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HomeMy WebLinkAbout05-04-07 ..J 15056051058 REV-1500 EX (06-05) PA Department of ReV8f1l8 . Bureau of Individual Taxes PO BOX 280601 HarrisIug, PA 17128-<l601 ~ IJII!'" ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death OFFICIAL USE ONLY Coooty Code Year INHERITANCE TAX RETURN ...., I RESIDENT DECEDENT 21 I : 06 File tunber I i 1021 Date of Birth 191-18-3536 10/26/2006 10/05/1912 Decedent's Last Name Suffix Decedent's First Name HOOVER Catherine MI P (If Appllcabl.) Enter Surviving Spou.... Information Below Spouse's Last Name SuffIX Spouse's First Name MI Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPUCA TE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OVALS BELOW C8J 1. Original Return C) 2.Su~~mIR~um c:::> 4. Limited Esmte c::::> 3. Remainder Retum (date of death prior to 12-13-82) C) 48. Future Interest Compromise (date of c::::> 5. Federal Esmte Tax Return Required death after 12-12-82) c:::> 1. Decedent Maintained a Uving Trust (Attach Copy of Trust) c::> 10. Spousal Poverty Credit (date of death c::> 11. Section to tax under Sec. 9113(A) between 12-31-91 and 1-1-95) (Attach Sch. 0) CORRESPONDENT - THIS SECTION MUST BE COMPLETED. All CORRESPONDENCE AND CONfIDENTIAL TAX INFORIIAnON SHOULD BE DI~<<;!JO TO: Name DaytirTl4!!~lep~~~nber c- '., M & T Bank (717) 240-450i g 8. Toml Number of Safe Deposit Boxes ~ 6. Decedent Died Testate (Attach Copy of W,") c:::> 9. Utigation Proceeds Received Firm Name (If Applicable) ~.:::-~- :I~~ ... REGISTER OFWIt.~:USE O....LY ..r.- . I j First line of address One West High Street Second line of address ~~~ ZIP Code CJ -.l City or Post Office Cart isle Smte DATE FILED PA 17013 Correspondent's e-mail address:dgority@mtb.com Under pendles d peIjufy, I declare that I haw examined this reU'n, IncWc:tIng aocompenylng sc::heduIeI and statements, and to the best d my knowledge and belief, It 18 true, and complete. 0ecIaratI0n of preparer other than the personal repreMntatlve 18 beNd on ell information d whIc:h pl'8p8I'8I' has any knowledge. SI RE Of: RE FOR f~NG ~RN .-DATE ',P IT ~H~" ~ /1 - Lj-(} DATE ADDRESS PLEASE USE ORIGINAL FORM ONLY L 15056051058 Side 1 15056051058 -I 1 ~. ~ ~ c&~. ~ 4!~~ -I 15056052059 REV-1500 EX Decedent's Name: RECAPITULATION Catherine P HOOVER 1. Real estate (Schedule A). ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1. 2. Stocks and Bonds (Schedule B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., 2. 3. Closely Held Corporation. Partnership or SoIe-Proprietorship (Schedule C) . . . .. 3. 4. Mortgages & Notes Receivable (Schedule D) . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4. 5. Cash. Bank Deposits & Miscellaneous Personal Property (Schedule E) . . . . . . .. 5. 6. Jointly Owned Property (Schedule F) c::> Separate Billing Requested . . . . . .. 6. 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) c::> Separate Billing Requested.. . . . . ., 7. 8. Total Gross Assets (total Lines 1-7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8. 9. Funeral Expenses & Administrative Costs (Schedule H). . . . . . . . . . . . . . . . . . . ., 9. 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I). . . . . . . . . . . . . . . . 10. 11. Total Deductions (total Lines 9 & 10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. 12. Net Value of Estate (Line 8 minus Line 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. 13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax has not been made (Schedule J) . . . . . . . . . . . . . . . . . . . . . . . . 13. 14. Net Value Subject to Tax (Line 12 minus Line 13) . . . . . . . . . . . . . . . . . . . . . . . . 14. 191-18-3536 Decedent's Social Security Number 292,500.00 i ...~~~~~ 0.00 I ~, ..,-,-----,-----1 0.00 ! -,...~-----J I 64,877.83 I . -~"...._..,.,--_._'-~._-~ 0.00 I ~. ___J I 0.00 I -. --_._~ 650,451.61 ( 47,803.83 i ,,_.~ ',' .-_. "'~-~._------,~i 8,624.43 56,428.26 ! --.., -. -"'.~_.."" ""-"---"'-' .. -.. ....._......~ 594,023.35 i _~.~._ <._n_..._", 594,023.35 i TAX COMPUTATION. SEE INSTRUCTIONS FOR APPUCABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) X .0_ 16. Amount of Line 14 taxable at lineal rate X.O_ 17. Amount of Line 14 taxable at sibling rate X .12 18. Amount of Line 14 taxable at collateral rate X .15 0.00 0.00 15. 16. 594,023.35 17. 0.00 18. 19. TAX DUE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT L 15056052059 Side 2 0.00 0.00 71,282.80 0.00 71,282.80 ., 15056052059 ..J REV-1500 EX Page 3 Decedent's Complete Address. r----:-u---J ~_--. f.HJ_~.L ~1 L.~~.~J 11021 . : I DECEOENrS NAME DECEOENrS SOCIAl SECURITY NUt.eER Catherine P HOOVER 191-18-3536 STREET ADDRESS 80 North Dickinson School Road CITY I STATE I ZIP Carlisle PA 17013 Tax Payments and Credits: 1. Tax Due (Page 2 line 19) 2. CreditslPayments A. Spousal poverty Credit B. Prior Payments C. Dismunt (1) 71,282.80 69,000.00 3,631.58 Total Credits ( A + B + C ) (2) 3. InterestJPenaJty if applicable D. Interest E.PenaIty 72,631.58 TotallnterestlPenalty ( 0 + E ) (3) 4. If Une 2 is greater than Line 1 + Une 3, enter the difference. This is the OVERPAYMENT. flU In oval on Page 2. Unt 20 to request a refund. (4) 1,348.78 5. If Une 1 + line 3 is greater than Une 2, enter the difference. This is the TAX DUE. B. Enter the total of Une 5 + SA This is the BALANCE DUE. (5) (SA) (58) A. Enter the interest on the tax due. 0.00 Make Check Payable to: REGISTER OF WILLS, AGENT ~J.~"'lI~~lli'mW.~lg""~I.Uli~[U ~1[l~lllm -. -., PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred;.......................................................................................... D ~ b. retain the right to designate who shan use the property transferred or its income; ............................................ D ~ c. retain a reversionary interes~ or.......................................................................................................................... 0 Iil d. receive the promise for life of either payments, benefits or care? ...................................................................... 0 Iil 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? .............................................................................................................. 0 [i] 3. Did decedent own an -in trust for" or payable upon death bank account or security at his or her death? .............. 0 ~ 4. Did decedent own an Individual Retirement Accoun~ annuity, or other non-probate property which contains a beneficiary designation? ........................................................................................................................ 0 [i] IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. . ~-~~~~~fJRtllll.JL.,l(mrm..II.ltlln~~.I~ JJJJIi~II~ ~~j' ~~m For dates of death on or after July 1. 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is three (3) percent (72 P.S. i9116 (a) (1.1) (i)l. For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is zero (O) percent [72 P.S. i9116 (a) (1.1) (ii)). The statute does not exemDt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are stiD applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1. 2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use of a natural parent, an adoptive parent, or a stepparent of the child is zero (O) percent (72 P.S. ~9116(a)(1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedenfs Hoeal beneficiaries is four and one-half (4.5) percent except as noted in 72 P.S. ~9116(1.2) [72 P.S. ~9116(a)(1)J. The tax rate imposed on the net value oftransters to or for the use of the decedenfs siblings is twelve (12) percent [72 P.S. i9116(a)(1.3)).Asibling is defined. under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. REV-1502 EX+ (6-96. COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE A REAL ESTATE ESTATE OF Catherine P. Hoover FILE NUMBER 21-06-1021 All real property owned solely or as a tenant In common must be reported at fair market value. Fair market value is defined as the price at which property would be exchanged between a willing buyer and a willing seller, neither being compeRed to buy or sell, both having reasonable knowledge of the relevant facts. Real property which II Jolntly-owned with right of lurvlvorshlp mUlt be disclosed on Schedule F. ITEM NUMBER 1. DESCRIPTION 1/4 interest in 80 North Dickinson School Road, Cumberland County, Carlisle, PA VALUE AT DATE OF DEATH 292,500.00 TOTAL (Also enter on line 1, Recapitulation) $ (If more space is needed. insert additional sheets of the same size) 292,500.00 REV-l503 EX. (6-98. COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE B STOCKS & BONDS ESTATE OF Catherine P. Hoover FILE NUMBER 21-06-1021 All property Jolntly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER 1. VALUE AT DATE OF DEATH 10 11 12 13 14 15 16 17 DESCRIPTION 15,000 par Ford Motor Credit Co 4.95% due 1-15-08 CUSIP 345397UE1 @ DOD 14,612.30 208.31 2 3 Interest Accrued to DOD on Item # 1 311.952 shares CRM Mid Cap Value Fund CUSIP 92934R769 @ DOD 876.112 shares MTB LCP Stock Fund CUSIP 55376T692 @ DOD 722.289 shares MTB LCP Value Fund CUSIP 55376T668 @ DOD 957.053 shares MTB Small Cap Stock Fund CUSIP 55376T114 @ DOD 253.492 shares Thompson Plumb Growth Fund CUSIP 884891300@ DOD 86.048 shares Vanguard S & P 500 Index Fund CUSIP 922040100@ DOD 173.893 shares Alpine Equity Infl R1E Fund CUSIP 020940409 @ OOD 1509.476 shares MTB Infl Equity Fund CUSIP 55376T775 @ DOD 270.728 shares The Boston Company Infl Small Cap Fund CUSIP 58552D762 @ DOD 1063.994 shares Evergreen Select FII Fund CUSIP 299908830@ DOD 537.582 shares Goldman Sachs High Yield Trust CUSIP 38141W679 @ DOD 6036.874 shares MTB Intermediate Term Bond Fund CUSIP 55376T817 @ 000 6784.219 shares MTB Short Duration Bond Fund CUSIP 55376T221 @ DOD 4329.293 shares MTB Short Term Corporate Bond Fund CUSIP 55376T189 571 shares Northeast Investors Fund CUSIP 664210101 @ 000 9,536.37 7,788.64 9,613.67 9,493.97 12,608.69 10,933.26 6,515.77 19,109.97 6,849.42 11,108.10 4,316.78 58,919.89 64,721.45 42,340.49 4,396.70 4 5 6 7 8 9 293,073.78 TOTAL (Also enter on line 2, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) REV-15Q4 EX. (~. COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE C CLOSELY-HELD CORPORATION, PARTNERSHIP OR SOLE-PROPRIETORSHIP ESTATE OF Catherine P. Hoover FILE NUMBER 21-06-1021 Schedule C-1 or C-2 (including all supporting information) must be attached for each c1osely-held corporation/partnership interest of the decedent other than a soIe-proprietorship. See instructions for the supporting information to be submitted for sole-proprietorships. ITEM NUMBER NUMBER DESCRIPTION 1. None VALUE AT DATE OF DEATH 0.00 TOTAL (Also enter on line 3, Recapitulation) $ (If more space is needed. insert additional sheets of the same size) 0.00 REV-'507 EX. (....) .. COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE D MORTGAGES & NOTES RECEIVABLE ESTATE OF Catherine P. Hoover FILE NUMBER 21-06-1021 All property jolntly~wn.d with right of survivorship must be disclosed on Schedule F. ITEM NUMBER DESCRIPTION VALUE AT DATE OF DEATH None 0.00 TOTAL (Also enter on line 4, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) 0.00 REV-1508 EX. (6-98) .. COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY ESTATE OF Catherine P. Hoover FILE NUMBER 21-06-1021 Include the proceeds of ltigation and the date the proceeds were received by the estate. AU property jointly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER DESCRIPTION M & T Bank Guardian for Catherine P. Hoover, Principal Cash 2 M & T Bank Guardian for Catherine P. Hoover, Income Cash VALUE AT DATE OF DEATH 3 Refund of Personal Cash Fund 14,397.19 14,295.61 256.27 35,659.01 269.75 4 36,000 Face Value Flagstar Bank CD 4.15% due 8-21-07 5 Interest Accrued to DOD on Item # 4 TOTAL (Also enter on line 5. Recapitulation) $ (If more space is needed, insert additional sheets of the same size) 64,877.83 REV-l509 EX> (...... COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE F JOINTLY-OWNED PROPERTY ESTATE OF Catherine P. Hoover FILE NUMBER 21-06-1021 " an a..et WlS made Joint within one year of the decedenr. date of death, It must be reported on Schedule G. SURVIVING JOINT TENANT(S) NAME ADDRESS RELATIONSHIP TO DECEDENT A. 8. C. JOINTLy.owNED PROPERTY: LETTER DATE DESCRIPTION OF PROPERTY %OF DATE OF DEATH ITEM FOR JOINT MADE INCLUDE NAME OF FINANCIAL INSTITUTION AND BANK ACCOUNT NUMBER OR SIMILAR DATE OF DEATH DECO'S VALUE OF NUMBER TENANT JOINT IDENTIFYING NUMBER. ATTACH DEED FOR JOINTLY-HELD REAl ESTATE. VALUE OF ASSET INTEREST DECEDENT'S INTEREST 1. A. TOTAL (Also enter on line 6, Recapitulation) $ 0.00 (If more space is needed, insert additional sheets of the same size) REV-1S10 ex- <..... COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHIDULI G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY ESTATE OF Catherine P. Hoover FILE NUMBER 21-06-1021 This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes. ITEM DESCRIPTION OF PROPERTY INCLUDE THE NAME OF THE TRANSFEREE. THEIR RELATIONSHIP TO DECEDENT AND DATE OF DEATH % OF DECO'S EXCLUSION TAXABLE NUMBEF THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE. VALUE OF ASSET INTEREST OF APPUCABlEl VALUE 1. 0.00 TOTAL (Also enter on line 7 Recapitulation) $ 0.00 (If more space is needed. insert additional sheets of the same size) , " REV-1511 EX+ (12-99) *' COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULI H FUNERAL EXPENSES & ADMINISTRAnVE COSTS ESTATE OF Catherine P. Hoover FILE NUMBER 21-06-1021 Debts of decedent must be reported on Schedule L ITEM NUMBER A. AMOUNT B. 1. DESCRIPTION , . FUNERAL EXPENSES: Hoffman Roth Funeral Home, Services Rendered Carlisle Memoral Service, Grave Stone @ Mowersville Church Cemetery 6,262.80 3,315.00 2 ADMINISTRATIVE COSTS: Personal Representative's Commissions Name of Personal Representative(s) M & T Bank Social Security Number(s)/EIN Number of Personal Representative(s) StreetAddress One West High Street City Carlisle State PA Zip 17013 Year(s) Commission Paid: 2007 24,000.00 2. Attorney Fees 11,000.00 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City State . Zip Relationship of Claimant to Decedent 4. Probate Fees 514.00 5. Accountant's Fees 6. Tax Retum Preparer's Fees 7. Cumberland Law Journal - Advertising Letters Testamentary Sentinal - Advertising Letters Testamentary Filing and Accounting Fees 75.00 137.03 2,500.00 8 9 47,803.83 TOTAL (Also enter on line 9, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) I .. REV-1512 EX+ (12..()3) *' SCHEDULE I DEBTS OF DECEDENT, MORTGAGE UABILITIES, & UENS COMMONWEALTH OF PENNSYlVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Catherine P. Hoover FILE NUMBER 21-06-1021 Report debts Incurred by the decedent prior to death which 18malnecl unpaid as of the date of death, Including un18lmbursecl medical expenses. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1. Alert Pharmacy Services, Balance due 82.05 2 Messiah Village, Balance due for care 3,220.28 903.35 3. Mary H. Means, Services as Guardian of the Person 4 Patrick F. Noone, Balance due for services 3,200.00 149.73 5 Met Ed - Balance due for services 6 Mobile X-Ray Imaging, Inc. Balance due for service 22.81 7 Pennsylvania Department of Revenue, Balance 2006 State Income Tax 627.00 8 Smith Elliott Kearns & Company, Preparation 2006 Tax Returns 215.00 204.21 9 Carolyn McQuillen, Pro-rated share of Real Estate Taxes TOTAL (Also enter on line 10, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) 8,624.43 , .... REV-1513 EX+ (9-00) . COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE J BENEFICIARIES FILE NUMBER 21-06-1021 ESTATE OF Catherine P. Hoover RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE I TAXABLE DISTRIBUTIONS pnclude outright spousal distributions, and transfers under Sec. 9116 (a) (1.2)] 1 Miriam E. Hoover, C-Q 5 South Hanover Street, Carlisle, PA 17013 Sister 100% ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18. AS APPROPRIATE, ON REV-1500 COVER SHEET II NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET $ (If more space is needed, insert additional sheets of the same size) Estate Valuation Date of Death: 10/26/2006 Valuation Date: 10/26/2006 Processing Date: 11/08/2006 Shares or Par Security Description High/Ask Low/Bid 99.05280 Mkt 97.41530 Mkt 30.57000 Mkt 8.89000 Mkt 13.31000 Mkt 9.92000 Mkt 49.74000 Mkt 127.06000 Mkt 37.47000 Mkt 12.66000 Mkt 25.30000 Mkt Estate of: Catharine P. Hoover, GDN Account: 2002162 Report Type: Date of Death Number of Securities: 17 File ID: Hoover, Catherine P, GDN Mean and/or Div and Int Adjustments Accruals Security Value 35,659.01 14,612.30 9,536.37 7,788.64 9,613.67 9,493.97 12,608.69 10,933.26 6,515.77 19,109.97 6,849.42 This report was produced with EstateVal, a product of Estate Valuations & Pricing Systems, Inc. If you have questions, please contact EVP Systems at (818) 313-6300 or www.evpsys.com. (Revision 7.0.4) I} 36000 FLAGSTAR BK BLOOMFIELD HLS MI (33847ENC7) Financial Times Interactive Data OTD: 08/21/2002 Mat: 08/21/2007 4.15% 10/26/2006 Int: 08/21/2006 to 10/26/2006 2} 15000 FORD MOTOR CR CO (345397UE1) Financial Times Interactive Data DTD: 01/12/2005 Mat: 01/15/2008 4.95% 10/26/2006 Int: 07/15/2006 to 10/26/2006 3} 311.952 WT MOT FD (92934R769) CRM MDCP VAL I Mutual Fund (as quoted by NASDAQ) 10/26/2006 4} 876.112 MTB GROUP FDS (55376T692) LCP STK I I Mutual Fund (as quoted by NASDAQ) 10/26/2006 5} 722.289 MTB GROUP FDS (55376T668) LCP VAL INST I Mutual Fund (as quoted by NASDAQ) 10/26/2006 6} 957.053 MTB GROUP FDS (55376TI14) SMCP ST INST I Mutual Fund (as quoted by NASDAQ) 10/26/2006 7} 253.492 THOMPSON PLUMB FDS INC (884891300) GROWTH FD Mutual Fund (as quoted by NASDAQ) 10/26/2006 8 } 86.048 VANGUARD INSTL INDEX FD (922040100) SH BEN INT Mutual Fund (as quoted by NASDAQ) 10/26/2006 9} 173.893 ALPINE EQUITY TR (020940409) INTL R/E EQT Y Mutual Fund (as quoted by NASDAQ) 10/26/2006 10) 1509.476 MTB GROUP FDS (55376T775) INTL EQTY I I Mutual Fund (as quoted by NASDAQ) 10/26/2006 11) 27Q.728 MELLON INSTL FOS INVT TR (585520762) BO INTL S CAP Mutual Fund (as quoted by NASDAQ) 10/26/2006 Page 1 99.052800 269.75 97.415300 208.31 30.570000 8.890000 13.310000 9.920000 49.740000 127.060000 37.470000 12.660000 25.300000 Date of Death: 10/26/2006 Valuation Date: 10/26/2006 Processing Date: 11/08/2006 Sha:res or Par security Description High/Ask 12) 1063.994 EVERGREEN SELECT FIXED INCOME (299908830) SELECT INTL I Mutual Fund (as quoted by NASDAQ) 10/26/2006 13) 537.582 GOLDMAN SACHS TR (38141W679) HI YLD INSTL Mutual Fund (as quoted by NASDAQ) 10/26/2006 14) 6036.874 MTB GROUP FDS (55376T817) INTRM BD I I Mutual Fund (as quoted by NASDAQ) 10/26/2006 15) 6784.219 MTB GROUP FDS (55376T221) SHR OUR GV I I Mutual Fund (as quoted by NASDAQ) 10/26/2006 16) 4329.293 MTB GROUP FDS (SS376T189) STRM CORP BD I I Mutual Fund (as quoted by NASDAQ) 10/26/2006 17) 571 NORTHEAST INVS TR (664210101) SH BEN INT Mutual Fund (as quoted by NASDAQ) 10/26/2006 Total Value: Total Accrual: Total: $329,002.54 Page 2 Low/Bid 10.44000 Mkt 8.03000 Mkt 9.76000 Mkt 9.54000 Mkt 9.78000 Mkt 7.70000 Mkt Estate of: Catharine P. Hoover, GDN Account: 2002162 Report Type: Date of Death Number of Securities: 17 File 10: Hoover, Cathe:rine P, GDN Mean and/o:r Div and Int Adjustments Accruals Security Value 11,108.10 4,316.78 58,919.89 64,721.45 42,340.49 4,396.70 $328,524.48 This report was produced with EstateVal, a product of Estate Valuations & Pricing Systems, Inc. If you have questions, please contact EVP Systems at (818) 313-6300 or www.evpsYS.com. (Revision 7.0.4) 10.440000 8.030000 9.760000 9.540000 9.780000 7.700000 $478.06 LA~ 1 VV ILL ANU TE~TAMENT OF CATHERINE P. HOOVER I, CATHERINE P. HOOVER, of Dickinson Township, Cumberland County, Pennsylvania, being of sound and disposing mind, memory, and understanding, do hereby make, publish, and declare this as and for my Last W'ill~nd Testament, hereby revoking and making void any and all Wills by me at any time heretofore made. ~ o g 1. I direct my hereinafter named Executor to pay all of my just debts and fu~expen~ as soon after my death as may be found convenient to do so. ~~g ~ 2. I declare that I am currently unmarried and that I have no children. =?; en ~ -..s . i.::Jc;o -0 3. All of the rest, residue, and remainder of my estate, real, personal, or mixe~"-n 3: wheresoever the same may be situate, I give, devise, and bequeath to my sister, Miriani"}itibver, h~ heirs and assigns, provided my said sister shall survive me by a period of ninety (90)~ys. In thf: event that my said sister should predecease me or fail to survive me by the aforesaid period of ninety (90) days, then in such event all the rest, residue and remainder of my estate, real, personal and mixed, and wheresoever the same may be situate, I give, devise and bequeath to the Trustees of Carlisle Area Health and Wellness Foundation, their suc~essors and assigns, of 274 Wilson Street, Carlisle, P A 17013, to be used for such purpose or purposes as said Trustees shall deem appropriate. 4. I hereby nominate, constitute, and appoint M & T Bank, and its successors, One West High Street, Carlisle, Pennsylvania 17013, as Executor of this my Last Will and Testament, and I further direct that it shall not be required to post any bond to secure the faithful performance of its duties in the Commonwealth of Pennsylvania or in any other jurisdiction. ~N"TITNESS WHEREOF, I have hereunto sel my hand and seal to this Iny Last Will and Testament written on one (1) page this Jr-nay of August~ 2003. ~~~ !f';f~ (SEAL) Cathenne P. Hoover Signed, sealed, published and declared by Catherine P. Hoover, the Testatrix above named, as and for her Last Will and Testament, in our presence, who, in her presence, at her request, and in the presence of each other have hereunto subscribed our names as attesting witnesses. __:c:: m~ C) C) -- -I =;-:.l C~) r-r-1 ;::"":J ~~ REAL EST ATE APPRAISAL REPORT HOOVER FARM 80 NORTH DICKINSON SCHOOL ROAD DICKINSON TOWNSHIP CUMBERLAND COUNTY, PA Complete Summary Appraisal Report Of The Hoover Farm 80 North Dickinson School Road Dickinson Township, Cumberland County, PA Effective Date: October 27, 2006 Prepared For M & T Investment Group Prepared By Noone & Associates, Inc. 3 Cross gates Drive, Suite 110 Mechanicsburg, P A 17050 NOONE~ ASSOCIATES REAL ESTATE VALUATION & ANALYSIS Mr. Ryan M. Leppo M & T Investment Group Trust Real Estate Department 3607 Derry Street Harrisburg, P A 17111 November 13,2006 RE: Appraisal of the Hoover Farm located at 80 North Dickinson School Road Dickinson Township, Cumberland County, P A Dear Mr. Leppo, Weare pleased to present the attached report of our appraisal of the referenced real estate as of October 27, 2006. The report sets forth our opinion of market value along with supporting data and reasoning which form the basis of our opinion. The value opinion is qualified by certain definitions, limiting conditions, and certifications, which are set forth in this report. This report was prepared for and only intended for the use of M & T Investment Group. It may not be distributed to or relied upon by other persons or entities without our written permission. As a result of our analysis, we have formed an opinion that the market value of the subject property, as defined in the report, subject to the definitions, certifications, extraordinary assumptions, hypothetical conditions and limiting conditions set forth in the attached report, as of October 27,2006, is: * * * ONE MILLION THREE HUNDRED THOUSAND DOLLARS * * * ($1,300,000) In addition, we have determined that the value of Ms. Catherine Hoover's partial interest in the subject property, as of October 27, 2006, is: * * * TWO HUNDRED NINETY TWO THOUSAND FIVE HUNDRED DOLLARS * * * ($292,500) The property was inspected by Patrick F. Noone, 1v1AI, and Virginia L. Daley. Please call if you have any questions or comments regarding this report. Respectfully submitted, Noone & Associates, lnc. .iv-~ ~. ~r vvvv-- Patrick F. Noone, MAl P A Certified General Real Estate Appraiser PA GA 001272-L Patrick F. Noone, MAl · 3 Crossgates Drive, Suite 110. Mechanicsburg, PA 17050 Phone 717.458.0482. FAX 717.458.0483. pat@nooneappraisals.com 80 North Dickinson School Road TABLE OF CONTENTS REAL EST ATE APPRAISAL REPORT SUMMARy......................................................... 3 PHOTOGRAPHS OF SUBJECT PROPERTy..................................................................... 4 INTRODUCTION .................. ....... ........ ........ .............. ................................ ................. ........ ..... 5 SCOPE OF WORK.......................................................................................8 RE G ION AL ANALYSIS .... ........... ............... .......... .............. ........... ........ ............ ........... .......... 9 NEIGHBORHOOD ANALYSIS ......... ........ .......... ............ ...... ............ ....... ......... .................... 12 SUBDIVISION & DEVELOPMENT ACTIVITy................................................................. 14 SITE DATA ................ ..... ........ ......... ..... ....... ........... ........ ................ ..... ........... .............. ........ .... 15 ZONING .... .............. .... .............. .................. .............. ........... .................. ................ ............... ..... 17 ASSESSMENT AND TAXES.. ..... .... .... ........ ... ................ ................... ...................... ...... .... ...... 18 ill G HEST AN"D BEST USE. ............. ........... ........ ..... ......... ............ ........ ...... .... ........... ............. 19 THE VAL U A TI ON PROCESS........................ .............................................. .......................... 21 SALES CO l\1P ARISO N APPRO A CH ........... .................... ........ ...................... ....................... 22 CONCLUSION.. ..... ............. ..... ..... ........ ....... ........ ............ ..... .......... ................. ..... .......... ...... .... 27 CE.R TIFI CA TI 0 N .... .............. .............. ........ ...... ............. ........................... ................. ............. 30 ASSUMPTIONS AND LIMITING CONDITIONS............................................................... 32 ADDENDUM A ADDENDUM B ADDENDUM C ADDENDUM D DEED SUBJECT TAX MAP COMPARABLE SALES MAP APPRAISER QUALIFICATIONS Noone & Associates I 2 80 North Dickinson School Road REAL EST ATE APPRAISAL REPORT SUMMARY Property Type: Agricultural Land & Misc. Improvements Owner: Samuel L. Hoover Trust, Catherine and Miriam Hoover Location: 80 North Dickinson School Road Dickinson Township, Cumberland County, PA Effective Date of the Appraisal: October 27, 2006 Date of the Report: October, 27, 2006 Property Rights Appraised: Fee simple Subject Site: The subject land area consists of 122.79 acres Subject Improvements: The subject property is improved with a farmhouse, a barn and misc. outbuildings. Competitive Position: The subject property is located in Dickinson Township. The area is semi-rural and in close proximity to Carlisle. The area is attractive for continued growth as residential and commercial development continues to push outward from Carlisle and Harrisburg. Zoning: Agricultural Dickinson Township Utilities: Private Well and Septic Highest & Best Use: Single-family residential development Value Indications: Subject Property: $1,300,000 Catherine Hoover's Partial Interest: $292,500 Noone & Associates I 3 80 North Dickinson School Road PROTOGRArRS OF SUBJECT PROPERTY View of the farmhouse from Dickinson School Road View of barn and outbuildings Dickinson School Road looking north View of cultivated fields Looking North View of barn and cultivated fields Noone & Associates \ 4 80 North Dickinson School Road INTRODUCTION Identification of tbe Property The subject property is agricultural land, which is improved with a farmhouse, barn and outbuildings located at 80 North Dickinson School Road in Dickinson Township, Cumberland County, PA, and known as tax parcel # 08-11-0292-002. The subject property encompasses 122.79 acres, and includes road frontage along North Dickinson School Road. Subject Improvements The subj ect property is improved with a farmhouse/residence of approximately 3,200 square feet of gross living area and various barns and outbuildings. Purpose of the Appraisal The purpose of the appraisal is to arrive at a supportable estimate of the market value of the subject property as of the effective date of this report and to estimate the value of a portion of the estate due to the recent passing of Ms. Catherine Hoover. Intended Use of the Appraisal Report The appraisal report will be used by M&T Investment Group for estate (trust) planning purposes. Intended User of the Appraisal Report The intended user of the appraisal report is M&T Investment Group, the trustee for the Hoover Trust. Appraisal Type and Format This is a complete appraisal reported in summary format, which is intended to comply with the reporting requirements set forth under the Uniform Standards of Professional Appraisal Practice Standards Rule 2- 2. This report has been completed in conformity with and adherence to the revisions to the Standards effective January 1,2005. Effective Date of the Appraisal 'As Is' The effective date of the appraisal of the subject property in its 'as is' condition, is October 27, 2006, the date on which the property was inspected. The date of death of Ms. Catherine Hoover was October 26, 2006. Date of the Report The date of the report is October 27, 2006, the date on which the subject property was inspected. The date of the report indicates the perspective from which the appraiser is examining the market. Ownership The current owner of the subject property is The Samuel L. Hoover Trust, Catherine Hoover and Miriam Hoover, according to a deed dated September 16,2003, in Deed Book 259, Page 1914, as recorded in the Cumberland County Recorder of Deeds Office. The subject property was conveyed from Vada Hoover Weber et aI, January 15, 1950, for the consideration of $18,000. The property originally came into the Hoover family in 1920, when Samuel S. Hoover purchased the property from a Michael Ickes. It has passed from family member to family member since that time. Noone & Associates , 5 80 North Dickinson School Road Definition of Market Value Market value is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined. A current economic definition agreed upon by federal financial institutions in the United States is: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: i) buyer and seller are typically motivated; ii) both parties are well informed or well advised and acting in what they consider their best interest; iii) a reasonable time is allowed for exposure in the open market; iv) Payment is made in terms of cash in United States dollars or in terms offinancial arrangements compatible thereto; and v) the price represents the normal considerationfor the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1 Property Rights Appraised The property rights under appraisal in this report include the fee simple ownership rights of the subject property . Fee simple ownership is defined as; "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. "2 Exposure Time Reasonable exposure time is one of a series of conditions in most market value definitions. Exposure time is always presumed to precede the effective date of the appraisal. Exposure time may be defined as; "The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal,' a retrospective estimate based on an analysis of past events assuming a competitive and open market. " 3 Exposure time is different for various types of real estate and under various market conditions. It is noted that the overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. This statement focuses on the time component. The estimate may be expressed as a range and can be based on one or more of the following: · Statistical information about days on market; · Information gathered through sales verification; and, · Interviews with market participants. 1 Appraisal Institute, The Dictionary of Real Estate Appraisal, Third Edition, page 222. 2 Appraisal Institute, The Appraisal of Real Estate, 11 th Edition, page 137. 3 Appraisal Standards Board ofthe Appraisal Foundation, USPAP 2004 Edition, Statement on Appraisal Standards No.6, page 93. Noone & Associates I 6 80 North Dickinson School Road Based on the information presented in this report, a reasonable exposure time for a property such as the subject property is six to nine months. This exposure time period is based on the estimated market value included in this report. The reader should note that exposure time is different than marketing time in that exposure time is always presumed to precede the effective date of an appraisal, whereas marketing time is a time period immediately subsequent to the date of the appraisal. Valuation Issues F arm properties similar to the subject, are typically bought and sold on a price per acre basis even though they normally contain a farmhouse, barn, silos and miscellaneous outbuildings. In this report, the value of the subject property was determined on a price per acre basis. Noone & Associates I 7 80 North Dickinson School Road SCOPE OF WORK Determining the appropriate scope of work requires judgment based on the appraiser's identification of the assignment elements and understanding of what is required to solve the identified problem. The scope of work performed in the development of a market value estimate for the subject property is presented below. Property Identification & Description The property identification and description is based on an inspection of the subject property on October 27, 2006, public information, including tax assessment data, tax maps, deeds, and other information, physical inspection of the property, and available site and building plans, sketches, and other information provided by the client or property owner/manager. Market Data Regional, neighborhood, and industry market data is obtained from a variety of sources including state, county, and municipal agencies, commissions, and departments, including the Census Bureau, P A Department of Labor and Industry, and other government entities, as. well as real estate sales brokers, marketing agencies, and other sources. Highest and Best Use Analysis The highest and best use analysis is the determination of the maximally productive use of the subject property, as vacant and/or as improved, based on the physical attributes of the property, the zoning and other legal regulations impacting the property, and the financial feasibility based neighborhood development, property uses, and other factors. Approaches to Value The market value of the subject property is initially estimated by applying specific appraisal procedures of the three separate approaches, where applicable, which include the Cost Approach, the Income Approach, and the Sales Comparison Approach. For the subject property, only the Sales Comparison Approach has been utilized. Reconciliation and Conclusion The final step is the reconciliation of the indicated value resulting from each of the approaches utilized, based on the relative applicability of each of the approaches to the subject property, and the determination of the final value conclusion. Noone & Associates I 8 80 North Dickinson School Road REGIONAL ANALYSIS The ever changing nature of the basic forces that motivate buyers and sellers within a given market area have a direct impact on the area's real estate values. The forces are usually considered in four major categories: 1) social standards and ideas; 2) economic conditions; 3) government controls and standards; and 4) environmental conditions. The following analysis outlines the general economic conditions, trends, and future outlook of the subject market area. Cumberland County Cumberland County consists of about 547 square miles and is located in south central Pennsylvania, directly west of Harrisburg. The county is surrounded by the Susquehanna River and Dauphin County on the east, York and Adams Counties on the south, Franklin County on the west, and Perry County on the north. Of the present 67 counties in Pennsylvania, 48 were carved from the original Cumberland County. Cumberland County consists of 12 boroughs and 22 townships. The accompanying map shows both the Townships and Boroughs (in blue) of Cumberland County. The eastern portion of the county is primarily a suburban area in close proximity to the City of Harrisburg, while the western portion of the county is a combination of small towns, suburban areas, and rural areas. Cumberland County ranks 40th out of 67 Pennsylvania counties in size. TOWNSHIPS and BoroughS of CUMBERLAND CO,. PA RO<fflll"I'> "om A.n<>5.',.7<,.,'t AJi.... c!I Qanllt60r rDoLor",.. ;?ul);)j Note: West Fairview Borough is now part of Eas! Pennsboro Township 002000 Dhllt's (;sl", ilJ31""~e....' Harrisburg MSA Cumberland County together with Dauphin, Lebanon, and Perry Counties form the Harrisburg-Lebanon- Carlisle Metropolitan Statistical Area (Harrisburg MSA). At the heart of the Harrisburg MSA is the City of Harrisburg, the Capital of the Commonwealth of Pennsylvania, \\ hich is conveniently located 70 miles from Allentown, 80 miles from Baltimore, 90 miles from Philadelphia, 110 miles from Washington D.C. and 200 miles from Pittsburgh. Interstate highway routes 76, 78, 81 and 83, and US routes 11, 15, 22, and 322 run through the MSA and provide access to these markets. Noone & Associates I 9 80 North Dickinson School Road Population The historic population growth for the Harrisburg MSA is summarized as follows: lI,u l'i,I1I11';; \IS I /'O!'lJIOI;IJI1, I (ro - ;fj(1fJ - - - - - - - - -- --- - -- - - - - - -1 __ ( ()lIIli.~ _ _____~-:!!__~_/lJ8(~_____~___ .:f}f)() ___ ___ Dauphin 223,713 232,317 237,813 251,798 Cumberland 158,177 179,625 195,257 213,674 Lebanon 99,665 108,582 113,744 120,327 Perry 28,615 35,718 41,172 43,602 Total- Harrisburf! MSA 510,170 556,242 587,986 629,401 Dauphin County is the most heavily populated county in the Harrisburg MSA, while Perry County has experienced the highest rate of growth since 1970. Overall the Harrisburg MSA has experienced steady population growth over the last 30 years, and each of the counties in the Harrisburg MSA are expected to experience continued growth through 2010 based on current population projections. 4 Employment and Income Historically, unemployment rates in the Harrisburg MSA are typically lower than the statewide and national averages due to the large number of state and federal jobs in the area. For November 2004, the unemploYment rate for the Harrisburg MSA was 3.6%, which was among the lowest MSA unemployment rates in the state, compared to 5.4% for the Commonwealth of Pennsylvania and 5.40/0 for the U.S. The November 2004 unemployment rate for York County was 4.5%, which is above the Harrisburg MSA rate, but well below the Pennsylvania statewide rate5. The top five employers in Central Pennsylvania are the Commonwealth of Pennsylvania, the U.S. Government, Hershey Foods Corporation, Penn State Milton S. Hershey Medical Center, and Highmark Inc..6 Job grov..rth in the Harrisburg area is expected to continue into the future as the Harrisburg MSA is projected to experience a 14.0% growth in jobs between 2000 and 2010. This projected growth is expected to be driven by a 16.0% increase in service industry jobs.7 The steady employment base in the Harrisburg MSA has helped to maintain steady income levels throughout the MSA, The 2000 median family income for the Harrisburg MSA was $51,892, compared to $49,184 on a statewide basis.8 4 Pennsylvania State Data Center, Census Data and Projections 5 Pennsylvania Labor Force - January 2005 (Monthly Report) - Based on preliminary November 2004 data (seasonally adjusted), PA Department of Labor & Industry 6 Central Penn Business Journal's Book of Lists, 2005 Edition, Largest Employers (based on full-time employees within Cumberland, Dauphin, Lancaster, Lebanon, and York Counties), page 17 7 Harrisburg-Lebanon-Carlisle MSA Industry Employment Projections (non-farm jobs), P A Department of Labor & Industry 8 Pennsylvania State Data Center, Census Data and Projections Noone & Associates I 10 80 North Dickinson School Road Regional Access The Harrisburg area is supported by a comprehensive railway system, major highways, and an international airport. Harrisburg is centrally located between many of the major Eastern U.S. markets and serves as a primary distribution center due to its location. Approximately 250/0 of the U.S. population lies within 250-mile radius of the Harrisburg area. The approximate driving distances from Harrisburg to some of the major Eastern U.S. cities are as follows: Baltimore, NID Philadelphia, P A Washington D.C. New York, NY Pittsburgh, P A 80 miles 100 miles 120 miles 170 miles 200 miles The major traffic arteries that run through the Harrisburg NISA provide important links to other primary and secondary markets in Pennsylvania and the Eastern U.S. Interstate 81 (1-81) runs north to New York State and Canada, and south to Maryland, West Virginia, Virginia, and Tennessee. 1-76, also known as the Pennsylvania Turnpike, links the area with Pittsburgh to the west and Philadelphia to the east. 1-78 runs from Interstate 81 in Lebanon County, eastward to Allentown and northern New Jersey. 1-83 runs from Harrisburg to Baltimore. PA-581 serves as a connector between 1-81 and 1-83 south of Harrisburg. Collectively, 1-81, 1-83, and P A-581 serve as the Capital Beltway of the Harrisburg area. In addition, the MSA is also traversed by US-II and US-15, traversing north/south, US-22 and US-322, traversing east/west, and P A-283, traversing east/west. The region is also supported by an extensive freight railway system, and is within commutable distance of Harrisburg International Airport, Baltimore/Washington International Airport, and Washington Dulles International Airport. Conclusion Overall, the economic outlook for Cumberland County and the Harrisburg MSA appears to be favorable with steady population growth and with unemployment rates below the statewide average. More importantly, the Harrisburg MSA is projected to experience increasing employment growth through 2010. The Harrisburg MSA is projected to continue in the shift from manufacturing or goods producing employment to service industry employment. The outcome of this shift should result in a more diversified and stable economy. Noone & Associates I 11 80 North Dickinson School Road NEIGHBORHOOD ANALYSIS Description The subject property is located along North Dickinson School Road in Dickinson Township, Cumberland County, approximately 7 miles southwest of Carlisle. The section of North Dickinson School Road near the subject receives moderate traffic and property uses in the area includes residential, agricultural, and commercial. Dickinson Township encompass approximately 45.6 square miles in the central portion of Cumberland County, and the setting within the Township ranges from semi-rural to suburban and is considered part of the greater Carlisle area. Much of the Township is residential and agricultural areas, with pockets of commercial development near Carlisle and along the 1-81 corridor. Due to its close proximity to Carlisle, the availability of vacant land in many area of the Township, and the substantial highway and road system in the area, Dickinson Township is a prime area for residential and selective commercial development. Dickinson Township is bordered: to the north, by West Pennsboro Township, to the east, by Carlisle Borough and South Middleton Township; to the south, by Cooke Township and Adams County; and to the west, by Penn Township. Demographics With a 2000 population of 4,702, Dickinson Township remains among the more sparsely populated municipalities in Cumberland County. The Township experienced population growth of 21.5% from 1990 to 2000, which was well above the county-wide average population growth of 9.4%, and the state- wide growth of 3.4%, over that same period.9 The population growth in many of the suburban areas of Cumberland County is a result of a continued development and expansion outward from both Harrisburg and Carlisle. The neighboring municipality of South Middleton Township experienced similar growth with a population increase 25.1 % over that same period. The significant growth in the greater Carlisle area can be attributed to the stability afforded by the two colleges in town, Dickinson College and the US Army War College, as well as the significant commercial development that has occurred along the 1-81 corridor, particularly in the warehousing and trucking industry. The 2000 median family income level for Dickinson Township was $54,844, below the median family income level of $56,406 for Cumberland County, and near the level of $51,892 for the Harrisburg MSA. Access The Carlisle area is supported by an extensive highway and road system. The major highways that traverse through the area include 1-81, US-ll, and 1-76 (the PA Turnpike). These highways serve as major arterials for shipping throughout the eastern seaboard. Local and regional thoroughfares in the greater Carlisle area include PA-74, PA-641, and PA-34, with Average Annual Daily Traffic (AADT) volumes that range from 8,600 to 17,000.10 9 Pennsylvania State Data Center, Census Data and Projections 10 2003 Traffic Volume Map of Cumberland County, PA Department of Transportation Noone & Associates I 12 80 North Dickinson School Road Neighborhood Development Although it is within easy access to Harrisburg, the Carlisle area is somewhat self-sustaining, with various types of commercial businesses, shopping, restaurants, and other businesses. The Carlisle Fairgrounds is one of the larger fairgrounds in the east coast, hosting several large scale events annually. In addition, Carlisle is a college community, with Dickinson College and the US Army War College located in the to\VTI. Also, due to the extensive highway system in the area, the Carlisle area is a significant warehousing and distribution hub, with numerous warehouses and trucking terminals. As a result, the Carlisle area, particularly along the 1-81 corridor, continues to experience commercial development of all types. Conclusion Overall, the economic outlook for Dickinson Township and the greater Carlisle area appears to be favorable due to its proximity to Harrisburg, the stability of being a college community, the substantial highway and road system in the area, and the availability of land for development in many areas. Based on the growth trends in population, average income levels, and pattern of commercial and residential development, the Carlisle area should continue to prosper. Noone & Associates I 13 80 North Dickinson School Road SUBDIVISION & DEVELOPMENT ACTIVITY Like many areas in south-central Pennsylvania, the development of vacant land for both residential and commercial property uses is occurring throughout Cumberland County, particularly in the areas surrounding the heavier population centers of Harrisburg, Carlisle, and Shippensburg. The development pattern throughout south-central Pennsylvania since the 1980's is best characterized by continued decentralization and a tendency towards sprawl. This overall pattern reflects a dispersal of development throughout the rural areas of the county. Based on data from the Cumberland County Planning Commission 2005 Annual Report, subdivision and land development activity for North Middleton Township and the other four municipalities which border the Borough of Carlisle, is summarized below: 2005 Propo,(>d '\ t'\\ Rl" Idt'1l t fa I I)" l'll in:.! l nit, :\'I U II u: . ()(I lit ~ I3lllldlll~ Ltlh .:!UIL2 2003 ~(HI-t .:!OO5 North Middleton 107 58 78 96 138 Dickinson 35 42 46 59 40 Middlesex 7 19 25 35 31 Penn 21 20 12 12 29 ' South Middleton 194 118 154 99 119 West Pennsboro 12 25 31 27 62 Cumberland County 2586 1,648 1,569 1,407 1,502 Based on this data, the proportion of building lots and new dwellings in these six municipalities has accounted for approximately 15% of the total activity in Cumberland County. In addition, the number of new residential dwelling units in many of these municipalities has increased annually since 2000. Noone & Associates I 14 80 North Dickinson School Road SITE DATA The site description is based on physical inspection of the subject property, a survey map and other information provided by the pending property owner, and public records. Location The subject property is located along the east side of North Dickinson School Road, approximately 7 miles southwest of Carlisle, in Dickinson Township, Cumberland County and is identified as Cumberland County tax parcel # 08-11-0292-002. According to the Cumberland County Tax Assessment Database, the subject property includes 122.79 acres Current Use The Property is currently farmed by a third party, who leases the land. The existing improvements have not been used for over ten years. Shape & Area The subject property is nearly rectangular in shape and includes approximately 122.79 acres. Frontage and Lot Orientation The subject property has road frontage along the east side of North Dickinson School Road, a moderately traveled local thoroughfare. Topography The subject property has gently rolling topography that is primarily open agricultural fields with small patches of trees and rocks. There are no apparent streams or ponds on the subject property. Utilities No public water or sewer is currently available at the subject property according to Dickinson Township. The farmhouse utilizes a private well and septic system. AccessNisi bility The subject property has average access and visibility from North Dickinson School Road, a moderately traveled local thoroughfare. The subject has a relatively private setting yet is still within close access of shopping, schools, churches and other amenities, and area highways, which is considered appropriate for a residential property. Improvements The subject property is improved with an unoccupied farmhouse/residence of approximately 3,200 square feet of gross living area. There is also a barn and seven various other farm buildings and sheds. Easements and Encroachments Easements on the property appear to include typical easements for utilities. The existing easements do not appear to have an adverse effect on the development of the property. No other easements or encroachments were indicated or observed at the subject property. A title search has not been conducted, and is considered to be beyond the scope of this appraisal. Noone & Associates I 15 80 North Dickinson School Road Subsurface Conditions It is assumed that there are no hidden or unapparent conditions to the property, soil, or subsoil, which would render them more or less valuable. Subsurface oil, gas or mineral rights were not considered in this report. Flood Zone Tp.e subject property is located within Flood X, an area of minimal flooding and an area outside of the 500-year flood plain, according to the National Flood Insurance Map; 421580 0001 B dated December 19, 1995. ~ 1000 ^PI'ROXIM^H SC:^Ll o '000 FEET , IIA T1D1lL IlOOl IISUUICl PI"I&II 80 North Dickinson School Road COIIUIUYY-PANElIIUIIIEI 4215800001 8 MAP REVISED: DECEMBER '9. '995 ThI. t. ." allel. COPi' of. I)Ofticn 01 the .bow ,"',anc.cJ flOOd m.p. It WIIa extract" ~ing F-MIT O".Lintl. llu. map doM; not rwt.:;Il;l\anv- or .me~em. ~ch m.., ~ tleen mea. al..lt>>,.quant to the o.t. on the tltI. block For ,,,. l.t_t produ<:t lnb'm_jon aboUt NMlot\tII Flood IMUI'enclf: Program tGOd ",apt check tMl FEMA Flood Map 9tor. at .mac."ma goy Summary of Nearby Development The area in the immediate vicinity of the subject property is semi-rural, with property uses that are primarily residential and agricultural, with a few scattered small commercial properties. Noone & Associates I 16 80 North Dickinson School Road ZONING The portion of the subject property located in Dickinson Township IS m the Agricultural District according to the Dickinson Township Zoning Office. The permitted uses and yard regulations in the Dickinson Township Agricultural District Zoning Ordinance, which is hereby incorporated into this report by reference, are summarized below. Permitted Uses Permitted uses in the Dickinson Township Agricultural District include conservation, agriculture, agriculturally related operations, single-family detached dwellings, mobile homes, churches, home occupations, government buildings, day care centers, and other similar uses. Yard Regulations The yard regulations in the Agricultural District are: Minimum Front Yard Depth: Minimum Rear Yard Depth: Minimum Side Yard Depth: Maximum Coverage: Maximum Height: Minimum Lot Width/Depth Minimum Lot Size 35ft. 35 fl. 25 fl. each 20% 35ft. 150 ft ./200 fl. 60,000 sq. fl. Subdivision Limitations Dickinson Township has Subdivision and Land Development Ordinances, which establish the requirements for the subdivision of land within the Townships. Noone & Associates I 17 80 North Dickinson School Road ASSESSMENT AND TAXES Each county in Pennsylvania has a predetermined ratio that equates the assessed value to a corresponding "base year" market value. This base year is usually the year of the last reassessment. In addition, the State Tax Equalization Board (STEB) assigns each county an annual common level ratio, which is the ratio between the current assessment and the implied market value. Both the predetermined ratio and the common level ratio can be used to equate an assessment to an indication of market value. By law, assessment boards throughout the state must use the predetermined ratio unless the common level ratio varies by more than 15% of the predetermined ratio. If this occurs, the assessment board must apply the common level ratio. The current predetermined ratio for Cumberland County is 100% and the common level ratio is 87.8% (2006). The difference between the predetermined ratio and the common level ratio is 12.2%. Since the difference is less than 15%, the predetermined ratio is used to equate the assessment to an indication of market value. According to the Cumberland County Tax Assessment Database, the subject property is currently assessed at $334,270 ($349,050 for land and $256,680 for improvements), which, based on a predetermined ratio of 100%, yields a market value indication of $334,270. Based on the estimated market value included in this report, the assessed value for the subject property appears to be low. According to the Cumberland County Tax Assessment Office the subject property is enrolled in the Clean & Green program. The current real estate taxes are estimated based on total millage rates (1 Mill = $1 of Tax per $1,000 of Assessed Value) for county, municipal, and school taxes. For the 2006 fiscal year, the Dickinson Township millage rates total 14.98557. Based on the assessed value of$334,270, real estate taxes for the subject property are estimated at $5,009 ($334,270 x 14.98557 -;-. 1,000). NOTE: The subject property is currently assessed under Act 319, Pennsylvania Farm Land and Forest Assessment Act, known as the Clean and Green Program. The Clean and Green Program is a state law passed in 1974, that allows land parcels which are 10 acres and over which are devoted to agricultural and forest land use, to be assessed at a value for that use rather than "Pair Market Value". The "clean and green" benefits only the land portion of the assessment and the value of the dwelling and farm buildings are not affected by "clean and green". When a property is withdrawn from the clean and green program for an alternative use, back taxes are owned along with interest. When a property owner enrolls under Clean and Green, they promise to use the land for one of the allowable uses and not develop the land, in exchange for a reduced assessment. If they violate the rules of the program by changing the use of their property to one that is unaccepted by the program or split off more land than allowed by the program, they are levied a roll-back tax, which includes 6% interest penalty. This tax is calculated based on the length of time the property received the preferential tax assessment, not to exceed seven years. The rollback tax amount estimated by the Cumberland County Tax Assessment Office as of the effective date of November 9, 2006, is estimated to be approximately $21,310. Noone & Associates I 18 80 North Dickinson School Road HIGHEST AND BEST USE Highest and best use is defined as: "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. "11 Implied in this definition is that the deternlination of highest and best use takes into account the contribution of a specific use to the community and community development goals as well as the benefits of that use to individual property owners. In appraisal practice, the concept of highest and best use is the basis upon which the value estimate is derived. The market values of land and improved property are estimated under the assumption that potential purchasers will pay a price that reflects the most profitable use of the land or property as improved. The highest and best use analysis requires the application of various categories of use-oriented decisions. To conclude that a given use is the highest and best use of the land as vacant must meet the following four criteria: 1) legally permissible 2) physically possible 3) financially feasible 4) most profitable Highest and Best Use As Vacant An analysis of highest and best use as vacant requires an analysis of those uses, which are legally permissible, physically possible, financially feasible, and most profitable. An analysis of highest and best use as vacant is necessary to identify comparable land sales that profile this use. The four tests are as described below. Legally Permissible Uses that are legally permitted at the subject property are largely controlled by the zoning district in which the property is located. Other factors, which may affect the categories of permitted uses, include deed restrictions, easements and encroachments, covenants, etc. As mentioned in the Zoning section of this report, the subject property is in the Agricultural District. The Dickinson Township Agricultural District allows for property uses including; conservation, agriculture, agriculturally related operations, single-family detached dwellings, mobile homes, churches, home occupations, government buildings, day care centers, and other similar uses. There were no other identified restrictions on the use of the subject property. 11 American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, 3rd Edition; page 171. Noone & Associates I 19 80 North Dickinson School Road Physically Possible The subject property is 122.79 acres in size and nearly rectangular in shape with gently rolling topography and primarily open terrain. The property has road frontage along the east side of North Dickinson School Road. The subject property is in a semi-rural location that is accessible to Carlisle, Shippensburg, and Harrisburg. The property appears to be physically suitable for residential subdivision and development. Financially Feasible The appraisal principle of conformity holds that real property value is created and sustained when the characteristics of a property conform to the demands of the market. Land uses in the subject's immediate neighborhood are primarily single-family residential and agricultural. Some residential subdivision is occurring in the surrounding area, and is primarily single-family development. As a result, development of the subject for single-family residential building lots would appear to be financially feasible. Maximally Productive Of the uses which are considered financially feasible, those uses must provide the highest rate of return over the longest period of time in order to be considered the highest and best use of the property. Based on the analysis of the legally permissible, physically possible, and financially feasible uses, it would appear that development of the subject site for single-family residential building lots, as permitted under current zoning and consistent with the surrounding development, would be the highest and best use as vacant of the subject property. Noone & Associates I 20 80 North Dickinson School Road THE VALUATION PROCESS The valuation process is used to develop a supportable estimate of market value based on the consideration of pertinent data. Typically, after defining the appraisal problem, performing a visit of the subject property, and analyzing the marketplace, market value is estimated by applying specific appraisal procedures that reflect three distinct methods known as the Cost Approach, the Income Approach, and the Sales Comparison Approach. The Cost Approach, premised upon the principle of substitution, presumes that a reasonable buyer would not pay more than the cost to produce a substitute property having similar utility. This approach is developed by adding the estimated value of the land to the cost of the improvements. The basic steps of the Cost Approach are to estimate land value as if vacant and to estimate the replacement or reproduction cost new of the improvements. Accrued depreciation caused by the physical deterioration, functional obsolescence, and economic obsolescence is estimated and deducted from the cost new to arrive at a depreciated replacement or reproduction cost. The land value estimate is added to the depreciated cost, which yields a value indication by the Cost Approach. The Income Approach is a method of analyzing a property's ability to generate monetary benefits and converting these benefits into an indication of value. This approach is predicated upon the principle that value is created by the anticipation of benefits to be derived in the future. The two most common methods to estimate market value by the Income Approach are direct capitalization and yield capitalization. Direct capitalization is based on applying an overall capitalization rate to one year's net operating income to derive an overall value. Yield capitalization quantifies the present value of cash flows and future sale proceeds over an investment holding period into an indication of value. The Sales Comparison Approach uses sales of similar properties as the basis for an indication of value. This approach is also based on the principal of substitution whereby the value of a property, as replaceable in the marketplace, tends to be set by the cost of acquiring an equally desirable substitute property. This approach is developed by identifying comparable sales of properties with similar utility to the property being appraised. Adjustments are made to the comparable sales on various elements of comparison based on the degree of similarity or differences between the comparable sales and the appraised property. The adjusted sales indicate a value range for the appraised property. The final step in the appraisal process is the reconciliation of the indicated value resulting from each of the approaches utilized. Consideration is given to the relative applicability of each of the approaches prior to concluding with the final value estimate. The Cost, Income, and Sales Comparison Approaches were each considered in the estimation of market value of the subject property. However, in the valuation of a farm property like the subject, the Sales Comparison Approach is the only applicable approach. Noone & Associates I 21 80 North Dickinson School Road SALES COMPARISON APPROACH The Sales Comparison Approach is a method of estimating market value where the subject property is compared to similar properties which have been sold. This approach is based on the principle of substitution, which states that if several competing commodities, goods, or services are available, then the one with the lowest price will attract the greatest demand and receive the widest distribution. When applied to real estate, this comparison focuses on those elements of comparison, which cause prices to vary. The Sales Comparison Approach is considered important to most appraisal problems since it is based on the price paid for similar properties by typical buyers in the open market. It is applicable to the appraisal of all properties for which there are a sufficient number of comparable sales. This approach is most reliable when the property type under analysis is bought and sold regularly. Applying this approach is a systematic procedure where similar sales are researched and analyzed through the most relevant elements of comparison. Adjustments are made for differences in the sales that reflect market reaction. Subject Property The subject property is a 122.79 acre tract of land with an old farmhouse and several outbuildings. The property is primarily open agricultural fields. Based on the Highest and Best Use analysis in this report, the property would most likely be developed for single-family residential use, as permitted under current zoning and consistent with the surrounding development. Units of Comparison An important step in this approach is the selection of an appropriate unit of comparison as it pertains to the comparable sales, such as, price per square foot, price per acre, or price per lot. Farm properties like the subject property are normally valued on a price per acre basis even though they typically contain a farmhouse, barn, silos, misc. outbuildings, etc. In the analysis of the subject property, the price per acre is selected as the most appropriate unit of comparison. Elements of Com parison Key value elements under scrutiny that may require adjustments include property rights conveyed, financing terms, conditions of sale, time, location, zoning, physical characteristics (shape, topography, utilities, etc.), and size. These factors are the primary influences on land prices and tend to affect the differences in price levels. Comparable Sales A search for comparable land sales was conducted in the subject's market area. This search focused primarily on large tracts of residential/agricultural land. The comparable sales presented in the Land Sales Analysis table are considered to be comparable to the subject property and reflect a similar highest and best use. The sales are presented in order of their date of sale, beginning with the most recent sale. Noone & Associates I 22 80 North Dickinson School Road Address: Comparable Land Sale #1 1 South Locust Point Road, Monroe Township, Cumberland County 22-09-0539-016 Samuel M. and Suzanne W. Simmons Five Way Partners LP $2,295,000 July 6, 2006 Book 0275 Page 2582 155.68 :tcres Basically level Agricultural No Public Water or Sewer Available Tax Map Number: Grantor: Grantee: Sale Price: Sale Date: Recorded: Land Area: Topography: Zoning: Utilities: Sale Price/Acre: $14,742 Comments: This Agricultural property is located east of the subject in Monroe Township. The site is primarily open, rolling farmland. The property includes a farmhouse of similar age and condition to the subject with a barn and several outbuildings. There were no subdivision approvals in place at the time of purchase. The Property is enrolled in the Clean and Green program. Address: Tax Map Number: Grantor: Grantee: Sale Price: Sale Date: Recorded: Land Area: Topography: Zoning: Utilities: Comparable Land Sale #2 125 Hill Lane, Lower Mifflin Township, Cumberland County 15-03-0059-042 Zane R. and Vicki L. Highlands Julie A. Charles $1,650,000 January 24, 2006 Book 0272 Page 4413 166.26 acres Basically level Agricultural No Public Water or Sewer Available Sale Price/Acre: $9,924 Comments: This Comparable Sale is a horse farm west of the subject in Lower Mifflin Township. The property has sloping topography and open agricultural fields. The property has a large, modem horse barn and several other outbuildings. Noone & Associates I 23 80 North Dickinson School Road Address: Comparable Land Sale #3 1040 Waggoners Gap Road, North Middleton Township, Cumberland County 29-07-0471-031B James S. and Mabel S. Brubaker Snyder's Hardware Inc. and Snyder Developers $750,000 December 21,2005 Book 0272 Page 2245 98.72 acres Basically level R-l Suburban Residential District Public Water and Sewer Approvals in Place Tax Map N urn ber: Grantor: Grantee: Sale Price: Sale Date: Recorded: Land Area: Topography: Zoning: Utilities: Sale Price/Acre: $7,579 Comments: This Comparable Sale is a former dairy farm that has level, rolling, and gently sloping topography with open agricultural fields. The west side of the property borders the Conodoguinet Creek and has some flood hazard area. The property includes a farmhouse of similar age and condition to the subject with a barn and several outbuildings. The sales agreement was reached in 2003 and the sale was closed in 2005. The site was purchased for future residential development and had preliminary subdivision plans and public water and sewer approvals in place at the time of sale. Tax Map Number: Grantor: Grantee: Sale Price: Sale Date: Reco rd ed: Land Area: Topography: Zoning: Utili ties: Comoarable Land Sale #4 2513 Walnut Bottom Road, Dickinson Township, Cumberland County 08-10-0626-011 Reza G. and Helga M. Azizkhan John E. and Janice M. Mumma $1,100,000 March 16,2005 Book 0267 Page 4861 142 acres Basically level Agricultural No Public Water or Sewer Available Address: Sale Price/Acre: $7,746 Comments: This Comparable Sale is an operating farm located just a few miles west of the subject property. The property is improved with a modem farmhouse, and barn and several other outbuildings. The property has level, rolling and sloping topography with open agricultural fields. There were no subdivision approvals in place at the time of purchase. The property will be enrolled in the Clean and Green program in the 2007 tax year. Noone & Associates I 24 80 North Dickinson School Road Land Sales Subiect Sale #1 Sale #2. Sale 1.6 Sale ~ 80 N. Dickinson School Rd. 1 Locust Point Road 125 Hill Lane 1040 Waggoners Gap Road 2513 Walnut Botlom Road Localion : Dickinson Township Monroe Township Lower Mifflin Township Norttl Middleton Township Dickinson Township Cumberland County Cumberland County Cumberland Coonty Cumberland County Cumberland County Parcel # nR-tn-mCj)-nn2 2)_n01\C~01\1 " 1r:;..l11..l1nr:;Q~ )Cj-07-0471-n11A OR-' 01\';'''';.11'' G ranlor: n/a Samuel M. and Suzanne Zane R. and Vicki L. James S. and Mabel S. Reza G. and Helga M. c;immmc; Hinhl;uv1c; Brubaker Azizkffin G ranlE!e: n/a Five-Way Partners LP Julie A. Childs Synder Developers John E. and Janice M. Mllmm;\ Sale Price: nla $2 295 000 $1650000 $750 000 $1 100000 Sale Date: n/a Jul-06 Jan-06 Dee-OS Mar-QS Deed BookJP aae: nfa 275- 2582 272-4413 272-2245 267-4861 T erms/C onditions : n/a Arm's Lengttl, Fee Simple, Arm's Lengtll, Fee Simple, Arm's Lengttl, Fee Simple, Arm's Lengttl, Fee Simple, r ;lc;hK' nnvenlional c: ac;h/C' M\of>nbmal Cash rac;hK"'nn\JPnnnnal Verified: n/a Public Records Public Records Ottler Appraiser's Files, Public Ottler Appraiser's Files, Public Recnmc; R p(' nmc; AgriculllJralland located west Former dairy farm has level, Farm purchased by a farmer. of Dickinson Township. Site is rolling and gently sloping Located just a few miles west Agricultural land 7 miles Hooe farm in ttle Newville of ttIe subject Property is soottlwestof Carlisle. Site IS primarily open, rolling area. Property has sloping topography wittl open improved with a modem primarily open gently rolling farmland. Property includes a topography and open agricultural fields. Some flood farmhouse, a bam, and other farmhouse of similar age and hazard area. Property includes Description: terrain wi no apparent flood condition to ttle subject, bam agricultural fields with some farmhouse, a barn and several out-buildings. Property has plain. Area is primarily and several outbuildings. wooded areas. There were no outbuildings. Purchased for level, rolling and sloping agrtcultural and single-family There are were no subdivison s ubdivis ion approvals in place future res idential development, 1Dpography IMth open residential. approvals in place at time of at time of purchase. wi preliminary subdivision agricultural fields. There were purchase. approvals in place. no subdivision approvals in place at lI1e time of purchase. Zonina: Aartculrural A;:;-,;,- ,;r" ,,.;., Rllral Anri~lllh;';1 SlJhuman Rp~irlpnli;)1 Al1rirllllilr.:l1 Utilities: No public water and sewer No publiC water and sewer No public water and sewer Public water and sewer No public water and sewer annmv::tlc; in nla~.. Land Size (Acres): 122.79 155.68 166.26 98.72 14200 PriceAcre: n/a $14,742 59,924 $7 ,597 $7 ,746 Transaction Adjustments Property Riahts Conveved 0 0 0 0 Financino Terms 0 0 0 0 Conditions of Sale 0 0 1,216 0 Adi Price Acre $14,742 $9,924 $8,813 $7,746 Market Conditions $1~7 397 764 1033 Adi Price,Acre $14,938 $10,321 $9,577 $8,779 Site,Physical Adjustments Location -20% 5% -10% -5% Zenino 0% 0% -5% 0% PhvsiCal C haractertstics 0% 5% 10% S% Size 5% 5% -5% S% Net Site,Phvsical Adiustments -15% 15% -10% 5% Ifinal Adjusted Price!Acre $12,698 I $11,869 I $8,619 I $9,218 I Sub' t Value Estimate Min. Adjusted Sale ($/Acre): Max. Adjusted Sale ($/Acre): Mean Adjusted Sales ($/Acre): $8,619 $12,698 $10,601 Noone & Associates I 25 80 North Dickinson School Road Discussion of Comparable Sales In general an upward adjustment will be made if the comparable is inferior to the subject for a given element of comparison and downward where the comparable is superior to the subject for a given element of comparison. The intent of this process is to bring the comparable sales to approximate parity with the subject. Property Rights Conveyed A transaction price is always predicated on the property rights conveyed. Many types of real estate, particularly income-producing property, are sold subject to existing leases. In these situations the real property rights conveyed is the leased fee interest. All of the sales included fee simple interests and no adjustments are warranted for property rights. Conditions of Sale This adjustment is applied if there are any unusual circumstances surrounding the transaction, such as foreclosures, bulk sales, related parties, assemblages and the like. All of the sales were considered arms length, having taken place under conditions requisite of a market transaction. Therefore, no adjustments are warranted for conditions of sale. Financing Adjustments The comparable sales have been adjusted for financing terms if applicable. This adjustment renders the sales price to cash equivalent terms. Where favorable (below market rate) financing terms are made available by the seller, the difference between the favorable terms and the market rate terms is estimated. The sales agreement was made for Comparable Sale #3 in 2003 but not closed until 2005 so an adjustment was made to bring the sale price current with 2005 sales. Market Conditions (Time) After adjusting the sale comparables for financing and conditions of sale, the sales must be brought current by means of a time adjustment if the market warrants. Based on overall appreciation in land values in the subject's market area over the past several years, an adjustment of 8.0% per year is deemed appropriate to bring the comparable sales current. Location Adjustments are applicable if there are advantages/disadvantages between the comparable sales and the subject regarding the property location. Sale # 1 is considered superior to the subject due to its closer proximity to the Harrisburg metropolitan area. Sale #3 is considered superior to the subject due to its proximity to residential development and the local school. Sale #4 is considered superior to the subject due to its location on a more well traveled road. All three sales, #1,#3,#4, warranted a downward adjustment. Sale #2 is considered inferior to the subject due to its more remote location, warranting an upward adjustment. Zoning Adjustments are applicable if there are advantages/disadvantages between the comparable sales and the subject regarding zoning. Sale #3 is considered to have more flexible zoning, which is considered to be superior, warranting a downward adjustment. All other sales are considered to have similar zoning to the subject, and, accordingly, no adjustment is warranted. Noone & Associates I 26 80 Nortb Dickinson School Road Physical Characteristics Adjustments are applicable if there are advantages/disadvantages between the comparable sales and the subject regarding physical characteristics such as topography, shape, utilities, etc. Sale #2 is considered inferior to the subject as part of the property is sloping and wooded, thus an upward adjustment was made. Sale #3 is considered to be inferior to the subject due to the flood hazard area and the property's irregular shape, warranting an upward adjustment. Sale #4 is considered inferior to the subject due to its lesser road frontage, warranting an upward adjustment. Sale #1 is considered similar to the subject thus no adjustments are necessary. Size Normally, economies of scale dictate that a larger property will sell for a lower unit value than a small property. Sales #1, #2, and #4 are larger than the subject, warranting an upward adjustment. Sale #3 is smaller than the subject, warranting a downward adjustment. Conclusion - Sales Com parison Approach The Land Sales Analysis table summarizes the adjustments and estimate of market value of the subject property residual land. After adjusting the comparable sales, the prices ranged from $8,619 to $12,698 per acre, with a mean of $10,601 per acre. All sales were considered reliable indicators of the market value of the subject property and in the final analysis the greatest weight was placed on the central tendency of the adjusted sales. As a result, a price per acre of$10,500 is chosen for the subject property. Based on the data presented above, the estimated fee simple market value of the subject property land, as of October 27, 2006, based on the 'Sales Comparison Approach, is $1,289,295 ($10,500 x 122.79 acres), rounded to: * * * ONE MILLION THREE HUNDRED THOUSAND DOLLARS * * * ($1,300,000) Valuation of Partial Interest Property valuation methodology generally recognizes that partial interests are valued at a discount due primarily to their limited marketability resulting from the following factors: o partial interests have limited value in use as collateral; o the absence of autonomous control; o the possible restrictions imposed in transferring partial interests. Non-controlling partial interests in real property do not benefit from the same bundle of rights that would accrue to the 100% or controlling ownership position. A non-controlling partner has no control over financing and cannot obtain conventional financing secured only by his or her specific property interests even if the property is debt free. A partial interest is less liquid than 100% or controlling interests. The lack of liquidity stems from the very limited resources through which partial interests can be marketed. Thus, partial interests cannot receive the same exposure to the market that is available to the 100% or controlling position through the vast network of real estate brokers. Noone & Associates I 27 80 North Dickinson School Road Partial Interest Discount The amount of the discount is often affected in part by the degree to which the parties are related, either by blood or by contract. Typically partial interests discounts between blood relatives is less then between unrelated parties. Another factor affecting the amount of the discount is the extent of the interests being valued. The size of the interest is expected to have an inverse relationship on the size of the discount; that is, as the amount of interest owned increases, the size of the discount decreases. A third factor affecting the size of the discount is the value of the property in question. As the value of the property rises, so does the size of the discount when valuing a partial interests. Market studies have shown that discounts for partial interests typically fall in the range of 25% to 45%. Again, the amount of the discount depends on the degree to which the parties are related, the amount of the interests being valued and the value of the property in question. With this mind, given the relationship between The Samuel Hoover Trust, Miriam Hoover and Catherine Hoover, a 10% discount is deemed an appropriate partial interest discount. The partial interest discount for Ms. Catherine Hoover's 25% share of the property is estimated at 10% and the value of her share is calculated as follows: Estimated Market Value: Ms. Catherine Hoover's Interest Share: Value Allocation: Adjustment of Partial Interests Discount (10%): Value of Ms. Catherine Hoover's Interests: $1,300,000 X 25% $325,000 X 90% $292,500 Based on the data presented above, the value of Ms. Catherine Hoover's partial interest in the subject property, as of October 27,2006, is: * * * TWO HUNDRED NINETY TWO THOUSAND FIVE HUNDRED DOLLARS * * * ($292,500) Noone & Associates I 28 80 North Dickinson School Road CONCLUSION Final Property Value The final estimate of the fee simple market value of the subject property, in its 'as is' condition, as of October 27, 2006 is: * * * ONE MILLION THREE HUNDRED THOUSAND DOLLARS * * * ($1,300,000) Catherine Hoover Interest The final estimate of Ms. Catherine Hoover's partial interest in the subject property, as of October 27, 2006 is: * * * TWO HUNDRED NINETY TWO THOUSAND FIVE HUNDRED DOLLARS * * * ($292,500) Noone & Associates I 29 80 North Dickinson School Road CERTIFICA TION I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. 4. My compensation in not contingent upon the reporting of a predetermined value of direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 5. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 6. I have made a personal inspection of the property that is the subject of this report. 7. No one provided significant professional assistance to the person(s) signing this report. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. As of the date of this report, I have completed the requirements of the continuing education program of the Appraisal Institute. Signature: ~~j3 e~~ Date: Pennsylvania Certified General Appraiser No. GA-0001272-L It.. \~..ob Noone & Associates I 30 80 North Dickinson School Road Assistance in performing this appraisal was provided by: ~~~~ V irgi a L. Daley . Assistant to the Certified General Real Estate Appraiser Noone & Associates I 31 80 North Dickinson School Road ASSUMPTIONS AND LIMITING CONDITIONS 1. No responsibility is assumed for the legal descriptions provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable, but no warranty is given for accuracy. 5. All engineering studies are assumed to be correct. The plot plans and illustrative material in this report are included only to help the reader visualize the property. 6. No survey has been made by the appraiser and no responsibility is assumed in connection with such matters. 7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 8. It is assumed the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. 9. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted within the report. 10. The distribution of the total valuation in this report between land and improvements applies only under the stated program utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 11. Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing Assumptions and Limiting Conditions. 12. The appraiser of this property will not be required to give testimony or appear in court because of having made this appraisal, unless arrangements have been previously made. Noone & Associates I 32 '". t, _ . ~! <;<. G C :\....,r(-r)cf\ -'" 1 t_ / ! I /:.. 1 .' . - ~ F:\FIU:~\D,~ T4~T~fEtQ-LI~"\'( 6]O~.) .~. ~ "., ~. .. . .:~ ~ ,.... ~ r', ~ ~. ,. ... ') ", t.: I IE I \...'.... ):\,)\.:.h ~: I \,... ._ , . :~. f\ LA NO C C U H 1'( - " '~B~fE$IfiA11fu~ 05 SAJ\JUEL L. E:OOVER, DECEASED IN THE COURT OF COMMON PLEAS OF Cul\1BERLAND COlJNTY, PENNSYLVANIA ORPH.ANS' COURT DNISION NO. 21-02-0163 DE~ AWARDING REAL ESTATE ANDNOW,thisJlo I day of 5~lem8~ , 2003, it appearing that the First. and Final Account and Statement of Proposed Distribution of Manufacturers and Traders Trust Company, Executor of the Estate of Samuel L. Hoover, late of Dickinson Township, Cumberland County, Perms)' lvania, have been filed and advertised in accordance \vith law and rules of Court and the same have been confimled by the Orphans' Court of CUlnberland County, Pennsylvania, on August 26,2003, and it appearing that said Executor, Ivlanufacturers and Traders Trust Company in its Statement of Proposed Distribution claim the distribution of the real estate in kind to Manufacturers and Traders Trust Company, Trustee, it is ordered, adjudged and decreed that the hereinafter described real estate is hereby awarded to Manufacturers and Traqers Trust Company, Trustee under Revocable Living Trust of Samuel L. Hoover dated August 21, 1991, as amended August 4, 2000, and its successors and assigns, decedent's undivided one-half interest in and to: Parcel No. 08-11-0292-002 ALL that certain fann loca.tedin Dickinson Township, Cumberland County, Pennsyl vania, containing 132 acres and 126 perches, and more particularly bounded and described as follows: BEGINNlNG at a comer on road leading from \Valnut Bottom Road and York Road near the lime kiln; thence along said road, North 35-1/2 degrees West 241.2 perches to stones; thence North along lands fonnedy o[George Kissinger 34 degrees East 57 perches to a hickory; thence North 80 degrees East 37 perches to stones; thence along lands now orfonnerlyofS. Sprole Woods and John Hays, South 22-3/4 degrees East 272 perches to a post at lands now or formerly of John S. Vloods and others and U.G. Barnitz, deceased; thence by said lands South 73 degrees "vVest 76.3 perches to the place of BEGINNING. CONTAINlNG 132 acres and 126 perches, neat measure. LESS, HOWEVER, ten (10) acres whIch \vcre conveyed to Dickinson Township School District by Deed dated Septelnber 2, 1952, and recorded in Cumberland County, P A, Deed Book "e", V OlU111e 15, Page 163. BEING the same premises vvhich Vada Hoover Wcb~r, ct al., by Deed dated January 1 5, 1950 and rec.orded in Cumberland County, P A, Deed Book "H", Volume B""..,.. ~.:n r.:' n-:1Q"'4 ..u.. ~ . ,,"'- ""4- 14, Page 351, granted and conveyed unto Paul J. Hoover and Samuel L. Hoover. The said SaInuel L. Hoover having died January 19, 2002, Letters Testamentary were granted unto Manufacturers and Traders Trust Company by the Register of Wills of Cumberland County. The Recorder of Deeds in and for said County of Cuxnberland is directed to record this' Dec;:-ee among ~he deeds in his offic::al capacity and to index the same in the Grantor index against thc Estate of Samuel L. Hoover and in the Grantee index to Manufacturers and Traders Trust Company, Trustee under Revocable Living Trust of Samuel L. Hoover dated August 21, 1991, as amended August 4,2000, in accordance with the Pennsylvania Probate, Estates and Fiduciary Code of 1972, as amended, Sections 3534..3536. ~~t~~9,tlu. w } ! I / / J. ):. ,~ Z 2:: C J 9 l dJS ~O. ~oox 259 rAC(j g:'1 5 ADDENDUM B Subject Tax Map t, \t ADDENDUM C Comparable Sales Map - ~ Street Atlas USA@ 2006 80 North Dickinson School Road and Comparable Sales Data use subject to license. @ 2005 DeLorme. Street Atlas USA@ 2006. www.delorme.com ~ . ,''''_.~ i' // . .' /_j I ,.~ ,./ ,. \ 'r@1"'...-Oal<lanCt.MiIIs",""I\,',....:," ~ 522..-.. . . \1'1t.... ..... h. " .....c::_~~' ~_.__.-.._. ,_ __.,~ -.,' 9 ,',,- '. Berryburg, ~wistown .l~ 1---..., - 22 /./ , ..,...=::-:""" ..- ", - /i' " _ _ ~ .- ../',<f:F ~ ?"i' ... / I .....'., r r~ .....4~ . . , / "')..~ ,: '''\.. 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'" :"" \- ~ \e.:~~ .... .,..' 1 r--'~---- r .--,:; CA~.eJ~\camp I-turf ,.A'j.,(moj'ne'-,- 't, , ./" ,~......_--....../ ,: HARRIRS!:l stown ~~581 ~~(.,\ '.... -\\ ( .,' / (' Ii - _4.:'-4' J S Locust POUlt Rd '~r- '%.. "":, ... \; "',.... i ,.",.....~.,/ r./ \"'" pennsy'v~nl~ Natl~~~;ta~Z"r . :~..lJIec~~.!~s<<~;~~;~~~,.,>'--:- /<./ ---~.. c..,=~~=-=~41~n~~.::J. ::y<=:.".~-:f~".;5~~~.~ \. ... ;r -;.:: ~.'" . \ NewVille ~ 7. I '---.... ;" . fm \, v >c. -- '--__\" \" - --::::;.=-..;;.-~"-'. ...~ ~>f:'~v 80 N Dickinson School Rd'.I ^~oWman~ale..{ .~~-- i /'::::>;::..-.--- /..--r--" ~., ',.. .....--- :,' ,.......,......., .)....:lo\ . Yocumtown ,,-:.;/~~ ....--r/ 2513 Walnut Bo~tom Rd h i~.~jIih9-s~.rings . ._.i..-G~antham--' \ .):~\:.' "':2;.' ,/' "'" '... Newburg- / '):(. ,/ .-,r .' . 'Mount' PJeasant Lewisberry-' "'~" / t...,...........:.-. , ',,' ../ .........../, .~ I -,. ,...~;-. j /,....;..'.." "\ / ,?? X. p.' ~. . . \ .Mount Holly Springs .,./ .\./ ;' '-~-- " .'<---.'.-- \ / /" _~.. 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(J' j/', /.... .,.,/ I. g \ \. : //i r= "'-, (' . ,------, \ ; _-,;------;;---....,--~ _' ;,east Berlin . _...__;"" __.' i: :~~.' .-(l./" " : . ,- / EfrRr9. ep'O.J:t.. ~lgt.ervrJ/le . p'. ';".'".---"""-. t!k'-.-.'- ". -ThotnaS~II.le.. ..' "";, ,....,~~ ~etteville ~ .--'."/ ../ ArendtSVil~~----'---~.\::""''-... j..j /\ / :~r ~~;"~~'--m~:;~7"'-"\'; d _ ~ ..( / , /-/ \ ... c.Q~" .. ~\ Browns.;jrr;;--Mou-~t!Jgl~~",--__. Hilltown \...... ,_/ \ ~.. 0-.1-"" ,/ . \ / \ '+", " 394 .-// \ .;~bbottstown ./ L; .Ca~,~town \ l J~ \. ..-Y;~--:;; Ii,. Spring Grove ..... ). . /;/ '.~...cKnightstowr /II "_'_.._' ~.~w:?xfordl ''''\ Hi h · /' ~ (I i ..' ....,,~~, \ '/ II ..,.,~,,--,-,-~..-. \ \ ' .& Rdlck -~e~ges Mills '; t'~':~"J~ · sth Moun",;n · ONtanna 'b~=!1;~\t:':' \./\., /' port~i. S;deling .\ \ . .~~.-. --r., 'i f" .' TN Scale 1 : 400,000 MN (11,O'W) T ~. ,;~o ~ '-1 ~ 1" = 6.31 mi Data Zoom 9-0 PillO~.... . /- -----./-- ,/ ADDENDUM D Appraiser Qualifications Patrick F. Noone, MAl - Professional Qualifications Experience Patrick F. Noone has been engaged in the real estate valuation and consulting profession since 1991. He is president of Noone and Associates, Inc., Mechanicsburg, P A., a company specializing in commercial red estate valuation and analysis. Appraisal assignments have included those required for financing, tax assessment appeals, asset management, acquisitions, litigation support, bankruptcies, bank work-outs, estate planning and eminent domain proceedings. Mr. Noone has served as an expert witness before the Court of Common Pleas in Cumberland and Dauphin Counties and the Assessment Appeal Boards in Cumberland, Dauphin, Lebanon and Bucks Counties. From 1993-2000, Mr. Noone was employed as the appraisal services manager for RSR Appraisers and Analysts, Camp Hill, P A. In this capacity, he managed a staff of six appraisers and was responsible for the preparation of appraisals for most types of real estate including retail, office, warehouse, industrial, and hotels, as well as many special purpose properties such as congregate care facilities, hospitals, residential subdivisions, mobile home parks, and mini-storage warehouses. From 1991 to 1993, Mr. Noone was employed by Republic Real Estate Appraisal Company, Vienna, VA. In this capacity, Mr. Noone prepared real estate appraisal reports on commercial and industrial properties throughout Northern Virginia, the District of Columbia and Maryland. From 1986 to 1991, Mr. Noone worked in real estate development. From 1988 to 1991, he was vice president of real estate development for Storage USA, Columbia, MD. From 1986 to 1988, he was a senior development coordinator for Public Storage, Inc., Alexandria, VA. In both positions, he was responsible for site acquisition and development of warehouse facilities throughout the southeast. Education University of Virginia, MS Pennsylvania State University, BS Urban Planning Landscape Architecture 1983 1978 Professional Affiliations Appraisal Institute, Central P A Chapter Appraisal Institute, Central P A Chapter Appraisal Institute International Right Of Way Association Pennsylvania Builder's Association President 2003 Education Chairman 1997-2002 MAl Designated Member 1998 Certifications Certified General Real Estate Appraiser Certification Number GA-001272-L Certified Landscape Architect Pennsylvania 1994 New York Maryland 1984 1981 Patrick F. Noone. MAl - Professional Qualifications (cont.) Education (Real Estate Appraising) Completed all required courses for the MAl designation including: Appraisal Principles (110) Appraisal Institute Appraisal Procedures (120) Appraisal Institute Basic Income Capitalization (310) Appraisal Institute Standards of Professional Practice Part A (410) Appraisal Institute Standards of Professional Practice Part B (420) Appraisal Institute Advanced Income Capitalization (510) Appraisal Institute Report Writing and Valuation Analysis (540) Appraisal Institute Advanced Applications (550) Appraisal Institute Appraisal Continuing Education Seminars Partial Interest Valuation - Divided Appraisal of Non.Conforming Uses Appraisal of Local Retail Properties Dynamics of Office Building Valuation Litigation Skills for the Appraiser Analyzing Operating Expenses Valuation of Leased Fee Interest Appraisers Complete Review Subdivision Analysis Property TYlJes Appraised Assembly/Meeting Place Health Care Industrial Land Partial List of Clients Bank of Lancaster County Commerce Bank Hershey Trust Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute 2000 2000 1999 1998 1998 1998 1997 1996 1994 Lodging & Hospitality Multi-Family Office Retail-Commercial Senior Housing Shopping Center Special Purpose Sports & Entertainment Legg Mason M&T Bank PNC Bank Prudential Mortgage Capital Wachovia Waypoint Bank Dauphin Co. Assessors Office PA Housing Finance Agency Harrisburg Parking Authority P A Dept. of Transportation P A Attorney General's Office Red. Rose Transit Authority Arnold Logistics Buchanan Ingersoll CVS Corporation Diakon Lutheran Services United States Postal Service U.S. Department of Housing & Urban Development Harrisburg Area Com. College United Church of Christ Homes Holy Spirit Hospital United Water Leader Nursing Homes Waste Management Motora la