT 10.00 -2919 AUTO VALUE COLDWATER E.G.R. VALVE POSI 34.952919 AUTO VALUE COLDWATER Trailer CONNECTOR 4.551,386.32 *101.352.7303 GENERAL FUND - MECHANIC - MECHANIC - ELECTRIC125 COLDWATER BOARD OF PUBLIC UTIL 45 INDUSTRIAL AVE 492.24 PD125 COLDWATER BOARD OF PUBLIC UTIL 45 INDUSTRIAL AVE 453.72 PD125 COLDWATER BOARD OF PUBLIC UTIL 55 INDUSTRIAL AVE 619.42 PD125 COLDWATER BOARD OF PUBLIC UTIL 55 INDUSTRIAL AVE 551.93 PD125 COLDWATER BOARD OF PUBLIC UTIL 55 INDUSTRIAL AVE-A 123.81 PD125 COLDWATER BOARD OF PUBLIC UTIL 55 INDUSTRIAL AVE-A 129.67 PD2,370.79 *Total MECHANIC 3,802.11101.371.7100 GENERAL FUND - NEIGHBORHOOD SERVICES - NEIGHBORHOOD SERVICES - OFFICE SUPPLIES520 SEAMAN OFFICE SUPPLY INC OFFICE SUPPLIES 65.13101.371.7103 GENERAL FUND - NEIGHBORHOOD SERVICES - NEIGHBORHOOD SERVICES - UNIFORMS838 COLDWATER CLEANERS UNIFORM CLEANING 84.00101.371.7252 GENERAL FUND - NEIGHBORHOOD SERVICES - NEIGHBORHOOD SERVICES - CONTRACTUAL SERVICES -CONTRA3535 DEAL, WALTER LAWN SERVICE-167 JACKSON ST 35.00101.371.7300 GENERAL FUND - NEIGHBORHOOD SERVICES - NEIGHBORHOOD SERVICES - TELEPHONE125 COLDWATER BOARD OF PUBLIC UTIL LONG DISTANCE - NSD 6.89 PD101.371.7420 GENERAL FUND - NEIGHBORHOOD SERVICES - NEIGHBORHOOD SERVICES - COMPUTER SOFTWARE & UPDATES790 EDS Micros<strong>of</strong>t Office Pr<strong>of</strong>essional Plus 2007 322.81101.371.9700 GENERAL FUND - NEIGHBORHOOD SERVICES - 101.371.9 - CAPITAL OUTLAY790 EDS OptiPlex 755 Minitower 1,038.40Total NEIGHBORHOOD SERVICES 1,552.23PD = Fully Paid Invoice PR = Partially Paid Invoice


CITY OF COLDWATER Payment Approval Report by GL No - CITY Page: 7COLDWATER BD OF PUBLIC UTILITY Paid / Unpaid Invoices <strong>05</strong>/01/<strong>2008</strong> - <strong>05</strong>/31/<strong>2008</strong> May 22, <strong>2008</strong> 01:46pmGL Acct No Vendor Vendor Name Description Amount101.721.7024 GENERAL FUND - PLANNING - PLANNING - TRAINING/EDUCATION3380 MICHIGAN ASSOCIATION OF SMALL TOWN & RURAL PLANNING PROG-MEMBER 65.003976 ADAM WRIGHT INVESTMENTS LUNCHES FOR VISIONING SESSION 244.65309.65 *Total PLANNING 309.65101.751.6440 GENERAL FUND - RECREATION ACTIVITIES - 101.751.6 - CHARGE FOR SERVICE- RECREATION3979 CASE, LEE SOFTBALL PLAYER REFUND 20.003980 MILLS SUPPLY SOFTBALL PLAYER REFUNDS 200.00220.00 *101.751.71<strong>05</strong> GENERAL FUND - RECREATION ACTIVITIES - RECREATION ACTIVITIES - BUILDING SUPPLIES151 CPS SUPPLY C FOLD TOWELS 26.84101.751.7252 GENERAL FUND - RECREATION ACTIVITIES - RECREATION ACTIVITIES - CONTRACTUAL SERVICES -CONTRACT117 CINTAS CORPORATION MAT RENTAL 116.85642 WIL-MAC SALES & SERVICE INC 8 BACKFLOW PREVENTER TEST & NECESSARY REPAIRS 1,933.683856 BARONE, STEPHANIE GENERAL WORK FOR PARKS & REC DEPT 224.003891 EVERGREEN PEST CONTROL INC Pest Control 95.002,369.53 *101.751.7258 GENERAL FUND - RECREATION ACTIVITIES - RECREATION ACTIVITIES - CONTRACTUAL LABOR345 MANPOWER OF LANSING MICHIGAN CONTRACT LABOR 723.00345 MANPOWER OF LANSING MICHIGAN CONTRACT LABOR 587.001,310.00 *101.751.7300 GENERAL FUND - RECREATION ACTIVITIES - RECREATION ACTIVITIES - TELEPHONE125 COLDWATER BOARD OF PUBLIC UTIL LONG DISTANCE - REC 13.19 PD101.751.7303 GENERAL FUND - RECREATION ACTIVITIES - RECREATION ACTIVITIES - ELECTRIC125 COLDWATER BOARD OF PUBLIC UTIL 2001 HERITAGE PARK DR 108.34 PD125 COLDWATER BOARD OF PUBLIC UTIL 2001 HERITAGE PARK DR 143.<strong>05</strong> PD125 COLDWATER BOARD OF PUBLIC UTIL 1776 HERITAGE PARK DR 1,223.94 PD125 COLDWATER BOARD OF PUBLIC UTIL 1776 HERITAGE PARK DR 1,035.31 PD2,510.64 *Total RECREATION ACTIVITIES 6,230.20101.753.7104 GENERAL FUND - HERITAGE POOL - HERITAGE POOL - OPERATING SUPPLIES151 CPS SUPPLY ROLLED PAPER TOWELS & TOILET PAPER 91.35312 KENDALL ELECTRIC INC LAMP WHITE 348.57312 KENDALL ELECTRIC INC CONNECTOR 13.24312 KENDALL ELECTRIC INC LAMP 31.93312 KENDALL ELECTRIC INC FITTING 5.06312 KENDALL ELECTRIC INC SJ PIG TAIL BLACK 6.95368 MICHIGAN GRAPHIC ARTS LLC T-shirts 576.001,073.10 *101.753.7303 GENERAL FUND - HERITAGE POOL - HERITAGE POOL - ELECTRIC125 COLDWATER BOARD OF PUBLIC UTIL 1492 HERITAGE PARK DR 14.88 PD125 COLDWATER BOARD OF PUBLIC UTIL 1492 HERITAGE PARK DR 19.63 PD125 COLDWATER BOARD OF PUBLIC UTIL 1492 HERITAGE DR - POOL 159.57 PD125 COLDWATER BOARD OF PUBLIC UTIL 1492 HERITAGE DR - POOL 436.50 PD125 COLDWATER BOARD OF PUBLIC UTIL 1492 HERITAGE DR #1 9.90 PD125 COLDWATER BOARD OF PUBLIC UTIL 1492 HERITAGE DR #1 9.90 PDPD = Fully Paid Invoice PR = Partially Paid Invoice


CITY OF COLDWATER Payment Approval Report by GL No - CITY Page: 8COLDWATER BD OF PUBLIC UTILITY Paid / Unpaid Invoices <strong>05</strong>/01/<strong>2008</strong> - <strong>05</strong>/31/<strong>2008</strong> May 22, <strong>2008</strong> 01:46pmGL Acct No Vendor Vendor Name Description Amount650.38 *101.753.9700 GENERAL FUND - HERITAGE POOL - 101.753.9 - CAPITAL OUTLAY3981 CARPENTER CREATIONS INC <strong>2008</strong> POOL PAVILION-STORAGE BLDG PROJECT 1,440.003981 CARPENTER CREATIONS INC <strong>2008</strong> POOL PAVILION-STORAGE BLDG PROJECT 1,000.003981 CARPENTER CREATIONS INC <strong>2008</strong> POOL PAVILION-STORAGE BLDG PROJECT 24,985.00<strong>27</strong>,425.00 *Total HERITAGE POOL 29,148.48101.758.7258 GENERAL FUND - HERITAGE SERVICE BUILDING - HERITAGE SERVICE BUILDING - CONTRACTUAL LABOR345 MANPOWER OF LANSING MICHIGAN CONTRACT LABOR 35.20345 MANPOWER OF LANSING MICHIGAN CONTRACT LABOR 35.7670.96 *Total HERITAGE SERVICE BUILDING 70.96101.770.7104 GENERAL FUND - PARK MAINTENANCE - PARK MAINTENANCE - OPERATING SUPPLIES141 CONSUMERS CONCRETE CORPORATI 5.5 SACK CONCRETE 320.25151 CPS SUPPLY TOLIET PAPER 76.66151 CPS SUPPLY T. BRUSH 6.70151 CPS SUPPLY JOHNNY MOP 1.90332 LEGG LUMBER COMPANY INC WASHERS 6.60332 LEGG LUMBER COMPANY INC SCREW 12.103093 HANDY LANDSCAPE SUPPLY LLC RED MULCH-4 CORNERS PARK 340.003426 BRINK WOOD PRODUCTS 70 C YARDS OF INSTALLATION 700.003426 BRINK WOOD PRODUCTS 70 C YARDS PLAYGROUND MULCH 1,118.002,582.21 *101.770.7303 GENERAL FUND - PARK MAINTENANCE - PARK MAINTENANCE - ELECTRIC125 COLDWATER BOARD OF PUBLIC UTIL 3 DIVISION ST 9.90 PD125 COLDWATER BOARD OF PUBLIC UTIL 4 DIVISION ST 10.02 PD125 COLDWATER BOARD OF PUBLIC UTIL 394 N MICHIGAN AVE 11.38 PD125 COLDWATER BOARD OF PUBLIC UTIL 394 N MICHIGAN AVE 11.50 PD125 COLDWATER BOARD OF PUBLIC UTIL 1000 HERITAGE PARK DR 30.45 PD125 COLDWATER BOARD OF PUBLIC UTIL 1000 HERITAGE PARK DR <strong>27</strong>.16 PD125 COLDWATER BOARD OF PUBLIC UTIL 6 DIVISION ST 9.90 PD125 COLDWATER BOARD OF PUBLIC UTIL 197 NORTHSHORE DR 9.90 PD125 COLDWATER BOARD OF PUBLIC UTIL 197 NORTHSHORE DR 9.90 PD125 COLDWATER BOARD OF PUBLIC UTIL 5 MARSHALL ST 13.10 PD125 COLDWATER BOARD OF PUBLIC UTIL 5 MARSHALL ST 12.98 PD125 COLDWATER BOARD OF PUBLIC UTIL 6 MARSHALL ST 10.64 PD125 COLDWATER BOARD OF PUBLIC UTIL 6 MARSHALL ST 16.42 PD125 COLDWATER BOARD OF PUBLIC UTIL 58 PARKHURST AVE 24.78 PD125 COLDWATER BOARD OF PUBLIC UTIL 58 PARKHURST AVE 46.21 PD125 COLDWATER BOARD OF PUBLIC UTIL 36 PARKHURST AVE 13.71 PD125 COLDWATER BOARD OF PUBLIC UTIL 36 PARKHURST AVE 13.23 PD125 COLDWATER BOARD OF PUBLIC UTIL 76 PARKHURST AVE 9.90 PD125 COLDWATER BOARD OF PUBLIC UTIL 76 PARKHURST AVE 9.90 PD125 COLDWATER BOARD OF PUBLIC UTIL 1812 HERITAGE PARK DR - OFFICE 119.52 PD125 COLDWATER BOARD OF PUBLIC UTIL 1812 HERITAGE PARK DR-OFFICE 132.91 PD125 COLDWATER BOARD OF PUBLIC UTIL 699 W CHICAGO ST 19.38 PD125 COLDWATER BOARD OF PUBLIC UTIL 911 HERITAGE DR 14.88 PD125 COLDWATER BOARD OF PUBLIC UTIL 911 HERITAGE DR 29.31 PD125 COLDWATER BOARD OF PUBLIC UTIL 25 RUMSEY PLAZA 10.52 PD125 COLDWATER BOARD OF PUBLIC UTIL 5 RUMSEY PLAZA 10.<strong>27</strong> PD125 COLDWATER BOARD OF PUBLIC UTIL 511 E CHICAGO ST 11.62 PD125 COLDWATER BOARD OF PUBLIC UTIL 511 E CHICAGO ST 30.37 PDPD = Fully Paid Invoice PR = Partially Paid Invoice


CITY OF COLDWATER Payment Approval Report by GL No - CITY Page: 9COLDWATER BD OF PUBLIC UTILITY Paid / Unpaid Invoices <strong>05</strong>/01/<strong>2008</strong> - <strong>05</strong>/31/<strong>2008</strong> May 22, <strong>2008</strong> 01:46pmGL Acct No Vendor Vendor Name Description Amount125 COLDWATER BOARD OF PUBLIC UTIL 413 S CLAY ST 33.65 PD125 COLDWATER BOARD OF PUBLIC UTIL 413 S CLAY ST 32.46 PD125 COLDWATER BOARD OF PUBLIC UTIL 736 W CHICAGO ST 33.16 PD125 COLDWATER BOARD OF PUBLIC UTIL 736 W CHICAGO ST 31.10 PD125 COLDWATER BOARD OF PUBLIC UTIL 568 MARSHALL RD 31.47 PD125 COLDWATER BOARD OF PUBLIC UTIL 239 NORTHSHORE DR 185.72 PD125 COLDWATER BOARD OF PUBLIC UTIL 239 NORTHSHORE DR 176.49 PD1,203.81 *Total PARK MAINTENANCE 3,786.02Total GENERAL FUND 179,071.71202.440.7252 MAJOR STREET FUND - STREET IMPROVEMENT - STREET IMPROVEMENT - CONTRACTUAL SERVICES -CONTRACT734 STATE OF MICHIGAN HOT MIX ASPHALT SURFACING WORK 1,225.86Total STREET IMPROVEMENT 1,225.86202.476.7258 MAJOR STREET FUND - TRAFFIC MTNE SIGNALS - TRAFFIC MTNE SIGNALS - CONTRACTUAL LABOR125 COLDWATER BOARD OF PUBLIC UTIL ENERGY COSTS - STOP N GO SIGNALS 902.99 PDTotal TRAFFIC MTNE SIGNALS 902.99202.486.7258 MAJOR STREET FUND - TRNKLN MTNE TRAFFIC - TRNKLN MTNE TRAFFIC - CONTRACTUAL LABOR125 COLDWATER BOARD OF PUBLIC UTIL ENERGY COSTS - STOP N GO SIGNALS 902.99 PDTotal TRNKLN MTNE TRAFFIC 902.99Total MAJOR STREET FUND 3,031.84460.000.7252 CAPITAL IMPROVEMENT FUND - CAPITAL IMPROVEMENT FUND - CAPITAL IMPROVEMENT - CONTRACTUAL SERVIC448 PARRISH EXCAVATING INC FEDERAL MOGUL BUILDING DEMOLITION 33,817.73Total CAPITAL IMPROVEMENT FUND 33,817.73Total CAPITAL IMPROVEMENT FUND 33,817.73593.000.7258 RUBBISH FUND - RUBBISH FUND - RUBBISH - CONTRACTUAL LABOR595 TRILLIUM STAFFING SOLUTIONS CONTRACT LABOR 492.8<strong>05</strong>95 TRILLIUM STAFFING SOLUTIONS CONTRACT LABOR 518.98PD = Fully Paid Invoice PR = Partially Paid Invoice


CITY OF COLDWATER Payment Approval Report by GL No - CITY Page: 10COLDWATER BD OF PUBLIC UTILITY Paid / Unpaid Invoices <strong>05</strong>/01/<strong>2008</strong> - <strong>05</strong>/31/<strong>2008</strong> May 22, <strong>2008</strong> 01:46pmGL Acct No Vendor Vendor Name Description Amount1,011.78 *Total RUBBISH FUND 1,011.78Total RUBBISH FUND 1,011.78Grand Total: 216,933.06Report Criteria:Invoice.Input Date = <strong>05</strong><strong>27</strong>08Invoice.GL Acct = 1010000000-4959999999, 5930000000-9999999999PD = Fully Paid Invoice PR = Partially Paid Invoice


REAL PROPERTY APPRAISALSUMMARY REPORTINGVACANT TRANSITIONAL LAND600 WEST CHICAGO STREETCOLDWATER, MICHIGAN 49036OWNERCITY OF COLDWATERDATE OF REPORTMAY 18, <strong>2008</strong>PREPARED FORMR. WILLIAM R STEWARTCITY MANAGERCITY OF COLDWATER1 GRAND STREETCOLDWATER, MICHIGAN 49036PREPARED BYMARK S. BOVEE, MAIMICHIGAN CERTIFIED GENERAL APPRAISERLICENSE NO. 1201007069ALL APPRAISALS, INC.119½ WEST MAUMEE STREET (SUITE B)ANGOLA, INDIANA 46703


ALL APPRAISALS, INC.Commercial•Industrial•BusinessMark S. Bovee, MAI119 ½ W Maumee St.Suite BAngola, IN 46703Phone (260) 665-2987 Ext. 3FAX (260) 665-5370Email: mark@allappraisalsinc.comMay 18, <strong>2008</strong>Mr. William R Stewart<strong>City</strong> Manager<strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>1 Grand Street<strong>Coldwater</strong>, MI 49036Re:600 West Chicago Street, <strong>Coldwater</strong>, MI 49036 (former Federal Mogulproperty)Dear Mr. Stewart:In fulfillment <strong>of</strong> your authorization <strong>of</strong> May 5, <strong>2008</strong>, I am pleased to present theattached report <strong>of</strong> my appraisal <strong>of</strong> the Fee Simple interest in the referenced realestate as <strong>of</strong> May 7, <strong>2008</strong>. The report sets forth my opinion <strong>of</strong> market valuealong with supporting data and reasoning which form the basis <strong>of</strong> thatopinion.The value opinion reported is qualified by certain definitions, limitingconditions, and certifications which are set forth on pages 6 through 8 <strong>of</strong> thisreport.The report was prepared for Mr. William R. Stewart and the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>,Michigan. My pr<strong>of</strong>essional fee is billed to the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>. It is myunderstanding that the report and value conclusions are to be used in assetdisposition. The report should not be relied upon by other persons or entitieswithout my written permission.The attached appraisal report has been prepared in compliance with theUniform Standards <strong>of</strong> Pr<strong>of</strong>essional Appraisal Practice, and is reported underStandards Rule 2-2(b). Included are descriptions and analyses <strong>of</strong> the realestate, market study, sales comparison approach, as well as supportingdocuments to the attached report.A level “C” market study is included in this report. The level “C” study refers toinferred and fundamental analysis <strong>of</strong> regional, area, and local economicconditions that affect the subject under its maximally productive economic useas transitional development land.The analyses and conclusions within the attached summary report are basedupon field research, interviews with market participants, publicly availabledata, and proprietary information collected by the appraiser.


The property was inspected by Mark S. Bovee, MAI. If you have any questionsconcerning the report, please contact Mark Bovee at (260) 665-2987 ext. 3.In the final value opinion presented in this report, no consideration is given totangible or intangible personal property (if applicable) including furniture,fixtures, equipment, licenses, contracts, patients, copyrights, trademarks,royalties, trade names, brand names, service marks or names, intellectualproperty either exploited or unexploited, assembled workforces, goodwill, cash,securities, derivatives, or other intangible assets. The appraisal reflects myopinion <strong>of</strong> market value for the real property only under its highest and bestuse.As a result <strong>of</strong> my analysis, I have formed an opinion that the market value infee simple estate <strong>of</strong> the real property “as is”, physically located at 600 WestChicago Street, <strong>Coldwater</strong>, Michigan, being more specifically identified as avacant 26.<strong>05</strong> acre tract <strong>of</strong> land and subject to the definitions, certifications,limiting conditions, set forth in the attached Report, as <strong>of</strong> May 7, <strong>2008</strong>, is:THREE HUNDRED FORTY THOUSAND DOLLARS ($340,000.00)THIS LETTER MUST REMAIN ATTACHED TO THE REPORT, WHICH CONTAINS63 PAGES PLUS RELATED EXHIBITS AND TRANSMITTAL PAGE(S), IN ORDERFOR THE VALUE OPINION SET FORTH TO BE CONSIDERED VALID.Real Property Appraisers are required to be licensed and areregulated by the Michigan Department <strong>of</strong> Labor & EconomicGrowth (DLEG), P.O. Box 30018, Lansing, Michigan 48909Sincerely,Mark S. Bovee, MAIMichigan Certified General AppraiserLicense No. 1201007069Did inspect the property


Table <strong>of</strong> ContentsTable <strong>of</strong> Contents .............................................................................................. iSummary <strong>of</strong> Salient Facts..................................................................................iiCertification Statement..................................................................................... 1Subject Property Photographs.......................................................................... 2Brief Identification <strong>of</strong> the Real Estate Under Appraisal ...................................... 5Scope <strong>of</strong> Work.................................................................................................. 5Statement <strong>of</strong> General Assumptions .................................................................. 6Statement <strong>of</strong> General Limiting Conditions......................................................... 7Soil Conditions ................................................................................................. 9Wetlands.......................................................................................................... 9Superfund/Brownfield Contingencies................................................................ 9Competency ..................................................................................................... 9Client................................................................................................................ 9Real Estate Interest........................................................................................... 9Fee Simple Interest........................................................................................... 9Effective Date <strong>of</strong> the Appraisal and Date <strong>of</strong> Reporting..................................... 10Real Estate Taxes ........................................................................................... 10Marketing and Exposure Time........................................................................ 10History <strong>of</strong> Ownership ..................................................................................... 10Flood Zone ..................................................................................................... 12Definition <strong>of</strong> Market Value .............................................................................. 12Area and Regional Analysis ............................................................................ 14<strong>Coldwater</strong> Michigan – Micropolitan Statistical Area........................................ 14Branch County Analysis ................................................................................. 15Neighborhood Analysis .................................................................................. 20Site and Building Descriptions........................................................................ 21Site Map ........................................................................................................ 22Aerial Photograph........................................................................................... 23Market Study Analysis ................................................................................... 24Highest and Best Use as though Vacant......................................................... 40Highest and Best Use as Improved................................................................. 44The Appraisal Process & Approaches to Value ............................................... 45Sales Comparison Approach to Value............................................................. 46Discussion <strong>of</strong> Sales not Considered................................................................ 58Conclusion and Reconciliation <strong>of</strong> Value .......................................................... 60Curriculum Vitae............................................................................................. 62i


Summary <strong>of</strong> Salient FactsAddress:600 West Chicago St.<strong>Coldwater</strong>, MI 49036Parcel ID: 12-303-000-000-930-00Owner:Property Rights Appraised:Appraisal Report Format:Property Use:Highest and Best Use:Zoning:Value:Improvements:Other:<strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>Fee SimpleSummaryTransitional Development LandVacant – Transitional/DevelopmentImproved – Commercial/ResidentialA-2 (one & two family residential)Market ValueNonePerimeter FencingLand Area (Acres): 26.<strong>05</strong>Flood Designation:Appraiser:Zone X Area outside 500-year plainMark S. Bovee, MAIAll Appraisals, Inc.119 ½ W Maumee Street Suite BAngola, IN 46703Effective Date <strong>of</strong> Valuation: May 7, <strong>2008</strong>Date <strong>of</strong> Report: May 18, <strong>2008</strong>Client:Value IndicationsMr. William R Stewart<strong>City</strong> Manager<strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>1 Grand Street<strong>Coldwater</strong>, MI 49036Cost Approach – Not DevelopedSales Comparison Approach - $340,000.00Income Approach – Not DevelopedFinal Value Indications: $340,000.00Unit Price ($/Acre): $13,<strong>05</strong>2.00ii


CERTIFICATION STATEMENTCertification StatementI certify that, to the best <strong>of</strong> my knowledge and belief:• the statement <strong>of</strong> facts contained in this report are true and correct.• the reported analysis, opinions, and conclusions are limited only by thereported assumptions and limiting conditions and are my personal,impartial, and unbiased pr<strong>of</strong>essional analyses, opinions, and conclusions.• I have no present or prospective interest in the property that is thesubject <strong>of</strong> this report and no personal interest with respect to the partiesinvolved.• I have no bias with respect to the property that is the subject <strong>of</strong> thisreport or to the parties involved with this assignment.• my engagement in this assignment was not contingent upon developingor reporting predetermined results.• my compensation for completing this assignment is not contingent uponthe development or reporting <strong>of</strong> a predetermined value <strong>of</strong> direction invalue that favors the cause <strong>of</strong> the client, the amount <strong>of</strong> value opinion, theattainment <strong>of</strong> a stipulated result, or the occurrence <strong>of</strong> a subsequent eventdirectly related to the intended use <strong>of</strong> this appraisal.• my analyses, opinions, and conclusions were developed, and this reporthas been prepared, in conformity with the Uniform Standards <strong>of</strong>Pr<strong>of</strong>essional Appraisal Practice.• I have made a personal inspection <strong>of</strong> the property that is the subject <strong>of</strong>this report.• No other person provided significant pr<strong>of</strong>essional assistance inpreparation <strong>of</strong> this report.• I certify that, to the best <strong>of</strong> my knowledge and belief, the reportedanalyses, opinions and conclusions were developed, and this report hasbeen prepared, in conformity with the requirements <strong>of</strong> the Code <strong>of</strong>Pr<strong>of</strong>essional Ethics and the Standards <strong>of</strong> Pr<strong>of</strong>essional Appraisal Practice<strong>of</strong> the Appraisal Institute.• I certify that the use <strong>of</strong> this report is subject to the requirements <strong>of</strong> theAppraisal Institute relating to review by its duly authorizedrepresentatives.• As <strong>of</strong> the date <strong>of</strong> this report, I Mark S. Bovee, MAI have completed therequirements <strong>of</strong> the continuing education program <strong>of</strong> the AppraisalInstitute.Effective Date <strong>of</strong> Appraisal: May 7, <strong>2008</strong>_________________________Mark S. Bovee, MAIMichigan Certified General AppraiserLicense No. 1201007069Did Inspect the Property______________________________________________________________________________1


SUBJECT PHOTOGRAPHSSubject Property PhotographsView <strong>of</strong> subject property with viewer looking northerly.Photograph taken on May 7, <strong>2008</strong> by Mark S. Bovee, MAI.View <strong>of</strong> subject’s western property boundary with viewerlooking northwesterly. Photograph taken on May 7, <strong>2008</strong> byMark S. Bovee, MAI.______________________________________________________________________________2


SUBJECT PHOTOGRAPHSView <strong>of</strong> subject site with viewer looking northerly across US-12(West Chicago Street). Photograph taken on May 7, <strong>2008</strong> byMark S. Bovee, MAI.Street scene with viewer looking westerly along W Chicago(US-12). Photograph taken on May 7, <strong>2008</strong> by Mark S. Bovee,MAI.______________________________________________________________________________3


SUBJECT PHOTOGRAPHSStreet scene with viewer looking easterly along W ChicagoStreet (US-12). Photograph taken on May 7, <strong>2008</strong> by Mark S.Bovee, MAI.______________________________________________________________________________4


VALUATION PREMISEBrief Identification <strong>of</strong> the Real Estate AppraisedThe subject property is a vacant land tract covering 26.<strong>05</strong> acres <strong>of</strong> surfacearea. The property has about 600’ <strong>of</strong> frontage along US-12. The property isthe former site <strong>of</strong> the <strong>Coldwater</strong> Federal Mogul facility until the building andmost <strong>of</strong> the site improvements were demolished from 2003 to 20<strong>05</strong>. The siteis zoned A-2 One and Two Family Residential and is serviced by public waterand sewer services.Scope <strong>of</strong> WorkThe following comments are identified as the general scope <strong>of</strong> work, but theentire scope <strong>of</strong> work is interspersed throughout this appraisal report. Thepurpose <strong>of</strong> this appraisal, which is reported in summary format, is to providethe client with an opinion <strong>of</strong> market value. It is my understanding that thisappraisal is to serve as an independent evaluation that will assist the client(s)in determining market value for purposes <strong>of</strong> asset disposition. It has beendetermined that an accurate analysis <strong>of</strong> the subject property is possible withinthe scope <strong>of</strong> this appraisal, and that the summary reporting will not bemisleading.Work necessary to complete this assignment included a review and initialanalysis <strong>of</strong> the necessary steps, research, and analytical techniques that areused to determine the market value <strong>of</strong> real property. The valuation problem,having been clearly identified by the appraiser and discussed with the client, isanalyzed using traditional techniques <strong>of</strong> real property valuation. Accordingly,Standards Rules 1-2 and 2-2 apply to this analysis.The property represents a vacant land tract containing 26.<strong>05</strong> acres <strong>of</strong> site area.The property was acquired through tax forfeiture and is carried on the <strong>City</strong> <strong>of</strong><strong>Coldwater</strong>’s balance sheet as a non-operating asset. In developing thisappraisal, I considered all three approaches to value. The cost approach isgenerally not applicable to vacant land valuation and was omitted. The salescomparison approach is the primary method for valuation <strong>of</strong> vacant land. Theincome approach was considered and not developed. Subdivision or yieldcapitalization analysis is an acceptable form <strong>of</strong> land analysis where land salesare relatively scarce and certain assumptions can be supported by marketindices. The client’s intended use <strong>of</strong> this appraisal service, includes issuesinvolving land development and timing, as well as the need for simplification,making use <strong>of</strong> an income approach less appropriate. However, throughout thehighest and best use analysis, elements <strong>of</strong> yield capitalization are applied toillustrate the timing and present values <strong>of</strong> anticipated future cash flows.Supporting data and comparables are gathered from several sources includinglocal and regional brokerages, MLS, from industry contacts, other appraisers,individual market participants, assessor and public records, as well asproprietary sources. In all cases, attempts are made to verify comparables witha knowledgeable party to the transaction. Where possible, comparables havebeen personally inspected. The photographs <strong>of</strong> the subject were taken on May7, <strong>2008</strong> during the course <strong>of</strong> the inspection. Photographs <strong>of</strong> the comparableswere taken at various times and represent the material condition <strong>of</strong> property at______________________________________________________________________________5


VALUATION PREMISEtime <strong>of</strong> transaction unless otherwise noted. Zoning and land use informationwas obtained from the <strong>Coldwater</strong> <strong>City</strong> OfficesI made direct contact with Chris Hilton – <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> zoning administratoras well as Laurie Adams, the <strong>City</strong> Assessor in regards to land use regulationsand assessment data.Statement <strong>of</strong> General AssumptionsThe certification <strong>of</strong> the appraiser(s) appearing in the appraisal report is subjectto the following general assumptions and to other specific and limitingconditions as are set forth in this report.1. No title investigation has been made and no warranty <strong>of</strong> title is implied.Title to the property is assumed to be good and marketable unlessotherwise stated. Legal description <strong>of</strong> the property is limited to thatprovided by the client. Utilization <strong>of</strong> the land and improvements, if any,is assumed to be within the property boundaries, there being noencroachment or trespass unless noted in the appraisal report. Theappraiser(s) has not made a survey <strong>of</strong> the property, nor determined theexact acreage for the whole or any part.2. Information furnished by others is believed to be reliable. However, noresponsibility is assumed for accuracy <strong>of</strong> the information furnished bywork <strong>of</strong> others, the client, his designee, or public records. Animpractical and uneconomic expenditure <strong>of</strong> time would be required t<strong>of</strong>urnish unimpeachable verification in all instances, particularly as toengineering and market related information. It is suggested that theclient consider independent verification as a prerequisite to anytransaction involving sale, lease or other significant commitment <strong>of</strong>funds for the Subject Property. The sketches and maps in this reportare included to assist the reader in visualizing the property forillustrative purposes only.3. The property and its current use are assumed to be in full compliancewith all applicable Federal, State, and Local regulations and Laws.4. The description and evaluation <strong>of</strong> the property is based on visualinspection only. It is assumed that there is no hidden or unapparentcondition <strong>of</strong> the property, subsoil, structures or presence <strong>of</strong> toxicmaterials which would render the property more or less valuable. Theappraiser(s) did not make any engineering or environmental test, auditsor studies, and did not have knowledge <strong>of</strong> the results <strong>of</strong> any suchinvestigations unless stated so in the appraisal report. All mechanicalcomponents are assumed to be in operating condition unless otherwisestated.5. The liability <strong>of</strong> the appraiser(s), his employer and associated staff islimited to the client and the fee collected. Further, the appraiser(s)assumes no responsibility for any costs incurred to discover or correctany deficiencies <strong>of</strong> any type present in the property.______________________________________________________________________________6


VALUATION PREMISE6. The land is assumed to be free <strong>of</strong> undiscovered or unearthedarcheological findings. The discovery <strong>of</strong> certain archeological findingscould substantially alter the property’s highest and best use as well asthe market value conclusions <strong>of</strong> this report.7. Unless otherwise stated in this report, the existence <strong>of</strong> hazardoussubstances, including without limitation asbestos, polychlorinatedbiphenyl, petroleum leakage, or agricultural chemicals, which may ormay not be present on the property, was not called to the attention <strong>of</strong>nor did the appraiser become aware <strong>of</strong> such during the appraiser’sinspection. The appraiser has no knowledge <strong>of</strong> the existence <strong>of</strong> suchmaterials on or in the property unless otherwise stated. The appraiser,however, is not qualified to test for such substances. The presence <strong>of</strong>such hazardous substances may affect the value <strong>of</strong> the property. Thevalue opinion developed herein is predicated on the assumption that nosuch hazardous substances exist on the property or in such proximitythereto, which would cause a loss in value. No responsibility isassumed for any such hazardous substances, nor for any expertise orknowledge required to discover themStatement <strong>of</strong> General Limiting ConditionsThe appraisal report has been made subject to the following general limitingconditions:1. Possession <strong>of</strong> this report or any copy there<strong>of</strong> does not carry with it theright <strong>of</strong> publication nor may it be used for other than its intended use.The physical report(s) remain the property <strong>of</strong> the appraiser for the use<strong>of</strong> the client-the fee being for analytical services only. The appraisalreport shall not be given to third parties without the prior writtenconsent <strong>of</strong> the signatories <strong>of</strong> this appraisal report. Neither all nor anypart <strong>of</strong> this appraisal report shall be disseminated to the general publicwithout the prior written consent <strong>of</strong> the appraiser and client.2. The Appraiser is not required to give testimony or appear in courtbecause <strong>of</strong> having made the appraisal with reference to the property inquestion, unless arrangements have been previously made and onlywhen appraiser’s standard per diem fee and travel costs are paid priorto the appearance.3. The appraised value is subject to change over time and if there is achange in the known physical and legal characteristics <strong>of</strong> the property,the appraiser(s) reserve the right to alter statements, analyses,conclusions and value estimates if the facts are pertinent to theappraisal process become known after the time <strong>of</strong> report preparation.4. On all appraisals, subject to satisfactory completion, repairs, oralterations, the appraisal report and value conclusions are contingentupon completion <strong>of</strong> the improvements in a workmanlike manner. Thesurvey, legal description, plans and specifications, when finalized will______________________________________________________________________________7


VALUATION PREMISEconform to the preliminary information provided the Appraiser as thebasis <strong>of</strong> this report.5. The Americans with Disabilities Act (ADA) became effective January26, 1992. I have not made a specific compliance survey and analysis <strong>of</strong>this property to determine whether or not it is in conformity with thevarious detailed requirements <strong>of</strong> the ADA. It is possible that acompliance survey <strong>of</strong> the property together with a detailed analysis <strong>of</strong>the requirements <strong>of</strong> the ADA could reveal that the property is not incompliance with one or more <strong>of</strong> the requirements <strong>of</strong> the act. If so, thisfact could have a negative effect upon the value <strong>of</strong> this property. SinceI have no direct evidence relating to this issue, we did not considerpossible noncompliance with the requirements <strong>of</strong> ADA in estimatingthe value <strong>of</strong> the property.6. Square footage is not guaranteed by the appraiser. The client or anyuser <strong>of</strong> this appraisal report acknowledges and agrees that anystatements regarding the square footage <strong>of</strong> the property and/orimprovements are approximations only and are not representations orwarranties there<strong>of</strong>, and are not intended to be relied upon by the clientor users <strong>of</strong> this appraisal report. If square footage is a material factor tothe client or users <strong>of</strong> the appraisal report, said party shall determine thesquare footage by its own independent inspection.7. Copies <strong>of</strong> or disclosure <strong>of</strong> the contents <strong>of</strong> this report are governed bythe laws and regulations <strong>of</strong> the Appraisal Institute. Neither all nor anypart <strong>of</strong> this report, especially any conclusions as to value, identity <strong>of</strong> theappraiser, or firm with which he is connected, or any reference to theAppraisal Institute or the MAI designation shall be disseminated to anyperson or company through advertising media, public relations media,news media, sales media, or any other public or private means <strong>of</strong>communication or by way <strong>of</strong> copies without prior written consent <strong>of</strong>the individual author(s). (The appraiser(s) recognize the function <strong>of</strong> thereport for use in asset disposition).8. The historical financial information and any adjustments thereto andany forecasts and projections presented in this report are includedsolely to assist in the development <strong>of</strong> the value estimate presented inthis report. Because <strong>of</strong> limited purpose <strong>of</strong> this presentation, theinformation may be incomplete and contain departures from generallyaccepted accounting principles (GAAP) and/or other guidelinesestablished by recognized regulatory and other governing bodies. Iexpress no opinion or other assurances on the information presentedand it should not be used for any other purpose other than to assist inthis valuation.9. The client to whom this report is addressed may use it in deliberationsaffecting the subject property only, and in so doing, the report is not tobe extracted but used in its entirety. Only those copies <strong>of</strong> this reportbearing an original signature and under seal will be supported by yourappraiser.______________________________________________________________________________8


VALUATION PREMISESoil ConditionsSoil Conditions are explained in detail in the market study section <strong>of</strong> this report,page 24.WetlandsA search was conducted <strong>of</strong> the U.S. Fish and Wildlife Service with negativeresults for wetland areas.Superfund/Brownfield ContingenciesA check was made <strong>of</strong> the US Environmental Protection Agency Website withnegative results.CompetencyBased on the appraiser’s understanding <strong>of</strong> the assignment to be performed, Iam competent to perform the appraisal because:Client1. I have full knowledge <strong>of</strong>, and experience in this type <strong>of</strong> property.2. All necessary and appropriate steps have been taken in order to completethe assignment competently3. I have worked within the <strong>Coldwater</strong>, Michigan market area; I haveadequate knowledge and experience that would not prohibit thisassignment from being completed in a pr<strong>of</strong>essional, competent manneror, in a way that would allow a bias or misleading opinion <strong>of</strong> value to berendered.The client is identified as Mr. William R. Stewart, <strong>City</strong> Manager <strong>of</strong> the <strong>City</strong> <strong>of</strong><strong>Coldwater</strong>. The intended user <strong>of</strong> this appraisal report is the <strong>City</strong> Manager and<strong>City</strong> Council pursuant to their intended use for asset disposition and/or assetrevaluation. The report must be used in its entirety and cannot be supported ifdisaggregated into parts and sections.Real Estate InterestThe property rights appraised consist <strong>of</strong> the fee simple interest.Fee Simple InterestThe fee simple estate is the absolute ownership unencumbered by any otherinterest or estate, subject only to the limitations imposed by the governmentalpowers <strong>of</strong> taxation, eminent domain, police power, and escheat. 11 The Dictionary <strong>of</strong> Real Estate Appraisal, 4 th ed., s.v. “fee simple estate.”______________________________________________________________________________9


VALUATION PREMISEEffective Date <strong>of</strong> the Appraisal and Date <strong>of</strong> ReportingThe effective date <strong>of</strong> valuation for the subject property is May 7, <strong>2008</strong>, the date<strong>of</strong> the most recent inspection. The date <strong>of</strong> this report is May 18, <strong>2008</strong>.Real Estate TaxesCurrent parcel identification, assessments, and real estate taxes are presentedbelow:TAX ASSESSMENTS & TAXESParcel No. Acres SEV Taxabale Annual Taxes12-303-000-000-930-00 26.<strong>05</strong> EXEMPT EXEMPT NoneSince the property is owned by the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> it is currently exempt forreal estate tax assessment.Marketing TimeThe marketing time is approximately 12 to 18 months. The extendedmarketing period is because <strong>of</strong> both a weak state and local economy and theisolated location <strong>of</strong> <strong>Coldwater</strong>, Michigan. 2 The initial pricing by the owner mayextend or shorten the marketing period.History <strong>of</strong> OwnershipThe property is found to be titled in the name <strong>of</strong> <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>. Theproperty was deeded as a result <strong>of</strong> a quit claim deed on June 30, 20<strong>05</strong> fromthe State <strong>of</strong> Michigan to <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> in restitution for taxes in arrears.Prior to this transaction, public records show several non-arms length transfers<strong>of</strong> the property from Big Hank Tree Clam Corp to Don Derby, et al., and fromSmall Business Incubators to Don Derby. It is understood that the controllinginterest in the property had been held by Hank Vos prior to the tax sale.Records show that Mr. Vos purchased the property on September 9, 1989 for areported $450,000 from G.M.R.W. Trust, John Sorokin Trustee. It is unclearwhether this transaction was an arms length transfer. The period <strong>of</strong>ownership between Mr. Vos and the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> is for more than thethree years required to be researched.2 Marketing time or marketing period is defined as the time it takes an interest in realproperty to sell on the market subsequent to the date <strong>of</strong> an appraisal. Reasonable marketingtime is an estimate <strong>of</strong> the amount <strong>of</strong> time it might take to sell an interest in real property atits estimated market value during the period immediately after the effective date <strong>of</strong> theappraisal; the anticipated time required to expose the property to a pool <strong>of</strong> prospectivepurchasers and to allow appropriate time for negotiation, the exercise <strong>of</strong> due diligence, andthe consummation <strong>of</strong> a sale at a price supportable by concurrent market conditions.Marketing time, differs from exposure time, which is always presumed to precede theeffective date <strong>of</strong> the appraisal. (Advisory Opinion G-7 <strong>of</strong> the Appraisal Standards Board <strong>of</strong>The Appraisal Foundation and Statement on Appraisal Standards No. 6, “ReasonableExposure Time in Market Value Estimates” address the determination <strong>of</strong> reasonableexposure and Marketing time.) Market value estimates imply that an adequate marketingeffort and reasonable time for exposure occurred prior to the effective date <strong>of</strong> the appraisal.The Dictionary <strong>of</strong> Real Estate Appraisal, 4 th ed., s.v. “marketing period.”______________________________________________________________________________10


VALUATION PREMISEThe property is currently listed for sale. The owners have not yet determinedan asking price. It is my understanding that there have been two <strong>of</strong>fers on theproperty since the <strong>City</strong> acquired title in June <strong>of</strong> 20<strong>05</strong>.1. An initial <strong>of</strong>fer was made by an Ohio developer (Excel Realty) topurchase the property for a reported $130,000. The proposeddevelopment was for 98 subsidized housing units. The sale priceincluded tax credits that were estimated to be worth $75,000. This<strong>of</strong>fer was rejected.2. A second <strong>of</strong>fer was made in early <strong>2008</strong> to purchase the property byOmega Construction <strong>of</strong> Grand Rapids. The <strong>of</strong>fering price was$350,000 <strong>of</strong> which an option <strong>of</strong> $10,000 would be paid with a oneyear call provision. This was to allow the developer to perform duediligence. The developer’s proposal was for a mix <strong>of</strong> multi-family,duplexes, and commercial development under a PUD. At the time <strong>of</strong>this <strong>of</strong>fer all concrete had been removed from the site. This <strong>of</strong>fer andproposal was rejected.Legal DescriptionA parcel <strong>of</strong> land situated in <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>, County <strong>of</strong> Branch, State <strong>of</strong>Michigan as follows:Plat <strong>of</strong> J.O. Pelton’s Addition to the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>, Lot 14 J OPelton Addition304-000-000-540-00ALSO Town 06 South, Range 06 West, Section 17Commencing on North line <strong>of</strong> West Chicago Street 138 feet,more/less West <strong>of</strong> North and South ¼ line Section 17; thence dueNorth 177.9 feet; thence North 79 deg 02 min West 128.7 feet;thence due South 174.2 feet; thence South 77 deg 14 min east126.9 feet to POB303-000-000-929-00ALSO Land in Township 06 South, Range 06 West, Section 17:Commencing at point West 2071.5 feet; thence South 306.91 feetfrom East ¼ corner Section 17; thence West 329.91 feet; thenceSouth 1106.2 feet to center line US-12; thence Southeasterly on saidcenter line 829.9 feet; thence North 225.3 feet; thence Southeast 79deg 02 min 126.7 feet; thence South 177.9 feet to North line US-12;thence Southeast 17.54 feet on said North line North 1263.54 feet;thence West 622.91 feet to beginning; thence South 00 deg 07 min35 sec West 631.81 feet from East ¼ corner Section 17; thenceWest 331.2 feet; thence South 781.3 feet to center line US-12;thence South 77 Deg 52 Min 15 Sec East 337.5 feet; thence North00 Deg 07 Min 35 Sec East 852.6 feet to POB ALSO CommencingNorth 89 Deg 45 Min West 2071.5 feet and South 631.81 feet fromEast ¼ corner; thence East 497.91 feet; thence South 734.98 feet toNorth line land owned by F Arendt L238 P485; thence South 79 Deg02 Min East 109.89 feet; thence South 177.91 feet to North line______________________________________________________________________________11


VALUATION PREMISEWest Chicago Street; thence Southeasterly along said Street 17.54feet; thence North 1263.54 feet; thence West 622.91 feet; thenceWest 329.91 feet; thence South 00 Deg 46 Min 38 Sec easterlyalong East line <strong>of</strong> Hurley to concrete marker; thence East 331.2 feetto POB, containing 9.2 Acres more or less.303-000-000-930-00Flood ZoneThe property appears to be located in a Zone X - areas determined to beoutside 500-year flood plain. Reference is FIRM Flood Insurance Rate <strong>City</strong> <strong>of</strong><strong>Coldwater</strong>, Branch County Michigan Community-Panel Number 260813 00<strong>05</strong>A, effective date: August 16, 1996.Definition <strong>of</strong> Market ValueMarket Value is defined as:The most probable price which a property should bring in a competitiveand open market under all conditions requisite to a fair sale, the buyerand seller each acting prudently and knowledgeably, and assuming theprice is not affected by undue stimulus.” Implicit in this definition is theconsummation <strong>of</strong> a sale as <strong>of</strong> a specified date and the passing <strong>of</strong> titlefrom 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 theyconsider their own best interest;3) a reasonable time is allowed for exposure to the open market;4) payment is made in terms <strong>of</strong> cash in United States dollars or in terms<strong>of</strong> financial arrangements comparable thereto;5) the price represents the normal consideration for the property soldunaffected by special or creative financing or sales concessions grantedby anyone associated with the sale. 3Market value results from the collective value judgments <strong>of</strong> market participants.Market value is based on the interaction <strong>of</strong> individuals who exchange realproperty rights for other assets such as money. Because the standard measure<strong>of</strong> these activities is cash, the increase or diminutions in market value causedby financing and other terms <strong>of</strong> sale are measured against an all cash value.Implicit in the market value estimate used in this report is the presence <strong>of</strong> a realestate market. A market is composed <strong>of</strong> many buyers and sellers. Therefore,3 Department <strong>of</strong> Treasury, Office <strong>of</strong> the Comptroller <strong>of</strong> Currency, Title 12 Code <strong>of</strong> FederalRegulations, ([Washington, D. C.]: U. S. Treasury Department, Office <strong>of</strong> the Comptroller <strong>of</strong>Currency, 1999), part 34, subpar. C, 34-42.______________________________________________________________________________12


VALUATION PREMISEin circumstances where there is only one seller and one possible buyer, amarket would not normally exist under strict definition but would otherwiseconstitute a bilateral monopoly.______________________________________________________________________________13


VALUATION PREMISEArea and Regional Analysis<strong>Coldwater</strong> Michigan – Micropolitan Statistical AreaMicropolitan statistical areas are developed and used by the government toaggregate statistical data on demographic, social, and economic indices <strong>of</strong>United States population centers. The general concept <strong>of</strong> a MicropolitanStatistical Area is that <strong>of</strong> an area containing a nucleus and adjacentcommunities that have a high degree <strong>of</strong> integration with the nucleus.Generally, to be classified into an MSA the area must contain at least oneurban area and have a population cluster <strong>of</strong> at least 10,000 persons but lessthan 50,000. The census bureau and government refers to these units as“core based statistical areas” CBSA.<strong>Coldwater</strong> is the “principle city” in the <strong>Coldwater</strong> Micropolitan Statistical Areaand is the economic center <strong>of</strong> Branch County. <strong>Coldwater</strong> is found at theintersection <strong>of</strong> two older US Highways (US-<strong>27</strong> and US-12). Interstate Highway69 traverses Branch County and is found at the east end <strong>of</strong> <strong>Coldwater</strong>.______________________________________________________________________________14


VALUATION PREMISEBranch County AnalysisBranch County is found in the southern tier <strong>of</strong> Michigan Counties. The Countyshares a common border with Steuben County in Indiana and Calhoun,Hillsdale, and St. Joseph Counties in Michigan. The main transportationlinkage is Interstate 69 which connects Branch County with Fort Wayne andIndianapolis to the south and Lansing, Flint to the north. The other main arteryis US-12 which is an older, mostly two-lane US Highway that connects thewestern parts <strong>of</strong> Wayne County (Detroit) with Chicago, Illinois in the west.Over the years traffic has steadily decreased on US-12 because <strong>of</strong> betterconnected and designed interstate highways such as I-94 and the Indiana TollRoad/Ohio Turnpike. Both these arteries are located within 30 miles <strong>of</strong> theCounty Seat - <strong>Coldwater</strong>. Traffic has increased substantially on I-69 over thelast two decades with the largest increases coming in the mid to late 1990s.Population has increased some 1.4% since the last US Census in 2000.Generally, population has increased in rural areas and around the many countyfreshwater lakes. The <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> is the largest urban area with apopulation <strong>of</strong> 10,731. Population in <strong>Coldwater</strong> has increased some 3.23%since 2000. Branch County historic population growth and projections areshown below:1970 1980 1990 2000 20<strong>05</strong> 2010 202037,096 40,188 39,100 43,800 44,900 46,100 48,200The increasing population is supported by local, state, and federal governmentagencies that provide a wide array <strong>of</strong> services. Among these are businessservices and land planning. Most <strong>of</strong> Branch County has a comprehensive landplanning program. Natural political tensions have arisen in the past over landused for farming and agriculture with demand for urban expansion. Thewealthiest areas <strong>of</strong> Branch County are in <strong>Coldwater</strong>, Ovid, and KinderhookTownships. These areas form a geographical area that parallels the I-69corridor and the north/south chain <strong>of</strong> lakes.Outside the lake areas, urban populations can be found in Quincy, Bronson,Union <strong>City</strong>, and Sherwood. Most <strong>of</strong> the none-lake housing stock is found in oraround the urban areas. New housing starts have decreased in Branch Countysince 2001. Successful developments are targeting entry level buyers witheither HUD subsidies or reduced entrance costs. <strong>Coldwater</strong> has some four t<strong>of</strong>ive active subdivisions with remaining inventory. After rapid expansion in1999 to early 2000, home prices begin to decline in some areas <strong>of</strong> the <strong>City</strong> andnew housing stock continued to climb as more developers sought to enter themarket. There is little history <strong>of</strong> successful entrepreneurship and pr<strong>of</strong>it makingin existing subdivisions. Developments have been auctioned to pay taxes anddebt service, while others have lapsed into liquidation. New demand for multifamilyhousing is likewise minimal.Most area workers are employed in manufacturing or service sectors <strong>of</strong> thelocal economy. However, manufacturing has declined in the number <strong>of</strong> jobs______________________________________________________________________________15


VALUATION PREMISEand active plants. Distribution <strong>of</strong> the Branch County workforce is shownbelow:Wholesale Trade3%Education, Health, &Social Services15%Manufacturing32%All Other23%Retail Trade13%PublicAdministration5%Agriculture, FarmingConstruction 4%5%Manufacturing is the largest sector <strong>of</strong> employment. New development istypically 10,000 (+/-) square foot light manufacturing shops. These tend toappeal to local and/or regional buyers without the large cash investments andcapital layouts necessary for larger operations. Most light manufacturing is inplastics and steel. Wages are typically average or slightly below average forthe area. The Wal-Mart Distribution Center employs some 600 to 1,000employees. Wages are above the local area mean and this tends to attractlabor from outside Branch County. Real estate taxes by comparison toneighboring Michigan communities are about average. However, whencompared to northern Indiana counties real estate taxes are high. This tends t<strong>of</strong>avor business in nearby Steuben County over development in Branch County.Employment, small business taxes, and insurance costs tend to be higher inMichigan, all other things being equal. This further exacerbates the problemsin attracting new manufacturing business. Retail petroleum prices averageabout $.10 to $.20 per gallon less in northern Indiana. Tobacco products canbe purchased at significant price differences in the northern Steuben CountyIndiana area. Most durable goods are uniformly priced in the market.New construction has been heavily influenced by the volatility in steel prices.Owners making construction decisions in the current market may findthemselves overpriced in construction costs and building in functionalobsolescence. Until vacancy rates decline, highly competitive steel marketswill continue to effect industrial expansion in southern Michigan. Constructioncosts have increased at or greater than the general rate <strong>of</strong> inflation since 2000,primarily due to building material costs. The surplus <strong>of</strong> unskilled workers andnon-union labor allows Branch County builders to remain competitive.Area retailers report average earnings during 2007. Significant vacancy wascreated during the 2001 to 2003 time frame in the retail trades with<strong>Coldwater</strong>’s major shopping center at about 50% occupancy for most <strong>of</strong> thisperiod. During this period, free-standing retailers emerged such as Meijer,Wal-Mart, and Home Depot. Some new tenants have also been attracted tothe Willowbrook Shopping Center including Gander Mountain and ElderBermans. Most <strong>of</strong> the 20% or so vacancy since 2001 has been absorbed______________________________________________________________________________16


VALUATION PREMISEduring the past 24 months. Should demand continue to increase, look forincreasing land prices and development to occur north on Willowbrook Road,perhaps south on same, or further east on US-12. Traffic patterns are alsochanging in and around <strong>Coldwater</strong>. To the north <strong>of</strong> town traffic is accessingthe Fiske Road (Meijer/Home Depot) area via State Street and MichiganAvenue. The extension <strong>of</strong> public utilities along Michigan Avenue from StateStreet north to Jonesville Road may provide future expansion opportunities. Itis also unknown whether access to these services (water & sewer) iscontrolled by Wal-Mart or public funds. Nevertheless, significant vacant land isavailable along this 1.5 mile stretch that could provide additional housing ordevelopment opportunities. One negative to this development is the adjacentLakeland Correctional Facility.Investment capital remains readily available in <strong>Coldwater</strong> and Branch County.Mostly an agricultural area, Branch County has several nationally affiliatedfinancial institutions and some long standing community banking centers.Rates are competitive on home mortgages and for commercial capital. Thelarge influx <strong>of</strong> summer time residents adds to the financial diversity <strong>of</strong> thecommunity. Part-year residents can be expected to make investments in thelocal community. Current investment and capital market returns are shownbelow:YIELDS ON COMMON FINANCIALINSTRUMENTSFederal Funds Rate 2.00%Money Market Annual Yield 2.36%Libor (3 mon.) 2.70%10-Year U.S. Treasuries 3.85%Home Equity 4.83%Prime Rate 5.00%30-Year Fixed Rate - Home Mtg. 5.91%Source: Wall Street JournalInvestment in low risk securities can be expected to yield from 4% to 5%depending on maturity and holding period <strong>of</strong> the investment. Further affectingthe investment rate is the ready availability <strong>of</strong> mortgage capital and continuinglow rates. Most secured credit can be purchased at affordable rates withminimal equity. Spending in the area is influenced not only by the large influx<strong>of</strong> summer time residents but the relatively low strength <strong>of</strong> US currency.Foreign capital continues to flood the US market in search <strong>of</strong> bargain prices oncommodities. This has some indirect impact on local manufacturers andretailers. Because <strong>of</strong> this, currency rates bear watching in the short-term,should the US dollar gain strength, foreign buyers may look elsewhere forgoods and services.______________________________________________________________________________17


VALUATION PREMISEEXCHANGE AND SELECTEDCOMMODITY RATESEuro - U.S. Dollar 0.6257Yen - U.S. Dollar 97.38Oil (bbl) (Nymex Crude) $126.29S & P 500 1425.35S & P 500 Annual Yield -6.40%Source: Wall Street JournalThe regional outlook is diminished by the loss <strong>of</strong> area manufacturing jobs.Despite this, interest rates, homeownership, small gains in somemanufacturing segments <strong>of</strong> the market, and an improving retail sector areremaining the backbone <strong>of</strong> area economic growth. Wages and salaries can beexpected to increase on average about 2% per year. The greatest new demandin employment will be in medical pr<strong>of</strong>essional or semi-skilled services. Thesejobs are likely to grow at a sustained rate for several decades. Manufacturingcan be expected to remain stable, perhaps fluctuate as American workersretool to compete better with lower foreign labor costs. The large abundance<strong>of</strong> unskilled labor is a social/economic concern that will have to be addressedfor the Branch County area to expand. Large areas <strong>of</strong> undeveloped industrialland have been set aside for expansion south <strong>of</strong> the Garfield Park. Given thedemand generators for manufacturing space, this acreage may take manydecades to absorb even a portion. Overall the area has more positive growthattributes than negative. Population, industrial output, retail sales, andservices should remain stable over the next several years.Projections for future growth in Branch County will largely depend on themacro economy and the health <strong>of</strong> Michigan’s major industrial sectors.Macroeconomic projections for the United States economy are made annuallyby a number <strong>of</strong> sources including the federal reserve bank.FEDERAL RESERVE FORECASTSForecast for: <strong>2008</strong>2009Forecast made: Jan. <strong>2008</strong> Jan. <strong>2008</strong>Unemployment 5.2% to 5.3% 5.0% to 5.3%GDP Growth 1.3 to 2.0 2.1 to 2.7Core inflation 2.0 to 2.2 1.7 to 2.0Source: WSJ & FOMCThe FOMC projects modest growth and inflation for the next 24 months.Inflation will largely by a bi-product <strong>of</strong> energy and labor costs. But the federalreserve remains cautious about changing the short-term interest rates althoughrecent credit market declines have forced the fed to decrease rates by some300 bp. Because <strong>of</strong> continued tight labor markets and upward pressure as aresult <strong>of</strong> higher wages, consumer prices, and energy, I expect the FOMC policyto be somewhat interest rate neutral for the remaining part <strong>of</strong> <strong>2008</strong> and eveninto 2009.Credit markets are adversely affected by the negative impact <strong>of</strong> sub-prime writedowns and buyback options. We expect to see a rash <strong>of</strong> new bankruptcy______________________________________________________________________________18


VALUATION PREMISEproceedings as large buyers <strong>of</strong> CMOs with buyback provisions exercise theseoptions. Current credit default swaps range from 15% to 20% on sub-primemortgages. This will in all likelihood cause changes in market liquidities atleast at the sub-prime level. Tighter lending requirements should producesome market differentiation in the short-term with repositioning <strong>of</strong> institutionalassets into lower yield bonds and stable equities. Expect local and regionalbanks/lenders to downsize operations in response to lower market liquiditiesand increases in the credit default swap index (CDS Index) on mortgage backedsecurities. Banks, which have been traditionally heavy on fixed assets, willlikely trim lower performing locations. Given the expansion <strong>of</strong> internet bankingthis should result in the availability <strong>of</strong> some reuse <strong>of</strong>fice space in the CBDs andurban areas <strong>of</strong> the market.Market liquidities remain high in the United States despite credit problems. Assuch, cap rates for national investment property have been at all-time lows.Major stock market indexes reflect negative 52-week returns. Given theweakness in financials, automotive, and non-defense manufacturing sectors <strong>of</strong>the equity markets, I look for weak or negative returns throughout <strong>2008</strong>tampered by inflation changes and the weak credit markets.______________________________________________________________________________19


AREA AND REGIONAL ANSLYSISNeighborhood AnalysisThe subject neighborhood is a commercial and residential area that extendswestward from Butters/Western Avenue along US-12 to the Channel betweenCemetery and Messenger Lakes. Areas located along US-12 are mixed usewith some commercial areas and single family residential. The immediateneighborhood includes all <strong>of</strong> the Northshore area. This has been the fastestgrowing area in all <strong>of</strong> <strong>Coldwater</strong> for residential development. Included in thisneighborhood are assisted living and senior housing units, single and multifamilyresidential dwellings, as well as a number duplex and condodevelopments. Directly across US-12 is Jay Olds Cadillac, a long standing<strong>Coldwater</strong> business. The area includes two retail fuel locations, several smallersingle use <strong>of</strong>fice buildings, service garage, public parks, and waterways.______________________________________________________________________________20


SITE AND BUILDING DESCRIPTIONSSite and Building DescriptionsItemDescriptionSiteArea:26.<strong>05</strong> Acres or 1,134,738 Sq.Ft.Frontage:600’ on US-12Depth: 1,<strong>05</strong>9’Topography:Level to slightly rolling and sloping below gradeConfiguration: Slightly IrregularSoils:Fox sandy loam, 0 to 2 percent slopesZoning:A-2 One & Two Family ResidentialStreets:West Chicago Street (US-12) four lane, bituminous surface,curb and gutter in areasSite ImprovementsSidewalks:NoneWater:Public (CBPU)Sewer:Public (CBPU)Electrical:Public (Regulated)Natural Gas:Michigan Gas Utilities (Aquila)Building ImprovementsNo <strong>of</strong> bldg units: None – Vacant Land______________________________________________________________________________21


SITE AND BUILDING DESCRIPTIONSSite Map______________________________________________________________________________22


SITE AND BUILDING DESCRIPTIONSAerial PhotographOverhead view <strong>of</strong> former Federal Mogul site circa 1999. Source: USGS.______________________________________________________________________________23


MARKET STUDY AND LAND USE ANALYSISMarket Study AnalysisIn the appraisal <strong>of</strong> a specific property, market analysis must show how theinteraction <strong>of</strong> supply and demand affects the property’s value. In the case <strong>of</strong> aproposed development, market analysis may identify the point in time whenadequate demand for the project will likely emerge. In this respect marketanalysis provides a basis for determining the highest and best use <strong>of</strong> aproperty. The analysis prepared in this report focuses on several key issuesrelating to the subject site:1. Equilibrium and/or disequilibrium in the market/trade areas2. Market share and capture3. Timing <strong>of</strong> the development4. Absorption <strong>of</strong> unitsEach one <strong>of</strong> these economic issues will in turn affect the property’s value. It isimportant to note that the market study and analysis is a compliment to thehighest and best use analysis. In highest and best use, potential uses, timing,and absorption rates are tested to determine the most probable use <strong>of</strong> the site.In this manner, use, timing, capture, and marketability are determined beforeapplication <strong>of</strong> the approaches to value.Because land use restrictions have the broadest immediate impact on the use<strong>of</strong> land, the current zoning and master planning documents will be used as astarting point. The following detailed study analyzes the most probable use <strong>of</strong>the site under its current zoning <strong>of</strong> A-2 (One and Two Family Residential) aswell as its use consistent with the <strong>Coldwater</strong> Master Plan – PUD (Planned UnitDevelopment).Under current zoning the most probable use <strong>of</strong> the site would be for one andtwo family residential development. Should the site be developed under a PUDproposal additional uses may include multi-family, limited commercial includingretail and service, as well as pr<strong>of</strong>essional/medical <strong>of</strong>fice use. Any combination<strong>of</strong> these land uses would be applicable as long as the development meetslegal, physically possible, financially feasible, and maximally productive tests inthe highest and best use.Step One – Property Productivity AnalysisThe site covers a gross surface area <strong>of</strong> 26.<strong>05</strong>3 acres. The land has more than600 feet <strong>of</strong> frontage on US-12 (West Chicago Street) with an average depth <strong>of</strong>1,<strong>05</strong>9 feet. The site has man-made or natural barriers on three <strong>of</strong> the foursides. Along the east side <strong>of</strong> the tract is Northside Drive, a two lanebituminous surface street with curb and gutter. The site is bounded by US-12(West Chicago Street) on the south. West Chicago Street is four lanes, with abituminous surface (US Highway). The property is bounded on the west bytwo smaller commercial tracts and a grouping <strong>of</strong> small MHP lots along aCemetery Lake Channel. The nature <strong>of</strong> nearby lots are such that an______________________________________________________________________________24


MARKET STUDY AND LAND USE ANALYSISassemblage <strong>of</strong> the subject tract with these parcels to the east is unlikely. Anassemblage is sometimes used by land developers to increase the size <strong>of</strong> theirholdings. This <strong>of</strong>ten allows for a more intense use than say a smaller tractwhere specific development requires a larger site. In <strong>Coldwater</strong> the Wal-Martpurchase in 1999 is an example <strong>of</strong> an assemblage <strong>of</strong> several tracts along EastChicago Street. Generally, the plottage value attributed to assembled parcelsallows the seller to pr<strong>of</strong>it from an unequal negotiating situation or arbitrageposition. The property is bounded on the north by Northshore Development.The subject could be a natural extension <strong>of</strong> this development.The property is zoned A-2 (One and Two Family Residential). The zoningimplications are discussed further in the highest and best use analysis.According to the United States Department <strong>of</strong> Agriculture, which publishes theBranch County Soil Survey, last published in 1983, the primary underlying soilis identified as Fox sandy loam, 0 to 2 percent slopes. These soils are nearlylevel, well drained soil on broad flats in the uplands. Permeability is moderatein the upper part <strong>of</strong> the Fox soil and rapid or very rapid in the lower part.Available water capacity is moderate. Run<strong>of</strong>f is very slow. These soils tend tobe well suited to building site development. Because <strong>of</strong> poor filtering capacity,it is only fairly well suited to septic tank absorption fields. It readily absorbsbut does not adequately filter the effluent from septic tanks. The poor filteringcapacity can result in the pollution <strong>of</strong> ground water supplies. Chemicalproperties include p H from 5.1 to 8.4% with higher alkalinities at depths <strong>of</strong>greater than 36”. Organic matter is 1 to 3% by volume. Clay constitutes about18 to 35% <strong>of</strong> soil composition at depths between 16” – 36”. The USDA alsoidentifies soil type Udipsamments, gently sloping. These soil types are areasthat the landscape has been greatly altered by leveling and filling.Udispamments soils are shown under the former footprint area <strong>of</strong> the FederalMogul building including concrete drives. The improvements have been raisedand the site cleared <strong>of</strong> construction material including concrete slab. The soilconditions would appear to provide adequate strength and base for siteconstruction. There appear to be no issues with high water tables. The site isslightly elevated over surrounding property and therefore drainage is assumedto be adequate.The site has access to public water and sewer services which traverse theadjoining Northshore Drive. Public infrastructure includes the availability <strong>of</strong>police and fire protection services on a 24 hour basis. The site is located in anarea that is planned for PUD development in the future. This gives someflexibility to development <strong>of</strong> the site.Linkage is considered good. Annual daily traffic counts on US-12 are estimatedto be 6,900 vehicles per day which is measured from a traffic point west <strong>of</strong> thesubject at the M-86 and US-12 split. West Chicago Street provides goodlinkage and reasonable speeds to the <strong>Coldwater</strong> CBD, east retail district, aswell as the I-69 interchange and Garfield Industrial Park. Traffic flows splitfrom US-12 just west <strong>of</strong> the subject along the former Willows Road access. Inall, traffic flow counts and linkage are considered good with regard to traveltime and distances to shopping, medical services, the <strong>Coldwater</strong> CBD, as wellas industrial areas.______________________________________________________________________________25


MARKET STUDY AND LAND USE ANALYSISStep Two - Market DelineationMarket delineation is the analysis <strong>of</strong> likely buyers <strong>of</strong> the specified housing unitsincluding household size, age, preferences and income levels. In housingstudies time-distance relationships are used to delineate the market area. Thecommuting time to employment centers and support facilities is the basis <strong>of</strong>the analysis. Studies <strong>of</strong> commuting time are made by the Department <strong>of</strong>Housing and Urban Development and U.S. Census Bureau. These studies arepublished in the American Housing Survey (AHS) which is a compilation <strong>of</strong>statistical data. The survey is conducted by field representatives who obtaininformation from occupants <strong>of</strong> homes. The last interviewing occurred betweenApril and September <strong>of</strong> 20<strong>05</strong> and the results are published in the 2006 AHS.This survey is the most rigorous and well funded housing survey in the UnitedStates. While it certainly is subject to certain biases and sampling errors it isused by demographic providers, researchers, etc. It has a high degree <strong>of</strong>confidence largely because <strong>of</strong> the sizeable sample and data gatheringtechniques.The majority <strong>of</strong> householders travel less than 30 minutes to their place <strong>of</strong>employment. Data also shows that the number <strong>of</strong> persons working from theirhomes has also increased since earlier in the decade. Because <strong>of</strong> the subject’spotential use for both single family and/or multi-family use, both owner andtenant occupied data is used.TRAVEL TO EMPLOYMENTTravel Time From Home to Work forhouseholder (%) Owner Renter0 to 29 Minutes 59.2% 66.7%30 Minutes and greater 26.8% 22.7%At home or no fixed place <strong>of</strong> work 14.0% 10.6%Median (minutes to work) 22 20Source: AHSOwner-occupied households tend to travel further to work than tenantoccupied households, all else being equal. In rural areas <strong>of</strong> south-centralMichigan more heavily populated urban areas <strong>of</strong>ten have available rentalhousing. These units may be either single family, multi-family or some mix <strong>of</strong>both. Because <strong>of</strong> petroleum prices travel times are very likely to diminish incoming years. Generally, single family homes appeal to a market area <strong>of</strong> nogreater than a 25 minute travel time. Multi-family (apartments) tend to bemore localized in the market. It would make sense in the current environmentthat a market area limited to a 15 minute drive time would capture the bulk <strong>of</strong>multifamily households. In any market there will be leakage into and out <strong>of</strong> thearea. Once the barrier point is reached it becomes problematic for householdsto choose one location over another. At this point the household mustconsider fuel costs, time spent commuting, as well as the necessity <strong>of</strong>obtaining or disposing <strong>of</strong> existing housing.The 25 and 15 minute drive-time maps are shown below:______________________________________________________________________________26


MARKET STUDY AND LAND USE ANALYSISThe primary market area for single family housing extends as far south asFremont – Angola and north to just south <strong>of</strong> Marshall. The market areaextends east to Jonesville and west near Sturgis. The area extends irregularlyalong the major arteries. The 15-minute driving time market area which bestrepresents multi-family housing is shorter and extends south to <strong>Coldwater</strong>Lake and north to Tekonsha. The east boundary is Quincy and the west isBronson.Delineation <strong>of</strong> the retail market is defined as an area that is about an 8 minutedriving time from the site location. There is competing shopping on the eastside <strong>of</strong> <strong>Coldwater</strong> which would set the east boundary. The west boundary isthe distance that it becomes inconvenient to travel for retail goods andservices. This would likely be no further than Bronson. There is limited retailto the west <strong>of</strong> <strong>Coldwater</strong> suggesting that demand is low in the area. Theeight-minute driving time is shown below:______________________________________________________________________________<strong>27</strong>


MARKET STUDY AND LAND USE ANALYSISBecause most households purchase convenience items within a 5 to 10 minutedriving time <strong>of</strong> their home, the primary retail trade area for the subject site islimited to <strong>Coldwater</strong>, east to I-69, west along US-12 east <strong>of</strong> Bronson and lessthan 2 miles north and south.Step Three - Forecast DemandDemand involves two processes – growth and product pricing input.Demand forecasts for housing are largely a function <strong>of</strong> population andhousehold growth. The first step therefore is to display current and projectedhousehold growth in the target market area. For single family housing weused a drive-time distance <strong>of</strong> 25 minutes which would maximize capture frommost rural areas. The following are households, household growth andmedian incomes from the primary market area (single Family Homes):POPULATION AND HOUSEHOLD TRENDSDemographic 2000 2007 2012Population 46,458 49,712 50,646Households 17,330 18,251 18,721Median Household Income $40,329 $47,986 $54,<strong>05</strong>7Mean Household Income $48,661 $57,640 $66,2172007 ESRI ©______________________________________________________________________________28


MARKET STUDY AND LAND USE ANALYSISPopulation growth is expected to be 0.37% from 2007 to 2012 whilehouseholds are expected to grow 0.51%. Demographic data also shows thatfamilies will actually grow at a slower rate. It is projected between 2007 and2012 the number <strong>of</strong> families in the 25 minute driving time market will increaseby only 0.07%. The median household income increases by 2.41% from 2007to 2012. The average household income increases by 14.88% from 2007 to2012. This large increase has substantial impact on the distribution <strong>of</strong>households in the market area. First, the fact that the mean (average)household income is greater than the median and the difference widens by2012 suggests that the distribution is positively skewed. This means thatthere are a few top end earning households while very many less than theaverage households. The mean (average) is driven up by a small number <strong>of</strong>top earning households. Second, the rate <strong>of</strong> increase is substantially higher forthe average household income than for the median. In order to quantifyincome differences we have prepared the following segmented income analysis(by household) for the 25-minute driving time market area:HOSUEHOLD INCOME - PRIMARY MARKET AREAIncome Segment 200 2007 2012< $15,000 2,245 1,769 1,578$15,000 - $24,999 2,533 2,197 1,987$25,000 - $34,999 2,692 2,347 1,958$35,000 - $49,999 3,477 3,220 3,008$50,000 - $74,999 3,738 4,212 4,343$75,000 - $99,999 1,606 2,357 2,654$100,000 - $149,999 824 1,670 2,310$150,000 - $199,000 149 239 511$200,000+ 140 239 3732007 ESRI ©The number <strong>of</strong> households earning less than $15,000 to $49,999 will actuallydecrease from 2007 to 2012. Significant increases are expected in the$100,000 to $149,999 range and very large increase (113%) for householdsearning from $150,000 to $199,000. There is a 56% increase in the number <strong>of</strong>households earning more than $200,000 between 2007 and 2012. Thedemographic indicates that pricing <strong>of</strong> the end product should target the upperincome levels.The subject’s location finds it near two other significant single and dual familyhousing projects – Northshore and Arrowhead Development. Homes in thesedevelopments have anticipated values <strong>of</strong> between $150,000 and $400,000depending on water amenities. To maximize investor returns prices wouldlikely be at the lower end <strong>of</strong> the range. This would allow for a larger buying“pool” and expedite absorption. The following are my price calculations:______________________________________________________________________________29


MARKET STUDY AND LAND USE ANALYSISHOME PRICING ANALYSISPrice $150,000 $200,000LTV 80.0% 80.0%Interest rate 5.75% 5.75%Monthly Mtg. Payments $700 $934Taxes & Insurance (mon.) $221 $283Total Annual Housing Pmt $11,<strong>05</strong>3 $14,6<strong>05</strong>The pricing analysis looks at two levels <strong>of</strong> home prices. The first is homes inthe $150,000 range which would be step-up homes given that median homeprices have declined in the market area. Standard underwriting guidelinesgenerally limit housing costs to 29% <strong>of</strong> gross Income. The appraiser does notdispute that over the last several years these standards have deterioratedsubstantially; but, it is also very clear that much tighter lending standards inrelationship to income, home values, disposable income and household networth will be imposed on buyers as a result <strong>of</strong> the large number <strong>of</strong> area wideforeclosures. The required income necessary to purchase a home with a price<strong>of</strong> $150,000 is $38,114. This assumes standard household debt ratios and a20% downpayment. In order to purchase a home at $200,000 the householdwould need to generate income <strong>of</strong> $50,362 or greater.Using a household income <strong>of</strong> $50,000 or greater as a starting point for newhousing demand, this will generate an additional housing demand net <strong>of</strong> renteroccupied units <strong>of</strong> 1,474 units between 2007 and 2012.The number <strong>of</strong> households eligible to purchase a home in a single familydevelopment <strong>of</strong> the site is also limited by the number <strong>of</strong> homeowners versusrenters as well as the vacancy level. For many homes, to move into a newhome will require the sale <strong>of</strong> an existing home. This is a rather dubiousposition since the current housing market is poor. Homeownership rates in theprimary market area are 80.12% with that figure expected to be 79.86% by2012. The long-term vacancy rate for owner-occupied housing units is 19.1%according to the 2007 ESRI data. Housing demand is largely a function <strong>of</strong>household growth and vacancy. Thus assuming household growth <strong>of</strong> 1,474and a 19% vacancy rate, the total annual demand for new owner-occupiedhousing <strong>of</strong> all types can be calculated.Household growth /1-vacancy rate) = market area housing units1,474 / (1-0.19) = 1,820 (rounded)This figure indicates total new housing demand for owner-occupied units inthe five year period. It does not reflect the influence or the relationshipbetween new construction and existing inventory. The last element to beconsidered is the percentage <strong>of</strong> single-family demand expected in the subjectneighborhood. In 2007 there were a total <strong>of</strong> 14,622 owner-occupied housingunits in the market area. Using the immediate neighborhood and areaboundaries with a 2 minute drive time there was a total <strong>of</strong> 235 owner-occupiedhousing units. The percentage used to estimate the neighborhood capture is235/14,622 or 1.61%.______________________________________________________________________________30


MARKET STUDY AND LAND USE ANALYSISMarket singlefamilydemandxneighborhoodpercentage =neighborhood singlefamilydemand1,820 x 0.0161 = 29.3 unitsThe number <strong>of</strong> new housing units between 2007 and 2012 in the immediateneighborhood is estimated to be 29.3 units or about 5.86 units per year.Multifamily DemandMulti-family demand is demand for new housing that will be non-owneroccupied. Generally, there are two types <strong>of</strong> multi-family, market based ormarket rate housing and subsidized or sponsored housing. The former typehousing is private development with market based rent and economics. Thelatter is housing generally subsidized through either LIHTC (low incomehousing tax credits) or HUD Section 8, 32, 33 or other programs designed to<strong>of</strong>fset higher rental rates with direct or indirect government subsidizes.The amount <strong>of</strong> new rental housing units can be estimated using the same type<strong>of</strong> fundamental study used in the single family housing study. The market areais delineated as a 15-minute driving time rather than the 25-minute from thesingle-family housing study. The market area for apartment renters tends to beconsiderably less than owner-occupied properties. Furthermore, renters tendto pay a higher percentage <strong>of</strong> income for housing. These households tend tobe exceptionally sensitive to inflationary pressures and higher petroleum prices.The first step in the multi-family analysis is to estimate the feasibility rentnecessary for construction.Rent Level Required for New Multifamily ConstructionAssumptionsAverage Unit size600 sq.ft.Number <strong>of</strong> Units 200Total net leaseable area (NLA) 120,000Construction costLand Size76.84 per sq.ft. - $46,104 per unit10 AcresLand & Site Costs$470,000 - $1.08 per sq.ft.Overall cap rate 8.5%Operating Expenses40% <strong>of</strong> gross incomeConstruction cost 200 x $46,104 $9,220,800Land & site cost $470,000Total cost $9,690,800Required NOI$9,690,800 x .085 $823,718Required effective gross income$798,286 ÷ 0.60 $1,372,863Say$1,375,000 @ 95% occupancyRequired rent per square foot($1,375,000 ÷ 114,000 sq.ft. <strong>of</strong> NLA $12.06 per sq.ft., or $603 per month______________________________________________________________________________31


MARKET STUDY AND LAND USE ANALYSISThe assumptions for multi-family housing include a cap rate <strong>of</strong> 8.5% for gardentype non-institutional grade complexes. Rates from Battle Creek andKalamazoo as well as the Korpacz Real Estate Investor Survey are used in theanalysis. An aggressive 40% expense ratio is used which reflects lower costsin earlier years <strong>of</strong> a project. In the past multi-family land has commanded$35,000 per acre and site expenses were estimated to add another $.<strong>27</strong> persquare foot to costs. A density ratio assuming a three story apartment wouldbe 21.78 units per acre under <strong>Coldwater</strong>’s multi-family zoning ordinance. A200 unit apartment complex would require about 9.0 acres <strong>of</strong> supporting land.MULTI-FAMILY DEMAND BY SEGMENTATION METHODLine ID Market Demand Forecast* 2000 2007 2012 Comment1 Household forecast 23,702 25,061 25,513 2007 ERSI ©2 Average increase per year 39 183 Persons per household 2.53 2.49 2.484Occupied housing unit demand (totalhouseholds) 8,225 8,674 8,8915 Percentage <strong>of</strong> apartment units 16.9% 16.9% 16.9% AHS6 Potential demand for apartments 1,392 1,468 1,5047 Percentage <strong>of</strong> households able to affordsubject economic segment 70% 77% 80% Using 35% <strong>of</strong> HHI8 Total potential demand for occupied unitsin subject economic segment 973 1,128 1,204 Line 6 x Line 79 Plus frictional vacancy @ 5% 51 59 6310Total potential demand for units in subjecteconomic segment 1,024 1,187 1,268 Line 8 plus line 9Market Residual Demand11 Year starting competitive supply 1,341 1,341 1,34112 New Construction 0 0 0 Analyst's forecast13 Total competitive supply 1,341 1,341 1,34114 Residual demand -317 -154 -73 Line 10 minus Line 1315 Estimate market occupancy rate 72.6% 84.1% 89.8% Line 8 divided by Line 13Subject Capture EstimateSubject Pro Rata Share14.9% 14.9% 14.9%16 Estimated subject capture rate (rounded) 10.0% 10.0% 10.0% Analyst's forecast17 Estimated subject occupancy - units 97 113 120 Line 8 x Line 1618 Estimated subject occupancy rate 48.7% 56.4% 60.2% Subject 200 units* M arket area includes <strong>Coldwater</strong> & a portion <strong>of</strong> surrounding townships (15 minute drive time)Even at $603 per month in feasibility rent the fundamental study <strong>of</strong> multifamilyhousing strongly suggests that any new construction would likely have adeteriorative effect on existing units. Furthermore, this makes clear that itwould be highly unlikely that funding could be obtained for a proposed 200unit apartment. The size <strong>of</strong> the complex could be decreased, but this wouldlikely drive the per unit price <strong>of</strong> construction higher since the builder could notspread fixed costs over a larger asset base. Since feasibility rent is a function<strong>of</strong> cost, feasibility rent is likely to exceed market rent.The demand analysis suggests without significant changes in population or thelocal economic base, demand for market based apartments could materialize in2016. Given a lead time for construction <strong>of</strong> one year to 18 months this would______________________________________________________________________________32


MARKET STUDY AND LAND USE ANALYSISmake it feasible to develop at least part <strong>of</strong> the site in 2014. Cash flows wouldbe positive in 2016 when leasing could begin.Retail DemandRetail demand is also considered because the property could under the PUDdevelopment have a portion allocated to retail use. The proximity to newhousing and higher-end homes as well as potential development <strong>of</strong> theremaining site area for housing would make the front portion with exposure toUS-12 a viable commercial use site. Retail demand is based on buying orpurchasing power and demographic growth in population and/or households.Previously I defined the trade area as an 8 minute driving time around thesubject. This area would include most all <strong>of</strong> <strong>Coldwater</strong> and a small portion <strong>of</strong><strong>Coldwater</strong> Township. A retail center would be attractive to consumers livingon the west side <strong>of</strong> <strong>Coldwater</strong>. However, a portion <strong>of</strong> the southwest quadrantis the industrial park which would not necessarily add to a retail demandgenerators.Item 2000 2007 2012Primary market area population 15,825 17,029 17,351÷ Average Household Size 2.52 2.49 2.48=Total Number <strong>of</strong> households inprimary trade area 6,280 6,839 6,996x Average Household income $44,131 $54,191 $63,241= Total income $<strong>27</strong>7,132,173 $370,609,855 $442,457,496x% Income spent on retail goods &services 52.8% 52.8% 52.8%= Retail sales potential $146,325,787 $195,682,003 $233,617,558x% <strong>of</strong> retail sales by subject typeshopping center 40.6% 40.6% 40.6%=Retail sales potential in primarytrade area $59,466,800 $79,525,166 $94,942,176÷ Sales required per Sq.Ft. $200 $200 $200=Supportable Sq.Ft. <strong>of</strong> retail spacefrom households in primary tradearea 297,334 397,626 474,711+Potential supportable Sq.Ft. <strong>of</strong>retail space from secondary tradearea (10% <strong>of</strong> primary trade area) 29,733 39,763 47,471=Total supportable Sq.Ft. <strong>of</strong> retailspace from primary and secondarytrade areas 3<strong>27</strong>,067 437,388 522,182+ Plus frictional vacancy (4%) 13,628 18,225 21,758=Total Sq.Ft. <strong>of</strong> supportable retailspace 340,695 455,613 543,940New retail demand is expected to materialize through the end <strong>of</strong> 2012. About88,3<strong>27</strong> square feet <strong>of</strong> additional space demand can be anticipated by 2012. Arecent study by The Chesapeake Group, Inc. suggests that county-wide newretail space demand would be from 33,794 to 93,867 from 2006 to 2015. Thisanalysis includes eating and drinking establishments, plus vehicle service and______________________________________________________________________________33


MARKET STUDY AND LAND USE ANALYSISsales which are excluded from my analysis. The total county-wide retail salespotential in 2006 was estimated to be $417M by the Chesapeake Group. Thismeans that about 48% <strong>of</strong> all county wide retail sales originate from within an 8minute driving time <strong>of</strong> the subject site. Retail demand in the immediate marketarea is expected to increase by 19% from 2007 through 2012.Step Four – Competitive Supply AnalysisMarginal demand is established through analysis <strong>of</strong> existing and anticipatedsupply <strong>of</strong> the property type under investigation. Supply study in this analysisincludes market area single-family and multi-family housing as well as retailsupply study.For single family housing the market area includes a wide area whichencompasses the entire 25 minute driving time. But the subject would directlycompete with both Northshore and Arrowhead. To a much lesser extent itwould compete with Sauk River and several smaller housing developments in<strong>Coldwater</strong>.The existing competitive single-family supply <strong>of</strong> housing includes vacant lotseither empty, purchased for speculation, or planned for future development.Single-Family ResidentialDevelopment Name Type <strong>of</strong> Development Type <strong>of</strong> UnitsTotalUnitsUnits on Marketor Not BuiltSauk River Forest - Phase I Site Condominium single family 45 24Sauk River Forest - Phase II Site Condominium single family 44 44Arrowhead Site Condominium single family 56 <strong>27</strong>Northshore Triplexes (PUD) multi-family 33 24Northsore Subdivision (PUD) single-family 39 15Total 217 110Current competing housing inventory is 42 units. This excludes the 68 lotinventory in Sauk River Forest Phase I and II, but includes the 24 availableduplex sites in Northshore. There are no known planned developments in<strong>Coldwater</strong>. Competitive supply for the <strong>Coldwater</strong> apartment market rangesfrom older government subsidized housing to the newer Whispering Pinescomplex. Excluding mobile home parks and 1 to 4 unit apartment houses andsingle family homes the majority <strong>of</strong> <strong>Coldwater</strong>’s multi-family housing isinventoried below:______________________________________________________________________________34


MARKET STUDY AND LAND USE ANALYSISRental DevelopmentNumber<strong>of</strong> UnitsNumber <strong>of</strong>BedroomsTypeUnitStatus40 1 apartment M,SCanterbury Apartments40 2 townhouse M,S40 3 townhouse M,SChandler Estates2 1 apartment M46 2 apartment M2 efficiency apartment MColony House Apartments26 2 apartment M2 3 apartment M3 4 apartment MCountry Knoll 32 1 apartment 65Eastwinds Apartments6 1 apartment S42 2 apartment S1 efficiency apartment MElmwood Apartments12 1 apartment M18 2 apartment MHalcyon Point 37 1 apartment 65,SLoomis Estates Apartments10 1 apartment M38 2 apartment MMeadow View Senior Apartments 16 1 apartment 6520 1 apartment SOld Millrace Apartments20 2 apartment S8 3 apartment SPinecrest Apartments 12 1 apartment MSeven Oaks ApartmentsVirginia Manor Apartments11411apartmentapartment65M231422apartmentapartment65M32 1 apartment SWhispering Pines55 2 apartment S24 3 apartment STotal 636Key to Unit StatusM =market rental units65=rental units for senior citizensS=subsidized rental unitsSource: Spicer Group Survey, February 2004Multi-Family Rental Unit SummaryThe foregoing inventory was provided in 2004 by the Spicer group whichprepared a housing study for the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>. Not included in this matrixare small one to four unit or even larger apartments and rentals. Dispersedthroughout <strong>Coldwater</strong> are small 1-4 unit buildings as well as homes convertedto 1 to 4 bedroom rental units. While these types <strong>of</strong> rentals may not have thesame appeal to the renting population they nevertheless are alternative housingoptions. The market area has had several proposed multi-family projects.Some have not been able to obtain permitting or zoning approval while othershave failed to obtain acceptable financing, largely a result <strong>of</strong> feasibility issues.Land remains available in and around <strong>Coldwater</strong> for new multifamily housing.______________________________________________________________________________35


MARKET STUDY AND LAND USE ANALYSISThe final inventory <strong>of</strong> supply is for retail use. The inventory includes most allthe retail space in <strong>Coldwater</strong> with exception <strong>of</strong> some spot located facilities andcentral business district.Complex"A" Space(Sq.Ft.)RETAIL INVENTORY AND OCCUPANCY SURVEYDecember-07"B" Space(Sq.Ft.)Total RetailSquare FootageVacant "A" Vacant "B"Space SpaceTotalVacantSpace% Vacant"A" Space% Vacant"B" SpaceOverall %VacantWillowbrook Plaza 90,576 89,041 179,617 0 11,600 11,600 0.00% 13.03% 6.46%Strip Center (Wal-Mart Outlot) 0 12,000 12,000 0 3,500 3,500 0.00% 29.17% 29.17%Strip Center (N Willowbrook) 0 31,690 31,690 0 0 0 0.00% 0.00% 0.00%Strip Center (S Willowbrook) 0 9,520 9,520 0 0 0 0.00% 0.00% 0.00%Strip Center (S Willowbrook) 0 36,125 36,125 0 0 0 0.00% 0.00% 0.00%Strip Center (S Willowbrook) 0 12,000 12,000 0 0 0 0.00% 0.00% 0.00%Strip Center (Home Depot) 1 0 24,000 24,000 0 1,400 1,400 0.00% 5.83% 5.83%Stand AlonesWal-Mart 183,645 0 183,645 0 0 0 0.00% 0.00% 0.00%Meijer 181,129 0 181,129 0 0 0 0.00% 0.00% 0.00%Home Depot 116,000 0 116,000 0 0 0 0.00% 0.00% 0.00%Family Farm & Home 48,940 0 48,940 0 0 0 0.00% 0.00% 0.00%Felapuasch 39,848 0 39,848 0 0 0 0.00% 0.00% 0.00%Aldi's 15,150 0 15,150 0 0 0 0.00% 0.00% 0.00%Walgreens 15,120 0 15,120 0 0 0 0.00% 0.00% 0.00%Rite-Aide 11,060 0 11,060 0 0 0 0.00% 0.00% 0.00%Totals 701,468 214,376 915,844 0 16,500 16,500 0.00% 7.70% 1.80%Second Tier SitesVillage Square (CVS) 10,500 19,238 29,738 0 6,250 6,250 0.00% 32.49% 21.02%East Chicago Strip (H & R Blk) 0 6,120 6,120 0 0 0 0.00% 0.00% 0.00%Strip Center (E Chicago) 0 15,840 15,840 0 6,380 6,380 0.00% 40.28% 40.28%Felpausch Strip 0 4,200 4,200 0 4,200 4,200 0.00% 100.00% 100.00%Fairfield Plaza 0 134,532 134,532 0 50,0<strong>05</strong> 50,0<strong>05</strong> 0.00% 37.17% 37.17%Marshall Square 0 15,333 15,333 0 5,320 5,320 0.00% 34.70% 34.70%Division St (Granger) 0 6,000 6,000 0 1,200 1,200 0.00% 20.00% 20.00%N Marshall Strip Center 0 6,840 6,840 0 2,000 2,000 0.00% 29.24% 29.24%Totals 10,500 208,103 218,603 0 75,355 75,355 0.0% 36.2% 34.5%1 Planned Strip CenterThe table displays the current inventory <strong>of</strong> space and vacancy rates as <strong>of</strong>December 2007. Total area, including “Big Box” retailers, was 1,134,447square feet. Overall vacancy is 1.8% from primary sites with 7.7% “B” spacevacancy. The overall vacancy in second tier sites is 35% which has stayed atthis level for some time. Some existing second tier space is scheduled to beremoved from inventory in the near future.Step Five – Equilibrium or Residual AnalysisIn the equilibrium study and analysis, the analyst investigates the interaction <strong>of</strong>supply and demand to determine if marginal demand exists and then makes aprediction as to when the market will move out <strong>of</strong> equilibrium. Single familyhousing continues to experience severe downward pressure from the number<strong>of</strong> home foreclosures in <strong>Coldwater</strong> and surrounding communities. In thisanalysis we look at current trends, new home construction, and projected new______________________________________________________________________________36


MARKET STUDY AND LAND USE ANALYSISbuilding. Any projection <strong>of</strong> new homes and positive changes in the housingmarket will be a result <strong>of</strong> improvement in Michigan and Branch County’s localeconomic conditions. Unemployment remains well above the national level,there are few quality jobs being created in <strong>Coldwater</strong> or Branch County, andsome prior sources <strong>of</strong> lending have evaporated. Credit markets remain “tight”although credit is still available. The number <strong>of</strong> new single family residentialconstruction permits issued by the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> is shown below:CITY OF COLDWATER BUILDINGPERMITSYearNo <strong>of</strong> Permits2001 372002 <strong>27</strong>2003 252004 1720<strong>05</strong> 222006 142007 6As can be seen, housing starts have declined sharply since 20<strong>05</strong> and havebeen on a general downward trend since 2001. In 2004 and 2006 the <strong>City</strong>issued less than 20 permits and in all <strong>of</strong> 2007 the city issued only 6 total singlefamily permits. In 2007 there were nearly as many 3-family unit structuresbuilt as single family (4).In addition to almost a complete lack <strong>of</strong> new housing starts, sales pricesreported by the Branch County MLS have also declined sharply reflecting pooreconomic conditions. Many area realtors report difficulty selling mid-pricedhomes and the number <strong>of</strong> foreclosures being added to inventory may increasethe time before supply approximates demand. Using the local MLS, weexamined average selling price in dollars per square foot <strong>of</strong> Gross Living Area(GLA) over a 10 year period. The data is weighted for size and inflationadjusted using the Consumer Price Index (CPI) (all consumers). Transactionvolume was not included but has clearly been lower in Branch County since2004.______________________________________________________________________________37


MARKET STUDY AND LAND USE ANALYSISCHANGE IN BRANCH COUNTY NON-WATERINFLUENCE RESIDENTIAL HOUSING$74.00$72.00Unit Price ($/Sqft <strong>of</strong> GLA)$70.00$68.00$66.00$64.00$62.00$60.00$58.00$56.001998 1999 2000 2001 2002 2003 2004 20<strong>05</strong> 2006 2007Source: Branch Co MLS -Unit Prices are Inflation Adjusted to 2007Changes in Branch County Non-Water influenced sales are shown above.Home prices have declined about 18.61% on an inflation adjusted basis since2000. The 2004/20<strong>05</strong> repeak <strong>of</strong> prices suggests that mortgage lending inthese years was consistent with a plethora <strong>of</strong> sub-prime products and thedeterioration in lending standards (i.e., LTV ratios, income, asset values, etc.).Because <strong>of</strong> these metrics the outlook for new development and housingappreciation is limited by the performance <strong>of</strong> local and state economies. As aresult, I expect to see continued downward pressure on home prices and landvalues as excess inventory is sold <strong>of</strong>f and absorbed. The period <strong>of</strong> timenecessary to rebalance the market is estimated to be from 2 to 3 years withmost area experts projecting some new growth by 2011. Even then it isdifficult to gauge the timing <strong>of</strong> recovery as the United States heads into aweakening economy in <strong>2008</strong> driven largely by declines in home prices, assetbacked securities, and credit availability.The amount <strong>of</strong> existing competing inventory is 42 lots and the fundamentalstudy shows absorption <strong>of</strong> 5.86 units per year in the immediate neighborhood.This means it will take about 7.16 years to completely absorb existinginventory <strong>of</strong> single family lots/sites.The multifamily study shows a residual demand <strong>of</strong> -317 units in 2000 whichdeclines to -154 in 2007. The figure declines to -73 in the five year period from2007 to 2012. This amounts to 16.2 new units per year being generated as aresult <strong>of</strong> demographic changes. With feasibility rent at $600 per unit thiswould appear to be a sufficient level to start new development. However,unlike subdivision development where cash flows are generated from selling<strong>of</strong>f inventory at retail prices, an apartment must be able to reach stabilized______________________________________________________________________________38


MARKET STUDY AND LAND USE ANALYSISoccupancy rather quickly. This means that any new development wouldrequire a reasonable level <strong>of</strong> pent-up demand to cover fixed expenses until theproperty could achieve stabilization. The existing excess supply will beabsorbed by 2016. Even at this point it is questionable whether new unitscould be constructed and meet required investment criteria. Rather it is likelythat another 2 to 3 years would be needed to bring pent-up demand into themarket and increase rental rates. The confluence <strong>of</strong> these two indices will bedifficult in a local market that is dominated by HUD and government subsidizedrents. As such, at least ten years (10 years) will be needed before multifamilyhousing could be constructed and meet acceptable feasibility criteria.The final analysis considers the development and balance <strong>of</strong> retail space in the<strong>Coldwater</strong> market. There appears to be increasing supply <strong>of</strong> retail space as anew strip center is being added to East Chicago Street. This will put supplywell over demand as determined by the appraiser and the Chesapeake Group’sstudies. Retail, unlike housing, tends to be influenced by trends in income, networth, availability <strong>of</strong> credit, as well as changes in demographics. Several rules<strong>of</strong> retail apply that make one location better than another. First, a consumerwill not bypass an equal or better buying opportunity to travel further to analternative location. For most products consumers tend to be “timeconstrained”. Higher income households tend to purchase better qualitydurable goods but <strong>of</strong>ten will purchase nondurable goods consistent with therest <strong>of</strong> the market. Retail trends could provide some immediate use <strong>of</strong> the siteshould a PUD be approved. These uses might include a national drugstorechain, life-style center, service commercial users such as women’s hair andbeauty services, or other traditional retail users. Retail occupants that are notlocated in <strong>Coldwater</strong>’s “Big Box” retail centers or the East Chicago Strip centercould be prime targets for retail occupancy in the development <strong>of</strong> the site.These are commonly referred to as secondary retail users or facilities.Considering these factors, some <strong>of</strong> the land could be converted into retail orservice commercial use consistent with the level <strong>of</strong> existing development in theneighborhood, particularly the Northshore and Arrowhead housingdevelopments.One site per year may be anticipated to sell given projected growth in the tradearea incomes and purchasing power.Step Six – Forecast Subject CaptureThe last step in the six step market analysis is to determine and forecast acapture ratio for the subject. Generally, this would be done with a competitiverating <strong>of</strong> other subdivisions, site condo projects, retail developments, and/ormulti-family housing. Most <strong>of</strong> the capture will relate to future developmentwhich is likely to take years to occur. As a result, any future capture is basedon a pro rata share <strong>of</strong> the market at time <strong>of</strong> future development.______________________________________________________________________________39


HIGHEST AND BEST USEHighest and Best Use as though VacantThe highest and best use <strong>of</strong> a property as though vacant is defined as:Among all reasonable, alternative uses, the use that yieldsthe highest present land value, after payments are madefor labor, capital, and coordination. The use <strong>of</strong> a propertybased on the assumption that the parcel <strong>of</strong> land is vacantor can be made vacant by demolishing any improvements. 4The highest and best use analysis is the study <strong>of</strong> land economics. Thequantity <strong>of</strong> land and other natural resources is determined by geology andcannot be significantly changed, although the quality <strong>of</strong> land is affected byconservation, settlement patterns, and improvements. The unusual feature <strong>of</strong>land therefore is that its quantity is fixed and completely unresponsive to price.Because the supply <strong>of</strong> land is inelastic, land will always work for whatever itcan earn. Thus, the value <strong>of</strong> the land derives entirely from the value <strong>of</strong> theproduct, and not visa versa. When the purpose <strong>of</strong> an appraisal is to develop anopinion <strong>of</strong> market value, highest and best analysis identifies the mostpr<strong>of</strong>itable, competitive use to which the property can be put. The highest andbest use stated in financial terms is the highest Net Present Value (NPV) <strong>of</strong> theland.The highest and best use analysis is a four test process.TEST ONE – LEGALLY PERMISSIBLEThe test <strong>of</strong> legal permissibility is used to eliminate those uses that arerestricted by legalities such as zoning, use restrictions, water and sewerassessment districts, or other limitations on land use. Zoning is the mostprevalent restriction on the use <strong>of</strong> land. The site is currently zoned A-2 Oneand Two family residential use district. Permitted uses include detached singlefamily and attached 1 or 2 family residential development. Attached 2 familydevelopment would be either duplexes or condominiums (2 units perstructure). The duplex market is rather weak, making attached condominiumunits a more viable alternative in the A-2 zone district. Under the A-2 zoning,certain special uses include churches, religious facilities, day care operationssubject to certain requirements, public libraries, museums, etc. Hospitals andeleemosynary institutions are special uses permitted in the A-2 zoning. Thezoning excludes most all other uses outside a possible PUD.The site is designated a PUD area under the <strong>Coldwater</strong> Master Plan, whichwas last published in 2002. The Master Plan states as one <strong>of</strong> its goals is the“..economic development, industrial growth and an expansion <strong>of</strong> the <strong>City</strong> taxbase…” as it relates to land development. Throughout the document PUDs areencouraged and provisions in both the Master Plan and codified zoningordinance provide for more intense use <strong>of</strong> land under PUDs. The minimum sitearea for a PUD is 10.0 acres. Commercial uses, when combined with4 The Appraisal Institute, The Appraisal <strong>of</strong> Real Estate, 12 th ed., Appraisal Institute (Chicago,IL, 2001), 307______________________________________________________________________________40


HIGHEST AND BEST USEresidential uses, may be limited to 8 percent <strong>of</strong> the total site area. Theminimum open space or common area is 20 percent <strong>of</strong> total land area. Thisarea would be assumed to include streets, public infrastructure, ROWs, etc.The developer is required to use underground utilities. Commercial uses in aPUD must have common parking areas and ingress/egress points. Some visualdeflection is needed for abutting residential areas in a PUD. The goal as statedin the zoning regulations is to provide an “integrated and harmoniousdesign…”.The legally permitted uses include one and two family residences subject tobuilding, site, common area and size restrictions as well as a Planned UnitDevelopment (PUD) which may include commercial use.TEST TWO – PHYSICALLY POSSIBLEThe test <strong>of</strong> physical possibilities examines and concludes what limits areplaced on the site by physical conditions. From the market study analysis wedetermined that the soils appear to be favorable for building since it supportedthe former Federal Mogul facility for decades. Land slopes both east and southand there is a bermed portion <strong>of</strong> the site along Northshore. Drainage wouldnot appear to be an issue although any site plan that includes a more intenseuse may need drainage matters addressed. The site is bounded by man-madebarriers on the south and east. It is bounded on the west by small tractscurrently used for mobile homes along the Pilot Knob channel that connectsMassager and Cemetery Lakes. The property is bounded on the north byadjoining open space currently used as athletic fields and open park areas. Theman-made barriers and small tracts along Pilot Knob would suggest that anassemblage <strong>of</strong> the parcel with adjoining land owners is unlikely. This type <strong>of</strong>arrangement tends to produce large pr<strong>of</strong>its for sellers because <strong>of</strong> plottageissues. The site has access to public water and sewer services. The site doesnot appear adversely affected by slopes, soils, road access, or visibility.Visibility includes about 600 linear feet <strong>of</strong> direct West Chicago Street (US-12)road frontage.TEST THREE - FINANCIALLY FEASIBLEThe test <strong>of</strong> financially feasibility determines whether the existing or proposeduse, or an alternative use can meet the objective <strong>of</strong> market returns. Themeasurement <strong>of</strong> financial feasibility is not necessarily the rate <strong>of</strong> return butrather the Net Present Value (NPV) <strong>of</strong> cash flows. In this respect the NPV isresidual value to land net <strong>of</strong> expenses. To test the financial feasibility <strong>of</strong> thesite I have prepared an estimate <strong>of</strong> cash flows. The cash flows represent myestimate <strong>of</strong> net cash to be received under two development possibilities: Oneand two family residential and PUD (including 8% commercial development andmultifamily use). The former is a rather straight forward concept. The latter iscomplicated because cash flows would be received at different points in time.It is assumes an allocation <strong>of</strong> multiple uses that may or may not be viable inthe future.In the sales comparison approach I used sales <strong>of</strong> various size land tracts toestimate the end-user price <strong>of</strong> different uses <strong>of</strong> the land. One and two family______________________________________________________________________________41


HIGHEST AND BEST USEresidential use analysis is rather straight forward. End-user prices on lots areestimated to be $30,000 <strong>of</strong> which the holding cost per lot and infrastructurecosts to be deducted (subtracted) is estimated at $18,000. Infrastructure costsare the most expensive including a pro rata share <strong>of</strong> streets, utilities, etc. Fromthe market study in this report I determined that demand would materialize fordevelopment in year 7 assuming a continued rate <strong>of</strong> new demand at 5.86 unitsper year. This means the first cash flow would not be realized until year 7, andthen it should continue to absorb at the 5.86 units per year rate until theavailable inventory is depleted. The estimated allocation for site use is asfollows: Total acreage <strong>of</strong> 26.0 less common areas 20%, leaving 20.8 acres.Minimum lot size is 8,600 square feet which would indicate 1<strong>05</strong> lots.However, to maintain homogeneity with the lots in Northshore and ArrowheadDevelopments, lot sizes would likely be 1/3 <strong>of</strong> an acre or about 14,500 squarefeet each. Therefore, the total number <strong>of</strong> lots would be 62.The discount rate is 20% which is taken from the Korpacz Real Estate InvestorSurvey 4 th Quarter 2007. The rate is the average <strong>of</strong> 17.21% plus 300 basispoints for lack <strong>of</strong> entitlements and long lead time to development and especiallylimited absorption. The NPV calculation includes multifamily land beingacquired in year 10 at a price <strong>of</strong> $35,000 per acre. Unlike single familyresidential development, fee ownership is not sold at inception <strong>of</strong> the projectbut the land’s value is capitalized into perpetuity. Therefore, the present value<strong>of</strong> the land is what can be paid in year 10 discounted for the holding period <strong>of</strong>ten years to development. The appraiser realizes that some holding expenseswould be incurred, i.e., taxes, insurance, etc. These may be <strong>of</strong>fset by any landappreciation in the market as the number <strong>of</strong> units begins to decline andeffective demand begins to increase. As demand increases upward pressure isput on multi-family land prices. The developer requires a large pr<strong>of</strong>it because<strong>of</strong> the opportunity cost <strong>of</strong> employing the cash elsewhere.UseTimingNumber <strong>of</strong>UnitsProjected AnnualNet Cash FlowsDuration(Years)DiscountRateNPVLandIndication($/Acre)Single Family Residential 7 Years 62 $108,000 10.33 20.0% $118,541 $4,559PLANNED UNIT DEVELOPMENT (PUD)1 & 2 Family 7 Years 20 $108,000 3.33 20.0% $59,560Multifamily Residential 10 Years 200 $315,000 1 20.0% $50,874Commercial (Retail, etc.) Immediate 4 $90,000 4 20.0% $232,986Total 224 $343,420 $13,182Analysis shows that the NPV <strong>of</strong> land under the pure single family developmentas permitted by the A-2 zoning would be $118,541. This assumes about 7years before development could begin, holding costs, and entrepreneurialpr<strong>of</strong>it. Pr<strong>of</strong>it is directly impounded in the discount rate and reflects the amountnecessary to purchase the land in <strong>2008</strong> and hold until conditions warrantdevelopment. Under a PUD development the NPV is $343,420 or $13,182 peracre. This represents enhancement to the land by mixed use development.The total number <strong>of</strong> units is 224 which was similar to the most recent proposalfor development received by the owners. This analysis can be altered and______________________________________________________________________________42


HIGHEST AND BEST USEtested for different combinations allowed under the PUD plan. The valuewould not likely change because cash flows tend to equal out depending ontiming and end-user prices.TEST FOUR - MAXIMALLY PRODUCTIVEThe most maximally productive use is the use <strong>of</strong> the site that nets the highestpresent value <strong>of</strong> land. From the financially feasible analysis we can see thatthis is use as a PUD (Planned Unit Development). However, some caveats arenecessary. First, it is questionable whether sufficient sales would occur ineach year to allow for reasonable repayment or debt service. The market ishighly leveraged and developers <strong>of</strong>ten require from 70 to 75% debt in almostany project. Lower net cash flows are likely to cause some concern goingforward as pr<strong>of</strong>it margins can quickly be eroded. Traditional loan and lendingcovenants may simply make a leveraged project untenable. A large capitalreserve would likely be necessary.Timing <strong>of</strong> development makes the site a transitional tract. Because the land istransitional, sales <strong>of</strong> similar transitional sites are most appropriate for use inthe sales comparison approach.The highest and best use as vacant is for mixed-use development under thePUD zoning. Most <strong>of</strong> the property would be held as a speculative site untildemand materializes.______________________________________________________________________________43


HIGHEST AND BEST USEHighest and Best Use as ImprovedThe highest and best use as improved is defined as:The use that should be made <strong>of</strong> a property as it exists. Anexisting property should be renovated or retained as is solong as it continues to contribute to the total market value<strong>of</strong> the property, or until the return from a new improvementwould more than <strong>of</strong>fset the cost <strong>of</strong> demolishing the existingbuilding and constructing a new one. 5The property is vacant. The contribution <strong>of</strong> improvements is not considered inthe highest and best use as improved. Development <strong>of</strong> the site andconstruction <strong>of</strong> improvements follows the timing <strong>of</strong> land use in the highest andbest use analysis as vacant. This would imply that improvements, whenconstructed would be <strong>of</strong> mixed use – commercial and residential.5 Ibid., 60.______________________________________________________________________________44


APPROACHES TO VALUEThe Appraisal Process & Approaches to ValueCost Approach – In the cost approach comparison is made with the cost todevelop a new replacement property, similar in design, utility, and use to thesubject. The cost estimate is then adjusted for differences in age, condition,and utility <strong>of</strong> the subject property to generate a value indication by the costapproach. In its most simple form, the cost approach represents the fee simplestabilized value <strong>of</strong> real property.Sales Comparison Approach – In this approach sales and transactions <strong>of</strong> similarproperties are compared against the subject. The comparative techniques <strong>of</strong>analysis applied in the sales comparison approach are fundamental to thevaluation process. A major premise <strong>of</strong> this approach is that the market value <strong>of</strong>a property is related to the prices <strong>of</strong> comparable, competitive properties. In thesales comparison approach elements <strong>of</strong> comparison are used to help explaindifferences in transaction prices. Elements <strong>of</strong> comparison can be both physicaland/or economic. Units <strong>of</strong> comparison are used in the sales comparisonapproach as a component into which a property may be divided for purposes <strong>of</strong>comparison.Income Approach – In the income approach the earning and cash flow capacity<strong>of</strong> a real estate investment is analyzed and converted into a value indication byeither a direct capitalization method or yield capitalization. The basis <strong>of</strong> theincome approach is the principle <strong>of</strong> anticipation and change which isfundamental to valuing income producing investments.______________________________________________________________________________45


SALES COMPARISON APPROACHSales Comparison Approach to ValueThe rationale <strong>of</strong> the sales comparison approach is that a prudent purchaser orinvestor would not pay more for a property than that <strong>of</strong> a suitable alternative(substitution). This principle implies that the reliability <strong>of</strong> the sales comparisonapproach is diminished if substitute properties are not available in the market.When data is available, this is the most straight-forward and simple way toexplain and support a value opinion.The principle <strong>of</strong> balance applies equally in the sales comparison approach. Theprinciple <strong>of</strong> balance holds that the relationship between land andimprovements and the relationship between property and its environment mustboth be in balance for a property to reflect its optimum market value. If, forexample, a property has too much land in relation to its improvements or toomany expensive amenities for its location, an imbalance in the property iscreated. Imbalances in the market and within specific properties can cause themarket to ascribe different prices to otherwise comparable properties.Ideally, if all comparable properties are identical to the subject property, noadjustments would be required. However, this is rarely the case, especially fornonresidential properties. Differences in property are therefore compensatedfor in the sales comparison approach by use <strong>of</strong> comparative analysis. 6Economic and physical differences <strong>of</strong> the comparable properties are adjusted tothe subject. Units <strong>of</strong> comparison are used to facilitate comparison <strong>of</strong> thesubject and comparable properties. Units <strong>of</strong> comparison are most accuratewhen they relate directly to the physical and/or economic characteristics <strong>of</strong> theproperties under study.The sales comparison analysis is developed and reported to value the propertyin fee simple estate. Sales <strong>of</strong> similar transitional land tracts are used in thesales comparison approach. The following eight sales are the best available:6The process by which a value indication is derived in the sales comparison approach.Comparative analysis may employ quantitative or qualitative techniques, either separately orin combination. Appraisal Institute, The Appraisal <strong>of</strong> Real Estate, 12 th e.d., 429.______________________________________________________________________________46


SALES COMPARISON APPROACHSALE COMPARABLE 1Address:North 10 th StreetKalamazoo, MISeller:William M & Susan E PollardBuyer:John C & Debbie WeaverSale Date: 11/6/06Sale Price:$184,000 (contract + cash)Unit Price ($/Acre): $11,565Size (Acres): 15.91Topography:Slightly RollingConfiguration:IrregularFlood Plain:NoneZoning:R-2 ResidentialUtilities:PublicComments:This is the sale <strong>of</strong> a 15.5 acre parcel with aWest side location just south <strong>of</strong> the Kal-HavenTrail head. Rolling hills with a wooded frontbuffer. Property may be split with townshipapproval. Located in the Kalamazoo Promisefree college tuition district.______________________________________________________________________________47


SALES COMPARISON APPROACHSALE COMPARABLE 2PHOTOGRAPH NOT AVAILABLEAddress:393 E RooseveltBattle Creek, MISeller:Kellogg Community College & North Pt WoodsBuyer:Southwestern Michigan Rehab HospitalSale Date: 4/23/04Sale Price: $225,000Unit Price ($/Acre): $26,346Size (Acres): 8.54Topography:Slightly RollingConfiguration:IrregularFlood Plain:NoneZoning:R3B Multi-FamilyUtilities:PublicComments:This sale is an assemblage <strong>of</strong> 1.75 acres sold byKCC for $40,000 and 6.79 acres sold by NorthPoint Woods for $185,000. The combinedparcel is to be developed for a medical rehabhospital.______________________________________________________________________________48


SALES COMPARISON APPROACHSALE COMPARABLE 3PHOTOGRAPH NOT AVAILABLEAddress:1200 Block S Kalamazoo StreetMarshall, MISeller:Gove AssociatesBuyer:Fairway Meadows ApartmentsSale Date: 11/1/01Sale Price: $98,000Unit Price ($/Acre): $14,583Size (Acres): 6,720Topography:LevelConfiguration:RectangularFlood Plain:NoneZoning:RM1 Multi-FamilyUtilities:PublicComments:This is the sale <strong>of</strong> multi-family land across fromAlwyn Downs Golf Course in Marshall,Michigan.______________________________________________________________________________49


SALES COMPARISON APPROACHSALE COMPARABLE 4Address:5154 W H AvenueKalamazoo, MISeller:Melba BrownBuyer:Dave Delo<strong>of</strong>Sale Date: 1/23/06Sale Price: $600,000Unit Price ($/Acre): $14,<strong>05</strong>5Size (Acres): 42.69Topography:Slightly Rolling - levelConfiguration:RectangularFlood Plain:NoneZoning:R-2 (duplex & single family)Utilities:PublicComments:This property is zoned R-2 (duplex & singlefamily) 32 acres on corner <strong>of</strong> North Drake Roadand West H Avenue. <strong>City</strong> water and seweravailable at the corner. The property included anolder dilapidated single family home.______________________________________________________________________________50


SALES COMPARISON APPROACHSALE COMPARABLE 5Address:S Willowbrook Rd<strong>Coldwater</strong>, MISeller:Gilbert L. & Bonnie W. JacoxBuyer:Reagan Properties, LLCSale Date: 8/3/99Sale Price:$<strong>27</strong>0,000 ($100,000 cash + 2-year contract)Unit Price ($/Acre): $4,635Size (Acres): 58.25Topography:LevelConfiguration:IrregularFlood Plain:8 – 10 acres along southern boundaryZoning:A-1 Single Family ResidentialUtilities:PublicVerification:Kevin SharickComments:This is the sale <strong>of</strong> 58.25 acres <strong>of</strong> residentialsubdivision land in <strong>Coldwater</strong>, Michigan. Theland was purchased with $100,000 down and$170,000 paid in a two year contract. Thecontract and purchase price is at or near marketlevels. The property will be developed as SaukRiver Forrest Subdivision with 99 platted lots.Utilities were extended to the site for a cost <strong>of</strong>$717,310 or $12,809 per lot for Phase I.______________________________________________________________________________51


SALES COMPARISON APPROACHSALE COMPARABLE 6Address:SEC Morse & State Street<strong>Coldwater</strong>, MISeller:<strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>Buyer:Garden Homes, Inc. (Leroy Yoder)Sale Date: 2/6/98Sale Price: $59,000Unit Price ($/Acre): $6,365Size (Acres): 9.<strong>27</strong>Topography:LevelConfiguration:RectangularFlood Plain:NoneZoning:A-2 Single Family ResidentialUtilities:PublicVerification:<strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>Comments:This is the sale <strong>of</strong> a small residential tract <strong>of</strong> landwithin the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>. Garden Homeshas developed the site with single family homesranging from $80,000 to $110,000. Many <strong>of</strong> thehomes qualified for housing subsidies and thishelped initial absorption.______________________________________________________________________________52


SALES COMPARISON APPROACHSALE COMPARABLE 7Address:Arrowhead Drive<strong>Coldwater</strong>, MISeller:Mark & Sheryl WinelandBuyer:Jarvis Development, LLCSale Date: 6/25/97Sale Price: $235,000Unit Price ($/Acre): $6,620Size (Acres): 35.5Topography:Slightly RollingConfiguration:IrregularFlood Plain:NoneZoning:A-2 Single Family ResidentialUtilities:PublicVerification:<strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>Comments:This is the sale <strong>of</strong> a partially completedsubdivision in <strong>Coldwater</strong> that was sold toliquidate bank notes and debt. Some <strong>of</strong> thestreets were in place along with curb andwater/sewer. This subdivision has yet to selloutand has been generating about 1 – 3 lot salesper year since 1999.______________________________________________________________________________53


SALES COMPARISON APPROACHSALE COMPARABLE 8Address:Western Avenue<strong>Coldwater</strong>, MISeller:RandallBuyer:-Active Listing-Sale Date:CurrentSale Price: $169,000Unit Price ($/Acre): $7,308Size (Acres): 18.5Topography:Slightly RollingConfiguration:IrregularFlood Plain:NoneZoning:R-2 Single Family ResidentialUtilities:None – Could access public along Western Ave.Verification:Dennis Dirschell – Hauska Home & FarmComments:This is a listing <strong>of</strong> land on Western Ave that islocated in <strong>Coldwater</strong> Township. The propertyhas street frontage on Western Ave., and couldaccess public water and sewer on same.According to the realtor there have been no<strong>of</strong>fers or interest in the property in the two yearsthat they have had the listing. Prior to thislisting the property had been listed for severalyears by Century 21 without <strong>of</strong>fers. Theproperty appears to have been marketed forsome four years.______________________________________________________________________________54


SALES COMPARISON APPROACHSALE COMPARABLE LOCATOR MAP______________________________________________________________________________55


Item Subject Sale 1 Adj(+/-) Sale 2 Adj(+/-) Sale 3 Adj(+/-) Sale 4 Adj(+/-) Sale 5 Adj(+/-) Sale 6 Adj(+/-) Sale 7 Adj(+/-) Sale 8 Adj(+/-)Address 600 West Chicago N 10th Street 393 E Roosevelt 1200 Blk S Kalamazoo 5154 W H Ave S Willowbrook Rd SEC Morse/State Arrowhead Dr Western Ave<strong>Coldwater</strong>, MI Kalamazoo, MI Battle Creek, MI Marshall, MI Kalamazoo, MI <strong>Coldwater</strong>, MI <strong>Coldwater</strong>, MI <strong>Coldwater</strong>, MI <strong>Coldwater</strong>, MISeller <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> Weaver KCC Gove Associates M Brown Jacox <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> Wineland RandallBuyer ? Pollard SW MI Rehab Fairway Meadows Dave Delo<strong>of</strong> Reagan Properties, LLC Garden Homes Jarvis Dev. LLC ?Sale Price ? $184,000 $225,000 $98,000 $600,000 $<strong>27</strong>0,000 $59,000 $235,000 $169,000Inertest Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee SimpleAdjusted Sale Price ? $184,000 $225,000 $98,000 $600,000 $<strong>27</strong>0,000 $59,000 $235,000 $169,000Financing Terms Cash or Equiv. Cash to Seller Cash to Seller Cash to Seller Cash to Seller Cash + Contract Cash to seller Cash to seller Cash to SellerAdjusted Sale Price ? $184,000 $225,000 $98,000 $600,000 $<strong>27</strong>0,000 $59,000 $235,000 $169,000Conditions <strong>of</strong> Sale Arms Length Arms Length Assemblange Arms Length Arms Length Arms Length Arms Length Arms Length Arms LengthAdjusted Sale Price ? $184,000 $225,000 $98,000 $600,000 $<strong>27</strong>0,000 $59,000 $235,000 $169,000Buyer Expenditures None None None None None None None None NoneAdjusted Sale Price ? $184,000 $225,000 $98,000 $600,000 $<strong>27</strong>0,000 $59,000 $235,000 $169,000Demolition Costs None None None None None None None None NoneAdjusted Sale Price ? $184,000 $225,000 $98,000 $600,000 $<strong>27</strong>0,000 $59,000 $235,000 $169,000Improvements None None None None None None None None NoneAdjusted Sale Price ? $184,000 $225,000 $98,000 $600,000 $<strong>27</strong>0,000 $59,000 $235,000 $169,000Concessions None None None None None None None None NoneAdjusted Sale Price ? $184,000 $225,000 $98,000 $600,000 $<strong>27</strong>0,000 $59,000 $235,000 $169,000Sale Date 5/7/08 eff dt Nov-06 Apr-04 Nov-01 Jan-06 Aug-99 Oct-02 Jun-97 Listing -20%Adjusted Price ? $184,000 $225,000 $98,000 $600,000 $<strong>27</strong>0,000 $59,000 $235,000 $135,200Adj UP ($/Acre) ? $11,871 $26,347 $14,583 $14,<strong>05</strong>5 $4,635 $6,365 $6,620 $7,308Size (Acre) 26.<strong>05</strong> 15.50 8.54 6.72 42.69 58.25 9.<strong>27</strong> 35.50 18.50Location Urban Urban Urban Urban Urban Urban Urban Urban Urban/RuralTopography Level Slightly Rolling Gently Rolling Level Slightly Rolling Level Level Level to Rolling LevelUse Transitional Transitional Transitional Transitional Transitional Transitional Transitional Transitional TransitionalConfiguration Mostly Rectangular Rectangular Irregular Irregular Rectangular Irregular Rectangular Irregular IrregularStreet Access Yes Yes Yes Yes Yes Yes Yes Yes YesInterior/Corner Corner Interior Interior Interior Interior Interior Corner Interior InteriorSoils Suitable Suitable Suitable Suitable Suitable Suitable Suitable Suitable SuitableWater/Sewer Public Public Public Public Public Public Public Public PublicZoning A-2/PUD R-2 R3B Multi-Fam. RM1 Multi-Fam. R-2 (1 & 2 Fam.) A-1 (SFR) A-2 Single Fam. A-2 Single Fam. R-2 Single Fam.Net Adj (total) 0% 0% 0% 0% 0% 0% 0% 0%Adj UP ($/Acre) $11,871 $26,347 $14,583 $14,<strong>05</strong>5 $4,635 $6,365 $6,620 $7,308


SALES COMPARISON APPROACHI have selected eight comparables from the <strong>Coldwater</strong> and area markets.Comparables were selected based on location, use, and transitional status.Two <strong>of</strong> the comparables are from Calhoun County, while two are fromKalamazoo County. The last four are relevant comparables in the <strong>City</strong> <strong>of</strong><strong>Coldwater</strong>. The <strong>Coldwater</strong> properties are dated, although still consistent inpricing. Comparables 1 and 4 are from Oshtemo Township in Kalamazoo.Both these sales represent transitional land along the Kalamazoo US-131corridor. Public utilities including public sewer are available to these sites.Sale comparable 2 is an assemblage <strong>of</strong> two parcels in the northern part <strong>of</strong>Battle Creek. The unit price is reflective <strong>of</strong> market premiums from assembledparcels. Sale comparable 3 is the sale <strong>of</strong> multi-family land in Marshall next tothe Alwyn Downs Golf Course on US-<strong>27</strong> (S Kalamazoo).In the highest and best use we determined that the highest NPV <strong>of</strong> the land isobtained by developing the site as a PUD. This means that the site has a mix<strong>of</strong> residential and commercial uses. None <strong>of</strong> the sales represent mixed-usedevelopment land. This does not mean that the sales are less reliable. Thesesales are all transitional land tracts with arterial exposure. Most local zoningand planning commissions provide for PUD or mixed-use development wereproposals can meet the regulatory requirements <strong>of</strong> the jurisdiction. Salecomparable 1, 3, 4 are tracts <strong>of</strong> land that provide access, visibility, and goodlocation with regards to potential mixed-use development. However, salecomparable 2 is multi-family land that is being developed for a more intenseuse. The issue with this sale is lack <strong>of</strong> market comparables from which tomake an adjustment for the more intense use and the assembled purchaseconditions. For these reasons this sale is given less weight in the final rankinganalysis.I would expect the value <strong>of</strong> the subject property to be greater than the older<strong>Coldwater</strong> sales, but less than say sale comparable 2. Transitional land sales1, 3, and 4 are most representative <strong>of</strong> the subject. These sales range in agefrom 2 to 7 years. Further adjustment may be needed to these sales to reflectcurrent market conditions. Clearly, land prices have declined since 2001 as aresult <strong>of</strong> the poor housing market. The following are adjustments made to thebalance sheets <strong>of</strong> the largest U.S. home builders. These adjustments reflectasset impairment charges and include the developers/builders literally walkingaway from hundreds <strong>of</strong> millions <strong>of</strong> dollars in option monies and/or selling forcomparative losses in speculative land purchases.______________________________________________________________________________57


SALES COMPARISON APPROACHLAND ADJUSTMENT ANALYSISCompany Symbol ExchangeEffectiveDateMarket SegmentWritedownor Losses(millions)% <strong>of</strong>CarryingValueToll Brothers TOL NYSE Oct-07 Luxury 37.9 28.7%Hovnanian Enterprises, Inc. HOV NYSE Oct-07 Luxury - Upscale 331.8 32.0%D R Horton DHI NYSE Sep-07 Midscale 1,011.7 17.2%Centex CTX NYSE Mar-07 Midscale 648.7 58.8%KB Homes KBH NYSE Nov-07 Midscale 1,110.0 25.1%Lennar Corp. LEN NYSE Nov-07 Entry/Senior 2,577.3 41.2%Pulte Homes PHM NYSE Dec-07 Entry/Step-Up 2,042.6 21.9%Source: Company Annual Report to Shareholders (SEC Form 10K)Mean 32.1%Land Adjustment 30.0%These write-downs are shown above and represent the percentage <strong>of</strong> lossincurred since the third quarter <strong>of</strong> 2007. The average loss on land for thesepublicly traded builders is 32%. If a land adjustment were needed this could beused to measure both the amount and magnitude <strong>of</strong> the adjustment.A good portion <strong>of</strong> the site would be developed for residential purposes underthe PUD concept. Therefore, prices say for multi-family land <strong>of</strong> $35,000 peracre would require at minimum a 30% downward adjustment to reflect currentmarket conditions. Even then this assumes immediate development <strong>of</strong> the site.As such, the value that can be paid in <strong>2008</strong> for multi-family land that wouldtake years to develop suggests a larger discount for holding period costs.Based on the strength <strong>of</strong> transitional land sales 1, 3, and 4, a unit price <strong>of</strong>$13,000 per acre is reasonable given downward pressure on housing prices.This calculates into a value conclusion <strong>of</strong> $338,650. For reporting purposesthis figure is rounded to $340,000.Discussion <strong>of</strong> Sales not ConsideredIn the land analysis I considered but did not use several sales from theimmediate market area. First, sales <strong>of</strong> singularly commercial land alongWillowbrook Road or East Chicago were eliminated because <strong>of</strong> vast differencesin size, use, exposure, traffic count, etc. I also considered the 1997 sale <strong>of</strong>multi-family land on West Chicago that has since been developed withapartments. This sale is considerably aged which would require severaladjustments. Further the size <strong>of</strong> this site is smaller than the subject. I alsoconsidered the recent sale <strong>of</strong> a former dental <strong>of</strong>fice across the street. This salehas several issues that would need to be addressed. The sale was purchasedas part <strong>of</strong> an assemblage <strong>of</strong> land. Generally, an assembler pays a marketpremium to acquire the land and assembles it with an existing parcel. In this______________________________________________________________________________58


SALES COMPARISON APPROACHcase the buyer purchased the land to extend the street frontage <strong>of</strong> the existingautomotive dealership. Street frontage is critical to automotive dealerships.Automotive dealers seek the maximum amount <strong>of</strong> street frontage so as to“show” inventory. As such, it is very likely that another buyer could not haverealized the benefit from this type <strong>of</strong> assemblage and would therefore not paythe transacted price. This sale represents a value-in-use to the adjoining landowner rather than a pure market value transaction on a stand alone basis.There are also significant size differences between this property and subject aswell as zoning. Since it has been determined that the subject would not likelybe assembled with another site, this sale was not used.OPINION OF VALUEBY THE SALES COMPARISON APPROACHTHREE HUNDRED FORTY THOUSAND DOLLARS$340,000.00______________________________________________________________________________59


CONCLUSIONConclusion and Reconciliation <strong>of</strong> ValueCOST APPROACHNot DevelopedSALES COMPARISON APPROACH $340,000.00INCOME APPROACHRECAPITULATION OF VALUE INDICATIONSNot DevelopedThe sales comparison approach was developed and is reported to estimate themarket value <strong>of</strong> the subject, which is a 26.<strong>05</strong> acre tract <strong>of</strong> land zoned A-2 atthe west periphery <strong>of</strong> <strong>Coldwater</strong>. The sales paint a broad picture <strong>of</strong> the marketwith market activity almost completely non-existent since 2001 in <strong>Coldwater</strong>.In the highest and best use analysis we determined that the property wouldachieve maximum land value under a Planned Unit Development (PUD), whichis a mixed use. This allows the developer to sell <strong>of</strong>f some useful and morevaluable frontage along West Chicago Road, while realizing that cash flowsfrom residential development will in all likelihood take years to materialize. Theappraiser understands that population and demographic growth is driven bythe economic base <strong>of</strong> a trade area. That is, population and housing demandwill be a by-product <strong>of</strong> new employment and jobs in the market area. Recentannouncements <strong>of</strong> major new jobs in Kalamazoo and the settlement <strong>of</strong> theAmerican Axle strike are positive indicators that going forward some local jobgrowth may occur. However, long-term projections by state-wide economistssuggest that growth in the rural areas <strong>of</strong> the state will lag behind the high-techcenters <strong>of</strong> Kalamazoo, Ann Arbor, and most <strong>of</strong> Oakland County. For thesereasons the sales comparison approach represents a reasonable view <strong>of</strong> landvalue going forward given the current and short-term anticipated economicconditions.FINAL OPINION OF MARKET VALUETHREE HUNDRED FORTY THOUSAND DOLLARS$340,000.00Effective Date <strong>of</strong> Appraisal: May 7, <strong>2008</strong>Mark S. Bovee, MAIMichigan Certified General AppraiserLicense No. 1201007069Did Inspect the Property______________________________________________________________________________60


SUPPORTING DOCUMENTSSUPPORTING DOCUMENTS______________________________________________________________________________61


SUPPORTING DOCUMENTSCurriculum VitaeMark S. Bovee, MAIConcentrationsReal Estate Appraisal (Indiana, Michigan, Ohio)Consulting, feasibility, economic analysis, market study (Indiana, Michigan, Ohio)Small Business Valuation and Pr<strong>of</strong>essional PracticesMedium Sized Business (market cap less than 500 Million)Real Property ValuationsRetail, industrial, warehouse, churches, land development (single family, multifamily,industrial), Golf Courses, medical, dental, pr<strong>of</strong>essional <strong>of</strong>fices, seniorhousing including assisted living, skilled nursing homes, and CCRCs, mobile homeparks, easements, strip centers, shopping centers, convenience stores, truckstops/plazas, special use properties, hotels, motels, othersBusiness Valuation ServicesBuy-sell agreements, S-Corp valuations, minority shareholder, dissentingshareholder, estate and gift tax valuations, marriage/partnership disillusionment,LLCsLicensesIndiana Certified General Appraiser - CG40100211Michigan Certified General Appraiser – 1201007069Ohio Certified General Appraiser – 2003016099Undergraduate EducationMichigan State University, East Lansing, MI – B.A., 1992Real Property Appraisal EducationAppraisal I – Holloway’s Real Estate Institute, 1998USPAP – Holloway’s Real Estate Institute, 1998Applied Residential Property Valuation – Indiana Appraisal School, 1999Small Income Producing Properties – Indiana Appraisal School, 1999Basic Income Capitalization (310) – Appraisal Institute, 1999Advanced Income Capitalization (510) – Appraisal Institute, 2000Highest and Best Use and Market Analysis (520) – Appraisal Institute, 2000Standards <strong>of</strong> Pr<strong>of</strong>essional Practice (Part A) (410) Appraisal Institute, 2001Standards <strong>of</strong> Pr<strong>of</strong>essional Practice (Part B) (420) Appraisal Institute, 2001Narrative Report Writing and Valuation Analysis (540) Appraisal Institute, 2001Advanced Sales Comparison and Cost Approaches (530) Appraisal Institute, 2001Advanced Applications (550), Appraisal Institute, 2001Income Valuation <strong>of</strong> Small Mixed-Use Properties (600), Appraisal Institute, 2002USPAP Update 2003 (400), Appraisal Institute, 2003Indiana Appraiser Statutes & Rules, Education Resource, 2003Subdivision Analysis, Appraisal Institute, 2003Fair Housing, Hondros College, 2004Michigan Statutes and Rules, Appraisal Institute, 20<strong>05</strong>USPAP Update – 20<strong>05</strong> (400), Appraisal Institute, 20<strong>05</strong>Indiana Statutes and Rules 20<strong>05</strong>, Education Resource, 20<strong>05</strong>Land Valuation Assignments, Appraisal Institute, 2006Land Valuation Adjustment Procedures, Appraisal Institute, 2006Analyzing Operating Expenses, Appraisal Institute, 2007______________________________________________________________________________62


SUPPORTING DOCUMENTSAnalyzing Commercial Lease Clauses, Appraisal Institute, 2007USPAP Update 2007, Appraisal Institute, 2007Business Practice & Ethics, Appraisal Institute, 2007Forecasting Revenues, Appraisal Institute, <strong>2008</strong>Michigan Rules & Statutes, Appraisal Institute, <strong>2008</strong>Indiana Statutes, Appraisal Institute, <strong>2008</strong>Operating Property/Business Valuation CoursesSeparating Real & Personal Property from Intangible Business Assets (800),Appraisal Institute, 2004Appraising Convenience Stores, Appraisal Institute, 20<strong>05</strong>Intro to Business Valuation (BV201), American Society <strong>of</strong> Appraisers (ASA), 20<strong>05</strong>The Income Approach - (BV202), American Society <strong>of</strong> Appraisers (ASA), 2006The Market Approach - (BV203), American Society <strong>of</strong> Appraisers (ASA), 2006Business Valuation Case Studies – (BV204), American Society <strong>of</strong> Appraisers (ASA),2007Pr<strong>of</strong>essional DesignationsMAI – Appraisal Institute #12098CandidacyLevel I – CFA, Chartered Financial InstitutePr<strong>of</strong>essional PositionsPast President – SW Michigan/Northern Indiana Chapter – Appraisal InstituteNational Experience Review Screener – Appraisal InstituteEmployment/ExperienceAppraiser & Consultant – 9 yearsU. S. Marine Corps – 21 years______________________________________________________________________________63


May 21, <strong>2008</strong>489-WRS-CMTO:Mayor Wallace and CouncilmembersFROM: Bill Stewart, <strong>City</strong> ManagerRE:Medical First ResponseThe <strong>City</strong> Council authorized the reinstitution <strong>of</strong> Medical First Response activity in the<strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> in May, 1995, at the recommendation <strong>of</strong> Public Safety Director GaryChester. The summary report <strong>of</strong> activities in the quarterly and annual reports for the firedepartment indicate that Medical First Response has become the primary function <strong>of</strong> the<strong>City</strong>’s fire department as it has in departments providing a similar service across thecountry.In response to questions raised from time to time by citizens and the Council, werequested an analysis <strong>of</strong> alternatives to Rescue 1 as a primary response vehicle. It is theopinion <strong>of</strong> the Deputy Fire Director that current staffing levels in the fire department donot support an alternative (smaller) vehicle. In addition, you will note the equipmentinventory is such that a vehicle the size <strong>of</strong> Rescue 1 provides the necessary space. I havenoted that the rescue vehicle for the <strong>City</strong> <strong>of</strong> Marshall is similar to the unit deployed in ourcity.From what we have observed, the smaller vehicles utilized to provide MFR services, suchas a Ford Expedition, are utilized in departments manned by cross-trained public safetypersonnel where the number <strong>of</strong> staff on duty at any given time provide for a fire or otheremergency response from an alternate unit.We believe the vehicle as currently configured best meets our needs for an MFRresponse. We plan to have Rescue 1 deployed for Tuesday’s council meeting for yourinspection and to answer any questions <strong>of</strong> staff that you may have.WRS/jsattachments


May 19, <strong>2008</strong>TO:Bill Stewart, <strong>City</strong> ManagerFROM: Brett A. Pehrson, Public Safety DirectorRE:Medical First Responder Vehicle OptionPlease note our response to your request dated April 28, <strong>2008</strong>, to explore the possibility<strong>of</strong> substituting a large vehicle similar to a Ford Expedition or GMC Suburban to respondto MFR calls within the <strong>City</strong>.Deputy Director Sherman and myself met several times and discussed current proceduresin our MFR program. We also looked at the mandatory equipment required by the State<strong>of</strong> Michigan to license a rescue vehicle, which must be carried on the rescue vehicle.Data was then collected in a number <strong>of</strong> areas along with the number <strong>of</strong> MFR calls for theprevious 10 years. The data suggests that our call volume for MFR’s has not significantlyincreased.Based on the data collected (which is included with this document) and including certaintypes <strong>of</strong> MFR calls and the daily staffing level; a vehicle other than Rescue 1 is notrecommended. Rescue 1 carries approximately $50,000 worth <strong>of</strong> equipment plus has firesuppression capability. One would not want to respond to vehicle accidents, technicalrescues, and confined space rescues without having the additional equipment that Rescue1 carries. There are some MFR calls that a Utility Type vehicle could be used, but itwould be at the discretion <strong>of</strong> the firefighters responding to the call to determine whichvehicle to respond with.By using a vehicle other than Rescue 1, it appears that the number <strong>of</strong> MFR calls werespond to plus the distance traveled during those calls does not shorten the lifeexpectancy <strong>of</strong> Rescue 1 dramatically. Based on data since Rescue 1 was put intooperation in 1997; it is still scheduled to be replaced in 2022.With that said, it would not be a fiscally sound decision to add another vehicle to runMFR calls at this time. While it is important for us to recognize how best to deliver ourservices to the community, (taking into account the level <strong>of</strong> service provided and the cost<strong>of</strong> the service), the current procedures deliver the best service with a relatively low cost.Our Fire Department has worked very hard to get to the level <strong>of</strong> service they currentlyprovide to the community and continuously train to keep current on new equipment andprocedures. As you know, we are not obligated to provide a MFR service to our citizens,but by doing so show that we truly are a service oriented public safety department.Should you or Council have any additional questions or comments, please let me know.


COLDWATER FIRE DEPARTMENTRICHARD SHERMAN, DEPUTY FIRE DIRECTORMEMOTO:SUBJECT:DIRECTOR PEHRSONMEDICAL FIRST RESPONSE VEHICLE OPTIONDATE: 5/7/<strong>2008</strong>CC:I have provided detailed information regarding our medical response operationsincluding program history, recognized local, state and nationwide standards and practicesand supporting data in previous memos. Further discussion regarding the delivery <strong>of</strong>these services, including response alternatives and recommendations will be outlined inthis memo.As supported in previous memos, our current response procedure is clearly the normthroughout the United States. While a wide array <strong>of</strong> delivery systems exist, it is still afire service based, ambulance and/or fire engine response that is most typical. Theprimary reason for this model is to keep fire suppression forces in-service for any type <strong>of</strong>emergency response that they are charged with.As our department currently stands, we do not have the level <strong>of</strong> staffing on a dailybasis or auxiliary equipment necessary to respond to medical emergencies in an alternatemanner and keep staff in-service for suppression, rescue and other emergency responses(without a resulting significant delay). On those days when platoon staffing is at four(maximum platoon strength) or more (as supplemented by part-paid personnel) we canlook at a potentially doable alternate response for certain medical responses.The 1989 Dodge pickup (Truck 15) was due to be replaced in 2007 (per the <strong>City</strong>’sCapital Equipment Inventory – Exhibit B). While the truck is serviceable its replacementmust be considered in the not too distant future. Therefore, an opportunity exists topurchase a most versatile like piece <strong>of</strong> equipment that would be constructed with acommercial body (i.e. Ford F-550) with compartments that could stow medical gear andstill leave an open bed area to carry equipment and hose 1 as we currently do with the1989 vehicle.I have been able to obtain some preliminary figures from a manufacturer on such avehicle (Initial Attack Rescue) which would run from in the $60,000-$70,000 range.1 The 1989 vehicle is used to carry rescue equipment in the back end when Rescue 1 is out <strong>of</strong> service plus usedfor hauling dirty fire hose and like equipment after a fire scene.


This includes a commercial pick up type chassis with compartmentation and the NFPArequired warning package. This vehicle would have no fire suppression or rescuecapabilities. A four-wheel drive option should be considered for winter travel as well ifthis vehicle option was to be chosen. A four-door crew cab merits consideration butwould be an additional costThe vehicle could be used to respond with two firefighters to select medical incidentsdependant upon staffing levels. A minimum <strong>of</strong> two firefighters would need to remain tostaff fire engines for other emergency responses. This would have to be based upon ourdiscretion as to when and how we use this vehicle. Many medical responses still requirethe response <strong>of</strong> a crew <strong>of</strong> three or more and with a vehicle that has fire suppression andheavy rescue (Jaws <strong>of</strong> life, etc.) capabilities, such as Rescue 1 2 .Pros and ConsPRO• Alternate vehicle would remove some wear and tear on fire apparatus. Basedupon past history, this may be rather limited but some avoidance could berealized.• Fuel savings. Some fuel savings could be realized with a smaller vehicle.Although a diesel motor would be recommended for this vehicle the fueleconomy should be somewhat better that <strong>of</strong> a full sized fire engine.• The 1989 Dodge needs to be replaced at some point anyways. Specifying amore versatile vehicle could make sense for several reasons including anadded option for limited EMS response. Little or no additional maintenanceor insurance costs would be incurred, as we would not be adding an additionalvehicle.CON• Initial cost. As stated above, such a multi-purpose vehicle would costbetween $60,000 and $70,000. Replacing the 1989 pickup with a comparablevehicle would be between $25,000 and $30,000 (with warning equipments,radio, etc.).• The vehicle would need to be licensed as an EMS-basic response vehiclesubject to inspection for State required medical and communicationequipment. Those costs would be most near $4200 with the AED, portable2 See previous emergency medical response memos


suction, O2 equipment and traction splints/backboards being the most costlyitems. 3• Small response vehicles are harder to see and could result in a greaterexposure to accidents. Larger apparatus tends to be more visible and providea safer compartment for passengers.• Replacement <strong>of</strong> fire apparatus still needs to occur based more upon age andobsolescence than wear, at least in a department <strong>of</strong> our size.I believe the debate will center around cost effectiveness in the long run. I haveattempted to provide a viable vehicle alternative for emergency medical responses thatwould provide us with some flexibility. I am not suggesting that this vehicle would bedesignated as the primary EMS response vehicle for reasons previously stated. It couldbe used, however, in limited situations (responses <strong>of</strong>ten perceived as “nuisance” types)that could reduce, to some degree, the responses <strong>of</strong> larger apparatus.I firmly believe that our present delivery system <strong>of</strong> emergency services is mosteffective but I will always entertain discussion to make our services even better.3 Based upon current pricing for equipment required by State


COLDWATER FIRE DEPARTMENTRICHARD SHERMAN, DEPUTY FIRE DIRECTORMEMOTO:SUBJECT:PUBLIC SAFETY DIRECTOR BRETT PEHRSONEMERGENCY MEDICAL SERVICESDATE: 1/30/<strong>2008</strong>CC:85% <strong>of</strong> fire departments in America respond to emergency medical calls at somelevel. 1 Many departments (volunteer in particular) respond as medical first responders. 2Others (<strong>Coldwater</strong>) respond as emergency medical technician – basic, an advanced level<strong>of</strong> licensure, which allows personnel to perform more advanced life saving medicalprocedures in the field. Moreover, the vast majority <strong>of</strong> America’s population is served bya fire department based advanced life support ambulance. 3The <strong>Coldwater</strong> Fire Department provides (and has since 1995) a high level <strong>of</strong>emergency medical service to our community. We are held in high regard by the BranchCounty Medical Control Authority, the overseer <strong>of</strong> emergency medical care in thecounty, as well as by Lifecare Ambulance, the primary ambulance transport service forthe county. Our personnel follow strict MCA protocols for patient care and have neverbeen subject to discipline for improper patient care or violation <strong>of</strong> procedures.The Branch County E911 Center uses a medical dispatch protocol, which prioritizescalls essentially into emergency and non-emergency incidents. CFD is dispatched toPriority 1 or emergency incidents as defined by the protocol. Difficulty breathing is acommon call that we are dispatched to but <strong>of</strong>ten is merely a symptom <strong>of</strong> a more seriousmedical condition such as cardiac arrest, asthma, COPD, etc. A small percentage <strong>of</strong> ourcalls are responses to assisted living facilities, nursing home facilities, senior apartmentsand even medical <strong>of</strong>fices. None <strong>of</strong> these facilities have the necessary medical equipmentor personnel skilled in emergency medical care (or are reluctant to render such care forliability reasons). Emergency medical responses are not limited to the aged although I donot have sufficient data at this time to accurately describe our medical responses based onage groups. Based upon response figures for the past ten-years, it does not appear,however, that our medical responses have increased significantly 4 . In fact, improvedmedical dispatch protocols have for the large part helped filter out the “non-emergency”type <strong>of</strong> response.1 Fire Chief’s Handbook, 6 th edition2 Reference level <strong>of</strong> EMS licensure. MFR as the most basic level <strong>of</strong> license3 Data from International Association <strong>of</strong> Fire Chiefs – EMS division4 See attached graph


Interestingly enough, the percentage <strong>of</strong> medical and rescue responses for ourdepartment mirrors the national average to a large degree. Nationally, EMS/rescueresponses account for 55% <strong>of</strong> the call volume while fires account for 8%, false alarms12%. 5Nationwide, fire departments that respond to emergency medical and rescue callsgenerally respond with a medically equipped fire engine or heavy rescue rig. Even thosedepartments that provide an ambulance service respond a fire engine / heavy rescue withits full compliment <strong>of</strong> personnel as well. 6 Departments and communities that respond inmore non-traditional ways (patrol vehicles, pick ups) are in the small minority. 65.38%<strong>of</strong> fire departments that respond to emergency medical calls do so with 3 to 4 or 5 ormore personnel. 7 The demands for incident management, scene safety and security aswell as the ability to carry out emergency medical procedures require adequate staffing.Our department realizes occasional long scene times while awaiting arrival <strong>of</strong> thetransport ambulance, which further justifies the need for optimum response to medicalemergencies. Splitting available staffing dilutes our capabilities in all areas <strong>of</strong> emergencyresponse including fire suppression. Response <strong>of</strong> a fully staffed fire engine serves uswell.The majority <strong>of</strong> our emergency medical responses and rescue calls are answered withRescue 1, a 1997 Class A pumper and rescue unit. This vehicle is licensed with the State<strong>of</strong> Michigan, Emergency Medical Service Division, as an EMT-Basic non-transportvehicle. It is subject to annual inspection and is required to carry medical andcommunication equipment per State licensing protocol. Engine 3 and Ladder 2 aremedically equipped as well but are not licensed as medical response vehicles. Engine 3carries similar medical equipment to Rescue 1 including portable suction, backboards andan AED. Staff cars and Engine 4 carry basic medical equipment including oxygen butwould not meet State criteria for licensing purposes as an emergency response vehicle (atthe EMT-Basic level) at this time and all lack the necessary space to carry suchequipment.Emergency medical responses do not tend to “wear out” fire apparatus incommunities such as ours that run smaller volumes <strong>of</strong> calls. Apparatus is designed andbuilt to handle emergency responses. Medical responses tend to be shorter responses interms <strong>of</strong> travel (road miles) and duration. Fire apparatus generally track engine hoursversus road miles as firefighting operations (pumping or idle) account for the majority <strong>of</strong>wear and actual usage <strong>of</strong> the engine, transmission, etc. Age and obsolescence <strong>of</strong>components are reasons for replacement <strong>of</strong> apparatus in our department, not excessiveroad miles or engine hours.It is difficult to accurately track the actual engine hour or mileage realized on fireapparatus associated with medical responses. Variables such as out <strong>of</strong> service time(repairs) or responses to medical calls by Engine 3 skew actual usage records that wehave. Keep in mind that Rescue 1 also responds to fires including second alarm responseto structure fires with <strong>of</strong>f-duty personnel as well as serving as the primary engine used by5 USFA data from 20046 See attached survey7 EMS Responder <strong>2008</strong> poll


platoon personnel for inspections and other details. However, in 2007 Rescue 1’srecorded 434 engine hours and 2800 road miles vs. 353 engine hours and 3506 road milesfor Engine 3. Total road miles, as <strong>of</strong> the first <strong>of</strong> this year, are 40,341 for Rescue 1 and60,382 for Engine 3 (1990 pumper).Previous years data will show a somewhat greater engine hours usage for Rescue 1than for the other apparatus. It is a fact that emergency medical responses have a costassociated with them in terms <strong>of</strong> fuel usage 8 . However, brake wear and replacementfollow normal patterns for active fire apparatus and tire replacement has only occurredonce which would have been necessary anyways just due to age and rubber deterioration.It is also a fact that more responses equal a greater exposure to accidents. I must pointout that our department has an excellent safety record as a result <strong>of</strong> strict adherence tostandard operating procedures and establishment <strong>of</strong> a culture that recognizes and avoidsunsafe operating practices.While our department purchased medical equipment initially, medical supplies thatare used at a medical incident are replenished without cost by the ambulance service. Weare responsible for oxygen replacement at an approximate monthly cost <strong>of</strong> $60. Medicalgloves are purchased at an approximate annual cost <strong>of</strong> $600. Training costs and the cost<strong>of</strong> licensing personnel, agency and vehicle are minimal (under $1000 annually).It is my opinion that we are providing emergency medical services in the mosteffective and efficient manner possible. Our response policies reflect recognizedpractices and enable us to carry out all <strong>of</strong> our emergency responsibilities withoutcompromise 9 . Personnel keep current with new medical procedures through continuingeducation and refresher training and provide a high level <strong>of</strong> emergency medical care.Our response policies and procedures reflect the norm throughout the country and, infact, would be considered a model operation. Several noted local authorities in themedical field have indicated a willingness to provide testimony as to the criticalimportance and high degree <strong>of</strong> pr<strong>of</strong>essionalism <strong>of</strong> our emergency medical and rescueservices. 10I have provided a survey <strong>of</strong> other communities <strong>of</strong> similar size in regard to the delivery<strong>of</strong> emergency medical services. These are additional to those provided in my memo(attached) to the previous public safety director on this subject. I have also providednumerous attachments that portray medical response types, man hours expended and fuelcosts.Respectfully submitted,Richard Sherman8 Fuel records are maintained for all fire department vehicles. See attachment9 It is interesting to note that the 1993 Dorsey Study (<strong>Coldwater</strong> Fire and Police Organizational study)recommended responding an engine to medical dispatches10 See attachment


SURVEYAdrianFire department provides paramedic (LALS) EMT-Specialist level <strong>of</strong> service, nontransportto the <strong>City</strong> <strong>of</strong> Adrian. Department operates a heavy rescue and engine for EMSresponses.AlpenaFire department provides paramedic level ambulance service. Responds a fire enginewith the ambulance.Big RapidsFire division provides MFR service with an engine (1998 rescue/pumper).NilesFire department has just started providing emergency medical services at the EMT-Basiclevel using fire engines to respond.Norton ShoresFire department, with thirteen career firefighters, run emergency medical calls with fireengines.OwossoFire department operates paramedic level ambulance service.PortageFire department runs emergency medical responses with engines and dedicated heavyrescue unit.1


Sault Ste. MarieFire department operates ambulance service with twenty-one career firefighters andresponds a fire engine as well.South Haven Emergency Services Authority (Fire/EMS)Authority (fire department) operates ambulance service for <strong>City</strong> <strong>of</strong> South Haven andsurrounding townships as an emergency services authority.2


COLDWATER FIRE DEPARTMENTRICHARD SHERMAN, DEPUTY FIRE DIRECTORMEMOTO:SUBJECT:GARY CHESTERMEDICAL RESPONSE EMAILDATE:CC:1/21/08 update to a late 2007 memo to Director ChesterGary,I can appreciate the questions regarding our medical response procedures. While Ifeel that our response procedures are prudent I would agree that there should (must) be abetter way for our 911 Center to differentiate between emergency and non-emergencycalls. They do have call history available at time <strong>of</strong> dispatch, which can further helpevaluate the seriousness or potential seriousness <strong>of</strong> the incident and determine our level<strong>of</strong> response. The focus really needs to be placed there.I would highly suggest that Bill be afforded the opportunity to develop a thoroughunderstanding <strong>of</strong> or medical response capabilities and the importance <strong>of</strong> our participationin the overall delivery <strong>of</strong> medical services in our community. Most fire departments withlimited staffing respond engines (or even ladder companies) to medical emergencies.Others, with more flexible staffing, respond dedicated rescue units. These units are largerthan pickups in order to carry a crew and all <strong>of</strong> the medical equipment that might benecessary in an environmentally controlled space but somewhat smaller than a typicalengine. As you may recall, we used to have a rescue unit ourselves but we replaced itand an older engine in 1997 with a single rescue/pumper that could provide maximumversatility given our staffing fluctuation and multiple responsibilities. Battle Creek wasthe only department that I am aware <strong>of</strong> that considered using smaller vehicles for medicalresponses. They do have a dedicated rescue unit and do have multiple fully staffedstations with overlapping response districts. Lakeland VFD responds as an MFR agencywith a private vehicle (chief) and an engine. I am unsure whether the private vehicle islicensed or not and their medical responses are limited to a handful per month. BronsonFD is in the process <strong>of</strong> developing specifications for a dedicated rescue unit. Sturgis FDruns a dedicated rescue unit and an engine for medical responses.Responding a non-engine for certain medical responses would necessitate a vehiclethat has the capability <strong>of</strong> carrying all <strong>of</strong> the potentially necessary medical equipment


including AED, portable suction, backboards as well as oxygen and related equipment.Stripping this equipment from Rescue 1 would leave it without vital equipment that couldbe required for other medical, rescue / accident incidents. Additionally, the State <strong>of</strong>Michigan EMS Division has requirements for vehicle licensing even at the MFR responselevel. The vehicle(s) that we indicate as our primary medical response vehicle during ourlicense renewal is inspected annually to ensure that it meets State criteria (copy <strong>of</strong>requirements on file) for equipment, communications, etc.. I would not recommend thatwe challenge their requirements and would not recommend purchasing duplicateequipment to outfit additional vehicles in this manner.A response in a smaller vehicle would provide us with the same exposure accidentwise as with the way that we currently respond. As it is now, "lights and sirens" doesn’tmean that we are disregarding safety during our responses. We still stop at all stop signsand red traffic signals and use prudence regarding speeds (per our policy). Also, I’m notsure that there’d be significant savings regarding fuel costs and general maintenance ifwe changed our response policy but that would be a possibility to consider.As we currently operate, when staffing gives us extra personnel due to PPFFattendance, we normally respond with three personnel minimum and keep two remainingat the station. This keeps Ladder 2 in-service for city responses and Engine 4 in-servicefor rural responses.I strongly disagree with a policy <strong>of</strong> splitting our response otherwise. When a fullcrew (four FFs) is on scene <strong>of</strong> a medical emergency, we can potentially leave a singlefirefighter with the patient if we have not been relieved by an ambulance crew and stillrespond with three FFs to a reported fire or rescue incident. We could not legallyabandon a patient otherwise and if we did this would open us to liability under theMichigan medical licensing laws.I can talk at length about the benefits <strong>of</strong> crews responding together (on the sameengine) regarding incident efficiency and effectiveness. We have continuallydemonstrated a high degree <strong>of</strong> competency at fire, rescue and medical incidents and Icannot underscore the important <strong>of</strong> crew integrity and communication upon arrival <strong>of</strong>these incidents in achieving those results.With that being said, I feel we are approaching our response to medical emergenciesin the most effective manner possible. I would, however, recommend that we focus ourattention to the E911 Center in an effort to receive better dispatch information regardingthe severity <strong>of</strong> the incident, call history, etc. to better determine if a true medicalemergency really exists. The E911 Center follows medical dispatch protocols, whichprovide criteria for prioritizing medical dispatches. Priority 1 medical dispatches areconsidered emergency responses and those are the ones we are dispatched to. Despite themedical dispatch protocols, I would ask that the E911 Center consider further evaluatingthe level <strong>of</strong> training that their employees receive in this area in an effort to be moreselective in dispatching medical “emergencies”. I feel improvements could be expected


in this area. This would be the most effective means for eliminating or reducing ourresponse to “nuisance” medicals or non-emergency incidents.We have noted for some time now the increased importance <strong>of</strong> our role in providingemergency medical services in the city. Lifecare Ambulance is stretched thin now thatthey are providing coverage for St. Joseph county and longer response times (twenty tothirty minutes not uncommon) and reliance on mutual aid for an ambulance are beingexperienced. We are frequently first on scene and provide extended care times forpatients prior to the arrival <strong>of</strong> an ambulance. Our NFIRS reports reflect our scene timesand will substantiate this. I personally have experienced a half-hour response time for anambulance with a family member. Our personnel have the training and equipment toeffectively stabilize a medical incident. Having a full crew also ensures the best <strong>of</strong> carewould be provided particularly in a cardiac case where multiple medical functions arebeing performed (CPR, AED, portable suction <strong>of</strong> airway, back boarding, documentation,incident command). Could two personnel handle many medical responses? Yes,possibly they could at the most basic level but it would jeopardize <strong>of</strong> effectiveness as awhole while achieving little.I realize that this is not an all-inclusive summary <strong>of</strong> medical response options. Inorder to further explore and properly evaluate our response procedures we first need toidentify what the desired goals are. Is it to reduce our exposure to accidents? Increaseeffectiveness <strong>of</strong> services? Reduce operating costs? If I can be provided with moreinformation on this I will be able to better provide you with the information that youdesire.


MANHOURS14001200100012561074930959800600400792486599759471EMSFireRescueOther2000162861482002 2003 2004Actual total man-hours expended for various emergency activities during these years.Data is obtained from the individual employee daily activity sheets.


FUEL COSTSOur department keeps monthly mileage and fuel usage data. A brief overview will allow insightinto typical fuel usage for selected apparatus/vehicles.Rescue 1 responds to emergency medical calls, accidents, rescues, vehicle fires, hazardousmaterial incidents, gas leaks/odors and structure fires as the second alarm engine as well as onthe first alarm when the apparatus is already in-service for other events or assignments. Rescue1 is typically the vehicle used for pre-incident survey inspections, training or any other detail thatrequires the firefighters to be away from quarters 1 . Engine 3 is the primary fire suppressionresponse engine. Car 9 is a staff car assigned to the fire marshal for inspection and investigationpurposes.As stated in the attached memo, it is difficult to determine just how much fuel is consumed whileresponding to and operating at medical and rescue incidents or for operating at fire incidents.The figures below are merely actual costs <strong>of</strong> fuel for the time period shown. No consideration isgiven for apparatus out-<strong>of</strong>-service time.Please note that fuel costs per gallon have escalated over the course <strong>of</strong> 2007Table 1 - 2007$450$400$350$300$250$200$150$100$50$0JanMar May July Sept NovRescue 1Engine 3Car 91 When staffing permits, most details are handled by one firefighter with a utility vehicle


EXPLANATION OF EMS RESPONSE CHARTSThe attached graphs provide a snapshot <strong>of</strong> our emergency medical responses for the year2007. The data, absence explanation, does not <strong>of</strong>fer a clear picture as to the level <strong>of</strong>service provided or the complicated nature <strong>of</strong> many <strong>of</strong> the events. Numbers and graphsfail to convey what actually takes place in the field in terms <strong>of</strong> patient care or theapplication <strong>of</strong> life-saving skills and the long-term benefits <strong>of</strong> this service.The categories charted represent either the type <strong>of</strong> incident or the prominent type <strong>of</strong>symptom noted at the time <strong>of</strong> dispatch or arrival. Difficulty breathing generallyrepresents a symptom <strong>of</strong> a medical condition. It is <strong>of</strong>ten impossible to affirm in the fieldas to the actual medical condition present (a hospital emergency room frequently needs toconduct numerous tests to determine the actual medical condition). A difficultybreathing or chest pain response may be a primary symptom <strong>of</strong> a serious cardiaccondition and frequently can deteriorate into a cardiac arrest or cardiac dysrhythmiarequiring significant emergency medical skills (CPR, advanced airway, AED, IVs) to beemployed in the field. Other such responses may be for a condition as simple as anxiety.The category all other including not reported takes into consideration the incident wheremultiple symptoms (including broken bones) exist or a determination <strong>of</strong> medicalcondition cannot be accurately determined on scene. It also includes lift assist and/orback boarding <strong>of</strong> patients that can <strong>of</strong>ten prove to be labor intensive particularly in thecase <strong>of</strong> bariatric patients, an ever increasing nationwide issue. These types <strong>of</strong> responsesmay be dispatched as unknown medical or dispatched with multiple symptoms oroccasionally as a lift assist 1 . Unfortunately, our current reporting system is notsophisticated enough to enable us to pull more pertinent data in this area.The category trauma from accident encompasses injuries sustained from a motor vehicleaccident, machinery accident, or any other type <strong>of</strong> extrication event. These events <strong>of</strong>tenentail multiple medical conditions including difficulty breathing, altered LOC, chest pain,spinal injuries, broken bones (classified as other on the chart), bleeding and the like.They <strong>of</strong>ten require special extrication procedures, back boarding and c-spine care. Theycan be relatively minor in nature or severe enough that death ensues.Altered level <strong>of</strong> consciousness (LOC) is another category that portrays a symptom versusan actual medical condition. Altered LOC can be symptomatic <strong>of</strong> a cardiac condition,stroke, internal bleeding, reaction to medication, and many other conditions.1 By policy, we only provide lift assist for non-emergency incidents when specialized techniquesor equipment is needed and/or the ambulance service has exhausted their own resources.


COLDWATER FIRE DEPARTMENTEMS RESPONSES - 2007342013131EMS call excluding motor vehicle accidentAssist EMS onlyMotor vehicle accident w/ injuryMotor vehicle accident w/ no injuryExtrication <strong>of</strong> victimIce rescue624


5%%1%%0%0%4%10%12%COLDWATER FIRE DEPARTMENTEMS RESPONSES - 20076%16%6%4%0%2%1%1%SeizureDifficulty breathingPregnancyOverdose / poisoningObvious deathHemorrhaging / bleedingGeneral illnessDiabetic symptomsChest painsCardiac arrest / dysrhythmiaBurnsBehavioral / psychAltered LOCAllergic reactionAirway obstructionAbdominal painSyncopeStrokeTraumaTrauma from accidentRefused treatmentAll other including not reported1% 0%3%14%


COLDWATER FIRE DEPARTMENTEMS RESPONSES - 20078541SeizureDifficulty breathing31119PregnancyOverdose / poisoningObvious deathHemorrhaging / bleeding38General illnessDiabetic symptoms1Chest painsCardiac arrest / dysrhythmia18Burns49Behavioral / psychAltered LOCAllergic reaction19718224731Airway obstructionAbdominal painSyncopeStrokeTraumaTrauma from accidentRefused treatmentAll other including not reported718121101


COLDWATER FIRE DEPARTMENTEMS RESPONSES - 20071401201191001018580716040413147513831200118Seizure Overdose /poisoning49Generalillness21Cardiac arrest/ dysrhythmia18Altered LOC2 218Abdominalpain719TraumaAll otherincluding notreported


C.B.P.U.MEMORANDUMDATE: May 21, <strong>2008</strong>TO:FROM:RE:Mayor Wallace and Members <strong>of</strong> the <strong>City</strong> CouncilPaul H. Beckhusen, CBPU DirectorAuthorizing Resolution Adopting Final S2 Project PlanA public hearing on the proposed wastewater treatment plant and collection systemimprovements project plan being submitted to the MDEQ related to the S2 Grant was conductedduring our May 20, <strong>2008</strong> board meeting for the purpose <strong>of</strong> receiving comments from interestedpersons.The next requirement is the adoption <strong>of</strong> the attached formal resolution for the project plan.Upon conclusion <strong>of</strong> the public hearing, the Board <strong>of</strong> Directors approved this resolution and isrecommending that it be adopted by Council at the May <strong>27</strong>, <strong>2008</strong>, meeting.cc: File


CITY OF COLDWATERRESOLUTION NUMBER 08-14A RESOLUTION ADOPTING A FINAL PROJECT PLANFOR WASTEWATER SYSTEM IMPROVEMENTS ANDDESIGNATING AN AUTHORIZED PROJECT REPRESENTATIVEWHEREAS, the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> recognizes the need to make improvements to its existingwastewater treatment and collection system; andWHEREAS, the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> authorized Fishbeck, Thompson, Carr and Huber, Inc. toprepare a Project Plan, which recommends the construction <strong>of</strong>:Wastewater Treatment Plant: screening equipment and secondarytreatment equipment;Wastewater Collection System: Washington Street and Sprague Street -manholes, sewer mains and adjacent water mains; andWHEREAS, said Project Plan was presented at a Public Hearing held on May 20, <strong>2008</strong>, and allpublic comments have been considered and addressed;NOW THEREFORE BE IT RESOLVED, that the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> formally adopts saidProject Plan.BE IT FURTHER RESOLVED, that the Director <strong>of</strong> the <strong>Coldwater</strong> Board <strong>of</strong> Public Utilities, aposition currently held by Paul H. Beckhusen, is designated as the authorized representative forall activities associated with the project referenced above, including the submittal <strong>of</strong> the saidProject Plan as the first step in applying to the State <strong>of</strong> Michigan for a revolving fund loan toassist in the implementation <strong>of</strong> the Project Plan referenced above.Yeas:Nays:Abstain:Absent:I certify that the above resolution was adopted at the regular meeting <strong>of</strong> the <strong>Coldwater</strong> <strong>City</strong>Council held May <strong>27</strong>, <strong>2008</strong>.BY: ___________________________Ruth Ann Volkmer, <strong>City</strong> Clerk__________________________Date


C.B.P.U.MEMORANDUMDATE: May 21, <strong>2008</strong>TO:FROM:RE:Mayor Wallace and Members <strong>of</strong> the <strong>City</strong> CouncilPaul H. Beckhusen, CBPU DirectorWater and Wastewater Rate AdjustmentsAttached are the proposed water and wastewater rate adjustments for fiscal year <strong>2008</strong>.The adjustments are needed to continue the financial improvement in the water operation and tosustain the positive financial position in the wastewater operation. These adjustments areconsistent with the past analysis and quarterly updates that have been presented and discussedwith Council. A detailed presentation <strong>of</strong> the analysis will be given at the meeting.The Board <strong>of</strong> Directors approved these rate adjustments at its May 20, <strong>2008</strong> meeting and isrequesting that Council adopts resolution number 08-15 which provides for the rate adjustmentsto be effective July 1, <strong>2008</strong>.Attachmentscc: File


RESOLUTION NUMBER 08-15COLDWATER BOARD OF PUBLIC UTILITIESWATER AND WASTEWATER RATE ADJUSTMENTSWHEREAS, Chapter 1044.10 <strong>of</strong> the Codified Ordinances <strong>of</strong> the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>provides that water and wastewater rates may be changed by resolution <strong>of</strong> theCouncil upon the recommendation <strong>of</strong> the <strong>Coldwater</strong> Board <strong>of</strong> Public Utilities("CBPU"); andWHEREAS, the CBPU Board <strong>of</strong> Directors has recommended that the attachedproposed water and wastewater rate adjustments be approved; andWHEREAS, the <strong>City</strong> Council <strong>of</strong> the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong> has reviewed the proposedwater and wastewater rate adjustments; andWHEREAS, the <strong>City</strong> Council and the <strong>Coldwater</strong> Board <strong>of</strong> Public Utilities affirm therate adjustments;NOW, THEREFORE, BE IT RESOLVED, that the rate adjustments are herebyadopted effective July 1, <strong>2008</strong>.I, Ruth Ann Volkmer, hereby certify that the above resolution was adopted at theregular meeting <strong>of</strong> the <strong>Coldwater</strong> <strong>City</strong> Council held May <strong>27</strong>, <strong>2008</strong>.___________________________Ruth Ann Volkmer<strong>City</strong> Clerk


Application:Metered Water and Wastewater RatesTo Be Billed MonthlyWater & Wastewater - 56It is the intent <strong>of</strong> the CBPU that water sold to all users be metered and billedat the following rates.Multiple Use:It is required that the water piping in buildings <strong>of</strong> multiple occupancy be soarranged that the water supplied to each user may be separately controlled and meteredat a central point - usually in the basement, in accordance with Section 1040.03 <strong>of</strong> theCodified Ordinances.In existing residential properties, where this has not been done, a single metermay be installed to serve the several users jointly, in which case the readiness-toservecharge for Water and Wastewater service shall be based on the number <strong>of</strong> suchusers times the readiness-to-serve charge. Mobile home parks, recreational vehicleparks and non-pr<strong>of</strong>it multiple housing projects are exempt from the Multiple Use Rule.Readiness-to-Serve Charge -Meter Size:Water Wastewater Total5/8 inch meter $ 9.00 $12.00 $13.59 $13.86 $22.59 $25.863/4 inch meter 14.61 15.34 19.02 19.40 33.63 34.741 inch meter 20.22 21.23 33.97 34.65 54.19 55.881-1/4 inch meter 28.94 30.39 46.19 47.11 75.13 77.501-1/2 inch meter 45.04 47.29 58.43 59.60 103.47 106.892 inch meter 85.60 88.17 85.60 87.31 171.20 175.483 inch meter 188.32 193.97 160.13 163.33 348.45 357.304 inch meter 321.00 330.63 289.40 295.19 610.40 625.826 inch meter 524.30 540.03 635.36 648.07 1,159.66 1,188.10Consumption Charge:The first 1,000,000 gallons usedper month per 1,000 gal. 1.90 1.99 1.46 1.49 3.36 3.48For all in excess <strong>of</strong> 1,000,000 gal.per 1,000 gal. 1.53 1.60 1.36 1.49 2.89 3.09Sprinkling Readiness-to-Serve Charge -Water Meter Size:5/8 inch meter $ 3.07 $ 3.163/4 inch meter $ 6.83 7.031 inch meter $ 9.45 9.731-1/2 inch meter $21.04 21.672 inch meter $40.00 41.20Consumption Charge:$ 1.59 $1.66 per 1,000 gallonsA permit is required for the installation <strong>of</strong> all outdoor sprinkling systems and/orwater wells.Township Customers:Township customers' rate is 150% <strong>of</strong> the established monthly <strong>City</strong> rateas referenced in the <strong>City</strong> <strong>of</strong> <strong>Coldwater</strong>/Township franchise agreements.Cancels Rate Dated 7/31/06 7/2/07Effective Date 7/2/07 7/1/08 Billing


Water & Wastewater - 57Fire Hydrant Water Meters:Meter SizeMinimum Monthly Charge3/4 inch meter $11.13 11.693 inch meter $83.46 85.96Consumption Charge$1.90 1.99 per 1,000 gallonsWater Fill Station:Water is available for filling tankers for construction, fillingswimming pools, etc. at the water treatment plant. A $10.00 charge will beassessed every time a tanker is filled, with a minimum charge <strong>of</strong> 1,000gallons. The cost <strong>of</strong> the water is the same as the current meteredconsumption charge per 1,000 gallons. A deposit may be required at the time<strong>of</strong> filling. Water is available between the hours <strong>of</strong> 8:00 a.m. and 3:45 p.m.Monday through Friday. No tankers will be filled after 3:45 p.m. unlessprior arrangements have been made.Swimming Pools:Pools will be filled during normal working hours. Cost is determinedby the water used at published rates per 1,000 gallons plus $120.00 for laborto fill the pool. Any pool filled after normal working hours is by specialarrangement only and the labor cost will be $180.00. The cost for poolfilling will be invoiced to the service location utility bill.Flushing or Lawn Sprinkling:No credit will be issued for wastewater charges based on water consumedfor lawn sprinkling or flushing from a fire hydrant which was registered by ameter utilized for billing combined water and wastewater consumption.Cancels Rate Dated 6/1/<strong>05</strong> 7/2/07Effective Date 7/2/07 7/1/08 Billing


Non-Dedicated Fire Protection LinesPrivate Fire Protection - 59Domestic/industrial service lines may be used for limited firesuppression systems when no more than 6 sprinkler heads will be connected.When a domestic/industrial service line is used, the supply line for afire protection sprinkler service shall be taken <strong>of</strong>f the supply side <strong>of</strong> thewater/wastewater meter. This line shall be provided with an approved gatevalve for isolation purposes. The operation <strong>of</strong> this valve shall be theresponsibility <strong>of</strong> the property owner.Prior to connection <strong>of</strong> any limited area fire suppression system to anydomestic/industrial service line, a permit shall be obtained from the CBPU.Permit approval shall be based on a usage/supply pr<strong>of</strong>ile being approved bythe CBPU and system plan approval by the <strong>City</strong> Building Department and CBPUCross Connection Inspector.The customer, at his own expense, must furnish and install a MichiganDEQ approved reduced pressure backflow preventer on a dedicated or nondedicatedfire suppression line.The customer will provide and install before final inspection, labelingto be placed on the fire line with the wording "Fire Line - No DomesticUsage."Rate:The following monthly charge shall be made for all such sprinklerservice installations.For each 1/2" - 2-1/2" connection---------$ 2.98 3.13 per monthFor each 4" connection--------------------$11.89 12.25 per monthFor each 6" connection--------------------$26.78 <strong>27</strong>.58 per monthFor each 8" connection--------------------$47.60 49.03 per monthFor each 10" connection-------------------$74.38 76.01 per monthFor each 12" connection------------------$107.11 110.32 per monthCustomer owned fire hydrants--------------$14.89 15.34 per monthThe above rates include the use <strong>of</strong> all water needed to fight fires, todrain and refill the system for testing purposes, and to care for normal nonpreventableleakage that may accrue to the system.CBPU Liability:The <strong>Coldwater</strong> Board <strong>of</strong> Public Utilities assumes no liability fordamages resulting from the turn <strong>of</strong>f <strong>of</strong> any fire protection service for nonpayment,repair or unauthorized use.Cancels Rate Dated 7/31/06 7/2/07Effective Date 7/2/07 7/1/08 Billing


Municipal Rates - Water/Wastewater - 60Fire Hydrants and Municipal Service RateMonthly Rate1. Fire Hydrants: Monthly charges per hydrant $ 14.89 $15.342. Municipal Building Use:<strong>Coldwater</strong> Municipal Building, Public SafetyBuilding, Municipal Services Dept., and otherbuildings <strong>of</strong> the General <strong>City</strong> Governmentthat are supplied water and wastewater willbe billed at the regular schedules for meteredservice as are other users <strong>of</strong> these services.3. Municipal Use (non-BOD):Municipal wastewater use for environmentalremediation purposes where the disposal <strong>of</strong>virtually clean groundwater is required.Monthly Rate:Minimum Charge:NoneConsumption Charge:For all metered usage per 1,000 gal. $ .58Cancels Rate Dated 7/31/06 7/2/07Effective Date 7/2/07 7/1/08 Billing


May 22, <strong>2008</strong>TO:Bill Stewart, <strong>City</strong> ManagerFROM: Dave Sattler, DMS/Recreation DirectorRE:Additional Playground Equipment for Pool Area and Soccer FieldsAttached are the proposal and drawings <strong>of</strong> playground equipment proposed forthe Heritage Pool area and the new area at the soccer fields. We arerecommending the equipment be supplied by the low bidder from the project inHeritage Park last fall. The money is available in the budget and with the seasonlong s<strong>of</strong>tball and soccer programs throughout the summer, this will be a greataddition to the areas detailed in the attached maps.It is our recommendation to purchase this equipment from Playworld Midstatesfor $39,630.90.DS/jsattachments


Ted BoschMay 21, <strong>2008</strong>Village <strong>of</strong> <strong>Coldwater</strong>Dave SattlerOne Grand Street<strong>Coldwater</strong>, MI 49036We propose hereby to furnish material and/or labor - complete in accordance with Quote Number71254 specifications for a grand total <strong>of</strong> : $39,630.90.Responsibilities: Customer is responsible for unloading, counting & properly signing the bill <strong>of</strong> ladingwhen equipment is delivered. Customer is responsible for storage until installation. All material isguaranteed to be as specified. All work to be completed in a workman like manner according tostandard practices. Any alteration or deviation from the above specifications involving extra costwill be executed only upon written orders, and will become an extra charge over and above theestimate.All agreements are contingent upon strikes, accidents or delays beyond our control. Owner is tocarry fire, tornado and other necessary insurance. Our workers are fully covered by WorkersCompensation Insurance.Terms & Conditions: Terms are check with order, or with approved credit. Payment is due net 10days upon completion.Acceptance <strong>of</strong> Proposal: By signing below Village <strong>of</strong> <strong>Coldwater</strong> agrees to the above prices,specifications and conditions. Village <strong>of</strong> <strong>Coldwater</strong> authorizes Playworld Midstates to do the workas specified. Payment will be as outlined above. Past due accounts subject to 1 1/2% monthcharge and legal fees associated with collection.Please Remit Payment To:Playworld Midstates21<strong>27</strong> 112th AvenueHolland, MI 49424Acceptance by Playworld MidstatesAcceptance by Village <strong>of</strong> <strong>Coldwater</strong>Required Signature: Ted Bosch Customer Signature:___________________________Authorized Signature - Ted BoschPrinted Name:________________________________Note: This proposal may be withdrawnby us if not accepted within: 30 days Date <strong>of</strong> Acceptance:_________________________


350-08<strong>05</strong>Compliance ListingThis custom play structure, drawing number 350-08<strong>05</strong>, has been designed to meet the minimalrequirements <strong>of</strong> the ASTM F1487-07 guidelines. In the interest <strong>of</strong> playground safety, IPEMA provides aThird Party Certification Service whereby a designated independent laboratory validates a participant'scertification <strong>of</strong> conformance to ASTM F1487-07, except sections 10 and 12.6.1. In addition to the overalllayout and design <strong>of</strong> this playstructure, the play components listed here in are IPEMA certified and as <strong>of</strong>Monday, December 03, 2007, were listed as IPEMA Certified Product on the IPEMA website,www.ipema.org. Check the IPEMA website to confirm current product validation. Products listed as NotApplicable do not fall within the scope <strong>of</strong> the ASTM F1487-07 guidelines and therefore they have notbeen tested to the guidelines.Part Description StatusZZXX8904 WHEELCHAIR ACCESS BORDER TIMBER Not ApplicableZZXX9400 6ft BORDER TIMBERS Not ApplicableZZXX9410 2ft BORDER TIMBERS Not ApplicableZZXX9420 3ft BORDER TIMBERS Not ApplicableZZXX9430 4ft BORDER TIMBERS Not ApplicableZZCH0018 3.5in OD x 124in STEEL POST W/RIVETED CAP CertifiedZZCH0028 3.5in OD x 136in STEEL POST W/ RIVETED CAP CertifiedZZCH0038GZ 3.5in OD x 148in GROUND ZERO POSTCertifiedZZCH0048 3.5in OD x 160in STEEL POST W/ RIVETED CAP CertifiedZZCH0617 TRIANGULAR VINYL DECK ASSEMBLY CertifiedZZCH0618 1/2 HEX VINYL DECK ASSEMBLY CertifiedZZCH2007 TRANSFER STATION w/TALL GUARDRAIL (36in DECK) CertifiedZZUN2019 APPROACH STEP FOR TRANSFER STATION CertifiedZZCH<strong>27</strong>36 ONE PIECE 360 PLASTIC SPIRAL SLIDE CertifiedZZCH3106 WIDE GLIDE SLIDE (36in DECK) CertifiedZZCH3136 SLITHER SLIDE ENTRY/EXIT CertifiedZZCH8090 SLIDING POLE (72in DECK) CertifiedZZUN3157 SLITHER SLIDE (RIGHT SECTION) CertifiedZZUN3158 SLITHER SLIDE (LEFT SECTION) CertifiedZZUN3169 SLITHER SLIDE SUPPORT LEG 3ft-6in CertifiedZZCH6976 CLIFF HANGER (72in DECK) CertifiedZZCH7430 DEEP RUNG ARCH CLIMBER (72in DECK) CertifiedZZCH8100 BEANSTALK CLIMBER (36in DECK) CertifiedZZCH8389 THE CRISS CROSS CertifiedZZCH8398 THE HELIX CertifiedZZCH5807 10ft WAVE LADDER CertifiedZZCH5970 OVERHEAD EVENT ACCESS LADDER (36in DECK) CertifiedZZCH7085 6ft CATWALK CertifiedZZCH4467 GROUND TO GROUND BABBLE-ON CertifiedZZCH9177 36in ACCESS STEPPED PLATFORM (DECK TO DECK) CertifiedZZCHGUID CHALLENGER GUIDELINES Not ApplicableZZUN9910 SURFACING WARNING LABEL KIT CertifiedZZUN9930 PIPE SYSTEMS MAINTENANCE KIT W/ AEROSOL Not ApplicableZZUN9990 TOOL AND ADDITIONAL PARTS KIT W/AEROSOL Not ApplicableMonday, December 03, 2007 1 www.playworldsystems.com


350-08<strong>05</strong>View B ▲View A ►Challengers® Design350-08<strong>05</strong>.DIRAge Group:Capacity:Play Events:Structure Size:(L x W x H)Use Zone:5 to 1240 Children12 Fun-Filled Events37’6” x 26’11” x 12’11,43m x 8,2m x 3,66m50’6” x 39’9”15,39m x 12,12mColors:MedallionForest GreenBeige©2007 Playworld Systems, Inc.Playworld is a brand <strong>of</strong> Playworld Systems®, Inc.Red RopeBrownPlayArmour12-Dec-07


FC12-714Compliance ListingThis custom play structure, drawing number FC12-714A, has been designed to meet the minimalrequirements <strong>of</strong> the ASTM F1487-07 guidelines. In the interest <strong>of</strong> playground safety, IPEMA provides aThird Party Certification Service whereby a designated independent laboratory validates a participant'scertification <strong>of</strong> conformance to ASTM F1487-07, except sections 10 and 12.6.1. In addition to the overalllayout and design <strong>of</strong> this playstructure, the play components listed here in are IPEMA certified and as <strong>of</strong>Tuesday, August 07, 2007, were listed as IPEMA Certified Product on the IPEMA website,www.ipema.org. Check the IPEMA website to confirm current product validation. Products listed as NotApplicable do not fall within the scope <strong>of</strong> the ASTM F1487-07 guidelines and therefore they have notbeen tested to the guidelines.Part Description StatusZZXX8904 WHEELCHAIR ACCESS BORDER TIMBER Not ApplicableZZXX9400 6ft BORDER TIMBERS Not ApplicableZZXX9410 2ft BORDER TIMBERS Not ApplicableZZXX9420 3ft BORDER TIMBERS Not ApplicableZZXX9430 4ft BORDER TIMBERS Not ApplicableZZFC0004 32in DECK w/2 #2 AND #3 (12in SURFACING) CertifiedZZFC0006 48in DECK w/4 #5 (12in SURFACING) CertifiedZZFC0008 48in DECK w/2 #5 AND #6 (12in SURFACING) CertifiedZZFC0030 48in ACTIVITY CENTER (12in SURFACING) CertifiedZZFC0024 32in STRAIGHT SLIDE 12in SURFACING CertifiedZZFC0026 48in CURVED SLIDE 12in SURFACING CertifiedZZFC0009 32in FINE MOTOR PANEL CertifiedZZFC0011 48in FINE MOTOR PANEL CertifiedZZFC0012 CRAWL THRU CertifiedZZFC0031 BENCH CertifiedZZFC0020 48in SPIRAL CLIMBER 12in SURFACING CertifiedZZFC0022 48in ROCK CLIMBER 12in SURFACING CertifiedZZFC0016 BALANCE CONNECTOR-12in SURFACING CertifiedZZFC0013 32in - 48in BRIDGE CertifiedZZFC0033 ROOF CertifiedZZFC0035 FUN CENTER TOOLS & SERVICE KIT w/AEROSOL Not ApplicableZZFCGUID FUN CENTER GUIDELINES Not ApplicableZZPD5230 ANCHOR STAKE CertifiedZZUN9910 SURFACING WARNING LABEL KIT CertifiedZZUN9936 MAINTENANCE BOOK Not ApplicableTuesday, August 07, 2007 1 www.playworldsystems.com


FC02-714 / FC12-714View B ▲View A ►Fun Center DesignFC12-714A.DIRAge Group:Capacity:Play Events:Structure Size:Use Zone:2 to 531 Children12 Fun-Filled Events15’ x 26’4” x 11’7”4,56m x 8,01m x 3,54m<strong>27</strong>’5” x 38’10”8,36m x 11,83mColors:©2007 Playworld Systems, Inc.PlayDesigns is a brand <strong>of</strong> Playworld Systems®, Inc.13-Dec-06

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