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Home My WebLink About10-29-08 (3) 1505607120 --~ REV-1500 EX (06-05) OFFICIAL USE ONLY PA Department of Revetllue County Code Year File Number Bureau of Individual Taxes INHERITANCE TAX RETURN Po Box.2aoso~ 21 0 8 012 5 Harrisburg, PA 77128-0601 RESIDENT DECEDENT ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death Date of Birth 121 22 7089 01 29 2008 05 23 1930 Decedent's Last Name Suffix Decedent's First Name MI KANGANIS THOMAS G (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name MI Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OVALS BELOW ^ 3, Remainder Retum (date of death prior to 12-13-82) ^ 5. Federal Estate Tax Retum Required 0 8. Total Number of Safe Deposit Boxes ^ 9. Liti ation Proceeds Received 1 p. Spousal Poverty Credit ((date of death 11. Election to tax under Sec. 9113(A) g ^ between 12-31-91 and f-1-95) (Attach SCh. O) CORRESPONDENT -THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: Name Daytime Telephone Number DAVID W DELUGE 717 761 4540 X^ 1. Original Retum ^ 2. Supplemental Return ^ 4. Limited Estate qa, Future Interest Compromise (data of death after 12-12-62) O B Decedent Died Testate (Attach Copy of Will) ^ ~ Decedent Maintained a Living Trust (Attach Copy of Trust) -, i LEMOYNE PA 17043 w Firm Name (If Applicable) JOHNSON DUFFIE First line of address 301 MARKET STREET Second line of address P.O BOX 109 City or Post Office State ZIP Code Correspondent's a-mail address: Under penal ' rjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, d complete. Declaration of preparer other than the personal representative Is based on all information of which prepagr has any knowledge. SIGNATU ERSO ONSIBLE FOR FILING RETURN u c .L~... George T Kanganis ~ o ja- y PA 17050 VID W DELUGE 301 Market Street, Lemoyne, PA 17043 1505607120 Side 1 DATE 150560712D J ~~ ~~ i' ~~ a ~. ~ ~'~"~ 1 _J 15D5607220 REV-1500 EX Decedent's Social Security Number oa~aenr5nema: Thomas G Kanganis 121 22 7089 RECAPITULATION 1. Real Estate (Schedule A) ....................................................................................... ... 1. 1, 6 6 4, 0 0 0. 0 0 2. Stocks and Bonds (Schedule B) ............................................................................. .. 2. 5 2 6, 9 3 2. 0 0 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C).......... 3. 4. Mortgages & Notes Receivable (Schedule D) ......................................................... . 4. 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) ................ 5. 3 1 , 6 7 1 7 1 6. Jointly Owned Property (Schedule F) [] Separate Billing Requested ............. 6. 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) ~ Separate Billing Requested ............. 7, 8. Total Gross Assets (total Lines 1-7) ...................................................................... . 8. 2 , 2 2 2 , 6 0 3.71 9. Funeral Expenses & Administrative Costs (Schedule H) ......................................... 9. 4 7 , 8 2 9 . 0 5 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) ................................ 10. 1 9 1 , 1 6 7 . 1 0 11. Total Deductions (total Lines 9 & 10) .................................................................... ..11 • 2 3 8 , 9 9 6.15 12. Net Value of Estate (Line 8 minus Line 11) ............................................................ .12. 1 , 9 i3 3 , 6 0 7 . 5 6 13. Charitable and Governmental Bequests/Sec 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. 1 , 9 8 3 , 6 0 7 . 5 6 TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) x .o0 0. 0 0 15. 0. 0 0 16. Amount of Line 14 taxable at linealratex .045 1, 983, 607.56 16. 89, 262.34 17. Amount of Line 14 taxable at sibling rate X .12 0. 0 0 17• 0. 0 0 18. Amount of Line 14 taxable at collateral rate X .15 0. 0 0 78• 0. 0 0 19. Tax Due ................................................................................................................... 19. 8 9, 2 6 2 3 4 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. D Side 2 1505607220 1505607220 J REV-1500 EX Page 3 Decedent's Complete Address: File Number 21-08-0125 DECEDENT'S NAME Thomas G Kanganis STREET ADDRESS 417 Poplar Church Road CITY STATE ZIP Camp Hill PA 17011 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount 3. InterestfPenalty if applicable p. Interest E. Penalty 75,000.00 3,947.37 Total Credits (A + B + C) (1) 89,262.34 Total Interest/Penalty (D + E) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 2 Line 20 to request a refund 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. q, Enter the interest on the tax due. B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (2) 78,947.37 (3) (4) (5) 10,314.97 (5A) (56> 10 , 314.9 7 Make Check Payable to: REGISTER OF WILLS, AGENT s. "~ 3 = T 1 . ra~~ _ '3 s «. Y ym ;~~r,~ .K r~~ r °S ~' ~ ``_-" r ~`.» t 's-~'~~' ~ ~z}.~,c lY"r ~~. I 'sj»~..: 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 :.................................................................................. x^ b. retain the right to designate who shall use the property transferred or its income :.................................... x^ c. retain a reversionary interest; or ...............................................................................................................~ x d. receive the promise for life of either payments, benefits or care? .............................................................~ ^x 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? .....................................................................................................................~ ^x 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?......... ~ ~x 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? ...................................................................................................................~ x^ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. ,.Tw...'._.~ s pis t _ ~~..~r~T3r 3'-~~~~~~ ' . ....ia~`:Z~ .~' ~~~~..:».~ ~,r, .'~1~, rf_tt x ~~i'~.~~~~~Mu _~':L~= 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. §9116 (a) (1.1) (i)]. 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 (0) percent [72 P.S. §9116 (a) (1.1) (ii)]. The statute does not exemota transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still 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 (0) 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 decedent's lineal 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 )]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is twelve (12) percent [72 P.S. §9116 (a) (1.3)]. A sibling 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+ (6-98) SCHEDULE A REAL ESTATE COMMONWEALTH OF PENNSYLVANIA INHERITANCE TA% RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Kanganis, Thomas G 21-08-0125 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 wilting buyer and a wilting seller, nedher being compelled to buy or sell, both having reasonable knowledge of the relevant facts. Real property which is jointly-owned with right of survivorship must be disclosed on schedule F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 Real Estate located at 417 Poplar Church Road, Camp Hill, PA -Deed Book 00201 214.000.00 Page 00651. Property sold on June 26, 2008. A copy of the Settlement Sheet is attached and Appraisal from Walters Appraisal Services, Inc. 2 Real Estate located at 4947 - 4955 Carlisle Pike, Hampden Township, Cumberland 1,450,000.00 County, Pennsylvania -Investment Property. Deed Book 131, Page 559. Appraised by Walters Appraisal Services, lnc. Appraisal is attached to this Return. TOTAL (Also enter on Line 7, Recapitulation) ~ 1,664.000.00 (If more space is needed, additional pages of the same size] Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule A (Rev. 6-98) Rev-1503 EX+ (6-98) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE B STOCKS & BONDS ESTATE OF (FILE NUMBER Kanganis, Thomas G 21-08-0125 All property jointly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER CUSIP NUMBER DESCRIPTION UNIT VALUE VALUE AT DATE OF DEATH 1 16,400 shares of Carlisle Companies -Valued using 32.13000 526,932.00 EstateVal Valuations. Copy is attached of this Return TOTAL (Also enter on Line 2, Recapitulation) 526,932.00 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule B (Rev. 6-98) Rev-1508 EX+ (6-98) SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Kanganis, Thomas G 21-08-0125 Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned with the right of survivorship must be disclosed on schedule F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 2007 Stimlus Check 600.00 2 Distribution to Estate from Estate of Clara K. Kanganis 2,405.78 3 2007 Refund from PA Department of Revenue for Overpayment 5,802.00 4 Cash 752.59 5 Citi Bank Smith Barney -Money Market Fund 4,795.41 6 Commerce Bank Checking Account No. 537909905 10,912.85 7 Patriot News 37.15 8 Refund Received from Camp Hill Emergency Phys. 31.97 9 Refund Received from Direct TV 178.20 10 Refund Received from Patriot News Company 162.00 11 Refund Received from Pharmacy 33.34 12 Reimbursement of Taxes -County Taxes $476.79; School Taxes $25.53; Sewer 507.29 Charges $3.08 and Trash Charge $1.89 13 Sovereign Bank Premier Checking Account 2331109389 983.08 14 Sovereign Bank Savings Account No. 0574119426 105.05 15 Personal Property -Valued and appraised by Churck Bricker, Auctioneer, AU094-L 4,365.00 TOTAL (Also enter on Line 5, Recapitulation) 31,671.71 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule E (Rev. 6-98) REV-1151 EX+ (12-98) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ESTATE OF FILE NUMBER Kanganis, Thomas G 21-08-0125 Debts of decedent must be reported on Schedule I. ITEM DESCRIPTION AMOUNT NUMBER A, FUNERAL EXPENSES: See continuation schedule(s) attached 14,344.91 B. 1. ADMINISTRATIVE COSTS: Personal Representative's Commissions George T Kanganis Social Security Number(s) / EIN Number of Personal Representative(s): Street Address 5275 Strathmore Drive city Mechanicsburg state PA zip 17050 Year(s) Commission paid 2, Attorney's Fees Johnson Duffle 25,000.00 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 1,068.00 5. Accountant's Fees 2,312.80 6. Tax Return Preparer's Fees 7. Other Administrative Costs 5,103.34 See continuation schedule(s) attached TOTAL (Also enter on line 9, Recapitulation) 47,829.05 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) SCHEDULE H FUNERAL EXPENSES AND ADMINISTRATIVE COSTS continued ESTATE OF FILE NUMBER Kanganis, Thomas G 21-08-0125 ITEM DESCRIPTION AMOUNT NUMBER Funeral Expenses 1 Church Donation 310.00 2 Gingrich Memorials -Headstone Engraving 125.00 3 Neil Funeral Home 8,099.32 4 Red Lobster -Funeral Reception 367.99 5 Royers Flowers 1.123.60 6 Westminster Cemetery 4,319.00 H-A subtotal 14,344.91 Other Administrative Costs 7 Chuck Bricker, Auctioneer -Fees for personal property appraisal 180.00 8 Commerce Bank -Estate Checks 24.50 9 Cumberland County Register of Wills Office -Petition to Amend Letters -Filing Fee 15.00 10 Cumberland County Register of Wills Office -Renunciation Filing Fee 5.00 11 Cumberland County Register of Wills Office -Filing Fees for Inheritance Tax Return 30.00 and Inventory 12 Cumberland County Register of Wills Office -Additional Probate Fees 250.00 13 Cumberland Law Journal -Notice of Estate Administration 75.00 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) SCHEDULE H FUNERAL EXPENSES AND ADMINISTRATIVE COSTS continued ESTATE OF FILE NUMBER Kanganis, Thomas G 21-08-0125 ITEM NUMBER DESCRIPTION AMOUNT 14 Home Depot -Purchase of Sinks to Ready Resdience for Sale 111.81 15 Reimbursement to Charles Kanganis -Ready House for Sale 550.00 16 Reserves: Out of Pocket Expenses 500.00 17 The Patriot News Co. -Notice of Estate Administration 162.03 18 Thomas Kanganis -Moving Items out of House 200.00 19 Walters Appraisal Services Inc. -Appraisal of Decedent's Rental Property. A copy is 3,000.00 attached to this Return H-B7 Subtotal 5,103.34 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) Rev-1572 EX+ (6-98) SCHEDULE 1 DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Kanganis, Thomas G 21-08-0125 Include unreimbursed medical expenses. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 Aqua Specialists 720.02 2 Bank of Mercier 12.99 3 Burrick 8r. Azizkhan 27.46 4 Camp Hill Emergency Phys. 63.94 5 Camp Hill Post Office 42.00 6 Center for Kidney Disease 17.20 7 Chuck Bricker, Auctioneer -Additional Appraisal of Personal Property 125.00 8 Comcast Cable 596.52 9 Commerce Bank 179.74 10 Commerce Bank -Bank Fee 2.33 11 Commerce Bank -Check Return Fee 10.00 12 Commerce Bank -Bank Fee 5.00 13 Commerce Bank -Safety Deposit Box 50.00 14 Commerce Bank -Home Equity Loan 8,337.85 15 Commerce Bank -Mortgage Loan 5,777.12 16 Direct TV 3.30 17 Direct TV 361.62 Totat of Continuation Schedules See attached pages TOTAL (Also enter on Line 10, Recapitulation) 191,167.10 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule I (Rev. 6-98) Rev-1512 EX+ (6.88) SCHEDULE 1 DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN continued RESIDENT DECEDENT ESTATE OF FILE NUMBER Kanganis, Thomas G 21-08-0125 ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 18 Erie Insurance Ultra Flex Package Policy 2,715.00 19 Erie Insurance Ultra Flex Package Policy 327.00 20 Erie Insurance Ultra Flex Package Policy 664.00 21 Erie Insurance Ultra Flex Package Policy 234.00 22 Erie Insurance Ultra Flex Package Policy 333.00 23 Erie Insurance Ultra Flex Package Policy 333.00 24 Erlich 277.72 25 Expenses for moving of Decedent's Piano 304.80 26 Foot and Ankle Center 37.84 27 George Kanganis -Reimbursement for Debts Paid 1,000.00 28 Giant Food Stores 50.00 29 Griswald Special Care 1,426.25 30 Hampden Township 147.41 31 Holy Spirit Hospital 1,024.00 32 Kastanas Heating ~ Air Conditioning ~ Residence 1,332.15 33 Linda Reese 135.00 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule I (Rev. 6-98) Rev7512 EX+ (6-98) SCHEDULE 1 DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS coMMONYVEAITH OF PENNSYLVANIA continued INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Kanganis, Thomas G 21-08-0125 ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 34 Lowe's Home Improvement Store -Expenses by Charles Kanganis to Ready House 43.78 for sale 35 Marie Huber -Real Estate Taxes -Home 3,006.40 36 Marie Huber -Building Taxes 2,579.30 37 MCINerizon 482.00 38 Moffet 11.34 39 Musclaus 30.00 40 Nissan -Automobile Lease Payment 1,246.80 41 PA American Water 477.73 42 Pa Department of Revenue -Payment of Estimated Tax 4.000.00 43 Pa Department of Revenue 148.00 44 Pa Department of Revenue 426.00 45 PA Department of Treasury -Fee for Unclaimed Property 39.00 46 PA Landscape Group -House 130.00 47 Patel Associates 23.31 48 Pennsylvania Power 8~ Light 1,465.83 49 Pinnacle Health Care 992.00 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule I (Rev. 6-98) Rev-1572 EX+ (6-88) SCHEDULE 1 DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN continued RESIDENT DECEDENT ESTATE OF FILE NUMBER Kanganis, Thomas G 21-08-0125 ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 50 Quantum Imaging 44.79 51 Reimbursement to Charles Kanganis 1,000.00 52 Repairs to Residence 450.00 53 Repay Loan to George Kanganis 6,600.00 54 Settlement Charges to Seller at Time of Sale 2,274.00 55 Sovereign Bank Account 4527159968 -1st Mortgage on Home 117,665.32 56 Sovereign Bank Loan No. 6817076714 -Poplar Churc Road -Pool Loan 4,671.85 57 Storage Unit Rental -Expense by Charles Kanganis for storage unit for estate 33.92 personal property 58 Sue Keener -Nursing Aide to Mr. Kanganis 227.13 59 UPS -- Shipping Charges for estate documents sent to California 114.00 60 US Treasury -Payment of Estimated Tax with Extension of File 2007 Return 15,000.00 61 USP Store ~ Moving Boxes 115.77 62 William O'Donnell -Residence -Taxes 920.77 63 Wormleysburg Boro -Sewer Invoice 130.80 64 Zimmerman Plumbing and Heating -Residence 144.00 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule I (Rev. 6-98) REV-1513 EX+ (8-00) SCHEDULE J COM RNANIA R T H R AN T BENEFICIARIES E U CE AX N E RESIDENT DECEDENT ESTATE OF FILE NUMBER Kanganis, Thomas G 21-08-01 25 NAME AND ADDRESS OF RELATIONSHIP TO DECEDENT SHARE OF ESTATE AMOUNT OF ESTATE NUMBER PERSON(S) RECEIVING PROPERTY Do Not List Trusts s (Words) ($$$) I. TAXABLE DISTRIBUTIONS [include outright spousal and transfers distributions , under Sec. 9116(a)(1.2)] Trust flblo George Thomas Kanganis Grandson 250,000.00 George Kanganis, Trustee 5275 Strathmore Drive Mechanicsburg, PA 17050 Trust f/b/o Charles Thomas Kanganis Grandson 250,000.00 George Kanganis, Trustee 5275 Strathmore Drive Mechanicsburg, PA 17050 Charles Thomas Kanganis Son 112 of Real 832,000.00 374 Camino de las Colinas Estate Redondo Beach, CA 90277 George Thomas Kanganis Son 112 of Real 832,000.00 5275 Strathmore Drive Estate Mechanicsburg, PA 17050 Total 2,164,000.00 Enter dollar amounts for distributions shown above on lines 1 5 through 18, as appropr iate, on Rev 1500 cove r 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 II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEE~ U.UU Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule J (Rev. 6-98) ESTATE OF THOMAS G. KANGANIS SCHEDULE OF EXHIBITS EXHIBIT A Last Will and Testament signed and dated September 12, 2000. EXHIBIT B Appraisal of Real Estate located at 417 Poplar Church Road, Camp Hill, PA EXHIBIT C HUD-1 Settlement Sheet for sale of property located at 417 Poplar Church Road, Cano Hill, Pennsylvania. EXHIBIT D Appraisal of Investment Property located at 4947-4955 Carlisle Pike, Hampden Township, Cumberland County, Pennsylvania. EXHIBIT E Estate Val valuation of Carlisle Companies Stock EXHIBIT F Citibank Smith Barney Date of Death Value of Money Market Fund EXHIBIT G Commerce Bank Date of Death Letter EXHIBIT H Sovereign Bank Date of Death Letter EXHIBIT I Personal Property Valuation by Chuck E. Bricker 348742 A TRUE COPY FROM RECORD In Testimony wherof, I her unto set my hand anpd the se I of said Court at/~~'/ sie, A/ of tti® Orphan Court ~~~~ tii ~~td ~.e~#~~tr~e~t~t ~~ ~~ ~ . OF ,' . :.~ THOMAS G. KANGANIS ..,: .:'-- I, FHOMAS G. iKANGANIS, of the Borough of Wormleysburg, Cumberl~rr~i Cour,~j{, Pennsylvania, do make, publish and declare this to be my Last Will and Testament, herby revoking and making void any and ail former Wilts made by me. ARTICLE I I direct my Executrix to pay all the expenses of my last illness, of my funeral and burial and of the administration of my estate as soon as practical after my decease. ARTICLE Il I direct that my Executrix pay all inheritance, transfer, estate and similar taxes (including interest and penalties) assessed or payable by reason of my death on any property or interest in property which is included in my Estate for the purpose of computing taxes. My Executrix shall not require any beneficiary under this Will to reimburse my estate for taxes paid on property passing under the terms of this Wili. ARTICLE III I bequeath my automobiles, household and personal effects and other tangible property of alike nature (not including cash and securities) together with any existing insurance thereon, to my wife, CLARA KOLLAS KANGANIS, provided she shall survive me by thirty (30) days. Should my wife, CLARA KOLLAS KANGANIS, predecease me or die on or before the thirtieth (30th) day following my death, 1 bequeath such items of tangible personalty and the insurance thereon to my children, GEORGE THOMAS KANGANIS and CHARLES THOMAS KANGANIS, to be divided ,. between them in as nearly equal shares as practical, as they shall agree. ARTICLE tV I give, devise and bequeath all the rest, residue and remainder of my estate of every nature and wherever situate to my wife, CLARA KOLLAS KANGANIS, provided she shall survive me by thirty (30) days. ARTICLE V Should my wife, CLARA KOLLAS KANGANIS, predecease me or die on or before the thirtieth (30th) day following my death, I give, devise and bequeath unto my sons, GEORGE THOMAS KANGANIS and CHARLES THOMAS KANGANIS, in equal shares, my real estate located at 4~7 Poplar Church Road, Borough of Wormleysburg, Cumberland County, Pennsylvania and the Sporting Hill Shopping Center at 4947-4955-A Carlisle Pike, Mechanicsburg, Hampden Township, Cumberland County, Pennsylvania. ARTICLE VI Should my wife, CLARA KOLLAS KANGANIS predecease me or die on or before the thirtieth (30'h) day following my death, 1 give, devise and bequeath all the rest, residue and remainder of my Estate of every nature and wherever situate to my grandchildren, THOMAS GEORGE KANGANIS and DEAN GEORGE KANGANIS, in equal shares, to be held in separate Trusts, according to the terms for said Trust set forth in Article VIII of this my Last Will and Testament. ARTICLE Vtl I nominate and appoint my wife, CLARA KOLLAS KANGANIS, as Executrix of this my last Will and Testament, and require that said Executrix serve without bond. In the event that the above named Executrix shall, for any reason, fail to qualify, or having qualified, fail to complete the administration of my estate, I nominate and appoint GEORGE THOMAS KANGANIS and CHARLES THOMAS KANGANIS as Co-Executors of this my Last Will and Testament, and require that said Co-Executors serve without bond. ARTICLE VIII Should any person hereunder entitled to receive a share of my estate not have attained the age of thirty (30) years at the time of distribution to him, I devise and bequeath said share to GEORGE THOMAS KANGANIS and CHARLES THOMAS KANGANIS, IN SEPARATE TRUST, for the benefit of my said grandchild. The purpose of each Trust is to provide for the beneficiaries post-high school education, (including trade school and college education, both graduate and undergraduate) and for any medical expenses of said beneficiary not covered by health insurance. To meet this purpose, I empower the Co-Trustees to distribute, or not to distribute, all or part of the income and to invade all or part of the principle as the Co-Trustees in their sole and absolute discretion may deem to be necessary or appropriate for such beneficiaries post-high school education and uninsured medical expenses. The Co-Trustees shall have the power to manage, invest, and reinvest the assets of the Trust Estate, to collect the income therefrom and to apply so much or all of the net income and principal thereof as set forth above. Any net income not so applied shall be added to the corpus of the Trust and held, administered, and disposed of as a part thereof. Any principal or income not so used or applied shall be distributed to the beneficiary absolutely when he attains the age of thirty (30) years. If the beneficiary dies before attaining the age of thirty (30) years, and he has any issue then living, this Trust shall continue for the benefit of any such issue according to the terms set forth in this Trust. If the beneficiary dies before attaining the age of thirty (30) years and has no living issue, the Trust shall terminate and the remaining principal and any accumulated income shall be distributed to his sibling or siblings in equal shares. If the surviving sibling has not attained the age of thirty (30) years at the time of said termination arid distribution, the remaining principal and any accumulated income shall be added by the Co-Trustees to the surviving siblings Trust created under this Will. ARTICLE IX I direct that the interest of the beneficiaries named hereunder shall not be subject to anticipation, or to voluntary or involuntary alienation. ARTICLE X I direct that the trustees named in this Will, shall nat be required to give bond for the faithful performance of their duties in any jurisdiction. However, if any successor trustee(s) is appointed by a Court of competent jurisdiction, the said trustee(s) shall be required to give bond for the faithful performance of their duties. ARTICLE Xl If, subsequent to the execution of this, my Last Will and Testament, there shall be any additional grandchild or grandchildren born to or legally adopted by my sons, GEORGE THOMAS KANGANIS and CHARLES THOMAS KANGANIS, then and in such event, such grandchild or grandchildren shatl share in the benefits of my Estate equally and to the same extent as my grandchildren herein named above specifically the provisions of Article VI and VIII of this Will shall be deemed modified to the extent necessary to effectuate my such intention. ~ f IN WITNESS WHEREOF, I hereunto set my hand and seal this ~ day of ~r , 2000 (SEAL) THOMAS G. KAN NIS Signed, sealed, published and declared by the above-named Testator as and for his Last Will and Testament in the presence of us, who, at his request, in his presence and in the presence of each other have hereunto subscribed our names as witnesses. ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND ss: I, THOMAS G. IG4NGANIS, Testator, whose name is signed to the foregoing instrument, having been duly qualified according to law, do hereby acknowledge that t signed and executed the instrument as my Last Will and Testament; that I signed it willingly; and that I signed it as my free and voluntary act for the purposes therein expressed. dt,,~.~.,.¢, ~, l ' THOMAS G. KAN NIS Swom or affirmed to and acknowledged before me, by THOMAS G. KANGANIS, the Testator, this s ~ day of ..~,~„~v~-~.,,~. , 2000. f Notary Pudic NOTARIAL SEAL DIANNE LENIG, Notary Public Lemoyne Borough Cumberland Co. i My Commission Expires Dec. 21, 2001 AFFIDAVIT COMMONWEALTH OF PENNSYLVANIA ss: COUNTY OF CUMBERLAND We, ~, ~.1. and ~sv,.~~i.~.- 1t' . ~~ ,.. the witnesses whose names are signed to foregoing instrument, being duly qualified cording to law, do depose and say that we were present and saw the Testator sign and execute the foregoing instrument as his Last Will and Testament; that he signed willingly and that he executed it as his free and voluntary act for the purposes therein expressed; that each of us in the hearing and sight of the Testator signed the Will as witnesses; and that to the best of our knowledge, the Testator was at that time at least 18 years of age, of sound mind and under no constraint or undue influence. Sworn to or affirmed to and subscribed to before me by ' ~ ~ ~ ~,~v-..~.~~-.. and ~~ r-..~s-- ~~ . ~c~ ,witnesses, this ~ a ~~day of .~i:~a.-~, 2000. Notary Public :138399 NOTP,RIAL SEAL_~ DIANNE LENIG, Notary Public Lemoyne BorauQl~ Cumberland Co. MY Commission Expires Dec. 21, 2001 APPRAISAL OF REAL PROPERTY LOCATED AT: 417 Poplar Churd~ Road Deed book 00201 Page 00651 Camp Hill, PA 17011 FOR: The Law Offices of Johnson, Dune, Stewart & W eidner or their assigns 301 Market Street Lemoyne, PA 17043-0109 AS OF: 01/27/08 BY: M. Shane Rorke Certified General Appraiser fvrtn f N4 - WinTOTAL' appraisal soriware by a la nrode, inc. -1-800-ALAhIODE SUMMARY OF SALIENT FEATURES 5ubjecl Address 417 Poplar Church Road Legal Description Deed book 00201 Page 00651 City Camp HI8 County Cumberland State PA LpCode 17011 Census Tract 119 Map Reference 47-18-1302-148 Sale Price S WA Date of Sale N/A Cierd The Law Offices of Johnson, Duffle, Stewart 8 Weidner or their assigns Owner Karganis Stu (Square Feet) 1,806 Price per Square Pont S Lceation SuburbaNAvg Age 36 Yrs est Condition Average Total Rooms 8 Bedrooms 3 Baths 2 Appraiser M. Shane Rorke Date of Appraised VaMre 01 /27/08 Final Estimate of Yalue S 214,000 Form SSD - WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE C{iBi1t fl~ #: ~: _ Kanganis APP~~-FIIe #: Kanganis I Appraisal .i~~l ll~~Il, Institute® Summary Appraisal Report • Residential Appraisal Company: Wafters Appraisal Services, Inc. Form Address: 601 N. Front Street Harrisburg, PA 17101 * 7M `~ Rt~Orts A1_100,O2 Phone: (717) 234-0540 Fax: (717) 901-0541 Web: www.waftersappraisalservices.com Appraiser. M. Shane Rorke AI Membership: ^ SRA ^ MAI ^SRPA ^ Associate Member ^ None Co-Appraiser. AI Membership: ^ SRA ^ MAt ^SRPA ^ Associate Member ^ None Other Professional Affiliation: Other Professional Affiliation: E-mail: E-mail: Client; The Law Offices of Johnson, Duffle, Stewart & Weidner or their assigns Contact: David. W. DeLuce Address: 301 Market Street, Lemoyne, PA 17043-0109 Phone: Fax: E-mail: 1 / Address: 417 Poplar Church Road CI Camp Hill CoU Cumberland State: PA ZI 17011 Legal Description: Deed book 00201 Page 00651 Tax ParC21 #: 47-18-1302-i48 RE Taxes: $2803.00 est Tax Year: 2007/2008 "/' !' Owner of Record: Kanganis Description and analysis of sales within 3 years {minimum) prior to effective date of value: The subject property has not transferred wfthin the last 36 months. The comparable sales have not transferred within the last 12 months. Description and analysis of agreements of sale (contracts), listings, and options: There are no current agreements of sale, listings or options on the subject property. ' 1 ~ 1 ~ 1 1 1 Indication of Value by Sales Comparison Approach $ 214,000 Indication of Value by Cost Approach $ ~g,494 Indication of Value by Income Approach $ Final Reconciliation of the Methods and Approaches to Value: The Sales Comparison Approach to value genera-ly indicates the best value for the subject property. The Cost Approach supports the value. Tthe Income Approach was considered but is not appropriate for this appraisal. Opinion of Value as of: 01/27/08 ~ 214,000 Sub%ect fa any hypothetical conditions or extraordinary assumptions stated in the Assignment Parameters section. ' ~YfTCF• Thc IImniml IncIM Re ,v ~hlieiue flrc F...... s... ....e i... ._.....~..__ ..i-~ .~- -----`--- ~-_-- ---- _. .~ _ _ _ •--••-- ..._ .+~..--- ..........«. ~.. ,.~+ ~• w„~ ,N ux u~ ayrnmoaa mie~e uio ~ ~aa aeCms use or me Trlml appropna[e. uependlllg Ott lrle assignmenf, the appraiser n=~~+nuny for~eedarta, analysisis or airy othother work product pro+ridedcby the in~vidual ~' the Appraisal InstlQrle gays no role m c 6ng the form and disclaims arty aPP~~(s)• Al ReportsTM AI-100.02 Summary Appraisal Report • Residential ®Appraisat Instlhrle 2005, AI Rights Reserved 03/01/2006 form AI1001- "WinTOTAL"appraisal software by a la mode, inc. -1-B00-ALAtIAODE 'fir ~ The Law Offices of Johnson, Duffle, Stewart & Weidner or their assn ~i1811t>~~J~` -~: Kanganis - $q~ '"~ ~ ,; 417 Poplar Church Road, Camp Hill, PA 17011 ~ r a~~l~~t~~9 ;" Kanganis •.-. Intended Users : Client named above. Intended Use: The intended use of this report is for estate planning. This report is not intended by the appraiser for any other use or by any other user. T e of Value: Market value Effective Date of Value: 01/27/08 Interest A raised: ®Fee Sim le ^ Leasehold ^ Other Hypothetical Conditions: (A hypothetical condition is that which is contrary to what exists, but is asserted by the appraiser for the purpose of analysis. Any hypothetical condition may affect the assignment results.) Extraordinary Assumptions: (An extraorrinary assumption is directly related to a specfic assignment and presumes uncertain information to be factual. ft found to be false this assumption could after the appraiser's opinions or conclusions. Arty extraordinary assumption may affect the assignment results.) Per owner, subject has heatpump as HVAC source. Exterior unit was Hated, however inside unit was not noted. Appraisal report assumes subject property has a heatpump. In accordance with Standard Rule 2-2(b) of the Unrform Standard of Professional Appraisal Practice (USPAP), this is a summary appraisal report. ~~ ~ ~• Definition: The scope of work is the type and extent of research and analysis in an assignment Scope of work includes: the extent to which the properly is identified; the extent to which tangible property is inspected; the type and extent of data research; and the type and extent of analysis applied to arrive at opinions or conclusions. the specific scope of work for this assignment is identified below and throughout this report. Inspection of Subject: Data Sources Used: Approaches to Value Developed: Appraiser: ^ MLS Cost Approach: ^ None ®Interior ®Exterior ®Public Records ^ Is necessary and developed in this analysis ® Date of Inspection 02/28/08 ^ Office Files ^ Is applicable but not necessary and omitted in this analysis ^ !s not applicable or necessary and omitted in this anal sis ® Owner y Co-Appraiser. ^ Plans & Specifications Sales Comparison Approach: ^ None ^ Interior ^ Exterior ^ Purchase Agreement ®Is necessary and developed in this analysis ~ Is applicable but Hat necessary and omitted in this analysis ^ Date of Inspection ®Other: Property Inspection ^ Is not applicable or necessary and omitted in this analysis Living Area Measured: Income Approach: ® Yes ^ No ^ Is necessary and developed in this analysis ^ Other. ®Is applicable but not necessary and omitted in this analysis ^ Is not applicable or necessary and omitted in this analysis Additional SCOpe Of Work Comments: Note: The Cost approach is included in this report. However for homes ten years or older the cost approach is generalty considered innappropriate. See supplemental addendum statement. The cost approach is provided to support the established value through the sales comparison approach. Significant Real Property Appraisal Assistance: ^ None ®Disclose Name(s) and contribtrtion: Judy Striewig. Provided assistance in inspection, analysis and value determination of subject property. t i~TMiE ~rfle Aoorarsal tn51lh11E Dllbii~le5 itds farm for IISB by aoOreiSers vfiarr. rtM Aooraisa flPPlnS IICP. fIr 1hP. fnrm arwnrriaAc Ilmnn,inn nn fhe ~eann,..s.a x.n e may need io provide addllional data, analysis and work protluct hirt called for in this"fiam. The Appraisal Insflhrta plays~no-role inrcompT~rig Ifre f'orm~'anC'disclaims eriy msponsidrity for the darts, analysis or any other work product provided by the individual appraiser(s). AI Reports° AI-100.02 Summary Appraisal Report • Residerrtial ®Appraisal Insfi4Ae 2005, AA Rights Reserved 03/01!2006 Form AI1001-'WinTOTAL" appraisal software by a is mode, inc. -1-800-ALAMOOE ,~ The Law Offices of Johnson, Duffle, Stewart ~ Weidner or their asstc Cilet~t:Fiie ~ c Ix$~t~,Jt;3pg(ty. ; ] 417 Poplar Church Road, Camp Hdl, PA 17011 - I'Att>lai>aisal Rle"~ ~ Kanoants .• ~- . Location D Urban Buift Up ^ Under 25% Growth ^ Rapid Supply & Demand ^ Shortage Value Trend Typical Marketing Time ^ Increasing ^ Under 3 Morrths ® Suburban ®25-75% ®Stable ®In Balance ®Stable ®3-6 Months ^ Rural ^ Over 75% ^ Slow ^ Over Supply ^ Decreasing ^ Over 6 Months Neighborhood Single Family Profile Neighborhood Land Use Neighborhood Name: Riverview Heights, Price Age Wormleysburg Borough 125 Low 10 1 Family 65% Commercial 5% PUD ^ Condo D HOA: $ N/A/ NIA 300 High 60 Condo 5% Vacant 10% Amenities: 200 Predominant 30-40 Multifamily % Other 10% Market area deSCflptlOn and CharaCteriStiCS: Market conditions appear average for this time of year. There are various loan programs avaiable through both conventional and governmental programs and rates ranging from 5°~ ARM programs to 7.0% find rate programs. Property values appear to be stable or showing moderate increases throughout the area. Dimensions: See Deed Area: .26 Acre View: Suburban/Partiaf River View/Avg Shape: Rectarx~ular Drainage: Average Utility: Average Site Similarity/Conformity To Neighborhood Zoning/Deed Restriction Size: View: Zoning: R Residential / 101 Covenants, Condition & Restrictions ^ Smaller than Typical D Favorable Residential) Family ^ Yes ®No ^ Unknown ® Typical ®Typical ®Legal ^ No zoning Documents Reviewed ^ Larger than Typical D Less than Favorable D Legal, non-conforming ®Yes ^ No ^ Ille al Ground Rent $ NIA/ UtillUes Off Site Improvements Electric ®Public ^ Other Street ®Public ^ Private Asphalt Gas ®Public ^ Other Ailey ^Public ^ Private None Water ®Public D Other Sidewalk ^Public ^ Private None Sewer ®Public ^ Other Street Lights ^Public ^ Private None Site deSCription and CharaCterIS11CS: There were rto noted apparent adverse or unfavorable easements or encroachments noted. See attached supplemental addendum for comments. ®Present Use D Proposed Use D Other Summary of highest and best use analysis: NO71CF The Appraisal 1ns~ihiDe publishes lids form fa use by appraisers where the appraise deems use of the fam appropriate. Depen6no on the assignment, the appraiser may need tD provide additlorral data, analysts and work product not called fa in tlris ions. The Appraisal Instlhrle plays no role in comp7eMng the form and disclaims arty responsibility for the data, analysis a arty otlrer work product provided by the individual appraisa(s-. AI Reports'" AI-100.02 Summary Appraisal Report • Residential ®Appraisal Institute 2005, Ap Rights Reserved 03/Ot/2001i Fotm AIt001- "WinTOTAL" appraisal software by a fa mode, inc. -1-800-ALAMODE ;,C{ieltt; . , = k, ' The Law Offices of Johnson, Duffle, Stewart & Weidner or then assic'~Cjilgnt Fi18 ~; ~-, b Kanganis ." • ;Sub '~' ~'('roi ~' ~ i~ ~G t~ e: 417 Poplar Churchi~oad; Camp Hill, PA 17011 ," pp~ge- (~ # :' Kansanis~ ..~ Desi n: Split-Level No. of Units:l No. of Stories: 2 Actual A e: 36 Yrs est Effective A e:15 Yn; Est ® Existing ^ Under Construction ^ Proposed ^ Attached ®Detached ^ Manufactured ^ Modular Other: ~6rte~cT4ifleiiien~s" ' Roofin : CompShng/Avg Sidin : Brick/Alum/Avg Windows: WoodNinyDblHrt4/Ava ®Patio ^ Deck ®Porch ®Pool Inground ®Fence Other. `-ln~erhoc Elei~erts ". ° Floorin : CametNinyU7'delAverage Wa11S: DrywalUAvg ®FP# 1 (Double sided) Kitchen: ®Refri erator ®Ran e ^ Oven ®FaNHood ^ Microwave ®Dishwasher Counterto s: Other: ,'~On = - ^ Crawl S ace ^ Slab ®Basement Block Other: ^ None ®Scuttle ^ Dro Stair ^ Stairwa ^ Finished ~~IfpC";1C8`1s G`;; HVAC: HeatPump Fuel: Electric Air Conditionin : Central Air ° t t y°~ " ~' - ®Dtfvewa 3+ ®Gara e 1 ^ Ca ort ^ Finished .. e .: ~~~~~ "" : The subject interior and exterior are in average condition with average appeal. ;:. Abtwe Grade Gross "Living Area 13LA Living Dining Kitchen Den Famly hm. Rec. Rm.' Bdrms ~ Baths Utility Other Area Sq. Ft. Level 1 1 1 1 Heated SunRoom 870 Level2 3 2 936 Finished area above rode contains: 3 Bedrooms 2 Baths 1 806 S . Ft. of GLA Summarize Above Grade ImproVements:Design and style are typical of a split-level home. Kitchen is in goodlupdated condition. 8eiow .Grade Area br Qti>ter Llv~rp _- ~ _ . , , A :Ariea ~ ; ~ ~ :' . Living DinMq Kitchen Den Pnrrtly am. Rec. Rm. Bdrms ~ Baths UtUity % Finished Area Sq. Ft Below Grade 1 .5 1 90 700 a rox Other Livin Area SummarjZe below grade and/or other living area Improvements: Subject property is a split-level home with a partially e~osed finished basement area and a below grade unfinished basement. Finished basement area includes a laundry/utility room, family room and .5 bath. Discuss physical depreciation and functional or external obsolescence: There was no noted functional or extemal obsolescense. Physical depreciation of typical of the subject effective age. Discuss style, quality, condition, size, and value of improvements including conformity to market area: Split-level homes are typical of the subject neighborhood. Subject property is typical of the condfion, s¢e and value to other homes in the market an:a. • 111071GE: The Appraisal, InstlWle publishes Cds tam for use by appraisers where the aoaaiser deems use of fie form aoornnriatr nnna„Ann ~, ~e ,~~~,.~.s.~ «.e ......~.:.._. __. _._ .r~.__. i rm. a rsa n ays na rn can sting the tam and disclaims arty responslbiAly fa Cte data, analysis a any other work product provided by the individual appraiser(s). AI Reports'" AI-100.02 Summary Appraisal Report • Residential ®Appraisal Instihrte 2005, All Rights Reserved 03/01/2006 Form Ai1001- "WinTOTAL" appraisal software by a to mode, inc. -1-800-ALAMODE F'I til~Bltt: ' The Law Offices of Johnson, Duffle, Stewart & Weidner or their asstc ~CIiB;1't Ejla ;~': ; Kanganis $j~j~ P_,_p6ity: ~ 417 Poplar Church Road, Camp Hill, PA 17011 - ;APpti8188T~1e `#. - Kanganis ,, .. .z... _, . .. _ _ z. r .. .. ® Sales Comparison Approach: A set of procedures in which a value indication is derived by comparinj~ the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale prices of the comparables based on the elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales are available. O Market Extraction Approach: A method of estimating land value in which the depreciated cost of the improvements on the improved property is estimated and deducted from the total sale price to arrive at an estimated sale price for the land; most effective when the improvements contribute little to the total sale price of the property. ^ Alternative Method: (Describe methodology and rationale} - - Site Yalual3on . - _ ITEM SUBJECT COMPARISON 1 COMPARISON 2 COMPARISON 3 Address 417 Poplar Church Road Camp Hill, PA 17_011 _ 00 Ohio Avenue Lemoyne, Pa 17043 Lot #4 Indiana Avenue Lemoyne, PA 17043 Lot 25 Westwood Drive Enola, PA 17025 ProXlllll t0 Sub'eCt Within 2 maes of subject Within 2 miles of subject Within 5 miles of subject Data SOUI'Ce/ Verification k^ ° ' « ~ MLS, Public records MLS, Public records MLS,Public records Sales Price _ $ $ 75,000 $ 89,000 $ 59,000 Price / Acre $ 1 $ 258,620.69 $ 139,062.50 „ $ 210,714.29 Sale Date 12/29/07 09/28/06 01/13/05 11/28!06 Location SuburtiaNAvg SuburbaNAbAvg -5,000 SuburbaNAbAvg -5,000 SuburbaNAvg Site Size .26 Acre 29 Acre .64 Acre -10,000 .28 Acxe Site View SuburbaNPartial f SuburbaNAvg SuburbaNAvg SuburbaNAvg Site Im rovements Home/Pool Vacant Land Vacant Land Vacant Land Net Ad'ustment + - $ -5,000 + - $ -15,000 + - $ Indicated Value Net Adj. 6.7 % Gross Ad'. 6.7 % $ 70,000 Net Adj. 16.9 % Gross Ad'. 16.9% $ 74,000 Net Adj. % Gross Ad'. % $ 59,000 Site Valuation COmmentS: Subject property is !opted in a mature developed neighborhood where there are not many vacant land salesltransactions. The site comparables respeesent the best available to subject. Though the desired timeframe for land sales is exceeded, comparable land sales represent the best available. Subject and comparable sites have public water and sewer. Site Valuation Reconciliation: Opinion of Site Value ~ 65,000 - nurn.~~ i~ nppr-aisai msuane wsnes uas ronn r~ use uy apprarsas vmere, ure ser weans use rn ure rune appropnaos. trepenu on me assrgnmenr, me appraiser may need 1o provide additional analysts and work product not caged form 1Ns am. The Appraisal instihde plays no role m comp ' g file fam and disclaims any responsesply for the data, analysis a arty other work product provided try the individual appraiser(s). AI RepoRs° AI-100.02 Summary Appraisal Report • Residential ®Appraisal Insghrte 2005, All Rights Reserved 03/Ot/2006 Form AI1001- "WinTOTAI" appraisal software by a is mode, inc. -1-800-ALAMODE ~~~~ ~ The Law Offices_of Johnson, Duffle, Stewart & Weidner or their assic ,Cllertt File ~ Kanganis ;jam PrpDe~Y: ` 417 Poplar Church Rvad, Camp Hal, PA 17011 ' Apprsl.ftil(e ~: '. ~ Kanganis ~ ~...~. ® Reproduction Cost is the estimated cost to construct, at current prices as of the effective appraisal date, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of woricmanshlp, and embodying all of the deficiencies, superadequacies, and obsolescence of the subject building. ^ Replacement Cost is the estimated cost to construct, at current prices as of the effective appraisal date, a building with utility equivalent to the building being appraised, using modem materials and current standards, design and layout. ~ a "~naiysis -- -- - - - - Estimated Cost New Above Grade Livin Area 1,806 S . Ft $ 92.00 =$ 166,152 Finished Below Grade Area 700 S . Ft @ $ 20.00 =$ 14,000 Unfinished Below Grade Area 644 S . Ft $ 10.00 =$ 6,440 Other Livin Area S . Ft @ $ _$ Car Stora a 240 S . Ft $ 10.00 =$ 2,400 Appliances l Inground Pool $ 25,000 $ $ Total Estimated Cost New $ 213,992 Less De reciation Ph sical 25.00 % _ $ 53,498 Functional % _ $ External % _ $ Total De reciation $ 53,498 De reciated Value of Im rovements $ 160,494 Contributo Value of Site Im rovements $ 3,000 0 inion of Site Value $ 65,000 Indicated Value $ 228,494 Cost Approach Comments (Data Sources, Depreciation Basis, Site Value, Etc.): See attached building sketch with dimensions and subject drawing. The Marshall and Swift Valuation Service was used in the determination of the Cost Approach to Value. Cost Approach Reconciliation: Indication of Value by Cost Approach ~ 2211.494 tweet: ine appraisal msw~ oasnes eas ram ror use ny apprmsers wnere the appprraairser a:ems use a the ram appropnate. uepenanq _on tyre assgnment, the apprNSer may treed t0 provide add6aal analysis and wok product not called fa in ttus 1rnn. The Appraisal Instlhrte plays no role m coin the fain artd disclaims arty responsibipty fa fie data, analysis or any other work product provided by the individual appraiser(s). AI Reports° AI-100.02 Summary Appraisal Report • Residential ®Appraisal InstiWte 2005, A@ Rights Reserved 03/01/2006 Form A11001- MfinTOTAL° appraisal software by a la mode, inc. -1-80Q-ALAMODE F' # Clit~' ' ' '` The Law Offices of Johnson, Duffle, Stewart ~ Weidner or their asstc ;Client f11B ~' ``' Kanganis 3$U~18Ct,PfDD81dY' ~ ~ 417 Poplar Church Road, Camp Htll, PA 17011 - Ir~~al ~f4 Y0 ~`: ~ Kanganis ~ ,...~. ,,, ' .:- , r } 'i: •~ r ` ._ .. _ ITEM SUBJECT RENTAL 1 RENTAL 2 RENTAL 3 Address 417 Poplar Church Road Camp Hill, PA 17011 Proxim' to Sub'ect Data Source/ Verification _ __ Lease Tenn Date of Lease Rent / $ _ $ $ '. $ Rent Concession Less Utilities Less - - - Ad usted Market Rent - $ ;` ! $ ' $ Location Sit lew Quali of Construction A e 38 Yrs est Condition Above Grade Bedrooms Bedrooms. 3 Bedrooms Bedrooms: tiedmoms Above Grade Baths rams <: 2 satts`~: 8attrs' ,' 'Batas Gross Livin Area 1,806 S .Ft. S .F S .F S .Ft. Below Grade Area 00 approx S .Ft. S .Ft S .Ft. S .Ft. Other Livin Area S .Ft S .Ft S .Ft. S .Ft Heatin Coolin Car Story e Net Ad'ustment ^+ ^- $ ^+ ^- $ ^+ ^- $ Indicated Market Rent . Net Adj. % Gross Ad'. % $ Net Adj. % Gross Ad•. % $ Net Adj. % Gross Ad'. % $ Rent comparable analysis and reconciliation of market rent of subject property: Opinion of Market Rent $ ... , P .,....Ai!alYsf ~ .- s :6ross ~3em Mute Liar. s ~:. .. ~, ,: ADDRESS GATE _ SALE PRICE _ GROSS RENT _ GRM CDMMENTS Comment and reconciliation of the gross rent multiplier (GRM): Opinion of Market Rent: X GRM = $ Indication of Value by Income Approach S • NOTiCE:. The Appraisal , InstlWte publishes this form for use lry appraisers where the appraises deems use of the form appropriate. Deoendina on the assianment_ the aooraiser „ y ~ rn v.,w aw~uui w, uou, auayaa ai~u ruin Wwu~i nui wmu iui ni uns iUm. nin ~pralsa msaw[e prays no rope m COmpleilrHJ IIte 10rrR an0 WSCIaIRIS any responsibinly for the data, analysis a any other work product Provided by the individual appraiser(s). AI Reports° AI-100.02 Summary Appraisal Report • Residential ®Appraisal Insfih~te 2005, AA Rights Reserved 03/01/2006 Form AIt001- "WinTOTAL' appraisal software by a la mode, inc. - f-800-AUIMDDE `~(;~g{i~ -; The Law Offices of Johnson, Duffle, Stewart 8< Weidner or their assic~ Cliettt file ~.' . Kanganis ,~'~~ P~ppfi~ ,y; >y, 417 Poplar Church Road;-Camp HMI, PA 17011 ippl~$aaI F~Ig"#~ ~_ Kanganis ITEM SUBJECT COMPARISON 1 COMPARISON 2 COMPARISON 3 Address 417 Poplar Church Road Gamp Hill, PA 17011 840 Yverdon Dave Camp Hill, PA 17011 735 Meadow Drive Camp Hilf, Pa 17011 3 Dogwood Court Camp Hill, PA 17011 Proxlnl' t0 Sub~eCt 0.16 miles NW 0.58 miles W 2.19 miles SW Data SOUI'Ce/ VelffiCation - ~ MLS,PubRec, AppraisersFiles Data Bank MLS,PubRec, AppraiserSFiles Data Bank _ MLS,PubRec, AppraisersFiles Data Bank Final List Price NIA $ 179,900 - $ 209,900 $ 199,900 Sale Price $ N/ _:', , $ 179,900 . $ 207,000 $ 199,900 Sale-To-List Price Ratio % ~ ._ , `'" 100.0 % ~ 98.6 % _ 100.0 % CI08fn Date N/A Settled 09/28!07 Settled02/20/08 Settled04/18/07 Da s On Market N/A DOM 83 DOM 32 Price/Gross Livin Area $ 109.83 $ 124.85 $ 112.18 DESCRIPTION DESCRIPTION + (-) $ Adjustrnerrt DESCRIPTION + I-) S ndiustmerrt DESCRIPTION + (-) s Adlustrrrerrt Financing Type None Conventional Conventional Conv. No Help COnC2SSIOnS N/A $7200RepairHelp -7,200 $7000Sellerhelp -7,000 DOM 3 Contract Date N!A 08/19/07 12/19/07 02!08/07 LOCatlon SuburbaNAvg SuburbaNAvg SuburbaNAvg SuburbaNAvg Site Size .26 Acxe .39 Acre .39 Acre .23 Acre Site Views/Appeal Sub/PartWat/Avg SuburbaNAvg SuburbaNAvg SuburbaNAvg Design and Appeal Split-Level Split-Level 1 Story Split-Level duality of Cl)nSfitCtion Brick/AlumlAvg Stone/Alum/Avg Brick/Alum/Avg Brick/Alum/Avg Age 36 Yrs est 46 Yrs est 51 Yrs Est 34 Yrs Est Condition verage Average Average Average Above Grade Bedrooms Bednoaats 3 seiiis 3 Bedrooms 3 8edroorr-ts 3 Above Grade Baths ~= 2 'Badts _:.~ ~:~ 2 Bamts. ': . 2 a3aths 2 Gross Living Area 1,806 Sq.Ft. 1,638 Sq.Ft. +3,300 1,658 Sq.FL +3,000 1,782 Sq.Ft. +500 Below Grade Area 700 approx Sq.Ft Family,.56ath Den,Play,Bath -1,000 Family +1,000 Below Grade Finish 100% / 40% 100% 140% 100°k / 50% 50% / 80% +2,000 Other Living Area FUnCtiOnal Utility verage Average Average Average Heating/Cooling HtPump/Central OHWBB/None +3,000 OFWAICentral GFWAICentral Car Storage 1 Car Garage 2 Car Garage -2,000 2 Car Garage -2,000 2 Car Garage -2,000 Amenities IngmdPool,Fence None +12,000 Shed +11,000 IngmdPool,Fence Fire IaCe 1 Fireplace 1 Freplace 1 Fireplace 1 Fireplace Net Ad'ustment total ~ + - $ 9,100 + - $ 4,000 + - $ 1,500 Ad'usted Sale Price `- Net Adj. 5.1 % Gross Ad'. 15.3% $ 189,000 Net Adj. Ls % Gross Ad'. 11.6% $ 211,000 Net Adj. 0.8 % Gross Ad'. 2.8% $ 201,400 Comments and reconciliation of the sales comparison approach: The sales were chosen after a thorough search for sales in the subject market area and are the best available for comparison to the subject. The sales with adjustments, establish a range of value for the subject. The subject is in average condition and supports a value in the mid portion of the range established from the sales. Comparable sales greater than the desired 1 mile distance was used to reflect comparable sales most similar to the subject. Comparable #3 was used to reflect sales price of a home with an inground pool. indication of Value by Sales Comparison Approach $ 214,000 "NOi1CE: The Appraisal Instate ppuubgshes Cris form for use by appraisers where the appraiser deems use of the form appropriate. Dependng on the assignment, ure appraiser may need to provide addlConal data, anaysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any resportsrtrltity for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports° AI-100.02 Summary Appraisal Report • Residential ®Appraisal InstitiAe 2005, All Rights Reserved 03/01/2006 Form AI1001-'WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE ADDITIONAL COMPARABLE SALES %CllBht'~~ ~ The Law Offices of Johnson, Duffle, Stewart 8~ Weidner or the'Ir assi~ 'Client file #. ~ " Kanganis '•'~ eL't. 417 Poplar Church Road, Camp Hill, PA 17011 ~ 3 `~ " A al fi1B~#~. •` : Kariganis ITEM SUBJECT COMPARISON 4 COMPARISON 5 COMPARISON 6 Address 417 Poplar Church Road Camp Hill, PA 17011 3624 Carriage House Drive Camp Hill, PA 17011 ProXlnl t0 Sub"ect 2.42 miles SW Data Source/ Verification :~ ..': ~ ~ ~ Inspection, MLS, DataBank Public record - Final List Price N/,a ; $ - $ -- - - $ Sale Price N/A •~; _~ ~ _, : $ 220,000 $ $ Sale-To-List Price Rabo % ,~ % __ % % CIOSID Data N/A Settled10/19/07 Da s On Market N/A Price/Gross Livin Area $ 117.65 ° ` $ ~ ; $ DESCRIPTION DESCRIPTION + (-> s Ad)usu,rent DESCRIPTION + (-) s Aaustm~t DESCRIPTION + (-) s Adigsrmegt Financing Type None Conv. No Help Concessions N/A DOM 30 Contract Date N/A 10/05/07 Location Subufian/Avg Suburban/Avg Site Size .26 Acre .28 Acres Site Views/Appeal Sub/PartWatlAvg Suburban/Avg Design and Appeal Split-Level Split-Level Quality Of ConSfilCtlOn Brick/Alum/Avg Brick/Alum/Avg Age 36 Yrs est 42 Yrst est Condition verage Average Above Grade Bedrooms Bi~drnoms 3 aedmoms 4 Bedrooms. Bedrooms Above Grade Baths 2 ~.:~' 2.5 -1,500 Baths Baits Gross Living Area 1,606 Sq.Ft. 1,870 Sq.Ft. Sq.Ft Sq.Ft. Below Grade Area 700 approx Sq.Ft Family +1,000 Below Grade Finish 100% 140% 100% / 40% Other Living Area Functional Utility Average Average Heating/COOling HtPump/Central BBHW/None +3,000 Car Storage 1 Car Garage 2 Car Garage -2,000 Amenities IngmdPool,Fence None +12,000 Fire lace 1 Fireplace 1 Fireplace Net Ad"ustment total + - $ 12,500 + - $ + - $ Ad'usted Sale Price Net Adj. 5.7 % Gross Ad'. 8.9% $ 232,500 Net Adj. % Gross Ad'. % $ Net Adj. % Gross Ad'. % $ Comments and reconciliation of the sales comparison approach: 'NOTICE: The Appraisal Institute publishes this form for use by appraisers where the aptraiser deems use of the form aoorooriate. Depending on the assignment. the agoraiser may neeg m provige aggmonai gars, analysts ang wont produa not caged for in this- form. The Appraisal Instlhde plays n0 role in -completing the form and disclaims any responsibility for the data, analysis a arty otl~er work product provided by the individual appraiser(s). AI RepoRs° AI-100.02 Summary Appraisal Report • Residential ®Appraisal Instidde 2005, M Rigiris Reserved 03/01/20D6 Form A11001.(AC) - "WinTOTAL' appraisal software by a la mode, inc. -1-B00-ALAMODE Ir1iBHt~ ~. ` The Law Offices of Johnson, Duffle, Stewart 8~ Weidner or their assic Cflerrt Rle ~: Kanganis ~:. ~ ~- U6 g~Ia'rpp6rty: '; 417 Poplar Church Road, Camp Hill, PA 17011 ~ ~ppf8i$$1 ~i1~ ~': ~ : Kanganis This appraisal is subject to the following assumptions and limiting conditions: • This report is prepared using forms developed and copyrighted by the Appraisal Institute. However, the content, analyses, and opinions set forth in this report are the sole product of the appraiser. The Appraisal Institute is not liable for any of the content, analyses, or opinions setforth herein. • No responsibility is assumed for matters legal in character or nature. No opinion is rendered as to title, which is assumed to be good and marketable. Ali existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, having responsible ownership and competent management. • I have examined the property described herein exclusively for the purposes of identification and description of the real property. The objective of our data collection is to develop an opinion of the highest and best use of the subject property and make meaningful comparisons in the valuation of the property. The appraiser's observations and reporting of the subject improvements are for the appraisal process and valuation purposes only and should not be considered as a warranty of any component of the property. This appraisal assumes (unless otherwise specifically stated) that the subject is structurally sound and all components are in working condition. • I will not be required to give testimony or appear in court because of having made an appraisal of the property in question, unless specific arrangements to do so have been made in advance, or as otherwise required bylaw. • I have noted in this appraisal report any significant adverse conditions (such as needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) discovered during the data collection process in performing the appraisal. Unless otherwise stated in this appraisal report, we have no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and have assumed that there are no such conditions and make no guarantees or warranties, express or implied. We will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because I am not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable public and/or private sources that I believe to be true and correct. • I will not disclose the contents of this appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and/or applicable federal, state or local laws. • The Client is the party or parties who engage an appraiser {by employment or contract) in a specific assignment. A party receiving a copy of this report from the client does not, as a consequence, become a party to the appraiser-client relationship. Any person who receives a copy of this appraisal report as a consequence of disclosure requirements that apply to an appraiser's client, does not become an intended user of this report unless the client specfically identified them at the time of the assignment. The appraisers written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. • A true and complete copy of this report contains pages including exhibits which are considered an integral part of the report. The appraisal report may not be properly understood without access to the entire report. • If this valuation conclusion is subject to satisfactory completion, repairs, or alterations, it is assumed that the improvements will be completed competently and without significant deviation. ~,,~A~...,...., ......T .~,.r.S~ •~1r.~4'~~Sl7Ar4PoMF~ir~7'~°w--rrs~...wa~r 1~~, ~~' xA~ MARKET VALUE is defined as the most probable price which a properly 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: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised and acting in what they consider their own best Interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Source: Appraisal Institute Dictionary of Real Estate Appraisal • NOTICE: The Appraisal InsfihAe nubirsties >his form for use try appraisers where the appraiser deems use of the fern appropriate. Depenanp on the assignment, the appraiser may need b provide additional data, analysis and work product trot called for in tlus form. The Appraisal Insfih~be plays no role e~ completing the form arrd disclaims any responsibdlly fw the data, anatysis or arty other work product provided by the krdivfdual appraiserts). AI Reports'" Form AI-900.01 Assumptions and Limiting CondRions/Certification ®Appraisal InstiWte 2005, Afl Rights Reserved 11/oareDO5 Form AI9001- "WinTOTAL" appraisal software by a is mode, inc. -1-800-AtAMODE Client:' - -' The Law Offices of Johnson, Duffle, Stewart & Weidner or their assic Clfertt Rte ~`" = Kanganis ~~Swbjact piCpperty. ' 417 Poplar Church Road, Camp HMI, PA 17011 ~ ~ 14~~ F.3ie ~^ -` Kangar>is .. -. ~ I certify that, to the best of my knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analysis, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analysis, opinions, and conclusions. • I have no present (unless specified below) or prospective interest in the property that is the subject of this report, and I have no (unless specirfied below) personal interest with respect to the parties involved. • I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment. • My engagement in this assignment was not contingent upon the developing or reporting predetermined results. • My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the use of this appraisal. • My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • Individuals who have provided significant real property appraisal assistance are named below. The specific tasks performed by those named are outlined in the Scope of Work section of this report. ^ None ®Name(s) .1udy striewi~. As previously identified in the scope of work section of this report, the signer(s) of this report certify to the inspection of the property that is the subject of this report as: Appraiser D None ®Interior ®Exterior Co-Appraiser ^ None ^ Interior ^ Exterior Appraisal Institute Member Certify: • The reported analyses, opinions, and conclusions were developed, and this report has been prepared, inconformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Designated Appraisal Instidrte Member Certffy: Designated Appraisal Institute Member Certliy: • As of the date of this report, I ^ have /^ have not completed As of the date of this report, I ^ have /^ have not completed the continuing education program of the Appraisal Institute. the continuing education program of the Appraisal Institute. APPRAISER: ~ CO-APPRAISER: Signature ~ Signature Name M. Shane Rorke Report Date 3 ~ ~ ~ ~ ~ ~ Nara Report Date State Certification # GA-001806-L ST PA State Certification # ST or License # ST or License # ST F.>gtiration Date 6/30/2009 Expiration Date • IrOTtcf: me Appraisal +ns~roire pua+snes tns roan ra use oy appta+sers where. the ap assns use m the ram appropriate. uepenang on me assignment, me appraiser may need to provide .additional data, analysis and work product rrot called for rn this orm. The Appraisal Institute plays no role in c sting fhe form and disclaims arty responsibility for the dada, analysis or airy other work product provided by the individual appraise(s). AI Reports'" Form AI-900:01 Assumptions and Limiting Conditions/Certification ®Appr~sai InstiWte 2005, Ali Rights Reserved f 1/09/2005 Form AI9001- "WinTOTAL' appraisal software by a la mode, inc. -1-~0•ALAMODE Supplemental Addendum File No. Kanganis ClierR The Law Offices of Johnson Duffle Stewart ~ Weidner or their assi ns Pro Address 417 Po lar Church Road C' Cam Hitl Cou Cumberland State PA Zt Code 17011 Owner Kanganis Every effort has been made to conform to U.S.P.A.P. and in most cases even stricter interpretations found common to most investors in the secondary market. Since every property can't compare to "ideal" comparable sales, the appraiser must chose the best available sales for comparison available from the market search that meets investors underwriting standards and guidelines established by the professional appraisal association that this appraiser is affiliated with. The first part of the addendum is designed to clarify items common to all appraisal reports. The second part of the addendum is designed to simplify the reporting of comments most typically required by lenders to clarify aspects of the appraisal process. The presence of UREA-FORMALDEHYDE FOAM INSULATION or RADON GAS has not been determined. If UFFI or RADON GAS is present, the appraised market value may be adversely affected. Exact "R" value insulation factors could not be determined. Any information stated on the appraisal was provided by the inspection where the insulation was visible, or by the owner or agent of the owner where the insulation was concealed. All of the sales are closed transactions unless otherwise noted. The settlement date is to be considered the date of the sale U# and S# is shown on the market grid date section. U stands for under contract and S stands for settled date. This is done to give the reader more complete information on the considered comparable sales. Source of information of the sales generally list the appraisers Data Bank. The Data Bank contains information from the following sources: CENTRAL PENN MULTI-LIST, MONTHLY STEB REPORTS, COURTHOUSE RECORDS, ASSESSMENTS RECORDS, INTERIOR/EXTERIOR INSPECTION OF THE SUBJECT PROPERTY, TELEPHONE INTERVIEWS WITH REAL ESTATE AGENTS, OWNERS, AND BUYERS, OR PRIVATE SALES REPORTING AGENCIES. Information is always verified by two (2) sources, and most usually by three (3) sources. When the source is fisted as "INSPECTION" your appraiser has personalty inspected the property. Heating systems abbreviations used in this report are as follows: The first letter denotes the fuel used - O = Oil, G =Gas, E = Electric, C = Coal, W =Wood, P=Propane, and D =Duel Fuel. The next series indicated the type of heat: BB =Baseboard, FWA =Forced Warm Air, HWBB =Hot Water Baseboard, CIB = Cast Iron Baseboard, STM =Steam (radiator or convector), HW =Hot Water (Radiator or Convector), RAD =Radiant (heating elements concealed in the ceiling or floors). Air Condition: CENT =Central Air, Wall =Built in wall units. Occasionally, the subject or comparable have special, higher efficiency heating systems: HEAT PUMP = a forced warm air heating system with a conventional backup heating system (usually electric, could be oil or gas) and central air conditioning. GEO.HEAT PUMP =Geothermal Heat Pump uses constant temperature ground water for heating and cooling. This system requires two wells and is extremely efficient. SESS =Supplemental Electric Storage System. This system heats large quantities of water during off-peak hours and uses the heated water during peak hours. Substantial savings result from reduced electric rates from the local electric company. Some of the sales may show photographs with sale signs. Sales are not now under cantract or being offered unless specifically indicated within the appraisal report. For convience and speed, sales photographs are taken from my existing data base for sales in the area. All of the sales indicated have been externally and or interiorally view by the appraiser as required by the appraisers guidelines for performing appraisals. Subject Photos are original photos taken at the time of the subject property viewing and have not been altered. The use of the terms Superior/Inferior is considered as a mid line range between the more standard Good, Average, Fair, etc., etc. When applicable within the appraisal report, it is assumed, unless noted in the report, that the roof, plumbing, heating, electrical and air conditioning system, welts, septic tanks or cesspool are in satisfactory operating condition, that the building is structurally sound and free of termite infestation and free of termite damage. The appraiser suggests that buyers, lenders and other interested parties obtain certifications from properly qualified professionals for their protection. Comparable photos may show listing signs or weather conditions different then the subject photos. Photos may be taken from the appraisers data base. All of the sales have been viewed by the appraiser as generally requested by the appraisers clients. There has not been a title search or survey completed on the subject property that would confirm or deny any encroachments, easements or deed restrictions on or against the subject "property.'- At the time of the inspection of the subject unless noted in the appraisal report, none of the items mentioned in this paragraph were visibly noticed or apparent. The appraisal is made considering the items not present or having no effect on the overall typical use of the subject as i N n #1 Supplemental Addendum Fle No, Ka anis Client The Law Offices of Johnson Duffle, Stewart & Weidner or their ass' ns Prope Address 417 Po lar Church Road C' Cam Nill Cou Cumberland State PA Ti Code 17011 Owner Ka anis The Cost Approach to Value for homes with an age greater then a maximum of 10 years is considered inappropriate. This is based on the fact that a cost analysis for a subject property is generally subjective, based on the appraiser estimate of depreciation, cost manuals general analysis for an area and subjective statements from area contractors. The general analysis of all information supports the statement that this generally leads to the inaccuracy of the Cost Approach to Values and leads the client to improper conclusions. With this information considered, lenderslclients generally desire to see the Cost Approach provided. The Gost Approach is provided but, the appraiser states that any reliance on the value established should be considered mis-leading. For this reason, although considered, The Cost Approach to Value is inappropriate for use in this appraisal report. The Income Approach to Value is considered inappropriate for use in this appraisal report. This is based on the fact that a typical purchaser for the subject property has an interest in the purchase for their primary residence opposed to the concern of the value generated, through investment, from the possible income produced value. In addition, the verifiable information available is not a matter of public record and accuracy are at best considered limited in nature. For this reason, although considered, the Income Approach to Value. is considered inappropriate for use in this appraisal report. The subject property was vacant at the time of the appraisal inspection. The water and utilities were turned on and appeared to be in working order. Fair Market Value is defined as: 'The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. The fair market value of a particular item of property includible in the decedent's gross estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be determined by the sale price of the item in a market other than that in which such item is most commonly sold to the public, taking into account the location of the item wherever appropriate." Regulation §20.2031-1. Judy Striewig served as an assistant appraiser and provided significant professional assistance in preparation of this appraisal report. ENVIRONMENTAL ADDENDUM APPARENT* HAZARDOUS SUBSTANCES AND/OR DETRIMENTAL ENVIRONMENTAL CONDITIONS Cperd The Law Offices of Johnson Dufie Stewart & W aidner or their asst ns Address 417 Po tar Church Road City Camp Hill Coundy Cumberland Slete PA Lp code 17011 ner Ka ants *9ppemilt is defused as that which is visible, obvious, evident or martifest to the appraiser. This universal Emironmerdal Addendum is for use witlt any real estate appraisal. ony the statements which have been checked by the appraiser appty to the property belrt appraised. This addendum repots the resuNS a the appraiser's routine inspection d and inquiries about the sanjeci property and its sunounding area, tt also states what assumptions wen: made about the odsiemce (a nornerdstence) M arty hazardous substances andla dehfm~al emreortmerdal conditions. the Appraiser is nM an expert enviranmeMal 1 and therefore might be unaware a existing hazardous substances and/a dehimenttal dnvironnrerrtal conditions which may have a negative effect on the safety and value d the property. tt is possible that tests and inspections made try a quaHied envlronmemai inspects would reveal the existence of fwzartlous materials anya debimerdal envkanmerdal conditions on a around the property that would negatively affect its safety and value. X Drinking Wafer is supplled to the subject from a mumicipal water supply which is corxidered safe. However the ony way to be absokrtey certain that the water meets pubhhad standards is to have tt tested at al dscharge points. -Drinking Water is suppfred by a went a offternon-municipal source. tt a recommended that felts be made to be certain that the properly is supplied with adequate pure water. X Lead can get into drinking water from its spume, the pipes, at att discharge points, pbmbing f'udures and/or appliances. The ony way to be certain that water does not -carpin an unacceptable lead levras to have it lested at aN discharge pokds. X The value estlmeled M thk epprelsal k Irssed on the assumption that there k en adequate soppy d sate, lead-hoe Drinking Water. Commends - sANrrARV WASTE asPOSnL X Sanitary Waste is removed from the property by a municipal sewer system _Sardtary Waak ib disposed d by a septic syskm a otirx sarimry on sik waste disposal system. The only way b delenrdne tint the disposal system is adequate and b good xrorking condidon is to have tt inspected by a quaffed inspector. x 11re value estlmefed in thk epprafs~ k based on the assumptonthat the Santary Waste k domed d by a municipal sewer a en adequate properly permNted ahamaM [reMment system in good eondhba Comments SOILCONTAMINIWT~, X Titers are rro aDf~ signs d Sog Corniaminards on a near the subject property (except as r~orted in Commends bebw). tt is possible that research, inspection and testing by a quattfied awironmeMal InspeQor would reveal exsting anNa potential hazardous substances and/or detrimental emkonmemal wnditions on or around the property that would rnegaflvey affect its safety and value. X The abe estimetad in tMc appreissl k based on the sssumptbn that the subject property k free d Shc CodamlmMS, Comments X AI a part d the improvemerttt were constructed before 1979 when Asbestos was a conrnot buhdmg material. The ony way to be certain that the property is free of hiable and non-liable Asbestos is to have tt inspected and tested by a quaHied asbestos inspector. _The improvemerds were nwhshucted alter 1979. No ;fDRalEtlt iriable Asbestos was observed (except as reported in Comments bebw). X The value estlmeted b tlrks apprefaal k basil on the assumption the! there k no uncorsained friable Asbestos or other haaardous Asbestos mMerW on the property. Commends L 1: , X There were no agga[mt leaking fluorescerd igM ballasts, capacitors a transfomners anywhere on a nearby the property (except as reported in Cow bebwj. X There was no ;1RDH[tittt visible a docunrnemed evidence known T9 the appraiser d sal or groundwater contaminatbn from PCBs anywhere on the properly (except as reportetl in Comments bebw). X The aloe estlmaled in ihk eppralwl k bead on the essumptbn that there arc no urneonteirred PCBs on or nearby ells property, Comments X The appraiser is not aware d arty Radon tests made on the subject property within the past t2 mordhs (except as reported in ConatnenLS bebw). X The appraiser is not aware d any indication that the bcal water supplies have been found to have elevated levels a Radon or Radom. x The appraiser is not aware d arty nearby properties (except as reported in Comrterrts below) that were a cunerdy are hied for uraaum, thorium a radium exbactbn or pinosphate processing. X The aloe esameted In thk epprefsel k treats on the assumption that the Radon kwel u d a bebw EPA recommended kvek, Capital Property Appraisas(717)652.10B6 Form 69F - "WmTOTAL' appraisal software by a le mode, inc. -1-BOD-ALAMODE N KS X There is no appatEttt visible or documemed evidence lowwn to the appraiser of any USTS on the property nor any bxnvn tustoricai use o1 the properly that would kkey have had USTS. X Tnere are r~ SgQar~ petroleum sbrage anNor de7nrery haciNlies Including gasoline stations or chemical manufachaing plants) beahvi on adjacrmt pr~erties (except as reported in Comments bebw). -there are;g sitpns of USTs existing raw or in 8ne past on the subject property. tt is rnxoirsnended that an inspection by a quailed UST inspector be obtained ifl determine the btation nt arty USTS wgetlra with their condition and proper registratbn 'd they are active; and "rf ttrey are inacl~e, to determine whether they were deactivahed b accordance with sound industry practices. X The vehre estimated b this appraisal is bwd on the assumpton that any tnrredorrbg USis are not leaking and ere Property registered and that any absndoned USTs em free hom eontamlrmUon and were prepery drained,filled end sealed. Commends X There an: m apps hazardous Waste S'rles on the subject property or nearby ttre subjxt property (except as rn~alfld b Canmerds bebw). tianrdous Waste Site search by a trained ernironmetrtal engineer may detnsmine that there is are or more hatardars Waste Sites on ar im the area of the subject property X The wlue esBmMed b ddc appraisal k hued on the asuumpton that there ero no Naardous Waste Sites on or nreenby the srrb)ect propeAy that nagadvsy affect the value a sefdy d the property, Cartmrads '' N X AI or part of the improvements were constructed beforo 1982 when UREA foam insulation was a common brrildng material. The tmly way 1o be certain that the property is flee nt UREA lormaldehyde is to have tt inspected try a qualified UREA formaldehyde bspector. The improvements wem constructed after 1982 No agaate9t UREA fonrratlehyde matedals were observed (except as reported in Comments below). X The vahx estlmated b this sppmdsal k based on the assumption ttat them fa no signgkaM UFFl insulation or other UREA formaldehyde materiel on the PmpeAy Commeds X AI ar part of the improvemnts were constructed befom 19110 when Lead Paknt was a common buttding matedal. fiere is no 2DAaMffi visible or known docaneded evidence of peefmg or flaking Lud Pakd on the tbors, walls a ceilings (except as reported b Consrrents bebw). The ony way rD lie certain that the property is tree of saface or subsurface Lead Paint is to have i[ inspected by a goal"rfed inspector. The improvements wem constructed after 1980. No apgazeet Lead Paint was observed (exc~t as reported in Comneds below). X The value estlmated b thh appnfsel k hued on the suumption that them is no fakbg or peeing Lead Paint on the property. X There are no 3pR8mffi signs of Air Poluton at the time of the inspection nor wero arty reported (except as rcporfed in Commends bebw). The oMy way to be cetain That tine air is free of pdhdioit is to have tt tested. X Ttw value estlnreted b this epfrraisd is based on the essumptbn that the property 4 free of Ak Pottudon. Commends X the site does rat cadairr arty aRl~ WetiandsATood Plains (except as reported in Commends bebw). The ony way m be certain that the site is free nt Weiand~ Flopd Plains is to have tt bspected by a quaified emiromrerntal professional X Tire value unmated b tlrk approtsal is based on the raump8on that them are no Wetlsndc/Fbod PWru on the property (except u reported b Commends bebw), Commends X There are np o11ne agpdipet misce8anreonrs hazardous substances anNor detrimental emironnrental condiions on or b the area M the site except as indicated bebw: Excess Noise _~ Radiation + 9ectromagnetk Radiation _ L'ngM Pollution Waste Heart Aad Mine Drainage Agricuirsal Pobrtion Geobgical Hazards _ Nearby Hazardous Property _ Irdectious Metlical Wastes _ Pesticides _ Others {Chemical Storage + Storage Druns, Pipeines, etc.) K The value estlmaled h this approhal is based on the raumptbn that them em no Mhceilrrcars emBonmeMal Hoards (except tlase reported above) that would negatkvey effect the value d the property When any of the mvhoranentak auumpibns made b thin addendum ero not correct, fire estimated value o this sppndsal may rrot b valid. form 69F - WinTOTAI' appraisal software by a la mode, inc. -1-8D0-ALAMODE Subject Photo Page Cfierd The Law Offices of Johnson Duffle Stewart & Weidner or their assi ns Ro Address 417 Po tar Church Road C' Cam Hill Cou Cumberland State PA L Code 17011 Owner Ka anis Subject Front 417 Poplar Church Road Saks Price N/A Gross Living Area 1,806 Total Rooms 8 Total Bedrooms 3 Total Bathrooms 2 Location SuburbanlAvg View SublPartWaVAvg Site 26 Acre Ouafdy Brick/AlumlAvg Age 36 Yrs est Subject Rear Subject Street Form PICPIX.SR -'WinTOTAL' appraisal software by a la mode, inc. -1-800-AIAMODE Photo Page GomParab-e w_.~ asses Comparable Z 735 Niaa~ Q~ ~ rig miles W Prox ro Soblect 207,000 SafePdce Gross Liv+n4 Area 1,658 Total Rooms 9 3 TotalBed~ooms TotalBaftxooms S~urbanlA~9 location Suy~yasJA~9 Site g~AiumfAv9 ~~ 51 YB Est Age Comparable ~ 3 DaJWpOd C~ 19 mites SW 2 Prox ~ Sables . 199,900 ~ ~~ Arra 1,782 Total Room+ 8 3 Total Bedrooms 2 TotalBatb~s SupurbantA~9 locatlon SupurbanlAw9 View SiVe .23 Acre B~AbxnlAv9 fluaitY y- Yts Est pge pp(.CR - ~W'inloTAt appraisal software by a ~ mode, inc. ! 1'~Alp,A100E - _- Fofm ~ Comparable '1 840 YverdonDm~e 16 mites fzw 0 Prox to ~~ . 179,900 ~ pnce Gross 1.ivinB Area 1,638 Rooms ~ 8 3 Badrooms T Total Bathrooms $uy~arJA~9 bon Supurba~JA'+9 Yew Sde ~~~ umfA~9 Uua~dY as Yrs est Age Comparable Photo Page Cgerd The Law Offices of Johnson Duflie Stewart i£ Weidner or their ass' ns Address 417 Po lar Church Road C' Cam Nill Cou Cumberland State PA L Code 17011 Dwrrer Ka anis ' Comparable 4 3824 Caniage House Drive Prox to Subject 2.42 miles SW Sales Pdce 220,000 Gross Living Area 1,870 Total Rooms 8 Total Bedrooms 4 Total Bathrooms 2.5 Location SuburbanlAvg View SuburbanlAvg Site .28 Acres Ouafity Brick/AlumlAvg Age 42 Yrst est Comparable 5 Prox to Subject Sales Pdce Gross Livng Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Ouaity Age Comparable 6 Prox to Subject Sales Price Gross Living Area Total Rooms Total 8edroans Total Bathrooms Location View Site Quality Age Form PICPDLCR -'WinTOTAL' appraisal software by a la made, inc. -1-800-ALAMODE tocation_~ P ~u• - ~ ants nf°~"` - Bea!j{° x ir~a pP °.. - t ~ ~ ~~ ~ .. n a - '~ '~- _ ..~ f a. _ - ' ~p ; r ~ _ ` = a Af ~~Pd ,- B, ,~ ~ ~ ~y ~r:csrcw'~' a z _" ~"'o ":fin .. 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Tet ` O " {? ~, q ?" ~ _ dyad ¢+~ q. ~~ ~~ G~ttiy N ° ,, a~w - 4 ~ c ,~,p~ ~. :,~ -.: i2fw pti,..: `". _-eft °q^o~Y~'a:~+ ~.y's ~ndbor P~ ~smaY^e.P'larwt tii,~,Q ~ ss; f a Ct$at ~ ... `~°C~y~ ~~ ° erg t, °Yey+$ RdS"taig fiiil Rd , ~ '~ ~°~ S~ tf P°~"' - m ~ `" 1-~'ALAM4DE s ~~-,s ~ ~~ .~, inc. ~` ~ ~~~~ `~ '~~ are by a la mode, Viet ~~ ~'~,~' .~ ~ ' „WinT~TAI" aPPraisal saflw g ,~ ~ Fob ~~ 1.T.lOC ~ _ - - i N Building Sketch Client The Law Offices of Johnson Duffle Stewart & Weidner or their assi ns Pro C' Address 417 Po lar Church Road " " Cam Hill Cou Cumberland State PA ZI Code 17011 Owner Ka anis ,,.o b IB.O Mura NMI N L"OIIMf6f118: O pi LMNG ARFI- BREAImOWN BiMlmonn 8~61oeds First 87.oor 10.0 : 17.0 170.0 23.0 z 28.0 644.0 2.0 : 28.0 56.0 26.0 z 36.0 I 936.0 4 Items (Rounded) ~ 1806 Form SKT LT.BIdSkI - "WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMDDE aat351~~~ KANpANIi DF1O/lUNE(19N/DISK I) C I ( ~~~ /J~ ~ /-V L_ r~ K ~n ~. I"uli- -J IIJ ~ O~ / ~ / . ~~ c ..L- .. ~ ~ee~ =; ~,, :: ,,., ~J Qi ~/7~ lJ~1lf `-'~J~ is made this ~ day of ~~ 1999, by and between: SALVATORE A. FILARDO and ELINOR F[LARDO, his wife, of Cumberland County, Pennsylvania, hereinafter referred to as GRANTOR. -and- THOMAS G. ICANGANIS and CLARA KANGAN[S, ltis wife, of Cumberland County, Pennsylvania, Hereinafter refen•ed to as GRANTEE. WITNESSETH, that in consideration of the sum of ONE HUNDRED FORTY-NINE THOUSAND AND 001100 ($149,000.00) Dollars, in hand paid by GRANTEE to GRANTOR, the receipt whereof is hereby acknowledged, the GRANTOR does hereby grant, bazgain, and convey to the said GRANTEE, grantee's heirs and assigns: ALL THAT CERTAIN piece or parcel of land, situate in the Borough of Wormleysburg, County of Cumberland and State of Pennsylvania, bounded and described as follows: BEGINNING at a point on the Nortlt side of Poplar Church Road, which point is 170 feet measured South 53 degrees 30 minutes West from the intersection of the Norllt side of Poplar Church Road with the East line of Hillside Drive, both lines projected; THENCE along the North side of Poplar Church Road South 53 degrees 30 minutes West, a distance of 80 feet to a point; THENCE along line of property of Louis B. Crntone and Ann D. Cantone, his wife, North 36 degrees 30 minutes West ]42.06 Feet to a point on the Southerly line of Lot dl;uF tiUI c;~~ 65i No. 1 ti, Section B, Riverview; THENCE along the laltcr line North 53 degrees 30 minutes East g0 feet to a point, THCNCE by other land of The Beetem Lumber and Manufacturing Company South 3G degrees 30 minutes East 142.08 feet to a point, the place of BEGINNING. BEING the (3astem 15 feet of Lot No. 4 and the Western GS feet of Lot No. 5, Section D, Riverview, which Plan is recorded in the Cumberland County Recorder's UCfice in Plan Book 10, Page 21. I-fAVING T[-lEREON erected a dwelling known as 417 Poplar Chwch Road, Camp Hill, Pennsylvania. BEING the same premises which Salvatore A. Pilardo, by Indenture dated April 4, 1990 and recorded at Carlisle in the County of Cumberland on April G, 1990 in Deed Book Ivf 34 Page 704, granted and conveyed unto Salvatore A- Filardo and Elinor Filardo, his wife, in fee, Grantor Herein. THIS CONVEYANCE is made under and subject to easements, rights-of-way, restrictions, attd other masters of prior record. AND THE said Grantor will specially warrant and forever defend the property hereby conveyed. [N WITN 55 WHEREOF, the said GRANTOR Itas hereunto set its hands and seals the day and year first ab ve-writte JJ~ j~/ ~w~i~~W7/'Y ..f~r"~'-~ (SEAL) WITNESS SALVATORE A. F LAItDO /~~l~st.I~P ~,,, .G~° (SEAL) W[7'NESS ELINOR FILARDO 1 hereby certify that the precise address of tl~e rant erein is: S~/ ~ G/>/fir G,o ~~ ~rr~ ~~ ~ Atlorne rantee / Jsi~ ~~~~ nui,a 201 flf,E b52 COMMONWEALTH OF PENNSYLVANIA ) (SS COUNTY OF `~~,~j~~//,~~ ) On this, the ~ !/ r day of,l~~~ 1999, before me, a Notary Public, the undersigned officer, personally appeared SALVATORE A. FILARDO and ELINOR FILARDO, his wife, known to me (or satisfactorily proven) to be the persons whose names are subscribed w the within instrument, and acknowledged that said persons executed the same for the purposes therein contained. IN WITNESS WHEREOF, 1 have hereunto set my hand and o al seal. NateNl Seel ttnas N. zbiu, Nwery P~61fc NOTARY PUBLIC Mr ATE P•ky~ln Cowrty •P WI. Za, 2002 COMMONWEALTH OF PENNSYLVANIA ) ( SS.: COUNTY OF CUMBERLAND ) ' ' ` s. " •~ ORDED in the Office for Record/i~nrg o`f Deeds in and for Cumberland QOUnty in ' • Deed B~ Volume -~, at Page ~. `\\ __ •_. WITNESS my hand and seal of Office this ~s day of ~~ - Anno Domini , i 999. , ~~ corder R: t~v' ~a vZ Y ~ + L =~ .~- S: a4~;:,i+~: L... ,r:•... ~._ ~ y S -i G \ .O ~ T x. f.iy .O~~ Ci V~~ ~"' ~ a r.~~~ `~f, _ ~ ~'~%4: ~; fn..:..:M. i f'1: _~~ Y ~ O •.t ~ ~ o cn ~ _ „' ;t i~ .. ~a r..s ~ ~. -n j ~• . ~. e .~°, a .a ~° ~~ ~ ~ .. -~~ __ ~ o~ 1~:.~~ spa ~>< 2a~ pc~~~,, p J ~^ O b 000600 OGO .? . 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C7 ~ A ~ b w v ~ t~ N ~ O O t31 C71 Cq t0 ~ ~ G' 1-i S-1 ~ N 01 1~ J-1 ~C rl N t~ N •~I o a~ ,~ •~I co rt ,~ r, ~ ~ m O L 3 SS N v N 0~ •ri N r0 0o m A w z x x H w w U w ~I 0 •.-I Ol U U Sa q •.i •.i '» N ~ ~-•1 i-•I N ~ O A ~ ~ H a a a a .. .. .. .. ~•~ 3 ~ ~, la H ci 3 a ~ z z o .~G 3 t~ 7 r-1 O1 <~ U N ~ >•-I N ~aas~ cn cn ~ H z~zz >., ,~ U ~ U r.~ ~ ~ rn m ~ -~+ C71 rp -~ rt ~c~xa G .. ~ N rtS U ~ W SC 0 x UJ X N ~ a a c~ U a N H ~ w H I x a 0 0 0 0 w ~ ~ r r O ~7 [~ l0 dl d~ r O N u1 In r H m ~ to In y ~ H H H ~ A w C!] CJ O O o 0 w q r'~ m m rl v~ a r~ w c r (f1 Rl t0 O O N A,' ~ If1 [N dl M H ~ ~i ~ 0 0 0 0 ~ m rn rn M O~ 01 Q~ a~~~a~ N N N N w ~ ~ ~ o 0 0 0 0 0 0 0 0 N N N N \ \ \ \ o m o .-I ~ o r-I o \ \ \ \ ~n In In N r 1~ o 0 0 0 ~ - - U •r{ ~1 a .b 0 0 N o U m -~I ~ sa ~ a rn N rl 1J \ fa Lfl A ~ \ 0 lD 0 0 I b ri N O N N Q O 0 a U C7 avi ~ x C~7 H W H PROFESSIONAL QUALIFICATIONS - M. SHANE RORKE M. Shane Rorke has worked in the appraisal and real estate consulting profession since June of 1996. Appraisal assignments include assistance with many commercial and industrial property types, including professional office, distribution warehouse, residential subdivision, mobile home park, golf course and long-term care (nursing home) property. Mr. Rorke is a native of Mechanicsburg, Pennsylvania, where he attended Cumberland Valley High School. Post high school education includes class work at Shippensburg University and Harrisburg Area Community College. Mr. Rorke is a certified "General Appraiser" and a licensed real estate sales person by the Commonwealth of Pennsylvania. EXPERIENCE: Walters Appraisal Services, Inc., Camp Hill, Pennsylvania (June 1996 to Present) Research assistant of regional commercial real estate appraisal company. Employment from June 1496 to present. Geographical areas covered include South Central Pennsylvania. Healthcare Valuation Group, Inc., Camp Hill, Pennsylvania (June 1996 to Present) Research assistant of regional appraisal company specializing in long term care facilities including independent-living, assisted-living, and skilled nursing homes. Geographical areas covered include all Counties of Pennsylvania. LICENSE: Certified General Real Estate Appraiser, Commonwealth of Pennsylvania (2001). Certification Number: GA-001806-L (Expires June 30, 2009) Certified Real Estate Sales Person, Commonwealth of Pennsylvania (1997) Certification Number: RS - 218286-L (Expires May 31, 2008) EDUCATION: Shippensburg University -August 1996 To June 1997 Harrisburg Area Community College -Various Semesters Professional (Continuing Education) Classes • Principles of Real Estate -Institute of Real Estate Studies, Camp Hill, Pennsylvania: September, 1997 • Basic Income Property Appraisal -Institute of Real Estate Studies, Camp Hill, Pennsylvania: February, 1998. • Advanced Income Property Appraisal -Institute of Real Estate Studies, Camp Hill, Pennsylvania: February, 1998. • USPAP (Uniform Standards of Appraisal Practice) -Institute of Real Estate Studies, Camp Hill, Pennsylvania: Mazch, 1998. • Narrative Appraisal Report -Institute of Real Estate Studies, Camp Hill, Pennsylvania: March, 1999 • Residential Appraisal; Using Cost & Income Approach -Institute of Real Estate Studies, Camp Hill, Pennsylvania: Februazy, 2000. • Real Estate Investment -Institute of Real Estate Studies, Camp Hill, Pennsylvania: June, 2000 • Real Estate FS~nance -Institute of Real Estate Studies, Camp Hill, Pennsylvania: August, 2000. • Residential Construction -Institute of Real Estate Studies, Camp Hill, Pennsylvania: September, 2000 • Appraisal Principles Course 110 -Chapter Education Center in Chicago, Illinois: April, 2003. • Appraisal Procedures Course 120 -Denver, Colorado: April 2004. • Basic Income Capitalization 310 -Austin, Texas: February 2005. • General Applications - Wazwick, Rhode Island: October 2006 A. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT B. TYPE OF LOAN SETTLEMENT STATEMENT t. ® FHA 2. ^ FHMA 3. ^ CONV. UNMS. 4. ^ VA s. ^ CONV.INS. 6. FILE NUMBER: 7. LOAN NUMBER B. MORTGAGE TNS. CASE NO.: C. NOTE: This forth is furnished to give you a statement oC actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(p o c )" were paid outside the closing• they are shown here for informational purposes and are not included in the totals. D. NAME & ADDRESS OF BORROWER: Michael K. Snody and Tara D. Snody 53 Pawnee Lane Halifax PA 17032 E. NAME & ADDRESS OF SELLER: Estate of Thomas G. Kanganis F. NAME & ADDRESS • OF LENDER American Mortgatge Network, Inc. dba AmNet Mortgage PO Box 85462 San Diego CA 92186 _ _ G PROPERTY LOCATION• 417 Poplar Church Roed Camp Hill PA 17011 _ I-I. SETTLEMENT AGENT: Assured Land Transfers, Inc. SETTLEMENT• 301 Market Street Lemoyne PA 17043 (717) 761-4720 PLACE OF _ I. SETTLEMENT DATE: G/26/2008 DISBURSEMENT DATE: 6/26/2008 Summa of B J orrower's Transaction IC. Summa of Seller's Transaction . 100. Gross Amount Due From Borrower: 400. Gross Amount Due To Seller: 101. Contract sales rice 214 000.00 401. Contract sales rice 214 000.00 102. Personal ro er 402. Personal ro e 103': Settlement charges to borrower: (line 1400 10 737.25 403• 104: 404. 10s. ' 405. .. I, ~• '. Ad ustments For Items Paid B Seller In Advan ce: Ad ustments For Items Paid B Seller Ia Advance: 106: Ci /town taxes to 406. Ci /town fazes to 107: Coun taxes 06/26/08 to 12/31/06 476.79 407. County nixes 06/26/08 to 12/31/06 476.79 •1081 Assessments to 408. Assessments to 109. SchoolTexes G/26/2008to 6/30/2008 25.53 409. SchoolTaxea 6/26/2008 to 6/30/2008 25.53 110 Sewer Char a 6/26/2008 tv 6/30/2008 3.08 410. Sewer Char a 6/26/2008 to G/3D/2008 3.08 _ 111' Trash Charge G/26/2006to 6/30/2008 1.89 411. Trash Cha a 6/26/2008 to 6/30/2008 1.89 11~, alz. 13. 413. I l4 414. 11s. 415. li( 416. 130. Gross Amount Due From Borrower: 225,244.54 420. Gross Amount Due To Seller: 214,s0729 e 201. De sit or eameal mono 501. Excess d sit see inswctions $02. Princi al amount of new loans 212 322.00 502. Settlement char es to seller (line 1400) 2 274.00 .203. Existing loan(s) taken subject tv 503. Ezistin loan(a taken subject to 204. 504. Pa off 1st Mt . Ln. Soverei Bank .117 G6s.32 20s: 505. Pa off 2nd Mt . Ln. Soverei Bank 2 898.18 206: Earnest Money 2 s00.00 s06. 207 s07. 208, 508. 209. 509. Adjustments For Items Unpaid By Seller: 210. Ci /town taxes to Adjustments For Items Unpaid By Seller: s10. City/town taxes to 21'1. County taxes to S1 I. Coun taxes to 21,2: Assessments to s12. Assessments to 2-13. - 513. • t1tiYr' 514. 2:1 s. Sls. }{ 6, s l b. x17. s17. 218. s16. 219. s19. 220. Total Paid By/For Borrower: 214,822.00 520. Total Reductions In Amount Due Seller: 122,837.s0 '101. Gross artrount due from borrower line 120 22s 244.54 601. Gross amount due to seller line 420 214 507.29 3D2~ Less amount aid b /for borrower line 220) 214 822.00 602. Less reductions in amount due seller ine s20) 122 837.s0 303. Cash (®FROM) i^I'O) Borrower: 10,422.s4 603. Caslt (I~11'O) 1^FROM) Seller: 91,669.79 'revious Edition Is Obsolete _ SB-4-3538-000-1 'orin No. ISSI / HUD-1(3-86) /86.. B X ~ / V JG%,,.,~,.,~5 RESPA. HB 4305.2 PaeloC3 ((GG`bYY~- _ X X rosorcc Fccrnw~OR-00099-ALT L, 7A0. Total Sales/Broker's Commission: Based On Price S - -- -- %= Paid From Borrower's Paid From Seller's Funds Funds At Settlement At Settlement 7 2. 'dats e t 704. l c ° 80 D t °/ rt 5 . ec ' e ae' aces ica'ne t P c • J D a c. 4 ' 's L~4 e ~ ~ an e . 4 aid 'c e r 1 ei o a e e 'tat a r c. t ae 4 .0 ai a e' a c. a t ' e a o: cri ate . d e 0 14. '1 . 2 82Y. 9 / 0 t /0 2 4. d 74. et e r E 'e ce 5 06. • 4. er 2.0 1002 A"ari¢aaeinsurance months-(2ic S .per m onth City property taxes months faZ S oar m onth 1004 County vroverty taxes 5 months Cal E 233 5$per m onth ~ 1 167 90 ~ ~~005 n ual assessments month~laZ E ver m onth ~ '1'dOG. Flood insurance months (al S ver m onth 1007 months Cad S ver m onth „ 0 ate t t 1 2' 2 't0o . c e[ b t ac r t't earc t 3. 't e C t 1 ~' ' le ' ce t 5 re arat' 1107. Attorney's fees to ' (includes above item Numbers: ) l~i•08. Title insurance to Assured Land Transfers, Inc. (includes above item Numbers: 1101, i 102, 1103, 1104 ) 1 285.88 ' c v c 2 2. c c 2 4 2 e _ ~ c e 1 e i ette 'ca a ce 14. e di c : ed 0 2. el ' !c t : De t eed 2 a 2 0 2 S. u e t 2. e t 'ns c ' to v i h u'e d' t ed c. 5 i u . E e 'c oc a ee t u e Inc. 2 ax a ca ' sur 0' c - 2 /2 c o ax i onn r;inn ms..[ eaFt[e...a..~ r~[,a..,o /F.we. ~., lino 12i ,See[ion J-and -line 502. Section K) /l~ 1 73 .2 Z 4. Fdrin No. 1582 Page 2 of 3 58-4-3538-000-1 ~ ~ .,...~.Ji.n o nriu/Ull; BOR.ROW~R'S STATEMENT Escrow: OB-00099-ALT have carefully reviewed the HUD-] Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and istiursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD-1 Settlement Statement. Iorroivers/Purchasers Sellers Estate of'Ph G. is crag C. Snody By: Para .Snody HUD-1 Settlement Statement which I have prepared is a true accurate account of this transaction. I have caused or will cause the funds to be pursed in accordance with this stateme `~ ~-2G.~ ~ement Agent: _ Date: FATIC Support, Assured Land Tra ,Inc. RIVING: It is a crime to knowingly make false s te< cots to the United States on this or any other similar form. Penalties upon conviction can include a x imprisomnent. For details see: Title I8 U.S. Code ection 1001 and Sec[ion f 010. Page 3 of 3 COMPLETE APPRAISAL SUMMARY APPRAISAL REPORT 4947 - 4955 CARLISLE PIKE HAMPDEN TOWNSHIP CUMBERLAND COUNTY, PENNSYLVANIA Walters Appraisal Services, Inc. File #08-1446 AS OF: JANUARY 27, 2008 AT THE REQUEST OF DAVID W. DELUGE THE LAW OFFICES OF JOHNSON, DUFFIE, STEWART & WEIDNER 301 MARKET STREET LEMOYNE, PA 17043-0109 BY WALTERS APPRAISAL SERVICES, INC. JEFFREY L. WALTERS, MAI Certified General Appraiser Commonwealth of Pennsylvania GA-001051-L (Expires June 30, 2009) PREPARED ON: MARCH 6, 2008 WALTERS APPRAISAL SERVICES, INC. File #08-1446 TABLE OF CONTENTS SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS ................................................ 4 Subject Property :.............................................................................................. 4 Location :........................................................................................................ 4 Tax Identification Numbers :................................................................................. 4 Ownership :..................................................................................................... 4 Legal Description :............................................................................................. 4 Site Description :............................................................................................... 4 Improvement Description :................................................................................... 4 Personal Property :............................................................................................. 5 Identification of Property Rights :........................................................................... 5 Purpose of the Appraisal :.................................................................................... 5 Intended Use :.................................................................................................. 5 Intended User :................................................................................................. 5 Zoning :.............................................................................. . ........................... 5 Highest and Best Use :........................................................................................ 5 Assessment and Taxes :....................................................................................... 5 Property History :.............................................................................................. 6 Competitive Position :......................................................................................... 6 Risk Analysis :.................................................................................................. 6 Exposure Time :................................................................................................ 7 Most Likely Buyer :........................................................................................... 7 Appraisal Date :................................................................................................ 7 Market Value Estimates :..................................................................................... 7 SUBJECT PROPERTY PHOTOGRAPHS :.......................................................................... 8 SCOPE OF THE APPRAISAL ........................................................................................ 9 STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS ........................................10 DEFINITIONS ..........................................................................................................12 REGIONAL ANALYSIS ..............................................................................................13 EXHIBITS Regional Map :................................................................................................31 Area Map :.....................................................................................................32 Cumberland County Health Profile :.......................................................................33 Cumberland County Demographics :.......................................................................34 Neighborhood Map :..........................................................................................35 Tax Map :......................................................................................................36 Flood Map :....................................................................................................37 ZONING ANALYSIS ..................................................................................................38 Zoning Map :..................................................................................................40 WALTERS APPRAISAL SERVICES, INC. File #08-1446 i TABLE OF CONTENTS HIGHEST AND BEST USE ..........................................................................................41 Highest and Best Use as though Vacant :..................................................................41 Highest and Best Use as Improved :........................................................................43 Highest and Best Use Summary :...........................................................................43 VALUATION PROCESS ..............................................................................................44 COST APPROACH .....................................................................................................45 SALES COMPARISON APPROACH ...............................................................................47 Comparable Building Sales Map: ..........................................................................53 Summary of Compazable Building Sales :.................................................................54 INCOME APPROACH ................................................................................................57 Comparable Leases :..........................................................................................59 Summary of Direct Capitalization (Band of Investment) :..............................................64 FINAL RECONCILIATION AND VALUE CONCLUSION ...................................................65 CERTIFICATION PROFESSIONAL QUALIFICATIONS ADDENDA Legal Description Cumberland County Tax Assessment Office Information Hampden Township Zoning Ordinance Miscellaneous Data WALTERS APPRAISAL SERVICES, INC. File #08-1446 ii WALTERS APPRAISAL SERVICES, INC. Commercial and Industrial Real Estate March 6, 2008 David W. DeLuce The Law Offces of Johnson, Duffie, Stewart & Weidner 301 Market Street Lemoyne, PA 17043-0109 Re: Complete Appraisal -Summary Appraisal Report 4947 - 4955 Carlisle Pike Hampden Township Cumberland County, Pennsylvania Walters Appraisal Services, Inc. File #08-1446 Dear Mr. DeLuce: We have inspected and appraised the above referenced property at your request by letter of engagement dated February 13, 2008. The report format is a "Complete Appraisal -Summary Appraisal Report." We have estimated the market value of the leased fee interest of the subject property. Our most recent inspection of the subject property was on February 28, 2008. We have considered location, condition, size, zoning, marketing time, functional utility, sales of comparable properties, the uses for which the property is and could be employed, operating costs, and other pertinent data. Market data is used to develop the sales comparison approach and income approach to value. It is our opinion, and we certify, the retrospective market value of the leased fee interest in the subject property as of January 27, 2008, is: ONE MILLION FOUR HUNDRED FIFTY THOUSAND ($1,450,000) DOLLARS Assumptions and Limiting Conditions: The rent roll provided is true and correct of current lease terms encumbering the subject property. This letter does not make up a complete appraisal report. The accompanying report, which comprises 65 pages plus addenda, follows this letter. Please note the assumptions and limiting conditions on pages 11 to 12. We have personally prepared the analysis and formed the opinions presented in this report without significant professional assistance from any other person. 601 NORTH FRONT STREET HARRISBURG, PENNSYLVANIA 17101 • Tel (717)234-0540 • Fax (717)901-0541 Mr. Deluce Page -2- March 6, 2008 This appraisal is written in conformity with the Codes of Ethics and Standards of Professional Practice of the Appraisal Institute and the Uniform Standards of Professional Practice of the Appraisal Practice (USPAP). We have taken steps to comply with the competency provision of USPAP by identifying the appraisal problem and deciding that we have the knowledge and experience to complete the assignment competently. Jeffrey L. Walters is currently state-certified as a "General Appraiser" by the Commonwealth of Pennsylvania and professional qualifications follow this report. We have inspected the subject property, the subject property neighborhood, and comparable market data. As part of our inspection, it is not possible to observe conditions beneath the soil. Further, structural components and mechanical components within the walls and under the floors of the improvements are difficult to see. Unless specifically identified to the contrary in the body of the report, all mechanical components are assumed to be in operating condition and commensurate with the conditions of the balance of the improvements. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that the compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect on the value of the property. Since the appraiser has no direct evidence relating to this issue, he did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. The existence of hazardous material, which may or may not be present on or in the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser; however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicted on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field if desired. In the absence of core borings, or other tests, it has been assumed that there are no unusual sub-soil conditions, or hazardous substances that would adversely affect the marketability assumed that there are no mineral deposits of a commercial nature underlying the subject property. Only the United States Army Corps of Engineers can make final determination of whether an area is a wetland and whether specific activity requires a permit. Since the appraiser is not qualified to make this determination, the client is urged to retain the services of an expert in this field. Although there is a possibility that wetlands exist on the subject property, the value estimate expressed herein is predicted on the assumption that there are no wetlands for which a permit would be required. Mr. Deluce Page -3- March 6, 2008 The authentic copies of this report are bound in covers bearing the WALTERS APPRAISAL SERVICES, INC. firm name, and contain original signatures and photographs. Any copy of the report that does not have our standard binding and/or original signatures and photographs is unauthorized, may have been altered, and is considered invalid. It should be clearly understood, the acceptance of this assignment is not conditioned upon our reporting a specific (dictated) value; nor was the acceptance of the assignment conditioned on our concluding a requested minimum value or maximum value; nor was the acceptance of the assignment predicated in any way upon the approval, extension, or modification of an existing or pending loan for which the subject real estate is or may be pledged as collateral. The following is a report of the data and analysis upon which the above conclusions are based. Respectfully submitted, WALTERS APPRAISAL SERVICES, INC. o~~ - M. Shane Rorke Certified Geaera] Appraiser Commonwealth of Pennsylvania GA-001806-L (Expires June 30, 2009) Certified General Appraiser Commonwealth of Pennsylvania GA-003623 (Expires June 30, 2009) SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Subject Property: The subject property is amulti-tenant retail center. As of our inspection date, the property was 100 % occupied. Location: The subject property is located on the north side of Carlisle Pike in Hampden Township, Cumberland County, Pennsylvania. The subject property fronts, has good visibility and access to/from Carlisle Pike, the dominant commercial thoroughfare serving Harrisburg's West Shore Community. The subject property is two (2) miles northeast of Mechanicsburg Borough, 15 miles east of Carlisle Borough and six (6) miles west of the State Capital Complex in downtown Harrisburg, Pennsylvania. As indicated above, Carlisle Pike is Cumberland County's dominant commercial thoroughfare. Notable tenants and owners along this stretch of the pike include: Rite Aid; CVS; Ale House Restaurant; Jiffy Lube; El Rodeo Restaurant. In addition, Hampden Center, a neighborhood shopping center anchored by Karn's Food and a Movie Theatre, is located on the south side of Carlisle Pike a few hundred yards east of the subject property. Tax Identification Numbers: The Cumberland County Real Estate Tax Assessment Office identifies the subject property as tax parcel 10-21-0279-008. Ownership: According to Cumberland County Real Estate Tax Assessment records, Thomas & Clara Kanganis owns the subject property. Legal Description: We have taken the legal description from the most recently recorded deed between Cullen Brothers, Inc. and Thomas & Clara Kanganis. This deed was recorded in Cumberland County Courthouse as Deed Book I31, Page 559 on June 28, 1985, for a recorded sale price of $290,000. A copy of the legal description is included in the addenda of this appraisal report. Site Description Summary: The subject property consists of a nearly rectangular shaped parcel containing 1.27 acres of land or 55,321 square feet. This interior lot location has an average depth of 260', average width of 213' and has 213' of street frontage along Carlisle Pike. The site has generally level topography and access to all public utilities. Access to the site is from two (2) curb cuts along Carlisle Pike. There are 55 parking spaces or 4.21 per 1,000 square feet of gross building area. Retail properties typically require between 4 and 6 spaces per 1,000 square feet of gross building area; on- site parking appears adequate. Improvement Description Summary: The subject property is improved with aone-story, masonry and glass retail center. The building contains 13,056 square feet of gross building area, 11,818 square feet of net leasable area and five (5) retail suites. Improvements were originally constructed in the 1970's and are in fair condition. Each retail suite's interior finishes were dictated by current tenants and include glass store-front windows, commercial grade carpet and vinyl the for flooring, papered or painted wallboard for walls and primarily suspended acoustical the ceilings. The end units (South Philly Hoagies & Wears Like New) have central air conditioning while interior units have through wall air units. Overall, building is in fair to average condition and will likely require cosmetic renovations in the near future. In addition, the parking lot needs arepairs/replacement shortly. WALTERS APPRAISAL SERVICES, INC. File #08-1446 4 SUMMARY OF IMPORTANT FACT5 AND CONCLUSIONS, continued Personal Property: We have appraised the real estate only. Identification of Property Rights: We have appraised the property for the leased fee interest. Purpose of the Appraisal: The purpose of this appraisal is to estimate the market value of the leased fee interest of the subject property. We have developed the final value conclusion based on our market data of sales of comparable commercial property, leases and current vacancy rates in the area. Intended Use: The use of this appraisal is for estate planning. Intended User: The intended user of this appraisal report is The Law Offices of Johnson, Duffie, Stewart & Weidner or their assigns. Zoning: The property is located in the "C-L" Commercial Limited. Highest and Best Use: The highest and best use of the subject property as vacant is a retail oriented building. The highest and best use of the subject property as improved is amulti-tenant retail center. Assessment and Taxes: The total assessment of the subject property is as follows: Total Land Assessment .........................................................................................$165,360 Total Improvement Assessment ............................................................................... $829, 700 Total Assessment :............................................................................................... $995,060 The assessment is allocated as follows: Component Mills County (Cumberland County) .................................................................................0.002465 Municipal (Hampden Township) ..............................................................................0.000180 School .............................................................................................................0.009554 Total Mills .......................................................................................................0.012199 The annual tax liability calculates to $12,139 ($995,060 x 0.012199). The annual tax liability appears consistent with other commercial buildings in the neighborhood. The current assessment is based on an equalization rate of 122%. This suggests a value of the subject property of $1,213,973 ($995,060 x 1.22). We regard the Cumberland County tax rate to be consistent with other tax levying jurisdictions in the region during the same period. We have not relied upon the assessed value to be an indication of the subject property's market value. WALTERS APPRAISAL SERVICES, INC. File #08-1446 5 SUMMARY OF IMPORTANT FACT5 AND CONCLUSIONS, continued Property History: According to Cumberland County Real Estate Tax Assessment records, Thomas & Clara Kanganis owns the subject property. We have taken the legal description from the most recently recorded deed between Cullen Brothers, Inc. and Thomas & Clara Kanganis. This deed was recorded in Cumberland County Courthouse as Deed Baok I31, Page 559 on June 28, 1985, for a recorded sale price of $290,000. A copy of the legal description is included in the addenda of this appraisal report. Rent Roll: The following rent was provided to the appraisers: Tenant Wears Like New Hair Fashion H&R Block Consignment Philly Steak Address 4947 Carlisle Pk 4951 Cazlisle .Pk 4953 Carlisle Pk 4955 Cazlisle Pk 4955A Carlisle Pk Lease Lease Monthly Annual Sq. Ft. Rental Start End Rent Rent Leased Rate 12/1/2006 11/30/2013 $7,301 $87,617 6,862 $12.77 6/1/2004 5/31/2009 $1,000 $12,000 1,008 $11.90 5/I/20(17 4130/2008 $950 $11,400 1,008 $11.31 1/1/2008 12/31/2010 $1,050 $12,600 1,470 $8.57 10/1/2007 9/30/2010 $1,575 $18,900 1,470 $12.86 Total $11,876 $142,517 11,818 $12.06 All suites are separately metered for utilities. In addition all leases are subject to a CAM charge to include: exterior lighting, insurance, real estate taxes, cleaning, parking repairs, and snow removal. Landlord is responsible for management/leasing fees and replacement reserves. Competitive Position: The competitive position of the subject property is average to good. Retail oriented buildings require high traffic counts, good visibility, easy ingress/egress ample on-site parking. Carlisle Pike has an average daily traffic count of 22,000 cars per day east of Sporting Hill Road and judged more than adequate for a retail use. Access to the site is from two (2) curb cuts along Carlisle Pike, considered more than adequate for the size of the property. On-site parking consists of 55 spaces or 4.21 per 1,000 square feet of GBA and considered adequate. Visibility from Carlisle Pike is good. At peak traffic times, this stretch of Carlisle Pike is congested making ingress/egress difficult. As of our inspection date, there was noticeable deferred maintenance. In particular, parking areas are in need of repair. Risk Analysis: Real estate investment is subject to the following inherent risk: Decline in the value of real estate Dependency on management skills Possible lack of available mortgage funds Extended vacancies in properties Changes in zoning laws Casualty or condemnation Risks related to general and local economic conditions Heavy cash flow dependency Overbuilding Increases in property taxes and operating expenses Environmental problems (clean up expenses) Changes in interest estate rates The risk associated with the subject property is average. Improvements appear to be in sound structural condition. As of our inspection date, the subject property was 100% occupied. The property reportedly has not had a vacancy in sometime. WALTERS APPRAISAL SERVICES, INC. File #OS-1446 SUNIlVIARY OF IMPORTANT FACTS AND CONCLUSIONS, continued Exposure Time: Exposure time is 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 opinion based on an analysis of past events assuming a competitive and open market. Based on the location and physical characteristics of the subject property, we believe an appropriate exposure time to be six months to one year. Most Likely Buyer: The most likely buyer of the subject property is a local investor. Appraisal Date: The date of the value estimate is January 27, 2008, the date of death of Thomas Kanganis. Market Value Estimates: Cost Approach ........................................ .............................................. Sales Approach .......................................... ................................. $1,5 5,0 ...... 2 00 Income Approach ................................................................................ $1.425.000 Market Value Estimate ......................................................................... $1,450,000 WALTETLS APPRAISAL SERVICES, INC. File #08-1446 SUBJECT PROPERTY PHOTOGRAPHS WALTERS APPRAISAL SERVICES, INC. File #08-1446 STREET PHOTOGRAPHS Walters Appraisal Services, Inc. File# 0&1446 Cazlisle Pike Viewing West with Subject Property to the Left Carlisle Pike Viewing East with Subject Property to the Right _,~~u aPAS Yhatograpu .~Xtexiox cervices, Irje' File# 0$-1445 W alters AP~raisal SUB3ECT PROPERTY PgOTOGgApHS Walters Appraisal Ser~'ices, Inc. File# OS-1446 Exterior Photograph Viewing Southwest towa.~u ~--~u~-- - Exterior Photograph Viewing Southeast towaru ~-~- _-~-- - SUBJECT PROPERTY PHOTOGRAPHS Representative Interior Photograph Representative Interior Photograph Walters Appraisal Services, Inc. File# 0&1446 SUBJECT PROPERTY PHOTOGRAPHS Walters Appraisal Services, Inc. File# OS-1446 Representative Interior Photograph SCOPE OF THE APPRAISAL The scope of the appraisal encompasses the research and analysis of data required to prepare a reliable opinion of the market value of the subject property. The procedures used in the appraisal analysis of the subject property are as follows: Property Inspection: M. Shane Rorke & Karen W. Brett inspected the subject property on February 28, 2008. Jeffrey L. Walters or M. Shane Rorke took photographs of the subject property and compazable properties appearing in this report. Regional and Neighborhood Data: We gathered regional and neighborhood data from various sources, including public data sources such as the Cumberland County Planning Commission, Pennsylvania State Data Center, West Shore Chamber of Commerce, United States Travel Data Center, and United States Bureau of the Census. Additional regional and neighborhood data was gathered through private data sources including Sales and Marketing Management's 2006 Survey of Buying Power, and CACI Marketing System's The Sourcebook of Zip Code Demographics. We analyzed specific neighborhood conditions through a neighborhood inspection, interviews with the property owner, interviews with County Assessment personnel and real estate brokers. Site Data: We have researched site data listed on the subject property's tax assessment card and most recently recorded deed. Included in the addenda of this appraisal report are copies of the tax assessment cazd and deed. Flood plain data is from U.S. Department of Housing and Urban Development, Department of Insurance, Flood Insurance Rate Map. Zoning information is from the Hampden Township Zoning Office. We obtained current assessment and millage information from the Cumberland County Assessment office. The site data gathered from these sources is reasonable and aze believed to be accurate. Improvement Data: Information concerning the improvements of the subject property was limited to property inspections, interviews with the owner of the subject property, interviews with local assessment officers, and public information. Highest and Best Use: The highest and best use as though vacant and as though improved was determined through analysis of uses that are legally permitted, physically possible, financially feasible and maximally productive. The determination of the highest and best use is a compilation of all relevant market conditions such as potential income, vacancy, expenses, the cost of construction and anticipated yield rates. Approaches to Value: In developing the approaches to value, market data was collected from public records, interviews with Cumberland County and local Hampden Township officials, and interviews with market participants such as buyers, sellers, mortgage bankers, and local real estate brokers. In addition to the above data sources, we have used data contained in files of previous appraisals. A final reconciliation of value was determined based on our professional judgment of the available data. Date of Value Estimate: The date of the value estimate is January 27, 2008; the date of death of Thomas Kanganis .The date of value estimate is sometimes called the effective date of the appraisal. WALTERS APPRAISAL SERVICES, INC. File #08-1446 9 STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is to be used in whole and not in part. No part of it shall be used in conjunction with any other appraisal. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media, without the written consent and approval of the authors, particularly as to valuation conclusions, the identity of the appraisers or firm with which we are connected, or any other reference to the Society of Real Estate Appraisers, or the SRPA designation or the American Institute of Real Estate Appraisers, or to the MAI designation. Possession of this report, or a copy thereof, does not carry with it the right of publication. Nor may it be used for any purposes by any but the client, without the previous written consent of the appraisers or the client; and in any event, only with proper qualification. The appraisers for matters, which are of legal nature, assume no responsibility nor is any opinion on the title rendered. Good title is assumed. This property has been appraised as though free of liens and encumbrances, except as herein described. It has been assumed that the property will be efficiently managed and properly maintained. The appraisers herein, by reason of this report, are not required to give testimony in Court with reference to the property appraised, unless arrangements have been previously made. Unless otherwise noted, it is assumed there are no encroachments, zoning violations or restrictions existing that would affect the subject property. The current (as of the date of appraisal) purchasing power of the dollar is the basis for the value estimates; no extreme fluctuations in economic cycles are anticipated. The plans in this report are included to assist the reader in visualizing the property. The appraisers have made no survey of the property and assume no responsibility in connection with such matters. Information, estimates and opinions contained in this report, obtained from sources outside of this office, are considered reliable. However, the appraisers can assume no liability for them. The value estimate is subject to these and to any other assumptions set forth in the body of this report. Unless otherwise noted in the body of this report, this appraisal assumes that the subject property does not fall within the areas where mandatory flood insurance is effective. WALTERS APPRAISAL SERVICES, INC. File #08-1446 10 STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS, continued It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering, which may be required to discover them. It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use, on which the value estimate contained in this report is based. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraisers become aware of such during our inspection. We have no knowledge of the existence of such materials on or in the property unless otherwise stated. We, however, are not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde, foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss of value. No responsibility is assumed for any such conditions, nor any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in the field of environmental impacts upon real estate if so desired. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance survey and analysis of the property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. Acceptance of and/or use of this appraisal. report constitutes acceptance of the foregoing assumptions and limiting conditions. WALTERS APPRAISAL SERVICES, INC. Fite #Q8-1446 11 DEFINITIONS Definition of Market Value: " ...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, 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 passing of title from seller to buyer under conditions whereby: (1) buyer and seller aze typically motivated; (2) both parties aze well informed or well advised, and acting in what they consider their own best interest (3) a reasonable time is allowed for exposure in the open market (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property, sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."' Definition of Fee Simple Estate: "Absolute ownership unencumbered by any other interest or estate subject only to the four powers of government. " 2 Definition of Leased Fee Estate: "An ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; usually consists of the right to receive rent and the right to repossession at the termination of the lease. " 3 Prospective Future Market Value: "A forecast of value expected to occur at a specified future date. A prospective value estimate is most frequently utilized in connection with real estate projects that are proposed, under construction, under conversion to a new use or that have otherwise not achieve sellout or a stabilized level of long-term occupancy at the time the appraisal report is written.' ~ Rules and Regulations, Federal Register, Volume 55, Number 165, Page 34969. a American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, 2nd ed. (Chicago: American Institute of Real Estate Appraisers, 19$9, page 120 s Ibid., p. 177 ° American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, 2"d ed. (Chicago: American Institute of Real Estate Appraisers, 1989, page 239. WALTERS APPRAISAL SERVICES, INC. File #08-1446 12 REGIONAL ANALYSIS: SOUTH-CENTRAL PENNSYLVANIA Region Defined: We have defined the region of South Central Pennsylvania to include the eight contiguous counties of Adams, Cumberland, Dauphin, Franklin, Lancaster, Lebanon, Perry, and York. Further, South Central Pennsylvania contains the Metropolitan Statistical Areas (MSA) of Harrisburg-Lebanon- Carlisle, Lancaster, and York. (Adams and Franklin Counties are not included in MSA level data.) Regional Overview: South Central Pennsylvania, as a region, has a population nearing 2,000,000, and is strategically located with ready access to many of the nation's largest metropolitan markets. The region is situated just north of the Baltimore/Washington metro areas, and is within two hours of Philadelphia. Both New York and Pittsburgh are within two hundred miles, on major highways. With an excellent network of highways (I-81, I-83, I-76, Rt.15), 40% of our nation's population can be reached within aten-hour drive. Within the northeastern United States, South Central Pennsylvania has maintained lower land prices and labor costs relative to neighboring markets of New Jersey and New York. These factors contribute to lowering the overall cost of doing business in the region, and coupled with an extensive WALTERS APPRAISAL SERVICES, INC. File #OS-1446 13 REGIONAL ANALYSIS, Continued infrastructure, make South Central Pennsylvania a desirable location for distribution and corporate hub facilities. Further, the region's population has grown over the past decade at a rate higher than that of Pennsylvania as a whole, and the United States. This regional growth, coupled with relatively high income and educational levels, provides employers with a diverse and plentiful labor force. The City of Harrisburg is the area's largest city and home of Pennsylvania's State Capitol. Further, Harrisburg is the county seat of Dauphin County. Harrisburg is in the south central portion of the state approximately 40 miles north of the Maryland state line, and is the core of the Harrisburg-Lebanon- Carlisle MSA. The Harrisburg-Lebanon-Carlisle MSA includes Cumberland, Dauphin, Lebanon and Perry counties. The 2000 U.S. census counted 629,401 people within this 1,978 square-mile area. In 1990, the Harrisburg MSA had a population of 587,986 people. The most densely settled corridor within the MSA parallels routes 11 and 422 between Carlisle in the west and Berks county line in the east. The population and income in the region depend on the employment that is the economic base of the area. The economic activity of a community that enables it to attract income from outside its borders is the economic base. The value of real property reflects and is influenced by the interaction of basic forces that motivate human activity. The four categories of these forces are social trends, economic circumstances, governmental controls and regulations, and environmental conditions. We have analyzed each forces Social Trends Population characteristics define social forces that affect the subject property. We have analyzed the demographic composition of the region to estimate future trends. These data and current projections reveal the basic demand for real estate. The Harrisburg-Lebanon-Carlisle MSA region is currently in a condition of growth. The population of the area grew at a rate of 7.04% between 1990 and 2000. According to the U.S. Census Bureau, the July 1, 2000, population of Harrisburg-Lebanon-Carlisle MSA was 629,401 as compared to 587,986 on July 1, 1990. The annual rate of growth is higher than the growth rate for Pennsylvania and the United States, which were 3.4% per year and 4.5% per year, respectively. The Harrisburg-Lebanon- Carlisle MSA is expected to have continued growth between 2000 and 2010.6 The adjoining counties of York and Lancaster are growing at a faster rate than the Harrisburg area. Cumberland County, with American Institute of Real Estate Appraisers, The Appraisal of Real Estate, 9th ed., (Chicago: American Institute of Real Estate Appraisers), 1987, page 39. Population statistics are from The Pennsylvania Abstract for 1994 by Pennsylvania State Data Center. WALTERS APPRAISAL SERVICES, INC. ale #08-1446 14 REGIONAL ANALYSIS, Continued a 9.40% increase, is the fastest growing County among the four counties that make up the Harrisburg MSA, followed by Dauphin County (5.90 %), Perry County (5.90 %) and Lebanon County (5.80 %). York County grew at a rate of 12.40 % between 1990 and 2000 while Lancaster County grew at a rate of 11.30%. The formation of households in the Harrisburg-Lebanon-Carlisle MSA has increased at a rate that is faster than its population growth. This reflects the national trend toward smaller household sizes. According to the U.S. Bureau of Census, the number of households in the Harrisburg-Lebanon- Carlisle MSA increased approximately 9.95 % from 1990 to 2000. The growth rate of households versus population is typical of state and national trends. Based on these data, we believe that Harrisburg-Lebanon-Carlisle MSA will continue to grow. Further, adjoining Adams, Lancaster, York, and Franklin counties are expected to grow as well. Economic Circumstances We have considered several regional market characteristics that are significant to real property value. These include economic forces such as employment growth, labor segmentation, economic base of the region/community, the cost and availability of mortgage credit, availability of housing, the price patterns of existing properties, and construction costs. Employment figures and trends are the most useful measure of local economic activity. ' Harrisburg Lancaster York State of Occupation MSA MSA MSA Pennsylvania Management, Professional 32.20 % 28.10 % 28.40 % 32.60 Service Occupations 14.10 % 13.90 % 12.50 % 14.80% Sales/Office Occupations 28.10 % 24.90 % 26.10 % 27.00% Farming/Fishing/Forestry 0.60% 1.10% 0.40% 0.50% Construction/Maintenance 8.50% 10.00% 9.90% 8.90% Production/Transportation 16.50% 22.00% 22.70% 16.20% Total 100.00% 100.00% 100.00% 100.00% Jerome Dasso, "Economic Base Analysis for the Appraiser," The Appraisal Journal (July, 1969): pp. 374- 385. American Institute of Real estate Appraisers: Chicago. WALTERS APPRAISAL SERVICES, INC. File #OS-1446 15 REGIONAL ANALYSIS, Continued Harrisburg Lancaster York State of Industry MSA MSA MSA Pennsylvania AgriculturaUForestry 1.50 % 2.90 % 1.10 % 1.30% Construction 5.80 % 7.70 % 7.20 % 6.00 Manufacturing 12.90 % 22.40% 23.90 % 16.00 Wholesale Trade 4.00% 4.60 % 4.30 % 3.60 % Retail Trade 11.40 % 13.00 % 12.40 % 12.10 % Transportation/Wazehousing 6.70% 4.30% 5.20% 5.40% Information 2.50 % 1.90 % 2.30% 2.60 % Finance/Insurance/Real Estate 7.40 % 4.40 % 5.30 % 6.60 % Professional/Management 7.30 % 6.70 % 7.00 % 8.50 Educational/Health 19.20 % 18.20 % 16.70 % 21.90 Arts/Entertainment/Recreation 7.10 % 6.70 % 6.00 % 7.00 Public Administrator 9.50 % 5.20 % 4.60 % 4.80 % Other Services 4.70% 2.00% 4.00% 4.20% Total 100.00% 100.00% 100.00% 100.00% Harrisburg Lancaster York State of Class of Worker MSA MSA MSA Pennsylvania Private Wage/Salary Worker 76.80% 84.20% 84.50% 82.40% Government Worker 17.00% 7.20% 9.40% 11.30% Self-Employed 5.90% 8.10% 5.80% 6.00% Unpaid Family Worker 0.30% 0.50% 0.30% 0.30% Total 100.00 % 100.00 % 100.00% 100.00 The table above shows that the Harrisburg MSA has a high share of state government jobs. Its location with respect to railroad and highway corridors has resulted in a large share of transportation and wholesale trade jobs. Harrisburg has a large proportionate share of federal government jobs because of both defense activities plus the usual cluster that one might find with the state capital facilities. Unemployment Rates Unemployment rates for the South Central Pennsylvania continue to be well below Pennsylvania's unemployment rate: Harrisburg MSA 2007 3.50 2006 3.80% 2005 4.00% 2004 4.50 % 2003 4.60% Lancaster York MSA MSA PA 3.40% 3.60% 4.30% 3.60% 4.00% 4.70% 3.60% 4.20% 5.00% 4.00% 4.60% 5.40% 4.10% 4.90% 5.70% In 2005 the Harrisburg MSA had an unemployment rate of 4.00°10. This rate decreased slightly to 3.80 % in 2006, and is reported to be 3.50 °lo as of December 2007. Because of this relatively low unemployment rate, the Harrisburg area is tightening their labor supply. In particular, occupations requiring computer skills have been high in demand. Unemployment rates within the South Central Pennsylvania region are well below the State average. WALTERS APPRAISAL SERVICES, INC. File #OS-1446 16 REGIONAL ANALYSIS, Continued In 2005 the Lancaster MSA had an unemployment rate of 3.60%. This rate remained at 3.60% in 2006, and is reported to have decreased to 3.20 % as of December 2007. In 2005 the York MSA had an unemployment rate of 4.20%. This rate decreased to 4.00% in 2006, and is reported to be 3.60% as of December 2006. According to the 2000 Census of Population and Housing, the 2000 average income per person was $24,752. The median household income of Cumberland County was the highest at $46,707. The median household incomes of Dauphin and Perry County were $41,507, and $41,909, respectively. Lebanon had the lowest median household income of the four counties that make up the Harrisburg MSA with a median household income of $40,838. These income levels are similar to those of York County, $45,268, and Lancaster County, $45,507. The Harrisburg-Lebanon-Carlisle MSA median household income is anticipated to have continued growth. DEMOGRAPHIC PROFILE (2000 CENSUS) SOUTH CENTRAL PENNSYLVANIA Total Total Average Median Per Capita High Sch. College MSA Includes Population Households Size Income Income Gradnate Graduate Harrisburg- Cumberland Co. 213,674 83,047 2.57 $46,707 $23,610 86.10% 27.90% Lebanon- Dauphin Co. 251,798 102,670 2.45 $41,507 $22,134 83.40% 23.50% Carlisle Lebanon Co. 120,327 46,551 2.58 $40,838 $19,773 78.60% 15.40% Perry Co. 43,602 16,695 2.61 $41,909 $18,551 79.9096 11.30% Lancaster Lancaster Co. 470,658 172,560 2.73 $45,507 $20,398 77.40% 20.50% York York Co. 381,751 148,219 2.58 $45,268 $21,086 80.70 18.40% No MSA Level Adams Co. 91,292 33,652 2.61 $42,704 $18,577 79.7096 16.70% Data Franklin Co. 129,313 50,633 2.49 $40,476 $19,339 78.90% 14.80% Totals South Central PA 1,702,415 654,027 Pennsylvania 12,281,054 4,777,003 2.57 $40,106 $20,880 81.90 22.40% Market Overview South Central Pennsylvania is widely considered to be one of the most important distribution centers on the east coast, with an inventory of just below 40,000,000 square feet of industrial space. The recent downturn in the national economy has had some negative impacts in the South Central Pennsylvania Industrial Market, with increases in overall vacancy rates (approximately 9 %), and reduced asking rental rates. Further, according to local commercial real estate sources, there is currently over 8,000,000 square feet of available industrial space in the South Central Pennsylvania Market. Additionally, Real Estate Investment Trusts (REIT), have played a significant role over the past five (5) years regionally. In particular Keystone Property Trust has dominated the market, acquiring over 1 10 million square feet of industrial/distribution space in the region since 1998, with over 3,000,000 WALTERS APPRAISAL SERVICES, INC. File #OS-1446 17 REGIONAL ANALYSIS, Continued square feet of acquisitions in 2003 alone. This aggressive stance by Keystone contributed to declining rents in the region as Iarge amounts of space became available. Rents bottomed out in 2005/early 2006. The retail market continues to be strong, and U.S. Route 11 (Carlisle Pike) and Route 22 {Jonestown Road and Allentown Boulevard) continue to be the main commercial thoroughfares in Cumberland and Dauphin Counties. In Cumberland County, commercial development along U5 Route 11 is now west of Hogestown. In Dauphin County, commercial development has once again picked up along US Route 22 east of Mountain Road. York, Lancaster, Franklin, and Adams Counties are served by U.S. Route 30, an important commercial corridor in southern Pennsylvania. Major commercial activity along U.S. Route 30 is concentrated in the areas in and around the population centers of the City of York, the City of Lancaster, and the Boroughs of Chambersburg and Gettysburg. Further, southern Adams, Franklin. and York counties have seen increased commercial development along the corridors of Interstate 83, and U.S. Route 15, and have been increasingly connected with the northern Maryland markets. 2007: Single-Family Homes Sales Average Average Average County List Price Sale Price Market (Days) Cumberland $220,383 $216,926 51 Dauphin $167,069 $163,696 55 Lancaster $233,250 $197,229 56 Lebanon $204,431 $177,684 60 York $197,359 $193,512 61 2006: Single-Family Home Sales Average Average Average County List Price Sale Price Market (Days) Cumberland $213,568 $211,091 41 Dauphin $167,808 $165,510 50 Lancaster $224, 394 $188, 579 49 Lebanon $192,265 $170,350 60 York $194,195 $191,463 52 Building Permits Building Permits Building Permits County For 2005 For 2006 Cumberland 1, 502 1, 351 Dauphin 1,190 N/A Lancaster 2,700 1,070 Lebanon 1,424 1,336 York 2,728 2,260 Total 7,783 6,OI7 WALTERS APPRAISAL SERVICES, INC. File #OS-1446 18 REGIONAL ANALYSIS, Continued South Central Pennsylvania is helped by organizations that encourage businesses to locate in the area. Adams County Economic Development Corporation, Capitol Region Economic Development Corporation (CREDO), York County Economic Development Corporation, Cumberland County Office of Economic Development, as well as many local chambers of commerce are among the many organizations created to help the area. Further, a major inter-modal, regional rail project is currently in the planning stages. This regional rail project is spearheaded by Capital Area Transit (CAT), and the Modem Transit Partnership (MTP). The first phase of the overall plan has been dubbed "Corridor One" . The Corridor One project seeks to implement regional rail service along existing rail facilities within the south central Pennsylvania region, linking Lancaster with Harrisburg and the West Shore communities of Cumberland County. Upon completion,. the entire project will link virtually all of South Central Pennsylvania. This project, as mentioned above, is still in the planning stages, and several important funding gaps must be addressed before the project actually begins. Major financial institutions have also located branch offices in the Harrisburg area. This allows appropriate access to financing for development projects in the area. Among these financial institutions are M&T Bank, Integrity Bank, Sovereign Bank, Susquehanna Banks, PNC Bank, Commerce Bank and Fulton Bank. The presence of large financial institutions allow for greater development potential to local developers. However, local institutions have felt the tightening credit induced by recent governmental policies, limiting available funds for current real estate projects. The South Central Pennsylvania region also has more than 8,000 firms representing more than 500 different types of business. The list on the following page is of business and industrial firms with more than 1,000 employees. (Originally published in the Central Penn Business Journal, December 18, 2007) WALTERS APPRAISAL SERVICES, IlYC. File #OS-1446 19 REGIONAL ANALYSIS, Continued Companies with more than 1,000 Employees within South Central Pennsylvania Commonwealth of Pennsylvania U.S. Government The Hershey Co. Giant Food Stores Penn State Milton S. Hershey Med Ctr We11Span Health Lancaster General Wal-Mart Stores, Inc. Highmark Blue Shield Tyco Electronics Corp. Pinnacle Health System Hershey Entertainment & Resorts Co. Harley-Davidson Inc. Holy Spirit Health System Local Penn State Campuses York County Capital Blue Cross Dauphin County Armstrong World Industries Inc. Lancaster County JFC Staffmg Associates Ephrata Community Hospital Fulton Financial Corp. Harrisburg Area Community College Central Dauphin School District 24,214 Utz Quality Foods, Inc. 1,475 18,000 BAE Systems-York 1,400 8,000 Lancaster School District 1,378 7,250 Lancaster-Lebanon Interm. Unit 13 1,372 7,208 Lebanon County 1,325 7,150 Masonic Village at Elizabethtown 1,305 6,135 Willow Valley Retirement Comm. 1,293 6,000 Harrisburg City School District 1,263 5,200 Cumberland County 1,256 4,700. ~ The High Companies 1,202 4,100 Good Samaritan Health System 1,200 3, 835 HealthAmerica/HealthAssurance Pa Inc 1,170 3,200 SHS Staffmg Solutions 1,137 2,811 Aerotek Inc. 1,120 2,711 Memorial Health Systems Corp. 1,107 2,550 Fry Communications Inc. 1,100 2,144 Gannett Fleming Inc. 1,086 2,142 West Shore School District 1,076 2,000 Millersville University 1,075 1,855 M&T Trust Co. 1,048 1,753 Shippensburg University 1,026 1,678 Farmers Pride Inc dba Bell & Evans 1,000 1,635 Electronic Data Systems Corp/EDS 1,000 1,537 Arnold Logistics 1,000 1,482 Graham Packaging Company 1,000 Governmental Controls and Regulations Governmental, political, and legal forces may have an important influence on property values. The legal climate may overshadow the natural market forces of supply and demand. The government provides many necessary facilities and services that affect land-use patterns. We have examined the influences of public service, local zoning and building codes (especially those that obstruct or support land use), national, state, and local fiscal policies, and special legislation that influence property values (rent control, etc.). We have concluded that the political environment for real estate development in the South Central Pennsylvania region is favorable. This fact is demonstrated by the aggressive structuring of regional economic development and planning organizations, supported by county and state government. Further, the Commonwealth of Pennsylvania has designated over 836 acres of land to participate in the Keystone Opportunity Zone (KOZ) program in South Central Pennsylvania. Current KOZ sites in South Central Pennsylvania are located in Dauphin, Franklin, Lebanon, and York Counties, and offer businesses significant incentive packages to locate in "underdeveloped" areas, including credits, WALTERS APPRAISAL SERVICES, INC. File #08-1446 20 REGIONAL ANALYSIS, Continued waivers, and comprehensive deductions. Total taxes on economic activity in Keystone Opportunity Zones are reduced to almost zero, and tax abatements remain in effect through 2013. In addition, several key components of Pennsylvania's Economic Stimulus Package were recently approved (4/2/2004), including "Business on Our Sites", "Building PA", "New PA Venture Guarantee Program", "New PA Venture Capital Investment Program", and "First Industries Fund". These programs are intended to attract and stimulate new business and commercial development throughout the commonwealth. Other governmental factors influencing growth in the area include zoning, public water and sewer availability, and environmental limitations. There are no atypical factors enhancing or limiting growth in the area. Environmental Conditions Both natural and manmade environmental forces contribute to the nature and desirability of an area. The Appalachian Mountains surround Harrisburg to the north and south and the Susquehanna River flows through the heart of the area, separating this MSA into two regions, the East and West shores. The East Shore encompasses Dauphin and Lebanon counties. The West Shore encompasses Cumberland and Perry counties. Several smaller waterways flow into the Susquehanna River, including the Yellow Breeches and Conodoguinet Creeks. These geographical features allow Harrisburg area residents to take advantage of many outdoor recreational activities. The topography in the Harrisburg area is gently rolling and is suitable for many types of development. The South Central Pennsylvania region contains an excellent primary highway system. Interstates 81, 83, and 76 all serve the area and run through both Cumberland and Dauphin counties. These highways provide links to other primary and secondary markets in Pennsylvania and other markets in the northeast. Other important highways serving the area include Routes 322, 11, 15 and 30. The highway system serving South Central Pennsylvania is important because the region is within an average of 250 miles of 25 % of the nation's population. From the strength of the highway system, South Central Pennsylvania has become a center for motor carrier truck terminals, with approximately thirty terminals and seventy-five carriers serving the area. Numerous large trucking companies (Roadway, Carolina Freight, Shaffer Trucking, Sunflower Carriers, American Eagle Line, ABF Overnight)-and national distributors (Cowes Stores, Target, Starbucks, Sherwin Williams, Pella Corporation, Sears, Gerber Baby Foods, Ross Stores, Goodyear Tire, Whirlpool, Corning Glass, Hershey Foods, Staples, OfficeMax, Quaker Foods, Nabisco, SC Johnson Wax, Ames Tru-Temper, Ingram Micro) operate facilities in Sauth Central PA. WALTERS APPRAISAL SERVICES, INC. Fite #OS-1446 21 REGIONAL ANALYSIS, Continued INTERSTATES CONNECTOR ROADS I-76 PA Turnpike (Major East to West connector through out PA) I-83 North-South connector to I-81, I-78 North, I-70, I-95, and 695 South I-78 East from Harrisburg connector to Route 22 I-81 North-South connector to I-80, I-78, I-84 North PROVIDES ACCESS TO Philadelphia, NJ, Ohio Pittsburgh York, Washington DC, New York, Baltimore Allentown, New York Wilkes-Barre/Scranton, New York, Knoxville TN Distance to major cities from Harrisburg, Pennsylvania: Baltimore, MD ...................... 76 (1.5 Hours) Boston, MA ...................... . 425 (7.7 Hours) Charlotte, NC .................... . 482 (9.7 Hours) Chicago, IL ...................... 665 (13.5 Hours} Indianapolis, IN ................. 540 (10.8 Hours) Lancaster ......................... .... 40 (.5 Hours) New York, NY .................. . 200 (4.6 Hours) Newark, NJ ................... 162 (3.2 Hours) Norfolk, VA .................. 327 (5.9 Hours) Philadelphia, PA ............. 100 (2.0 Hours) Pittsburgh, PA ................ 200 (4.0 Hours) Washington, DC ............. 105 (1.9 Hours) Wilmington, DE ............. . 90 (1.6 Hours) York ........................... ...25 (.5 Hours) The area is also served by the Harrisburg International Airport, which has undergone major improvements in recent years and is expected to undergo more changes in the near future. A new terminal building and parking garage opened in 2007. Additional improvements are expected in the near future. The following is a summary of what the Susquehanna Area Regional Airport Authority is expecting to happen by the year 2018. The year 2018 demand is based on the high growth forecast for purposes of illustrating development beyond 20 years. 1999 2018 Number of Passengers 1,500,000 3,500,000 Jet Aircraft Gates 6 25 Aircraft Landings & Takeoffs 74,550 112,100 Terminal Building Size 136,000 Sq. Ft. 250,000 Sq. Ft. Public Parking Spaces 3,780 6,400 Garage Parking Spaces 0 3,000 Cargo Building Size 100,837 Sq. Ft. 340,000 Sq. Ft. Air Cargo (In Tons) 58,089 246,000 On-airport Hotel 0 1 The airport serves eight major carriers including USAir, United, Continental, Delta, American, and Northwest. The airport also serves Air Ontario, which provides flights to Toronto, and it also serves Air Tran, which provides direct flights to Orlando, Florida. Six major cities are within aone-hour WALTERS APPRAISAL SERVICES, INC. File #OS-1446 22 REGIONAL ANALYSIS, Continued flight from Harrisburg International Airport. These cities include Pittsburgh, Philadelphia, New York, Boston, Baltimore, and Washington, D.C. Harrisburg International Airport also serves Europe, Central America, and parts of the Caribbean. Two airports; Capital City Airport and Carlisle Airport serve general aviation. Rail service is provided by Amtrak on ConRail's mainline (formerly Penn Central and Reading Companies}. The rail terminal is in downtown Harrisburg. Conrail through the Middletown and Hummelstown Railroad provides freight Rail. The routes and assets of Conrail Incorporated have been divided between CSX Corp. and Norfolk Southern Corp. This split gives companies a choice, which will inevitably drive prices down. Ten colleges, five business schools, and three vocational-technical schools provide excellent educational opportunities in the region. Higher education is offered through the Harrisburg Area Community College, the University Center at Harrisburg, Pennsylvania State University at Harrisburg and Dickinson College. Millersville State University, Shippensburg State University, Susquehanna University, Franklin and Marshall College, and York College, among others, are all within aone-hour drive of Harrisburg. There are also four public library systems, including the State Library of Pennsylvania. Medical care is offered through seven hospitals, including the Milton S. Hershey Medical Center and Medical School, Harrisburg Hospital, and the Holy Spirit Hospital. The Milton S. Medical Center of Penn State University is a leading institution in the nation and is a teaching hospital. The Milton S. Hershey Medical Center has national prominence in the areas of medical research and heart transplants. The center provides the area with trauma and helicopter transport services. County Highlights8: Adams County: While Adams County's economy is based on agriculture and tourism, manufacturing is the largest employment sector, with 4Q% of total nonagricultural employment. Major products manufactured in Adams County include: electronic components, transformers, outdoor lighting, furniture, corrugated containers, elevators and escalators, printing, castings, processed poultry products, processed fruit products, animal feed, paperboard cylinders, shoes, and farm equipment. The service industry accounts for an ever-increasing employment base for the county, now absorbing more than 22 % of nonagricultural employment. Scattered throughout Adams County are numerous small towns and rural communities. $ Source: Much of the information in the "County Highlights" section is courtesy of Team Pennsylvania's website, www.teampa.com. WALTERS APPRAISAL SERVICES, INC. FYIe #{OS-1446 23 REGIONAL ANALYSIS, Continued Major businesses located in Adams County include the corporate headquarters and multi-plant operations of Krouse Foods Cooperative ("Lucky Leaf", "Musselmans" and "Apple Time"). Also, plant locations for Schindler Elevators, Inland Container, Wampler-Longacre, Quebecor, Dal-Tile Corporation, and Aristokraft. Adams County is a short distance from the metropolitan centers of Washington, D.C., Baltimore, and Philadelphia, as well as within one day driving of 1/3 of the U.S. population. Gettysburg, the county seat, is nationally and internationally known for its historic significance during the American Civil War, attracting over 1.5 million visitors annually and producing in excess of $55 million in revenues for the County. The countryside surrounding Gettysburg encompasses some of the East Coast's most productive agricultural areas. Of special importance is the famous "Adams County Fruit Belt", where orchards extend for miles along the eastern slopes of the South Mountain Range. Agricultural products produce revenues in excess of $130 million each year, ranking agriculture as the premiere industry of Adams County. The presence of Gettysburg College and the Lutheran Theological Seminary make Adams County not only a center for agricultural, tourism and manufacturing, but for education and culture as well. Cumberland County: Situated between Blue Mountain and South Mountain, Cumberland County has always been an active crossroads. With excellent access to Interstates 81 & 83, and the Pennsylvania Turnpike, Cumberland County is one of the most sought-after distribution areas in the country. According to the 200 US Census, the county's 11 boroughs and 22 townships are home to 213, 674 people, making Cumberland County the 16th most populous county in Pennsylvania. The county's 9 school districts, 6 colleges and universities, and 9 public libraries offer educational opportunities to residents of all ages. Three general acute care hospitals provide premium healthcare. Plus, three state parks-Colonel Denning, Kings Gap, and Pine Grove-are sources of year-round recreation, including the opportunity to explore the nationally recognized Appalachian and Tuscarora Trails. The county's agricultural base shifted during the 20th century to accommodate such cornerstone manufacturers as Carlisle Tire and Rubber-now Carlisle Tire and Wheel, Masland Carpets-now Lear Industries, and Beistle Paper Company. Now, in the 21st century, the county economy has shifted again, this time toward service; in 2001, 38% of all county businesses qualified as service industries. This ability to accommodate changing trends is reflected in the county's unemployment rate which consistently falls below 4%. Cumberland County has also recently created, and re-configured some key county level economic development and planning offices. Cumberland County Planning Commission was created in 2002, and is intended to coordinate the wide-ranging efforts of the county in areas from land use to economic WALTERS APPRAISAL SERVICES, INC. File ~f08-1446 24 REGIONAL ANALYSIS, Continued development. (Cumberland County planning activities formerly fell under the auspices of the Tri- Country Planning Commission, which included Cumberland, Dauphin, and Perry Counties.) The Cumberland County Office of Economic Development was re-configured by county commissioners in 2003, and given a new director. The Office of Economic Development has been given increased priority by the current county commissioners, who have stated publicly that economic development is a central focus of the current administration. Dauphin County: Dauphin County is the home of the State Capital of the Commonwealth of Pennsylvania-Harrisburg. Formerly known as an industrial and manufacturing center, Dauphin County is swiftly emerging as the 5th fastest growing high-tech center in the nation. The county's central location provides an advantage for excellent market access for business. Dauphin County serves as a major distribution hub for many companies servicing the east coast's top metropolitan markets. Dauphin County is the home of Tyco Electronics/AMP, Hershey Chocolate USA and Hershey Amusement Park. Dauphin County enjoys a deep cross section of private industry, including distribution and warehousing, electrical machinery and equipment, printing and publishing, and the emerging industries of biomedicine and health. Over 25,000 people work in downtown Harrisburg, with many in the private sector, in over 9 million square feet of office space. Dauphin County is the largest workforce destination in region, drawing the greatest number of workers from outside counties than any other county in South Central Pennsylvania. Harrisburg International Airport is 3rd busiest in PA, annually used by over 1.2 million passengers with an 8 % annual growth rate in cargo, and The Rutherford Intermodal Terminus is one of the most technologically advanced in the US with over 500,000 lifts annually. Dauphin County enjoys a significant undergraduate presence with Harrisburg Area Community College and Penn State Harrisburg offering some of the best bargains in bachelors degree programs. Graduate programs are available at Temple, Duquesne and Widener School of Law satellite, as well as at Penn State Harrisburg Further, Dauphin County is one of the top three counties in total tourism revenue in the state, with over $1.5 billion annually. WALTERS APPRAISAL SERVICES, INC. File #OS-1446 25 REGIONAL ANALYSIS, Continued Franklin County: Franklin County, located in South Central Pennsylvania, lies on the edge of the Washington-Baltimore metropolitan area, and the county's recent growth and development have been influenced by the expansion of the metropolitan area. Since 1970, Franklin County has experienced a moderate growth rate of 28°10--100,833 persons in 1970 to 129, 300 in 2000. The rate of growth equals or exceeds that of regional, state and national population growth for the same period. The county's distinctive character and steady population growth are the result of its affordable rural living environment coupled with its proximity to the Washington-Baltimore metropolitan area. Franklin County relies on its "residential character" to support the local economy with the service sector, retail trade, manufacturing and construction as the primary economic contributors and agriculture, finance and wholesale trade as secondary contributors. Ready access to Interstate 81 Major distribution facilities in Franklin County include those operated by Target, and Food Lion. However, the number of commuters has been increasing over the past few years. Unemployment rates for Franklin County have been below those of the Commonwealth for the last ten years, with the exception of 1984. A recent economic study shows Franklin County to be one of the most affordable counties in which to live in the Commonwealth. Franklin County ranks 16th out of 67 counties with a cost of living index of 96.6--the state average is 102.9. County per-capita income is in the top half of all Pennsylvania counties. Additional factors, such as low property taxes and higher dollar buying power, contribute to the affordability of living in Franklin County. The county's proximity to the Washington-Baltimore metropolitan area and its affordable living environment will continue to make Franklin County an attractive area in which to reside. Lancaster County: Lancaster County, located in southeastern Pennsylvania, has some of the most fertile farmland in the world. The Susquehanna River borders the county to the west, Philadelphia is 70 miles east and Harrisburg is 35 miles to the northwest. Lancaster County has one of the strongest economies in the state. No single sector dominates the county economy. Agriculture, one sector of the local economy, generated direct farm income in excess of $800 million in 1980. Lancaster County leads all other counties in the nation in production from non- irrigated land. Another sector of the economy is business-industry. There are over 800 industrial establishments in the county, including several multi-nationals such as Armstrong World Industries. Tourism, the third major factor in the local economy, generates approximately $500 million in revenue per year. The county attracts over five million tourists each year. The county is the location for three major institutions of higher education: Millersville University, Elizabethtown College, and Franklin and Marshall College. From 1960 to 1989, population of the county increased by 45 percent, and over 92,500 acres of farmland were lost to development. This is an average of 2,805 acres of farmland lost per year or approximately 8 acres per day. Lancaster WALTERS APPRAISAL SERVICES, INC. File #08-1446 26 REGIONAL ANALYSIS, Continued County has 60 municipalities, all of which have adopted zoning regulations. The County Planning Commission is working with the municipalities to focus growth around boroughs and the city and to promote the preservation of prime farmland and natural resource areas. Lebanon County: Lebanon County's economy has revolved around its fertile farmlands. Today, approximately 45 percent of the county's land area is utilized for agricultural uses and 3.4 percent of the population lists agriculture as their form of employment. Agricultural land usage has decreased by over 12,000 acres between 1987 and 1992. The county's close proximity to the urbanized areas of Harrisburg/Hershey, Lancaster, Reading and Philadelphia makes it an attractive location for developers and potential buyers. The rural nature of much of the county, coupled with reasonable commuting distances, attracts workers from surrounding urban areas. Currently 30% of the county's residents travel to work outside the county. This trend is consistent with the growth and development occurring throughout the south central portions of the Commonwealth. The city of Lebanon is the population center of the Lebanon Valley. The city, with its urbanized area, has also developed into the nucleus of the county's public utility system and lies directly on the main east-west thoroughfare, U.S. Route 422. Nearly two-thirds of the county's residents live within three miles of Route 422. Lebanon County has a wide assortment of recreation lands. Major state recreation facilities in the county include the 3,445 acre Swatara Gap State Park, currently under development, and the 200-acre Memorial Lake State Park. There are over 25,000 acres of state game lands (including a portion of the 5,134 acre Middle Creek Waterfowl Project), six public golf courses, the 153-acre multipurpose Stover's Dam Park, and numerous municipal parks. Much of the 11,500-acre Indiantown Gap military reservation, commonly known as The Gap, is open to the public on a limited basis. Commercial and industrial growth, which had been occurring at a moderate rate, has recently begun to accelerate. In addition to the Downtown Lebanon area, the county has two enclosed malls and several smaller shopping plazas. Although industrial development continues to occur on industrially zoned land throughout the county, the Lebanon County Economic Development Corporation undertook the development of a major business park south of the City of Lebanon in 1990. This 165-acre site has attracted a number of quality industries and businesses to the Lebanon Valley. York County: York County is located in the South Central region of Pennsylvania and contains over 900 square miles of terrain ranging from relatively flat stream valley areas that gently roll to steep uplands. It is bordered on the east by the Susquehanna River. WALTERS APPRAISAL SERVICES, INC. File #08-1446 27 REGIONAL ANALYSIS, Continued Units of local government in York County include the City of York, 36 boroughs and 35 townships. There are 16 school districts within the county. York County in recent decades has been an area of dynamic growth. Population has increased from 238,336 in 1960 to 339,574 in 1990. The principal development area in the County is focused on the City of York and adjacent municipalities and accounts for nearly half of the population. An equally dynamic but smaller development area is centered on the Borough of Hanover. A major contributing factor to York County's strong economic growth is the highways which include U.S. Route 30, U.S. Route 15, Interstate 83, and the Pennsylvania Turnpike. Manufacturing is an important activity in York County, employing 65,279 persons in 1990. Annual wages and salaries in that year were $1,564.8 million. In terms of value added by manufacture, York County ranks as the sixth most important county in the state. Some of York County's better-known manufacturing firms include Starbuck's Coffee, York International, Harley-Davidson, York Barbell and Pfaltzgraff Pottery. With such rich diversity in manufacturing, York has recently seized the brand of "Factory Tour Capital of the World". Agriculture is another mainstay in York County. In terms of the number of farms (2,020 in 1993), the County ranks second in the state. Cash receipts from agriculture in 1992 were $154.3 million, giving the County asixth-place ranking. York County has a growing tourist industry, based in part on its historical traditions. Over forty buildings in York City and York County are included on the National Register of Historic Places. York County is a prime location in South Central Pennsylvania. Interstate 83 offers easy access to Route 30, Interstate 95, and Interstate 76 (Pennsylvania Turnpike). Philadelphia and Washington, D.C. are within atwo-hour drive; Baltimore, the second largest East Coast port, is a 45-minute drive; Harrisburg, the state capital, is a 30-minute drive. Two break-bulk terminals and 40 motor freight carriers help make York County a vital hub for motor and trucking traffic. Emons Transportation, the local short-line railroad, with its connections to both CSX and Norfolk Southern railways complete the transportation network in the area. Perry County: Perry County is located on the west bank of the Susquehanna River, extends westward, and is bound on the north by the Tuscarora Mountains and on the south by the Blue Mountains. The Juniata Valley crosses the eastern tributaries, including Buffalo and Sherman Creeks, before it flows into the Susquehanna at Duncannon. Perry County is considered part of the south central region of the Commonwealth. The county ranks 41st in the area in the state. Sixty-two percent, or 343 of its 551 square miles, is forested land, while the remaining 157 square miles is agricultural. Perry County consists of 9 boroughs and 21 townships. It is considered a rural county and had a 1990 population of 41,172, which ranks as the 50th most populous county in the state. Perry County does not have an urban center toward which the population gravitates. Perry County is expected to continue to be a rural county well into the next century. WALTERS APPRAISAL SERVICES, INC. File #08-1446 28 REGIONAL ANALYSIS, Continued Conclusion South Central Pennsylvania is expected to grow because of the generally favorable social, economic, governmental, and environmental forces of the area. These forces will continue to contribute to the demand for real estate. There is a good balance of land uses, a stable economic base, a good supply of housing and labor, and swell-developed transportation system. These factors contribute to the good reputation of the area, making the region attractive for commercial, industrial, and residential development. These factors will be significant for the long-term growth and development of the area. Summary of Strengths and Weaknesses in Region's Economic Foundations9 Human Resources Signs of Strengths: Strong work ethic; above-average concentration of higher-skilled precision production and repair workers. Weakness: Declines in overall worker availability and over supply of skilled and unskilled workers, including more out-migration of skilled workers since 1980 and fewer high skill, high paying and more lower-skilled, lower-paying jobs than national and Pennsylvania average; concerns about quality of "next generation" of precision productions and repair workers; local employers report critical skills deficiencies in work force and large training needs; above-average pool of unskilled, economically disadvantaged people. Technology - R&D Signs of Strengths: Availability of technology-modernization assistance; strong biomedical R&D capacity at Hershey Medical Center. Weakness: Limited basic R&D activity; limited corporate applied R&D activities. Capital Signs of Strengths: Competitive commercial lending sector; strong savings ethic; strong growth in deposits in region's banks 1985-1990; proximity to public and private venture-capital sources and other financial assistance. Weakness: Eroding commercial bank commitment to business lending; liberalized interstate banking regulations could reduce lower-margin business lending; shortage of start-up capital and minimal venture-capital investments Summary is from Economic Challenges, Opportunities, and Strategies for Southceraral Pennsylvania, Final Report -October 1991 by SRI International: Menlo Park, CA. WALTERS APPRAISAL SERVICES, INC. File #08-1446 29 REGIONAL ANALYSIS, Continued Infrastructure Signs of Strengths: Improvements in telecommunications, air-transportation, waste-treatment infrastructure 1980 - 1990. Weakness: Growing traffic congestion; declining land availability for development; lack of regional multi- year capital-budget-planning process; lack of coordinated land-use/growth-management policy. Tax and Regulatory Climate Signs of Strengths: Track record of fiscal stability and predictability; local tax burdens equal to (or better than) competition. Weakness: Lack of balance among tax revenue sources; evidence of regressive tax burdens; complicated regulatory environment, with multiple municipalities; local regulatory practices cited as one of region's biggest weaknesses. Quality of Life Signs of Strengths: Recreational opportunities; physical setting; low crime rate; quality of life is overwhelmingly most important economic development asset, with major 1980 - 1990 improvements noted in recreational/cultural amenities, minor improvements in environmental quality. Weakness: Unevenness of quality of life across region (i.e., pockets of distress); growing concerns about declining quality of life due to inadequate land-use planning and its consequences (e.g., traffic congestion, sprawl). WALTERS APPRAISAL SERVICES, INC. File #08-1446 30 Regional Map WALTERS APPRAISAL SERVICES, INC. File #08-1446 31 Area Map WALTERS APPRAISAL SERVICES, INC. ale #OS-1446 32 Cumberland County Health Profile WALTERS APPRAISAL SERVICES, INC. File #08-1446 33 Cumberland County Health Profile 2007 • DEMOGRAPHIC DATA Population Change 2000 to 2005 4.4 Median Age of the Population (2005) 38.1 Population Aged 65 and Over (2005) 14.5 Population Urban (2000) 74.9 Estimated Population by Age and Sex (2005) Population with Income Below Poverty Level (2003) Per Capita Personal Income (2005) Labor Force Unemployed (Annual Average 2006) Population Eligible for Medical Assistance (12!06) 6.2 $36,393 3.5 7.1 Age Total Male Female Age Total Male Female AIIAges 223,089 109,144 113,945 35-44 31,664 16,178 15,486 UnderS 11,962 6,022 5,940 45-54 32,329 16,073 16,256 5-14 25,988 13,026 12,962 55-64 24,910 12,068 12,842 15-24 38,332 18,982 19,350 65-74 16,834 7,561 9,273 25-34 25,459 13,670 11,789 75+ 15,611 5,564 10,047 • NATALITY and R, Crude Birth Rate Per 1,000 Population Average Annual General Fertility Rate (2003-2005) SPORTED PREGNANCIES" (2005 Residents) °~ Low Birth Weight 8.4 10.5 % Receiving No Prenatal Care in First Trimester 19.8 50.1 % Births to Mothers Under 18 1.8 Outcome Outcome Reported Live Fetal Induced Reported Live Fetal Induced Age of Woman Pregnancies Births Deaths Abortions Age of Woman Pregnancies Births Deaths Abortions ~ All Ages 2,702 2,336 17 349 1 B-19 136 97 1 40 Under l5 ~ 4 3 0 i 20-29 1,380 1,152 it 217 15-i7 44 40 0 4 30 and Over 1,135 1,043 5 87 Age of Woman Birth Rate Reported Pregnancy Rate Age of Woman Birth Rate Reported Pregnancy Rate 15-44 50.1 " 58.0 18-19 18.1 25,7 Under 15 0.4 0.6 20-29 60.1 96.0 15-17 7.6 _ 8.4 30-49 34.8 37.8 "Live births, fetal deaths of 16+ weeks gestation, and induced abortions performed in-state. 'AsianlPacific Islander "General fertility rate Notes: All ages includes any unknown ages. All rates per 1,000. • MORBIDITY (Residents) Reported Incidence and Average Annual Rate (per 100,000) for Selected Notifiable Diseases (2003-200 Total Rate I Total Rate Total Rate , AIDS 36 5.4 Chlamydia 1,128 169.8 Lyme Disease 145 21.8 Syphilis 0 - Giardiasis i 39 5.9 Rabies (Animals) 51 NIA Measles 0 - Gonorrhea 267 40.2 Salmonetlosis 65 9.8 Tuberculosis 18 2.7 Hepatitis: Type A 6 0.9 Shigellosis 4 0.6 Campylobacteriosis 75 11.3 I Hepatitis: Type B g 1.4 Cumberland County • CANCER INCIDENCE (2002-2004 Residents) _ Invasive Cancer Incidence and Average Annual Age-Adjusted Rates* for Major Sites by Sex PAGE 2 Male Female I Male Female Total Rate Total Rate Total Rate Total Rate All Sites 1,679 512.0 1,606 384.8 Urinary Bladder 148 47.5 52 11.5 Prostate 436 128.1 - - Non-Hodgkin Lymphomas 69 22.0 74 17.5 Female Breast - - 482 117.8 ~ Corpus and Uterus, NOS - - 100 23.7 Bronchus and Lung 243 73.1 183 41.4 Kidney and Renal Pelvis 68 21.3 46 11.3 Colon and Rectum 183 56.7 163 37.0 I Melanoma of the Skin 101 31.4 79 20.9 `Per 100.000 2000 U.S. standard million oopulation. Aae-adjusted rates arP ~ntv r:mm~arahte tf rhP ~arr,a ~r~„rfa~~f rt,~e;~„ .,~~„~~r~,,., ,.,~~ „wa ~„ tie ,..,~...,~., ,,..., Note: All in situ cases, except for urinary bladder, are excluded. • MORTALITY (2005 Residents) Number of Resident Deaths 2,070 Crude Death Rate per 1,000 9.3 Age-Adjusted Death Rate per 1,000 8.1 All Races Number of Infant Deaths (< 1 Year of Age) 20 Infant Death Rate per 1,000 Live Births g.g Average Annual Infant Death Rate (2003-2005) 6.8 Selected Major Causes of Death, Number and Average Annual Age-Adjusted Death Rate* (2003-2005) Cause Total Rate ause Total Rate Diseases of Heart 1,814 235.9 Diabetes Mellitus 113 14.9 Cancer 1,312 169.7 Influenza/Pneumonia 173 22.5 Stroke 423 55.0 Nephritis/Nephrosis 165 21.4 C.L. R. D." 366 47.2 Septicemia 150 19.5 Accidents 210 29.6 Alzheimer's Disease 159 20.7 Leading Causes of t Under 5 Years of Age Perinatal Conditions 10 Birth Defects 5 TOTAL 21 leath, Number by Age 5-24 Years of Age Accidents 19 Suicide 2 TOTAL 25 ~ Group (2005) ' Per 100,000 2000 U.S. standard million population. Age-adjusted rates are only comparable if the same standard million population was used in the calculation. " Chronic Lower Respiratory Disease 25-44 Years of Age 45-64 Years of Age Accidents 18 Cancer 9g Cancer 11 Diseases of Heart 66 Diseases of Heart 10 Accidents 11 Suicide 8 Stroke 11 Suicide 10 TOTAL 64 TOTAL 275 Note: • ADULT BEHAVIORAL HEALTH RISK FACTORS (2004-2006) [Includes: Cumberland and Perry Counties] 65 Years and Older ,Diseases of Heart 546 Cancer 318 Stroke 107 C.L.R.D." 104 Alzheimer's Disease 60 TOTAL 1,685 Total includes all other causes. Risk Factors Percent (CI) Risk Factors Percent (CI) Fair or Poor General Health: 13 (10 - 18) Ever Told They Have Diabetes: 9 (7 - 12) Obese: 30 (25 - 36) Currently Has Asthma: 8 (5 - 12) Overweight (includes obese): 67 (61 - 72) Curcent Smoker: 24 (19 - 29) No Health Insurance: 11 (7 - 17) Ever Test for HIV: 31 (25 - 38) Had Flu Shot in Past Year (50 & older): 62 (48 - 74) Heavy Drinking': 6 (3 - 10j Heavy annKrng is aenneo as nawng an average or grearer rnan z onnxs per tlay for men antl greater than 1 drink per day for women. Notes: Data are based on 2004-2006 annual sample surveys of Pennsylvania adults. CI= 95% Confidence Interval. Additional state or county/regional data are available at www.health,state.oa.us/slats/, Cumberland County • HEALTH CARE INSURANCE BY SELECTED PROGRAMIINSURf~ (12106) -- CHIP Enrollment adultl3asic Enrollment HMO Enrollment Rate ` 2,169 468 63,487 28.1 per 1,000 population Notes: CHIP is Pennsylvania's program to provide health insurance to the eligible uninsured children (ages 18 8 under). adultBasic provides healthcare coverage to the eligible uninsured adult population (age 19-64j. CHIP enrollment may also be included in the HMO (health maintenance organization) enrollment figures. For more information on CHIP or adultBasic, go to the Pennsylvania Insurance Department website at www.ins.sfate.oa.us . For additional HMO information, go to the Pennsylvania Department of Health website at www.health.stafe.oa.us (Managed Care). • HOSPITALS (7/04-6105) PAGE 3 Total General Acute Care Psychiatric Rehabilitation Federal Other 5 2 0 1 0 2 General Hospitals Beds Set Up and Staffed 435 Beds per 1,000 Population 1.9 Average Inpatient Occupancy Rate 68.0 Admissions 21,997 I Admissions per 1,000 Population 98.6 Average Semi-Private Daily Room Rate $553 • NURSING HOMES (2005) Total Number Certified-Medicare Certified-Medicaid Nursing Homes 17 17 16 Licensed/Approved Beds 2,022 2,022 2,000 Total LicensedlApproved Beds per 1,000 Population Age 65 and Older 62.3 Average Occupancy Rate 89.0 Average Length of Stay (Number of Days) 209.4 • DRUG and ALCOHOL TREATMENT Admission by County of Residence (7/05-6/06) Median Semi-Private Daily Room Rate $194 Admissions to Number of Client Primary Diagnosis Percent Admitted State-Supported Facilities Clients Admitted Drug Abuse Alcohol Abuse Other` Onfy Once During 7105-6106 1,019 761 375 379 7 75.6 Includes family members receiving counseling. Treatment Facilities (as of 11106) Types of Service Provided All Licensed Facilities Inpatient Non-Hospital 0 Partial Hospitalization 4 18 Inpatient Hospital 1 Outpatient 18 Correctionallnstitution 0 Note: Each licensed facility may provide more than one type of service. • HOME HEALTH AGENCIES (2005) Agencies Serving County 19 I Total Residents Served 3,807 Agencies Located in County 5 ~ Rate per 100 1.7 Note: Rate calculated using population from U. S. Census Cumberland County PAGE 4 • SCHOOL V10LENCE and-WEAPONS/TOBACCO POSSESSION (2005=06•School Year) - # of Schools 52 I Offenders 538 Incidents Involving Assignments to Reporting ~ Law Enforcement Alternative Education Incidents 466 i Arrests 256 358 59 Notes: Data collected in response to Pennsylvania's Safe Schools Act. County-specific statistics are limited to data reported by public schools districts. For additional information and data, go to the Pennsylvania Department of Education website at www.safeschools.state.oa.us. • SCHOOL HEALTH (2005-0& School Year: Preliminary) i Number Percent Average Daily Enrollment Full Time CSNs: ~ 30 Students with Asthma: 3,237 9.99 32,403 Part Time CSNs: ` 2 I Students with Diabetes: 88 0.27 'Certified School Nurse For more school health statistics, go to www.heatth.state.oa.us (Click on the School Health link under Community Health Systems). Note: School districts that cross county lines are included in the county where the administrative office is located. Pennsylvania Health Statistics on the Internet Visit the Bureau of Health Statistics and Research web pages at; www. health.state.pa. us/stafs/ Numerous health statistics and reports are included on this website, such as: EpiQMS --This interactive web tool allows users to create customized data tables, charts, maps, assessments and profiles of birth, death, infant death, teen pregnancy, cancer, behavioral risk, communicable disease, sexually transmitted disease and population data at the state, county, or regional levels. Pennsylvania Vital Statistics -The Department's official annual report of birth, deaths, induced abortions, and reported pregnancies. Healtfty People 2010 -State and county statistics for national public health objectives. Cancer Incidence and Mortality in Pennsylvania -- The Department's official annual report of cancer statistics. Minority Health Disparities in Pennsylvania Directories and Data Reports on Nursing Homes, Hospitals, and Ambulatory Surgery Centers Behavioral Health Risks of Pennsylvania Adults (statewide and counfylregfonal data) E-Guide to Health Statistics Community Health Assessmenf Resources Technical Assistance: How to Collect, Calculate, Analyre, and Present Health Statfstics And many other statistical tables and reports. Note: To subscribe to the Department's Health Statistics list service (Health e-slats), go to www.health.state.oa.us and click on "Subscribe" in the right top corner. BUREAU of HEALTH STATISTICS and RESEARCH PENNSYLVANIA DEPARTMENT of HEALTH D -`t t V1 555 WALNUT STREET, 6th FLOOR HARRISBURG, PA 17101-1914 ~,~~ Telephone 717-783-2548 FAX 717-772-3258 Edaaid f. Rendr/1. f nx+.nnr PENNSYLVANIA DEPARTMENT OF HEALTH Bureau of Health Statistics and Research Cumberland County Demographics WALTERS APPRAISAL SERVICES, INC. ale #08-1446 34 Page 1 of 1 Poauiation Change 1990-2000 Coup or Munici all 2000 Po ulation 1990 Po ulation Population Chan a Percent Chan e Pennsylvania 12 281 054 11 881 643 399 411 3.4 Cumberland County 213 674 195 257 18 417 9.4 Camp Hill borough 7 636 7 831 - 195 - 2.5 Carlisle borough 17 970 18 419 - 449 - 2.4 Cooke township 117 90 27 30.0 Dickinson township 4 702 3 870 832 21.5 East Pennsboro township 18 254 16 588 1 666 10.0 Hampden township 24 135 20 384 3 751 18.4 Hopewell township 2 096 1 913 183 9.6 Lemoyne borough 3 995 3 959 36 0.9 Lower Allen township 17 437 15 254 2 183 14.3 Lower Frankford township 1 823 1 491 332 22.3 Lower Mifflin township 1 620 1 700 - 80 - 4.7 Mechanicsburg borough 9 042 9 452 - 410 - 4.3 Middlesex township 6 669 5 780 889 15.4 Monroe township 5 530 5 468 62 1.1 Mount Holly Springs borough 1 925 1 925 0 0.0 Newburg borough 372 312 60 19.2 New Cumberland borough 7 349 7 665 - 316 - 4.1 Newvilie borough 1 367 1 349 18 1.3 North Middleton township 10 197 9 833 364 3.7 North Newton township 2 169 1 779 390 21.9 Penn township 2 807 2 425 382 15.8 Shippensburg borough 4 467 4 328 139 3.2 Shippensburg township 4 504 4 606 - 102 - 2.2 Shiremanstown borough 1 521 1 567 - 46 - 2.9 Silver Spring township 10 592 8 369 2 223 26.6 Southampton township 4 787 3 552 1 235 34.8 South Middleton township 12 939 10 340 2 599 25.1 South Newton township 1 290 1 153 137 11.9 Upper Allen township 15 338 13 347 1 991 14.9 Upper Frankford township 1 807 1 703 104 6.1 Upper Mifflin township 1 347 1 013 334 33.0 West Pennsboro township 5 263 4 945 318 6.4 Wormle sbur boron h 2 607 2 847 - 240 - 8.4 Source: U.S. Census Bureau Prepared by: Pennsylvania State Data Center ~,++..•ir.,~~,~,. hha ncn P~„/naacic/cen.~us 2000/con profiles/Pop041.html 1/29/2008 Neighborhood Map WALTERS APPRAISAL SERVICES, INC. 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File #08-1446 36 i -. ~ ,~. .;~} "q- ~iy, ~~ V,~f { t ¢.' ~ E ' M )P h F ~ x + _ ~ ~ ~ 1 M ~ 1 4-~~-"~ M ~..~ ~' i 4~~( .:..a ^ • a w,~i ~~~~a~3r ~x, } ~ . 1 i '~"~~.ti S - ~" '"K ~. 6 } .. 5 S '~` .,: x t~ ~ ~µ ~r .s~ ~ u~ i *~ .a'+t'*~ s t ~H ~ ~ ~.` ~ 3 ~ g~<' 7i ~ , 4 ~ ~ t TIC `~~-- } ~ . _, c. ~.. ~ ~` ~ t ~~ i ~' £ V ,y Y ~ , W i _...d~ K n i._ ~.,?~e~e E Q ~` 1 ~ ~~' M ! .~ 'R ~Y r £ (V g ry~ ~ ~ _ 233,. ` ~ r ~ ~. ;~ { ± .t ~•. "~ R`3. 1$.. i_ ~ ,~4J~'Fti. ~ aN'P.' Flood Map WALTERS APPRAISAL SERVICES, INC. File #08-1446 37 Page 1 of 1 ~.~ +~r~w.FnUe1'flpExi.corn ~ i-$4~-252-fi£33 Prepared far: Walters Appraisal Services 4949 Carlisle Pike Mechanicsburg, PA 17050-3025 http:/lfloodmap3.alamode.com:8080/F1oodScapeImage?customerNum=1 &caption=Walter... 2/15/2008 © 1999.2008 SouroeProse andlor FloodSounce Corporations. PII rights reserved. Paterrts 8,831,328 and 6,678,815. Other pateMS pending. For Info: info QFloodsouroe.com. ZONING ANALYSIS The subject property is located in the "C-L" Commercial Limited District. Uses that aze legally permissible at the subject site are lazgely controlled by the zoning district and building codes. Private restrictions, deed restrictions, historic district controls, and environmental regulations also affect the possible use of a site. Based on our understanding of the subject property zone there aze several perntted uses. There aze no known private restrictions, building code limitations, or environmental controls that would eliminate the uses permitted by the zoning. Purpose: The purpose of the "C-L", Commercial-Limited District is to provide appropriate locations for office, limited commercial and residential usage where a proliferation of unrestricted commercial usage would be undesirable. The regulations which apply within the district are designed to encourage the formation and continuation of a quite, compatible and un-congested environment for business and professional offices intermingle harmoniously with existing residences and certain other commercial uses; to discourage any encroachments by unrestricted commercial or industrial establishments, or other uses which might adversely affect the specialized office, limited commercial and residential character of the district; to reduce existing problems of traffic congestion; and to encourage orderly, well-planned development within the district. Permitted Uses: A buildvng may be erected or used and a lot may be used or occupied for any of the following purposes and no other: A. Residential use. B. Child day care center, private nursery or kindergarten. C. Public utilities and facilities. D. Telecommunication towers. E. Municipal buildings and/or uses. F. Theaters, assembly halls, places of amusement, commercial recreation establishments including skating rinks, swimming pools, golf driving ranges and outdoor movies and clubs, including health clubs and lodges. G. Public and semi-public uses such as churches, libraries, schools and recreational facilities. H. Office buildings and professional offices. I. Medical and dental laboratories. J. Banks, investment brokers and finance agencies. K. Personal services, such as, but not limited to, bazber shops, beauty shops, custom tailor shops, dress making, shoemaking and repair shops when primary service or service and sales shops aze not manufacturing plants. L. Commercial uses serving the community including, but not limited to, such uses as professional services, retail drug stores, food sales, wearing apparel shops, dry goods and notions stores, furniture stores, studios, paint, paperhanging and glass shops and service establishments, laundry agencies and self-service laundries. M. Undertaking pazlors and funeral homes. N. Studios for instruction in music, art, science, radio and television. O. Dry cleaning shops, pressing shops or tailoring shops, in which non-explosive and non-flammable solvents or other processing materials aze used and where no work on the premises is done within said "C-L" Zoning Distritct for retail or wholesale outlets elsewhere, except in the case of dry cleaning shops which perform work or do no processing for no more than three other retail outlets owned or operated by the same (common) owner or owners as that of the primary facility, in which case the use of the premises for such work or processing shall be limited to: 1. The material collected at the primary facility and such three other outlets. 2. The use above ground level of not more than 6,000 square feet of building area. 3. Such use shall not be conducted in any ancillary building or structure on the same lot. WALTERS APPRAISAL SERVICES, INC. File #OS-1446 38 ZONING ANALYSIS, Continued 4. The operation of such use shall not be conducted between 10:00 p.m., prevailing time, on one day and 6:00 a.m., prevailing time on the succeeding day. P. Restaurants, tea rooms, cafes and other similar places serving food or beverages without "in-car", "drive- in" or service outside the building. Q. Bakery, candy, pastry, confectionery or ice cream retail sales with minor manufacturing of such goods permitted for sales on the premises only. R. Hotels, motels and residential hotels. S. Private schools conducted for profit. T. Florists and nurseries. U. Convenience stores without fuel dispensing services. V. Self-service storage facility. Building Height Limitations: No building shall be erected to a height in excess of 40'; provided however, that the height may be increased by 1 foot for each additional foot that the width of each yard exceeds the minimum required. Each and every yard shall exceed the minimum by the number of feet proposed to be added to the maximum height of 40'. Lot Area & Width: A. For non-residential lots with public sewer, the area and frontage requirements shall be not less than 20,000 square feet and lot width of not less than 100' at the street line. B. For non-residential lots without public sewer, the area and frontage requirements shall be not less than 30,000 square feet and lot width of not less than 150' at the street line. Lot Coverage: A. The maximum coverage of any lot in this zoning district shall be 75 % of the total area of said lot less any additional area required to be free of impervious coverage material as part of the storm-water management facilities required by this township. B. Any portion of a lot not covered with impervious material and not required to be otherwise developed as part of the storm-water management facilities required by this township shall be planted and maintained with vegetative material. Yard Regulations: A. Front Yard - 35'. B. Side Yard - 10', each. C . Rear Yard - 30' . Buffer Yard: Along any residential district boundary line or when the commercial use abuts an existing residential use, a buffer yard shall be provided which shall be not less than 20' in width measured from such boundary line or from the street right-of--way line where such street constitutes the district boundary line. A complete copy of the "C-L" Commercial Limited District is included in the addenda of this appraisal report. We are unaware of any aboveground or underground easements that would adversely affect the value of the property. We are not aware of a recent title search or survey to aid in the discovery of any other easements or encroachments. A copy of the zoning map is on the following page. WALTERS APPRAISAL SERVICES, INC. File #08-1446 39 Zoning Map WALTERS APPRAISAL SERVICES, INC. File #08-1446 40 ~: ~'•~' ___ ~,~' ,_ .~ -~ ,~, :- `'1 J(" sr~ ~ ~. ~r f r ' ~~ v ~. . ~~~ , .~ - '"~ 'y'," i ~ , ~, ~ , ~, ~ ~oah~ Caon~, HIGHEST AND BEST USE Basic to the determination of a property's value is its highest and best use. This is: The reasonably probable and Iegal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.10 The highest and best use must be: • Physically Possible: The use must be physically possible on the site or in the improvements planned or existing. • Legally Permissible: The. use must be permitted under zoning and other municipal, county, state, and federal regulations. • Financially Feasible: The use must be capable of producing a positive return. • Maximally Productive: The use must represent the most maximally productive use for the subject property. The highest and best use of a site as vacant may be different from the highest and best use if it is improved. This is most likely to occur for older properties, where market conditions and neighborhood changes have been significant since the period when originally developed. As long as the value of the property as improved is greater than the value of the site as unimproved, the highest and best use is use of the property as improved. Because the use of the land can be limited by the presence of improvements, we have determined the highest and best use of the subject property in two ways: as though vacant and available to be put to its highest and best use as improved with the existing building The highest and best use of the subject will be that use that is physically possible, legally permissible, financially feasible, and maximally productive. An analysis of these criteria follows. Highest and Best Use as though Vacant: Highest and best use of land or a site as though vacant assumes that a parcel of land is vacant or can be made vacant by demolishing any improvements. Although the subject property is improved with amulti-tenant retail center, we have analyzed the site as though vacant and available to be put to its highest and best use. io American Institute of Real Estate Appraisers, The Appraisal of Real Estate, 9th ed., American Institute of Real Estate Appraisers: Chicago, 1987, page 269. WALTERS APPRAISAL SERVICES, INC. File #OS-1446 41 HIGHEST AND BEST USE, continued Physically Possible: The physical characteristics of the site are the second limitation on possible use of the site. The size, shape, area, topography, accessibility of the site and the risk associated with its location must be analyzed. The utility of the site is also affected by other site characteristics such as street frontage, and access to public utilities. The location and size of the site are the most important influences of its value. Generally, the larger the site the greater its potential to get economies of scale and development options. Based on our analysis of the subject site, we have concluded that the physical and functional characteristics of the property meet the desires and standards of the typical purchaser of commercial sites in the region. The site contains 1.27 acres of land and judged large enough to accommodate numerous permitted uses. Legally Permissible: Uses that are legally permissible at the subject site are largely controlled by the zoning district and building codes. Private restrictions, deed restrictions, historic district controls, and environmental regulations also affect the possible use of a site. The subject property is located in the "C-L" Commercial Limited District. Based on our zoning analysis of this report there are many permitted uses. There are no known private restrictions, building code limitations, or environmental controls that would eliminate the uses permitted by the zoning. Furthermore, we are unaware of any aboveground or underground easements that would adversely affect the value of the property. We are not aware of a recent title search or survey to aid in the discovery of any other easements or encroachments. Financially Feasible: To determine the highest and best use of a site as though vacant those uses that are Legally permitted and physically possible are analyzed to determine the use or uses that are financial feasible. Uses that are not legally permitted or physically possible are eliminated from analysis. All uses that are expected to produce a positive return are regarded as financially feasible. To determine the financial feasibility of a project, the appraiser estimates the future gross income that can be expected from each potential highest and best use. Vacancy and collection tosses and operating expenses were then subtracted from each gross income to obtain the likely net operating income (NOI) from each use. A rate of return on the invested capital is calculated for each use. Retail oriented building is judged financially feasible. Maximally Productive: Of the financially feasible uses, the use that produces the highest residual land value is regarded as the highest and best use. The residual land value is determined by estimating the value of the proposed use (land and improvements) and subtracting the cost to create the improvements. Cost to create improvements includes the cost of labor, capital and coordination. Due to neighborhood influences and location along Carlisle Pike, retail oriented building is the more likely use. WALTERS APPRAISAL SERVICES, INC. File 1108-1446 42 HIGHEST AND BEST USE, continued The three previous tests of legally permissible, physically possible, and financially feasible suggest one use(s): Retail Oriented Site. This use currently passes the three tests of legally permissible, physically possible, and financially feasible. Highest and Best Use as Improved: The subject property is improved with amulti-tenant retail center. Existing improvements provide a substantial improvement to the site and compete with other buildings for tenants and buyers. Highest and Best Use Summary: We consider the existing use of the subject property to be a legally permissible, physically possible, financially feasible, and maximally productive. WALTERS APPRAISAL SERVICES, INC. File #08-1446 43 VALUATION PROCESS Three approaches to value are generally included in an appraisal. These techniques include the cost approach, sales comparison approach, and income capitalization approach. After making a detailed investigation of the region, neighborhood, and subject property, each of these three approaches has been developed (unless methodology or lack of data prevents it) to arrive at three separate indications of market value. These three approaches arrive at a value indication through dissimilar methods and by use of different types of data. Ideally, all three approaches measure market conditions. The cost approach: Approach through which an appraiser derives a value indication of the fee simple interest in a properly by estimating the current cost to construct a reproduction of or replacement for the existing structure, deducting for all evidence of accrued depreciation from the cost new of the reproduction or replacement structure, and adding the estimated land value plus an entrepreneurial profit. Adjustments may be made to the indicated fee simple value of the subject property to reflect the value indication of the property interest being appraised." The sales comparison approach: Approach through which an appraiser derives a value indication by comparing the property being appraised to similar properties that have been sold recently, applying appropriate units of comparison and making adjustments, based on the elements of comparison, to the sales prices of the comparables.12 The sales comparison approach produces the best indication of value when sales of similar properties are available. The income approach: Approach through which an appraiser derives a value indication for income-producing property by converting anticipated benefits, i.e., cash flows and reversions, into property value.13 The income capitalization approach is based on the assumption that a definite relationship exits between the amounts of income a property can generate and its value. Normally, the three approaches each suggest a different value. After all the factors in each approach have been carefully weighed for appropriateness, accuracy, and quantity of evidence, a final value estimate is concluded. The appraiser gives the most weight to the approach that produces the most reliable solution to the appraisal problem. With these factors in mind, the three approaches to value will be considered and a final value estimate will be determined for the subject property. ii American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, 2nd ed., American Institute of Real Estate Appraisers: Chicago, pp. 72, 1989. t2 American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, 2nd ed., American Institute of Real Estate Appraisers: Chicago, pp. 265, 1989. is American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, 2nd ed., American Institute of Real Estate Appraisers: Chicago, pp. 156, 1989. WALTERS APPRAISAL SERVICES, INC. File #OS-1446 44 COST APPROACH To estimate the value of the subject property by the cost approach, an appraiser must do the following things: O Estimate the value of the site to its highest and best use as though vacant, which we have done. O Estimate the reproduction or replacement cost of the improvements on the effective date of the appraisal. This includes direct (hard) and indirect (soft) costs. O Estimate other costs (indirect costs) incurred after construction to bring the new, vacant building up to market conditions and occupancy levels. O Estimate entrepreneurial profit, when appropriate, from an analysis of the market. O Add estimated replacement or reproduction cost, indirect costs, and entrepreneurial profit, often expressed as a percentage of total direct and indirect costs and sometimes land value, to arrive at the total replacement or reproduction cost of the primary structure(s). O Estimate the amount of accrued depreciation in the structure, which is divided into three major categories: physical deterioration, functional obsolescence, and external obsolescence. O Deduct the estimated depreciation from the total reproduction or replacement cost of the structure to derive an estimate of the structure's depreciated reproduction or replacement cost. O Estimate reproduction or replacement costs and depreciation for any accessory buildings and site improvements, and then deduct estimated depreciation from the reproduction or replacement costs of these improvements. Site improvements and minor building improvements are often appraised at their net value, i.e., directly on a depreciated cost basis. O ~ Add the depreciated reproduction or replacement costs of the structure, the accessory buildings, and the site improvements to obtain the estimated total depreciated reproduction or replacement cost of all improvements. O Add the land value to the total depreciated reproduction or replacement cost of all improvements to arrive at the indicated value of the fee simple interest in the property. O Adjust the indicated fee simple value to reflect the property interest being appraised, if necessary, to produce an indicated value for the interest in the subject property.la 14 The Appraisal of Real Estate, 9th edition, American Institute of Real Estate Appraisers, Chicago: 1987, page 350-51. WALTERS APPRAISAL SERVICES, INC. File #08-1446 45 COST APPROACH, continued Comparison is the essence of the cost approach to value, similar to the sales comparison and income capitalization approaches. Construction costs, plus land values, are compared to the values of existing improved properties. The four principles used for the sales comparison approach (substitution, supply and demand, balance, and externalities), are also applicable to the cost approach. In addition, the highest and best use of the underlying land is analyzed as both vacant and as improved in the cost approach. A site may have one highest and best use as if vacant, and the existing combination of site and improvements may have another highest and best use. Existing improvements have value in an amount equal to their contribution to the site, or may create a penalty on value by an amount of the cost to remove them from the site. The cost approach to value can be derived and equitably compared with the other approaches to value, adjustments for accrued depreciation from all causes are deducted from the reproduction cost, including: O Physical Deterioration - Physical wearing out of property. O Functional Obsolescence - Lack of desirability in terms of lay-out, style and design as compared to that of a new property, serving the same function. O External Obsolescence - Loss of value from causes outside the property itself. The subject property is amulti-tenant retail center originally constructed in the 1970's. Determining forms of physical and functional obsolescence is speculative and would deter from the reliability of the cost approach. The cost approach is considered, however, is not developed. WALTERS APPRAISAL SERVICES, INC. File #08-1446 46 SALES COMPARISON APPROACH The sales comparison approach is a process of comparing market data, that is, the prices paid for similar properties, prices asked by owners, offers made by prospective purchasers willing to buy, and rents and leases. We have applied various appraisal principles in the sales comparison approach. Relevant issues have been researched and included in the analysis. The primary principles are supply and demand, balance, substitution, and externalities. Sales of reasonably similar properties provide a factual basis upon which to estimate the value. Proper application of the sales comparison approach requires that: Only market transactions are weighed and the data of each transaction is confirmed to the greatest extent possible. The degrees of comparability are considered. The value conclusion is consistent with the analysis of the available data. A definition of market value is "...the most probable price which a property should bring in a competitive and open mazket under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, 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 passing of title from seller to buyer under conditions whereby: (1) buyer and seller aze typically motivated; (2) both parties are well informed or well advised, and acting in what they consider their own best interest (3) a reasonable time is allowed for exposure in the open market (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property, sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. "'S Comparability is often a function of the volume of sales activity in a market. Several guidelines are applied to judge the degree of comparability between a sale and the subject. The sale should be in the same market as the subject. Participants in buying and selling competitive properties set the boundaries of the market. The boundaries of a market are economic in character and not purely physical or geographic. Physical characteristics should be as similar in terms of size and amenities customarily found within the applicable class of real estate. Further, real estate price trends over time must be considered. The functional adequacy of each property should also be competitive. Comparable properties support similar functions. is Rules and Regulations, Federal Register, Volume 55, Number 165, Page 34969. WALT'ERS APPRAISAL SERVICES, INC. File #08-1446 47 SALES COMPARISON APPROACH, continued All relevant factors aze considered in adjusting. The following are basic elements considered in sales comparison approach: • Property rights conveyed • Conditions of sale • Location • Use • Financing terms • Market conditions • Physical characteristics • Non-realty components In applying the sales comparison approach, we have applied various appraisal principles ensuring that all relevant issues have been included in the analysis. These principles of primary importance are supply and demand, balance, substitution, and externalities. Common units of comparison such as price per square foot are rough estimates and can vary widely because of diversity in facilities. Income information is useful to analyze for comparison. However, gathering reliable income data is difficult to obtain. Furthermore, the information is often difficult to compare to the subject. We have researched sales of similar properties in the region. The sales are compared to the characteristics of the subject property. Facts about the comparable sale is verified with principles and/or brokers involved in the transaction. WALTERS APPRAISAL SERVICES, INC. File #08-1446 48 Comparable Sale # 1 PROPERTY LOCATION Classification Address Municipality County Tax Parcel No. Shopping Center /Retail Center 829 State Street Lemoyne Borough Cumberland 12-21-0267-323 SALE DATA Deed Ref. 200743171 Sales Date 10/22/2007 Sale Price $3,225,000 Building size 54,300 and Area in Acres 2.60 Land Area in SF 113,256 Land/Bldg Ratio 2.09 UNIT RATES Price/SF of Building $59.39 Price/Acre $1,240,385 Price/SF of Land $28.48 SITE DESCRIPTION Land Area in Acres 2.60 Utilities All Zoning Commercial District Frontage 368' Zoning Definition Permitted uses in this District include: Stores and personal service shops, banks, offices, theaters, parking lots, public garages, automobile service stations, mortuaries and funeral homes, hotels/motels, medical and dental clinics, warehousing for on site retail business, auto body shops and restaurants. Site Comments This nearly rectangular shaped parcel contains 2.60 acres of land or 113,256 square feet. This corner lot location has an average depth of 300' and an average width of 368'. The site has 368' of street frontage along State Street and 301' of street frontage along Elm Street. The site has generally level topography and access to all public utilities. Access to the property is from two (2) curb cuts along State Street (no access from Elm Street). On-site parking consists of 130 spaces and is judged very tight. BUILDING DESCRIPTION Building size 54,300 Building Condition Good Age 1970's Construction Type Masonry 8~ Glass Building Comments This site is improved with two (2) detached buildings. The properly contains 54,300 square feet of gross building area and 50,606 square feet of net leasable area. Improvements were originally constructed in the 1970's, gutted and renovated since 2005 and were reported to be in average to good condition at the time of sale. 2nd floor space consists of approximatey 2,500 square feet of fair quality office space. Comments State College Premiere Rentals acquired the property in 2005 for $2,100,000. After acquisition, they put on a new roof, new facade on each building and replaced HVAC and mechanical systems where needed. Property was 55% occupied at the time of sale with rental rates ranging from $9.00 to $12.00 per square foot, triple net. A cap rate of approximately 8.50% is indicated for stabilized occupancy assuming a 1.5 year absorption period and a 10% discount rate.. OWNERSHIP: Grantor State College Premien: Rentals, L P Grantee Jerry Watson WALTERS APPRAISAL SERVICES, INC. File # 08-1446 Comparable Sale # 2 PROPERTY LOCATION Classification Shopping Center /Retail Center Address 3950 Tecport Drive Municipality Swatara Township County Dauphin OVYNERSHIP: Grantor Tecport Partners L P Grantee Quang Bui ~ --.,,.~~~ _---_---- --_~___.__.__.,.._.- L_,., .tom Tax Parcel No. 63-027-300 _ ~ ~ ~:: SALE DATA Deed Ref. 2007-30910 Sales Date 8/1/2007 Sale Price $3,050,000 ~:.... . ~.. i' d y Building size ~ e 18,753 ` .: ,~/ ~ _ and Area in Acres ~. 2.48 "' ' f-sR~ ~: . .:: .... Land Area in SF 108,029 Land/Bldg Ratio 5.76 UNIT RATES Price/SF of Building $162.64 Price/Acre $1,229,839 Price/SF of Land $28.23 SITE DESCRIPTION Land Area in Acres 2.48 Utilities All Public Zoning Manufacturing Limited Frontage 541' Zoning Definition Permitted uses in this District inGude: Automobile sale and service stations, apartment dwellings, bottling works, building materials storage, hotels and motels, banks, manufacturing companies, and all uses permitted in the "C-G" District. Site Comments This irregular shaped parcel contains 2.48 acres of land or 108,029 square feet. This interior lot location has an average depth of 239', average width of 515' and 541' of street frontage along Tecport Drive. The site has generally level topography and access to all public utilities. Access to the site is from one (1) curb cut along Tecport Drive and one (1) curb cut along an access road along the east perimeter. BUILDING DESCRIPTION Building size 18,753 Age 2005 Building Condition Good Construction Type Masonry 8 Glass Building Comments This site is improved with aone-story, masonry and glass, strip shopping center. The center contains 18,753 square feet of gross building area. Improvements were completed in 2005 and were reported to be in good condition at the time of sale. Clear ceiling heights are 9' to 12' throughout the building. Comments Seller master leased all vacant suites for a period of time or until they are leased by tenants. An overall cap rate of just under 8.00% was reported assuming property was at stabilized occupancy. WALTERS APPRAISAL SERVICES, INC. Fite # 08-1446 Comparable Sale # 3 PROPERTY LOCATION Classification Shopping Center /Retail Center Address 724 - 726 Colonial Road Municipality Lower Paxton Township County Dauphin Tax Parcel No. 35-039-016 OWNERSHIP: Grantor Cobnial Crossing L P Grantee Quang Bui SALE DATA Deed Ref. 2007-8198 Sales Date 2/28/2007 Sale Price $2,975,000 Building size 17,200 .and Area in Acres 5.30 Land Area in SF 230,801 Land/Bldg Ratio 13.42 UNIT RATES Price/SF of Suiiding $172.97 Price/Acre $561,321 Price/SF of Land $12.89 SITE DESCRIPTION Land Area in Acres 5.30 Utilities Ali Public Zoning Commercial Neighborhood District Frontage 527' Zoning Definition To provide for lighter types of commercial uses compatible with nearby homes. Permitted uses: Amusement park; bakery, bed 8~ breakfast inn; Catering; Conference Cntr; Const Co; Crafts Studio; Exercise Club; Financial Inst; Flea Market; Funeral Home; Garden Center; Gas Station; Restaurant; Retail. Site Comments This triangular shaped parse! contains 5.30 acres of land or 230,801 square feet. This interior lot location has an average depth of 898', average width of 264' and 527' of street frontage along Colonial Road. The site has access to all public utilities with topography being generally level near Colonial Road then steeply sloping downward behind improvements and parking lot. Access to the site is from one (1) curb cut along Colonial Road. BUILDING DESCRIPTION Building size 17,200 Building Condition Good Age 2006 Construction Type Masonry & Glass Building Comments This site is improved with two (2}, detached strip centers totaling 17,200 square feet of gross building area. Improvements were originally completed in 2006 and were reported to be in good condition at the time of sale. Clear ceiling heights are 8' to 12' throughout the premises. Comments Seller master leased all vacant suites for a period of time or until they are leased to tenants. An overall cap rate of 8.00% was reported assuming property was at stabilized occupancy. At the time of sale, property was 75% occupied with rental rates ranging from $15.50 to $18.00 per square foot, triple net. WALTERS APPRAISAL SERVICES, INC. File # 08-1446 Comparable Sale # 4 PROPERTY LOCATION Classification Shopping Center /Retail Center Address 717 Market Street Municipality Lemoyne Borough County Cumberland Tax Parcel No. 12-21-0267-246 & SALE DATA Deed Ref. 278-1993 Sales Date 1/16/2007 Sale Price $3,030,000 Building size 19,291 .and Area in Acres 1.22 Land Area in SF 53,143 Land/Bldg Ratio 2.75 UNIT RATES Price/SF of Building $157.07 PricelAcre $2,483,607 Price/SF of Land $57.02 OYVNERSHIP: Grantor 717 Associates Grantee Powell R E Properties, L L C SITE DESCRIPTION Land Area in Acres 1.22 Utilities All Public Zoning Commercial District Frontage 339' Zoning Definition Permitted uses in this District include: Stores and personal service shops, banks, offices, theaters, parking lots, public garages, automobile service stations, mortuaries and funeral homes, hotels/motels, medial and dental clinics, warehousing for on site retail business, auto body shops and restaurants. Site Comments This irregular shaped parcel contains 1.22 acres of land or 53,143 square feet. This comer lot location has an average depth of 150' and an average width of 315'. The site has 145' of street frontage along 8th Street and 339' of street frontage along Market Street. The site has generally level topography and access to all public utilities. Access to the site is from three (3) curb cuts along Market Street and one (1) curb cut along 8th Street. BUILDING DESCRIPTION Building size 19,291 Building Condition Good Age 1980 Construction Type Masonry Building Comments This site is improved with cone-story, masonry, multi-tenant retail strip center. The building contains 19,291 square feet of gross building area. Improvements were originally constructed in the 1980's, gutted and renovated within the last six (6) years and were reported to be in good condition at the time of sate. Clear ceiling heights are 8' to 12' throughout the building. Comments At the time of sale, property was 100% occupied with rental rates ranging from $16.00 to $18.00 per square foot, net. Roof and parking lot are 15 years old. There is a small parking lot on the south side of Market Street that was also part of this sale. A cap rate of just under 8.00% was reported. WALTERS APPRAISAL SERVICES, INC. File # 08-1446 Comparable Building Sales Map WALTERS APPRAISAL SERVICES, INC. File #08-1446 53 _. ~. ~ r n '~ S caat r • ~ x: { il7riseva m 2Y$~ ,~~ ~ ! ~/rw ~' r ~ ~ t~ - Anti." . ~ ~,~ ~' € ~.. , ~ w,rdi N,- ~ ~" _ ~.l K ~ ' w, ~, '~ ` , - ~ Est ~",. RFC .- ~ y ~ ` t ~ pX ~ ~5a `r ~ . ~ v ~ :~ f s ~ L{f r , ,r ~ 25~ "ei a "~. 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File #08-1446 Sale Sale Site Bldg L/B Rate/ # Address Municipality Date Price Size Size Ratio Sq. Ft. 1 State St Lemoyne Boro 10/22/2007 $3,225,000 2.60 54,300 2,09 $59.39 2 Tecport Dr Swatara Twp 8/1/2007 $3,050,000 2.48 18,753 5.76 $162.64 3 Colonial Rd Lower Paxton Twp 2/28/2007 $2,975,000 5.30 17,200 13.42 $172.97 4 Market St Lemoyne Boro 1/16/2007 $3,030,000 1.22 19,291 2.75 $157.07 S Carlisle Pk Hampden Twp NA NA 1.27 13,056 4.24 NA High $3,225,000 5.30 54,300 13.42 $172.97 Average $3,070,000 2.90 27,386 6.01 $138.02 Median $3,040,000 2.54 19,022 4.26 $159.85 Low $2,975,000 1.22 17,200 2.09 $59.39 Analyzing the sales on a per square foot basis reveals an unadjusted price range of $59.39 to $172.97 per square foot. The sales have an average and median unit rate of $138.02 and $159.85 per square foot, respectively. Although there appears to be a wide discrepancy between these sales, a variety of adjustments have been made. Adjustments are defined as "mathematical changes made to basic data to allow for better comparison for understanding of the data... The process assumes a casual relationship among the various factors for which adjustments are made. X16. Adjustments are made in terms of dollar or percentage amounts. Typically, upward adjustment will be made if the comparable is inferior to the subject for a given element of comparison. Similarly, downward adjustments are made where the comparable is superior. All sales are adjusted for financing terms to cash equivalent terms. Further, adjustments must be made for condition of sale. Typical adjustments would be for foreclosures, and related parties. This adjustment accounts the motivations of the buyer and seller. Elements of comparison commonly include location, land to building ratio and physical characteristics (age/condition/occupancy of building). Land to building ratios are typically analyzed to determine parking characteristics and if a property has surplus/excess land capable of supporting additional gross building area. Based on inspection of the subject property and comparable sales, all properties have adequate parking and none have surplus/excess land capable of supporting additional gross building area. Although sale #3 has a 5.30 acres of land, approximately 'h of the site is usable due to topographical features. Adjustments for land to building ratio are not made. '6 American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, 2nd ed. (Chicago: American Institute of Real Estate Appraisers, 1989, page 6. WALTERS APPRAISAL SERVICES, INC. File #08-1446 54 SALE5 COMPARISON APPROACH, continued All comparable sales were purchased based on historic/projected income stream. While adjustments for location, age/condition of building and other physical characteristics are made, the single biggest adjustment is for income producing ability. The following chart indicates each comparable sales net operating income per square foot of net leasable area (NOI/NLA): NOI/NLA NOI/ Comp NOI NLA NLA Comp #1 $385,355 50,606 $7.61 Comp #2 $244,000 18,753 $13.01 Comp #3 $238,000 17,200 $13.84 Comp #4 $239,370 19,291 $12.41 Subject Property $121;296 11,818 $10.26 Sale #1: In comparison to the subject, this property has an inferior location (adjusted upward), similar land to building ratio (not adjusted), inferior income producing ability (adjusted upward) and has inferior overall physical characteristics (adjusted upward). Net adjustments for this sale are upward. Comments: Property was roughly 45% vacant at the time of sale. NOI of $385,355 is projected with an 18-month lease-up period. Sale #2: In comparison to the subject, this property has an inferior location (adjusted upward), similar land to building ratio (not adjusted), superior income producing ability (adjusted downward) and has superior overall physical characteristics (adjusted downwazd). Net adjustments for this sale are downward. Comments: Although property was not stabilized at the time of sale, seller master leased all vacant suites for a period of time or until they are leased by tenants. Overall cap rate of 8.00% was reported. Sale #3: In comparison to the subject, this property has an inferior location (adjusted upward), similar land to building ratio (not adjusted), superior income producing ability (adjusted downwazd) and has superior overall physical characteristics (adjusted downwazd). Net adjustments for this sale are downward. Comments: Although there were two (2) vacant suites at the time of sale, seller master leased both suites for a period of time or until they aze leased by tenants. Overall cap rate of 8.00% was reported. Sale #4: In comparison to the subject, this property has an inferior location (adjusted upward), similar land to building ratio (not adjusted), superior income producing ability (adjusted downward) and has superior overall physical characteristics (adjusted downward). Net adjustments for this sale are downward. Comments: Property was 100% occupied at the time of sale. Seller held approximately 10% of the purchase price (favorable financing). Overall cap rate of 7.90% was reported, however, is somewhat misleading due to favorable financing. WALTERS APPRAISAL SERVICES, INC. File #OS-1446 SS SALES COMPARISON APPROACH, continued QUALITATIVE ADJUSTMENT GRID Subject Sale #1 Sale #2 Sale #3 Sale #4 Location: NA Inferior Inferior Inferior Inferior Land to building ratios: NA Similar Similar Similaz Similaz Income Producing Ability: NA Inferior Superior Superior Superior Physical Characteristics: NA Inferior Superior Su erior S~ rior Total Adjustment NA Upwazd Downward Downward Downward Unadjusted Rate/GBA: NA $59.39 $162.64 $172.97 $157.07 Unadjusted Rate/NLA: NA $63.73 $162.64 $172.97 $157.07 NOI/NLA $10.26 $7.61 $13.01 $13.84 $12.41 After making adjustments for differences between the comparable properties and the subject property, a reasonable range of value appears to be from $100 to $1S0 per square foot of net leasable area. Sale #1 is much larger and was 4S% vacant at the time of sale. Sale #2, sale #3 and sale #4 were all stabilized (or master leased by seller for set time) and approximately the same size as the subject property. Further analyzing the NOI/NLA criteria indicates an average adjustment for sale #2, sale #3 and sale #4 of -20 % (average NOI/NLA for these sales = $13.00; $13.00 x 80 % _ $10.40; subject's NOI/NLA = $10.26). We believe the subject property's value through the sales comparison approach would be approximately 20% lower than sale #2, sale #3 and sale #4. After consideration to all of the above information, we have valued the subject property at $130.00 per square foot of net leasable area. Therefore, after consideration to the above data, it is our opinion the retrospective market value of the leased fee interest in the subject property through the sales comparison approach as of January 27, 2008, is $1,536,340 ($130 per square foot of NLA x 11,818 square feet of NLA), rounded to: ONE MILLION FIVE HUNDRED TWENTY FIVE THOUSAND ($1,525,000) DOLLARS WALTERS APPRAISAL SERVICES, INC. File #08-1446 S6 INCOME APPROACH The income capitalization approach is based upon the premise that value is measured by the present worth of future benefits that are typically derived from the property's income potential. To measure accurately this income stream, it is necessary to compare the subject property with similar properties to estimate economic rent, and to grove vacancy estimates, operating expenses and capitalization rates and methodology. At this point a few definitions are in order: • Market Rent -the rental rate that a property would most probably command on the open market. • Contract Rent -the rental rate for a property as specified in a lease. • Fxcess Rent -the amount by which contract rent exceeds market rent at the time of appraisal; created by a favorable lease to the Landlord (lessor). • Potential Gross Income (PGI) -the total income attributed to real property at 100% occupancy before expenses are deducted. • Eff=ective Gross Income (EGI) -potential gross income from all operations of the real property less vacancy and collection losses. • Net Operating Income (NOI) -effective gross income less operating expenses, before debt service and recapture. • Capitalization Rate (Ro) -the rate by which net operating income is divided to estimate value. (V = I _ Ro) Direct capitalization is a method that converts a single year's stabilized income into value by an appropriate factor such as a capitalization rate. To estimate the value of the subject property by direct capitalization, we must do the following: O analyze any existing or proposed leases on the subject property to retrieve information on rent or other income and on the division of expenses between the landlord and the tenant; particulaz attention is focused on how any leases will affect the quantity, quality, and durability of income. O develop income estimates for the potential gross income of the subject property using market rents and contract rents whenever appropriate; O estimate vacancy and collection loss based on market analysis; O calculate effective gross income by subtracting vacancy and collection loss from potential gross income; O estimate a typical operating expense expectancy for the subject property; WALTERS APPRAISAL SERVICES, INC. File #OS-1446 57 INCOME APPROACH, continued O calculate net operating income by subtracting operating expenses from effective gross income; O derive an overall capitalization rate using at least one appropriate method such as mortgage-equity band of investment, debt coverage formula, or market-derived overall rates from comparable sales; O capitalize the net operating income by the overall capitalization rate; INCOME/EXPENSE ANALYSIS Rental Income: The income capitalization approach has been developed using current lease terms encumbering the subject property. The following chart summarizes current leases: Tenant Wears Like New Hair Fashion H&R Block Consignment Philly Steak. Address 4947 Carlisle Pk 4951 Carlisle Pk 4953 Carlisle Pk 4955 Carlisle Pk 4955A Carlisle Pk Lease Lease Monthly Annual Sq. Ft. Rental Start End Rent Rent Leased Rate 12/1/2006 11/30/2013 $7,301 $87,617 6,862 $12.77 6/1/2004 5/31/2009 $1,000 $12,000 1,008 $11.90 5/1/2007 4/30/2008 $950 $11,400 1,008 $11.31 1/1/2008 12/31/2010 $1,050 $12,600 1,470 $8.57 10/1/2007 9/30/2010 $1,575 $18,900 1,470 $12.86 Total $11,876 $142,517 11,818 $12.06 Based on the current rent roll encumbering the subject property, we have determined potential gross income to be $142,517. We believe market rent for the subject property to be $10.00 to $14.00 per square foot, triple net. A summary of comparable lease agreements is included on the following pages. WALTERS APPRAISAL SERVICES, INC. File #08-1446 58 Summary Of Comparable Leases The following lease information is provided, however, exact location and tenant's name are withheld for confidentiality purposes. Lease #1 Classification: In-Line Retail Suite (non-anchored strip center in Cumberland County) Tenant: Retail User Commencement Date: July 1, 2006 Term: 5 Years Expiration Date: May 31, 2011 Renewal Options: Two (2), 5-Year Options Rent: Shall be as follows: Monthly Annual Sq. Ft. Rental Start End Rent Rent Leased Rate Current 6/30/2008 $3,125 $37,500 3,410 $11.00 7/1/2008 6/30/2009 $3,219 $38,625 3,410 $11.33 7/1/2009 6/30/2010 $3,318 $39,819 3,410 $11.68 7/1/2010 6/30/2011 $3,418 $41,013 3,410 $12.03 Lease Type: Triple Net Escalations: 3 °lo annual increases above previous year base rent. Comments: Overall location is inferior to the subject property, however, building is in better condition. Lease #2 Classification: Tenant: Commencement Date Term: Expiration Date: Renewal Options: Rent: In-Line Retail Suite (non-anchored strip center in Cumberland County) Restaurant User April 15, 2007 5 Years April 14, 2012 Three (3), 5-Year Options Shall be as follows: Monthly Annual Sq. Ft. Rental Start End Rent Rent Leased Rate Current 4/14/2008 $1,251 $15,015 1,430 $10.50 4/15/2008 4/14/2009 $1,277 $15,321 1,430 $10.71 4/15/2009 4/14/2010 $1,302 $15,622 1,430 $10.92 4/15/2010 4/14/2011 $1,328 $15,934 1,430 $11.14 4/15/2011 4/14/2012 $1,354 $16,253 1,430 $11.37 Lease Type: Triple Net Escalations: 2°lo annual increases above previous year base rent. Comments: Overall location is inferior to the subject property, however, building is in better condition. WALTERS APPRAISAL SERVICES, INC. File #08-1446 59 Summary Of Comparable Leases Lease #3 Name: St. Johns Place Address: 4401 Carlisle Pike, Hampden Township, Cumberland County Proximity to Subject: 1-mile east Total Square Feet: 12,134 Square Feet # of Suites: 10 Anchor Influence: No Rental Rates: $12.00 to $16.00 Per Square Foot, triple net for suites fronting Carlisle Pike and $8.00 to $10.00 Per Square Foot, triple net for suites that do not front Carlisle Pike. Comments: Overall location judged similar, however, building improvements are superior. Information Provided By: Appraiser's File. WALTERS APPRAISAL SERVICES, INC. File #08-1446 60 Stabilized Vacancy and Collection Loss: Projected stabilized vacancy is a factor of local market conditions and the marketability of the subject property within its market. We believe a subtraction from the potential gross income should be made to account far income lost during periods when the property is not fully leased, tenant turnover or when a tenant is unable to pay its rent in a timely manner. The allowance is usually made as a percentage of potential gross income. Based on current market conditions, we estimate the subject property has a stabilized vacancy of 5%. Stabilized Effective Gross Income: Stabilized effective gross income is calculated by subtracting vacancy and collection loss from the stabilized potential gross income. Stabilized Expenses: Expenses are periodic expenditures necessary to maintain the real property. Property expense estimates usually list fixed expenses, variable expenses, and operating expenses. Fixed expenses consist of real estate taxes, and fire and liability insurance. Variable expenses include utilities (gas, electric, water and sewer), snow and trash removal, and janitorial expense (often paid direct by the tenant during occupancy). Operating expenses includes leasing expenses (based on tenant income), management fees (based on a percentage of income), and replacement reserves (designated for structural repairs, alterations and tenant improvements). Operating expenses on triple net lease agreements include CAM charges absorbed because of vacancies. Leases encumbering the subject property are based on triple net terms with landlord responsible for management/leasing fees (6% of EGI) and replacement reserves ($0.25/GBA}. We also include a miscellaneous expense (2 % of EGI) to account for expenses absorbed by property owner during times of vacancy. Stabilized Net Operating Income: Net operating income of the building is effective gross income from rental, less expenses. Expense reimbursement is than added back to the cash flow. Direct Capitalization: In order to convert net operating income ~to an indication of value that is reflective of market conditions, a capitalization rate (Ro) that is also reflective of the market must be used. The risk and degree of operational responsibility is an important part in what a buyer is willing to pay for the income stream of a specific property. A higher risk property will command a higher rate of return than a more secure investment. Properties that require a greater degree of management expertise will also command a higher overall rate. The specific rate is based on the property's physical and operational characteristics. Further, the methodology of calculating the net operating income must be considered. Physical Characteristics: The real estate market in which the subject is located is characterized as stable. Overall the local real estate market is expected to grow throughout the foreseeable future. Location factors are judged a favorable site characteristic and suggest a lower overall rate. The subject property is a one-story, masonry retail center with 5 suites. Existvng improvements have an average to good competitive position and are a below average risk in today's real estate market. Based on physical characteristics we have estimated the overall rate at 7.00 % to 9.00 % . WALTERS APPRAISAL SERVICES, INC. File #OS-1446 61 INCOME APPROACH, continued Operational Characteristics: Operational characteristics reflect the importance of management. Generally, a conservative estimate of net operating income suggests a reduced risk factor. A speculative estimate of net operating income suggests an increased risk factor. We have used conservative income estimates and subjective expense estimates to indicate net operating income. We believe the overall estimate is average and suggests an average overall rate for the subject property. Based on operational characteristics we have estimated the overall rate from 7.00 % to 9.00 %. Band of Investment: In order to convert net operating income to an indication of value that is reflective of market conditions, a capitalization rate (Ro) that is also reflective of the market must be used. This capitalization rate blends the rate necessary to service a typical mortgage (RM) with the rate required to attract equity investment (RE) with similar levels of risk. This blending method, known as the band of investment, combines these two components as a weighted average to form the overall rate of capitalization (Ro) by which net operating income will be capitalized. The first component to be developed in the band of investment is the mortgage component (RM). For projects such as the subject property, the typical sources would be commercial banks. Inquiries with mortgage brokers and bank real estate lending officers indicate a range of 7.00 % to 9.00 % with amortization of 15 to 25 years for terms (balloon) of up to 10 years as the range of available financing for the subject property. In many cases the rate is tied to the prime rate, which is approximately 6.00% at major banks. Loan to value ratios range between 70% and 80% depending on the degree of speculation involved in the project. We have concluded that for the subject property the typical borrower could expect fmancing as follows: • Loan to Value Ratio .......... . ............................................................... 0% • Interest Rate ......... .... , o ................................... ................................. . 75 • Amortization ............................................................................... . 20 years • Term (Balloon) ........ ....................... y ars ............................................... 7 e With these terms, an annual mortgage constant based on monthly payments and level amortization of 0.0912 is indicated. This constant (RM) is then multiplied by the loan to value ratio (0.0912 x 80%) to produce a mortgage component for the overall rate of 0.0730. The equity component of the overall rate represents the requirement of return on and of cash investment in the property. This rate is usually estimated by consideration of a number of factors including individual investor requirements, measurement of risk in the subject property and return available from substitute investments. Because of growth expectations or competition for quality properties, some types of property even show zero or negative equity dividend rates. We estimate the equity rate of the subject property at 8%. Mortgage (6.75 %, 20 years, 80 % LTV) Equity Dividend Rate (8 %) Ro -Capitalization Rate WALTERS APPRAISAL SERVICES, INC. )F~le #08-1446 0.0912 x 80 % = 0.0730 0.0800 x 20 % = 0.0160 0.0890 62 INCOME APPROACH, continued Local Cap Rates: The following cap rates were extracted from local sales of retail centers: Sale Sale Cap # Address Date Price NOI Rate 1 3950 Tecport Dr 8/1/2007 $3,050,000 $244,000 8.00% 2 724 Colonial Rd 2/28/2007 $2,975,000 $238,000 8.00% 3 717 Mazket St 1/16/2007 $3,030,000 $237,855 7.85% 4 300 S. Fayette St 10/26/2006 $4,250,000 $307,172 7.23 ~ S 1561 SR 209 9/16/2005 $1,685,000 $145,230 8.62% 6 121 Gettysburg Pk 7/14/2005 $4,100,000 $391,SS0 9.SS% Sale #1 and sale #2 are new construction with seller .master leasing all vacant suites for a set period time or until they are leased by tenants. Sale #3 has good exposure from Market Street in Lemoyne Borough. Sale #4 is in a somewhat rural setting and was not stabilized at the time of sale; overall cap rate of 7.23% is artificially low due to upside potential. Sale #S is in a rural location and was the adaptive reuse of a former Ames Department Store; most tenants are credit rated though. Sale #6 is a former Giant Foods Store/shopping center converted to amulti-tenant retail center. Summary of Overall Rate: After considering physical and operational characteristics we estimate the overall rate of capitalization (Ro) of the subject property at 8.50%. The estimate gives more weight to the physical characteristics than operational characteristics. WALTERS APPRAISAL SERVICES, INC. File #08-1446 63 Summary of the Direct Capitalization (Band of Investment) 4947 - 4955 Carlisle Pike Hampden Township Cumberland County, Pennsylvania Walters Appraisal Services, Inc. File #08-1446 Potential Gross Income (as derived on page 58) ....................................................... $142,517 Vacancy and Collection Loss (Market Vacancy @ 5 %) ............................................... 7 126 Effective Gross Income .................................................................................... $ 3 91 153 Expenses Rate/ Annual GBA Expense Management/Leasing (6 % of EGI) $0.62 $8,123 Replacement Reserves $0.25 $3,264 Miscellaneous (2% of EGI) $0.21 $2,708 Total Expense @ $1.08/GBA; 10.41 % of EGI ........................................................ 14 095 Net Operating Income (Before Debt Service) :.......................................................... $121,296 Indicated Value Estimate: Value =Net Income _ Ro -Capitalization Rate $1,427,012 = $121,296 - 8.50% Rounded ta: ONE MILLION FOUR HUNDRED TWENTY FIVE THOUSAND ($1,425,000) DOLLARS WALTERS APPRAISAL SERVICES, INC. File #08-1446 64 FINAL RECONCILIATION AND VALUE CONCLUSION The subject property is a multi-tenant retail center located on the north side of Carlisle Pike in Hampden Township, Cumberland County, Pennsylvania. The property is two (2) miles northeast of Mechanicsburg Borough, IS miles east of Cazlisle Borough and six (6) miles west of the State Capital Complex in downtown Harrisburg, Pennsylvania. The site consists of a nearly rectangular shaped parcel containing 1.27 acres of land or 55,321 square feet. This interior lot location has an average depth of 260', average width of 213' and has 213' of street frontage along Carlisle Pike. The site has generally level topography and access to all public utilities. Access to the site is from two (2) curb cuts along Carlisle Pike. The subject property is improved with cone-story, masonry and glass retail center. The building contains 13,056 square feet of gross building area, 11,818 squaze feet of net leasable area and five (5) retail suites. Improvements were originally constructed in the 1970's and are in fair condition. We have employed a systematic procedure known as the valuation process to estimate the market value of the subject property. We have reviewed the entire valuation process to resolve differences and inconsistencies among the various value indications. To do this we have considered the quality and quantity of the data available for analysis in each approach to value, the inherent strengths and weaknesses of each approach, and the relevance of each approach in estimating a final value for the subject property. We have reviewed the appropriateness, accuracy, and quantity of evidence in each of the three approaches to value. We have considered all three approaches to value the property: the cost approach, sales comparison approach, and income capitalization approach. We have developed the sales comparison approach and income approach. The indicated values are: Value by the Cost Approach .............................................................................NA Value by the Sales Approach .................................................................. $1,525,000 Value by the Income Approach ............................................................... $1 425 000 Summary: In summation, we consider each of the developed valuation methods to be reliable indicators of value for the subject property. The approaches are well supported by separate methodologies. We consider the data used to develop each approach to be reliable and supported by market conditions. Primary emphasis is placed on the income approach with support from the sales comparison approach. With these influences in mind, our estimated retrospective market value of the leased fee interest in the subject property, as of January 27, 2008, is: ONE MILLION FOUR HUNDRED FIFTY THOUSAND ($1,450,000) DOLLARS WALTERS APPRAISAL SERVICES, INC. File #08-1446 65 CERTIFICATION I, M. Shane Rorke and Walters Appraisal Services, Inc. certify that, to the best of my knowledge and belief: --- the statements of fact contained in this report are true and correct. --- the reported analysis, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial and unbiased professional analyses, opinions, and conclusions. --- I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. --- I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. --- my engagement in this assignment was not contingent upon developing or reporting predetermined results. --- my compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. --- my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. --- I have made a personal inspection of the property that is the subject of this report. Karen W. Brett also made a personal inspection of the property that is the subject of this report. --- no one outside the office of Walters Appraisal Services, Inc. provided significant professional assistance to the person signing this report. ~-~~ M. Shane Rorke WALTERS APPRAISAL SERVICES, INC. March 6, 2008 WALTERS APPRAISAL SERVICES, INC. File #08-1446 66 CERTIFICATION I, Karen W. Brett and Walters Appraisal Services, Inc. certify that, to the best of my knowledge and belief: --- the statements of fact contained in this report are true and correct. --- the reported analysis, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial and unbiased professional analyses, opinions, and conclusions. --- I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. --- my engagement in this assignment was not contingent upon developing or reporting predetermined results. --- my compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. --- my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. I have made a personal inspection of the property that is the subject of this report. M. Shane Rorke also made a personal inspection of the property that is the subject of this report. --- no one outside the office of Walters Appraisal Services, Inc. provided significant professional assistance to the person signing this report. WALTERS APPRAISAL SERVICES, INC. File #08-1446 67 March 6, 2008 PROFESSIONAL QUALIFICATIONS - M. SHANE RORKE M. Shane Rorke has worked in the appraisal and real estate consulting profession since June of 1996. Appraisal assignments include assistance with many commercial and industrial property types, including professional office, distribution warehouse, residential subdivision, mobile home park, golf course and long-term care (nursing home) property. Mr. Rorke is a native of Mechanicsburg, Pennsylvania, where he attended Cumberland Valley High School. Post high school education includes class work at Shippensburg University and Harrisburg Area Community College. Mr. Rorke is a certified "General Appraiser" and a licensed real estate sales person by the Commonwealth of Pennsylvania. EXPERIENCE: Walters Appraisal Services, Inc., Camp Hill, Pennsylvania (June 1996 to Present) Research assistant of regional commercial real estate appraisal company. Employment from June 1996 to present. Geographical areas covered include South Central Pennsylvania: Healthcare Valuation Group, Inc., Camp Hill, Pennsylvania (June 1996 to Present) Research assistant of regional appraisal company specializing in long term care facilities including independent-living, assisted-living, and skilled nursing homes. Geographical areas covered include all Counties of Pennsylvania. LICENSE: Certified General Real Estate Appraiser, Commonwealth of Pennsylvania (2001). Certification Number: GA-001806-L (Expires June 30, 2009) Certified Real Estate Sales Person, Commonwealth of Pennsylvania (1997) Certification Number: RS - 218286-L (Expires May 31, 2008) EDUCATION: Shippensburg University -August 1996 To June 1997 Harrisburg Area Community College -Various Semesters Professional (Continuing Education) Classes • Principles of Real Estate -Institute of Real Estate Studies, Camp Hill, Pennsylvania: September, 1997 • Basic Income Property Appraisal -Institute of Real Estate Studies, Camp Hill, Pennsylvania: February, 1998. • Advanced Income Property Appraisal -Institute of Real Estate Studies, Camp Hill, Pennsylvania: February, 1998. • USPAP (Uniform Standards of Appraisal Practice) -Institute of Real Estate Studies, Camp Hill, Pennsylvania: March, 1998. • Narrative Appraisal Report -Institute of Real Estate Studies, Camp Hill, Pennsylvania: March, 1999 • Residential Appraisal; Using Cost & Income Approach -Institute of Real Estate Studies, Camp Hill, Pennsylvania: February, 2000. • Real Estate Investment -Institute of Real Estate Studies, Camp Hill, Pennsylvania: June, 2000 • Real Estate )finance -Institute of Real Estate Studies, Camp Hill, Pennsylvania: August, 2000. • Residential Construction -Institute of Real Estate Studies, Camp Hill, Pennsylvania: September, 2000 • Appraisal Principles Course 110 -Chapter Education Center in Chicago, Illinois: April, 2003. • Appraisal Procedures Course 120 -Denver, Colorado: April 2004. • Basic Income Capitalization 310 -Austin, Texas: February 2005. • General Applications -Warwick, Rhode Island: October 2006 PROFESSIONAL QUALIFICATIONS -KAREN W. BRETT Karen Brett has worked in the appraisal and real estate profession since March of 1998. Appraisal assignments include researching many commercial and industrial property types, including professional office, distribution warehouse, residential subdivision, mobile home park, golf course and long-term care (nursing home) property. Ms. Brett is a native of Camp Hill, Pennsylvania, and graduate of East Pennsboro Area High School. Ms. Brett attended Gettysburg College where she earned a Bachelor of Arts degree. Ms. Brett has been a licensed Insurance Agent in the Commonwealth of Pennsylvania since 1985. She is a certified "General Appraiser" and a licensed real estate sales person by the Commonwealth of Pennsylvania. EXPERIENCE: Walters Appraisal Services, Inc., Camp Hill, Pennsylvania (March 1998 to present) Research Assistant of regional appraisal company. Geographical areas covered include South Central Pennsylvania. LICENSE: Certified General Real Estate Appraiser, Commonwealth of Pennsylvania (2007). Certification Number: GA-003623-L (Expires June 30, 2009) Certified Real Estate Sales Person, Commonwealth of Pennsylvania (1999}: Certification Number: RS-221239-L (Expires May 31,2008) Licensed Property & Casualty Insurance Agent, Commonwealth of Pennsylvania (1985) EDUCATION: Gettysburg College, Bachelor of Arts (1984) Professional (Continuing Education) Classes a Principles of Real Estate -Institute of Real Estate Studies, Camp Hill, Pennsylvania: September 1998 0 Real Estate Fundamentals -Institute of Real Estate Studies, Camp Hill, Pennsylvania: November 1998 0 USPAP (Uniform Standards of Appraisal Practice) -Institute of Real Estate Studies, Camp Hill, Pennsylvania: January 2000 0 Narrative Appraisal Report- Institute of Real Estate Studies, Camp Hill, Pennsylvania: February 2000 D Residential Appraisal; Using Cost & Income Approach -Institute of Real Estate Studies, Camp Hill, Pennsylvania: February 2000 0 Real Estate Investment -Institute of Real Estate Studies, Camp Hill, Pennsylvania: Mazch 2003 a Resl Estate Finance I -Institute of Real Estate Studies, Camp Hill, Pennsylvania: February 2004 ~ Real Estate Finance II -Institute of Real Estate Studies, Camp Hill, Pennsylvania: February 2004 D Residential Construction I -Institute of Real Estate Studies, Camp Hill, Pennsylvania: March 2004 ~ Residential Construction II -Institute of Real Estate Studies, Camp Hill, Pennsylvania: April 2004 ~ Basic Income Property Valuation -Institute of Real Estate Studies, Camp Hill, Pennsylvania: February 2005 ~ Advanced Income Property Valuation -Institute of Real Estate Studies, Camp Hill, Pennsylvania: February 2005 ~ Basics of Residential Valuation & Sales Comparison Approach -Institute of Real Estate Studies, Camp Hill, Pennsylvania: Apri12005 ADDENDA WALTERS APPRAISAL SERVICES, INC. File #08-1446 Legal Description WALTERS APPRAISAL SERVICES, INC. File #08-1446 y tOS - DEED -- Cury Iy Ind or Cwp +. D G R v 5 1 All-STATE IEGAI SUPPL'r COR- 1316 Arch $-, Philyd,lphio, Pa. 1pIW ////~1rr~'~77~'//~'~, 0 9 ,.Dade the ~ ~ ~ r/alJ nj June , in. tAe Jear ,1'iru•lw•rr !curry/rrrl un,! eighty five (1985) ?)1t~117CC11 CULLEN BROS., INC., a Pennsylvania corporation, with its principal office in Camp Hill, Cumberland County, Pennsylvania, and ,,. WILLIAM C. KOLLAS of Lemoyne, Cumberland County, - Pennsylvania, -- (herciaca/-ter r•ullr</ 11re (,'rancor ), of tJre one port, urrd - THOMAS G. KANGANIS and CLARA KANGANIS, his wife, of Carlisle, Cumberland County, Pennsylvania, GRANTEES _.; L^f ~.:J (Jrereinujter r•alled the Grar+lee ), of tlae other port: ,~l~~tf11f55CtI1 ~ Tlirrl ll+a .arid Crantnr jar urrd is r•orrsr:rleratinrc uj the sun+. of L Two Hundred Ninety Thousand ($290,000) Dollars luruju! ncuuep nj llrr. 1-:riled Jlules nj.Lntrric•u, rrnlu it u•c•!l and lrulJ pair! L~ the said l:runtrr! ul urrd before flee sralirr.~ and dr.lirerll of tlrrse prese.+cts, t)re rereipl u•h.rrroj is lrereli~ arkreuu.•1rLhed, has ~ru++ted, barouir+erl, sold, uh:erred, rrr/'ru/)'rd, rt•lrusrd urrd ronJcrnred, acrd bJ lhesr prrse+cls does oruat., bur~uirz, srll, rrliere, errjeoQ', release arul cwr-fi-rna unto the a•uu! Grantees, their Ecirs card .lssi~res, ALL that certain piece or parcel of land situate in Hampden Township, Cumberland County, Pennsylvania, bounded and described as per a survey of D. P. Raffensperger, Registered Surveyor, on October 21, 1954, as follows: BEGINNING at a concrete monument on the northern line of State High- way Route No. 11 at corner of land now or formerly of Norman B. Shepley; thence by said land, North OS degrees 37 minutes West, a distance of 260 feet to a concrete monument on the southern line of a former proposed street known as Cumberland Avenue; thence by the southern line of said street as formerly proposed, South 86 degrees 32 minutes West, a distance of 211.8 feet to a concrete monument; thence by land now or formerly of Eugene A. Grandone and James Edward Grandone, South OS degrees 37 minutes East, a distance of 260 feet to an iron pin on the northern line of the State Highway aforesaid; thence by the northern line of said Highway, North 86 degrees 32 minutes East, a distance of 211.8 feet to the place of BEGINNING. HAVING thereon erected a one story cinder block commercial building. BEING the same premises which Cumberland County National Bank and Trust Company, by its deed dated October 12, 1964, recorded in Deed Book "J", Vol. 21, Page 919, Cumberland County records, granted and conveyed unto Cullen Brothers, Inc., the Grantor herein. The said William C. Kollas executes this agreement to release any interest he may have acquired in the subject real estate by virtue of an Installment Sales Agreement entered into between sellers and bu~~ers and William C. Ko11as dated April 29, 1980. b~L7~.?i =arc J`J.~ A ' ?',F1k:Jldvv[4~ fi ..'c rN\~'r ... ,. .. .' f_ii' y;i!.; J\. i, i.tti •/.. •~ t':`::AI?TMEtKi p'r ,Vk1JE __ _ Uir..kl;•....i Llr ~~ ,_ in : 1 U i. .1 _ ~.. .. ... .~f: ,•/~t~IJ'.+.IkA1T;.{ (1,~. Fr\f1;1':~.~~ ::1 ~ ,.~r.~..~ :'•nrt.i..fll •_ 1~=tit. ... ~.. __ o UFi'.t~Tkr'}vi Or tr'--tv11 - ~ -- wctrn.~l.arw..nr „ Pu614beA Fwd gold br Tb~ PLnkenbarn Ce.. W Ot1~m~rsrS 7t State of PENPISYLVANIA SS• (Qottnfy of CUMSERI~D /, ~ ,Tune 19 85, Lxfore me. a notary public , On thin, tht q~d day o[ the undersigned o9icer, personally appeared WILLIAM C. KOLLAS &rown to ms (or sa6staetorily proven) to bs the person whose name wbsrri6ed to the within irrstnrmerrt, erred edrtaw/edged that he ~ erecuted the same for the.~purpox therein contained. IN WITNESS WIiEREDF, I have hereunto set my hand arSd notar/i~~` ~ seal. __ _- l//rte ~--' ~~ .r THELMA-9-i~AcCAIiSiIPFr•N(3iAR-Y-iiUiiLr1C~-t..t-•. • . My rammisrlon Erpira :uy 3. 1586 .r'~j. Mr Caaunirean Espenr Lamb Hill, PA Lumberlm0 Counq ~a~tt~rr uu[ft. ail wtd sin~rclur llrr inr.pr•ucr'+nerrls, trays, sheets, uU.eJs, passages, eculers, ualer-eueerxes, rtgleCs, libt•.rties, IJririle~rs, hr'reditu- rnents anal uppur•Lenaa.ces u;leatsoerer l.l:eretenlo Le•Itin.~irr4, nr in. unll red.v; appertairtirt~, art.d tlae rec'ersiorrs anal renaainrlers, rerals, issues turd l.rnj.Ls llaereuj, grad alt the estate, ri~l+.t, title, interest, property, claim aced detuund whulsoer•cr uj tlae said Crarator ,tab law, equiLJ, ur nlh.erwise l+owsurcer, uj, in, and lu llu< xunu< grad ever) part tltereoj. ~cQS~3i fri;f Jt-t1 _ .,+~ i 7n l+t+t+r nn1 to l~nil tlre.uitl heretlitanr.euls unr/ prrnrises &crt:br! ~ruuterl, ur nzen.iiuued and in.lended su Co bc, uitlt l)rr. upprerleu.adre.r•, rt.n.lo filar. sui.rl t;ruulecs, their Heirs u».d .lssi~ns, to unrlfurlhr.unlJprupcrrt•~c<uzrrlficltuufufllresuidCrunfee s, their Heirs nd .Issi?trs forez:er. r.'1111~ lhr; said Gruulur, fur ilsr.•df and. its successors does Ly these presents euz•euunt, ,r..r•rrnl «ad u;?ree, t_u and tc,ith Glce xui<I Cruralee s, their Heirs Hurl .l.esi~rrs, tlrut it. tlr,e said Crarctur, mtd its 5uccessurs, rrtl wtd sin.~utar tlee hr•rr•dilrrnrrn.t.v unrl premises Aereirr. described and ,ranted, or mentioned and irrlrpdrrl s« to Lr, rc•it.lr /hr: uly,trrlentutccs, unto flee said CJraratee s, their Heirs uud .lssi~us, u,%uiusl. it, the said C:rantur urul its Successors, noel uhrinst ul/ ant/ rr•rrJ ul her hcrsurr. and Persurrs tclaunrsucuer, 6uwfrrllJ rlairtain~ ur fu c•luint l.Ar suurt~, ur• use par•l (hereof, Sltall utr.d Mill GENERALLY 11 :•1 /ali.1.4'?' ant! furet,•er DEi%%~:'+'l~. ~n~l !Ar suic/ CULLEN- $ROS., INC. lrrr•r•Lll r•un.etilrr/r s curl uppnirrl s EVELYN K. CULLEN /u hr i1.~• . /llurucp, fr,r it uud in ils nanrr, nerd us rnrrl fur ils corporate act anal deed to r•krrurr•Irdar• lbix /ndrvrfurr Lrfrirr unJ prrsorr Ituciut; uutlruritJ bJ flee luus of tlr,e (•unrnu,uu•r•ulllr u/• Prvrnslllr•uuiu lu lake stce/t ac4arouledaznen.t, to the intent that lJrr suntr ante/ be dalq rrc•urderl. lhr said Ururrlur, (rtes carrserl (leis /ndcrrltxre to be eiecuted b~ i.ts 1'rrsidr•«l, ulleslr,•d bq ils Sec:relur~, and its corporate seal to Le aJfia:ed !!rc duel u«d )!r•ur lies( ubur•r. u•riltrvr. Signr~~ ~ralrs~ na><+~ ~lrlinrrr~ CLTLL£.N BROS . , I:IC . ~n tltt ~rrstsare aE , t f~ N _ ~ Cu11ei2;+~ t'rrxirlrSrf - Evelyn I ' l u1 ~\ L ac. ~fl i t Y vSrcrrft Mettie T. C+i14+~~ . r . „ Cd 1.( ~,dyk . . ~ William C. Kollas •9 3;tCtlTlt~T ort tke daJ of thr datr of t1+r aLorr 1t+drnN+rr, r+j flrr nL++r•r-rloA+r+l ~antntan~urnltli of ~rnu~,~iunnia l s>x. / kerrbJ cerlijJ, lltat un tlfis ~d duy uj L~,~-~-'- i„ llrr. JPUr u/' nor Lord Or/P LlfpnxUNd nine Trfrnrlred and eighty five Lrjr+rP :u+•, tlrr srfbxrribrr, a .1'otar~ Public, rPxidins irf lire aforesaid county and state perxortallrl trpheared EVELYN R. CULLEN, the rrlturr+l•11 r+nnrr•d irr thr~urrr:+,i,r•i IndelflurP, urfd bJ rirlue our/ irf prrrxuunrr nj tbv urrlhurilry (hr•rr•irf r+,nj+•rn•+1 np.+n hinz, ackrrou•Lad¢el the said Indenture to he the a+•t oral drrrl ujlhr• .+uid Cullen Sros., Inc. 1, _Ir;. ~Iikritas of f baud and .1'utariu! seu[ t hr. dory ur+d grur a/'++Td,nid. ' :. .Aft corrrnT.issiaiz eipires a ~ ~ ~ ~ ~~~~ THELMA S. MICA SUN, NOTARY UBLIC ~~~'utifrj Prfl~lir. (,~ C W Coa+nissron T><piros 1Wr 3. 1966 ~' f ' ~t~'Pi1~ tL~rrtsf~ Lhat th~P~Lsi~A aBlflth+lalwNAbdrlrr ~rurrlrPs,' l`rPrrir( ix ~a? L W ~ `~ l ~t t !"tom ~?oI 3 ~~ N ~ ~ ^\ r '1 ' ~ (Yi 0 -~ ~ ! z f a U Se4ool Dif. Cwnb. Ca P~. m R3 w ~ ~ ~ A.d 61N. Tnn.f.r Ty p',I N -rl . 2 ~ T .umb. G. Ukt Cb4 Ap-. ~/~ n ~ i ~ J U. ~ 2 H (0 V h ' ~ n n F~ Y ~ k ~ ~ ~ ~ c % ~ ~ rn ~vl:: Y cl.mb. co.. P.. y a i c ,y ~ ` r ~% R<.I E.e.4 Tr.Mf.r Ts O 2 E ~ ++.6 C DM . . ~ . C.1. AEI. c~j, ~nntnssznn~r,~lt cif ~rtut~~l~ixua~~ - t t 1 ss. ~II141t~~t DF. \4llv~.>,.~iA~. ~~ 1 ~ttarlltat in .he OJfzcc for Recording of needs in and jnr ~.1.~,•,Q, in Deed Book ~ :~'ri: J page 5~ ~ Etc. . ~iltttssr m~Jha~zd atzd seal of Offi.ee this ~S' ~`•• daJ of ~'~""~ .9rz~zo nonzirzi']y ~ 1, ` e~~>< L31 r~c~ 5G~ o d r ~~ Cumberland County Tax Assessment Card WALTERS APPRAISAL SERVICES, INC. File #08-1446 a tV ~ In ',~ . 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QS-. ~ ~ ~ ~ N ~ ,~ }a ~ ~ U t ~-s O ~ N x ~ 4 ~ ' ~ ~~ mid ~~ ,-~ ~-- ~ o ti~ rn s i i i` i ti~ ~"- ti d' +~ ~i~ ~ ~~ t~ ~~ ~~i~ i1- ~ ~N ti '~~ VC 1~ 1 ~ r^~ ~"~- ~ r{ O N eD .~ N tC1 ~^ N tD _~-~ N r N .!~ ~ ~, r~~ ~~ i m ~ a' i~ i~ i ~~ ~~~ ~~ `T ~ i ~+ ~~ ,~ ~~~ t~ ~t ~ ~~i ~~M ~~ ~ N ~ ~ r{ ~~ psi i+ -~~ ~~ ~~ i ti~ ~~ ~~i ~~ ~ ~~ c'1 ~1 1~ ~c + ZONING ORDINANCE HAMPDEN TOWNSHIP Cumberland County, Pennsylvania Ordinance No. 98-07 August 27, 1998 Most recently revised by Ordinance No. 9 9 - 0 6 February 22,2001 Hampden Township Zoning Ordinance WALTERS APPRAISAL SERVICES, INC. File #08-1446 (27, Part 13) PART 13 C-L COMMERCIAL LIMITED X1301. PURPOSE. The purpose of the C-L, Commercial -Limited District is to provide appropriate locations for office, limited commercial and residential usage where a proliferation of unrestricted commercial usage would be undesirable. The regulations which apply within the districx are designed to encourage the formation and continuation of a quiet, compatible and uncongested environment for business and professional offices intermingled harmoniously with existing residences and certain other commercial uses; to discourage any encroachment by unrestricted commercial or industrial establishmenu, or other uses which might adversely affect the speaalized office, limited commercial and residential character of the district; to reduce existing problems of traffic congestion; and to encourage orderly, well planned development within this district. Ord. 84-2, 3/29/1984, §12501; as added by Ord. 93-20, 7/7/1993, §2) §1302. PROCEDURAL REQUIREMENTS. AIl applications for permiu pursuant to this Part shall be submitted to the Zoning Officer, who shall have the option of submitting such applications to the Planning Com**+~~nan or to the Township Commissioners for recommendations prior to issuing a permit. AIl applications shaIl be reviewed by the Plan Review Board prior to the issuance of any permit. Ord 84-2, 3/29/1984, §12.501; as added by Ord. 93-20, 7/7/1993, §2) §1303. PERNIITTED USES. A building may be erected or used and a lot may be used or occupied for any of the foIlowing purposes and no other_ A Residential Use. For dwellings in existence az the time of the adoption of this Chapter, any residential use may be continued pursuant to the rules governing nonconforming uses. After the effective date of this Chapter, no new residential uses shall be permitted, with the exception of the condition use listed az §1304(A) of this Part. This restriction shall not apply to any dwelling unit for occupancy by a caretaker, if such unit is constructed as part of a commercial building and is clearly incidental to the permitted use. B. Child day care center, privaze nursery or kindergarten_ C. Public utilities and fatalities. , D. Telecommunication towers. 27-89 ZONING ~' 0 0 E. Municipal buildings and/or uses. ~ F. Theaters, assembly halls, places of amusement, commercial recreation establishmer~s including skating rinks, sovimrning pools, golf driving ranges and outdoor movies and clubs, including health clubs and lodges. G. Public and semipublic uses such as churches, libraries, schools and recreational facilitia. ~ H Office buildings and professional offices. I. Medical and dental clinics_ J. Banks, investment brokers and finance agencies. K. Personal services, such as, but not limited to, barber shops, beauty shops, ~szom tailor shops, dress making, shoemaking and repair shops when primary service or service and sales shops are not manufacturing plants. L. Commercial uses serving the community including, but not limned to, such uses as professional services, retail drug stores, food sales, wearing apparel shops, dry goods and notions stores, furniture sales, studios, paint, paperhanging and glass shops and service ~' establishments, laundry agencies and self-service laundries. ~, M. Undertaking parlors and funeral homes. ~ N. Studios for instruction in music, arts, saence, radio and television. ~ O. Dry clean shops, pressing shops or tailoring shops, in which only nonexplosive and ~ nonflammable solvenu or other processing materials are used and where no work on the ~ premises is done within said C-L zoning district for retail or wholesale outleu elsewhere, ~ except in the case of dry cleaning shops which perform work or do processing for no ~ more than three other retail outlets owned or operated by the same (common) owner or owners as that of the primary facility, in which case the use of the premises for such ~ work or processing shall be limited to: ~ (1) The material collected at the primary faality and such three other outlets. ~ (2) The use above ground level of not more than 6,000 square feet of building area. ~ (3) Such use shall not be conducted in any ancillary building or structure on the same ~ lot. ~I (4) The operation of such use shall not be conducted between 10:00 p.m_, prevailing ~ time, on one day and 6:00 a.m., prevailing time on the succeeding day. P. Restaurants, tea rooms, cafes and other similar places serving food or beverages w1thouc ~ "in car," "drive-in" or service outside the building_ ~ 27-90 a (27, Pact 13) Q. Bakery, candy, pastry, confectionery or ice cream retail sales with minor manufacturing of such goods permitted for sales on the premises only. R Hotels, motels and residential hotels. S. Private schools conduced for profit. T. Florists and nurseries. U. Convenience stores without fuel dispensing services. V. Self-service storage facility. Ord. 98-2 W. Accessory uses on the same lot with and customarily inadental to any of the above permitted uses. Ord 84-2, 3/29/1984, §12.501; as added by Ord. 93-20, 7/7/1993, §2; as amended by Ord. 96-2, 8/1/1996, §12(A); and by Ord. 98-2, 1/5/1998, §1(C)) X1304. CONDITIONAL USES. The following conditional use and no other maybe allowed by the Township Board of Commissioners after recommendations by the Planning Commission pursuant to the express standards and criteria set forth in Part 19 of this Chapter. A Senior ati7pn housing. Ord 84-2, 3/2911984, §12.501; as added by Ord. 93-20, 7/7/1993, $2; as amended by Ord. 96~2, 8/1/1996, §12(B)) §1305. RESTRICTIONS ON PERMITTED USES 1. All shops and stores, and all display of goods assoaated therewith, shall be so enclosed within a building so that no processing or repairing operations w~11 be visible from the front street or from either the front or side street in the case of a comer lot. 2. Any use adjacent to any residential zone boundary line at the side or rear yard so adjacent, shall erect as a protective screen to a height of not less than 6 feet, a solid painted board fence or permanent evergreen hedge paralleling the said side or rear zone boundary line. 3. Uses permitted in the C-L zone shall not generate high intensities of noise, noxious odors, air pollution or glare. Where a determination is made by the Zoning Officer, the property owner or lessee applying for a certificate of use for an allowed use in this zone will agree, as part of such certificates approval, to post and enforce "No-Loitering' regulations for such premises. Ord 84-2, 3/29/1984, §12.501; as added by Ord. 93-20, 7/7/1993, §2) 27-91 ZONING §1306. BUILDING HEIGHT LIMITATIONS. No building shall be erected to a height in excess of 40 feet; provided, however, that the height limit maybe increased 1 foot for each additional foot that the width of each yard exceeds the m;ni,~,um required Each and every yard shall exceed the min;rrn,m by the number of feet proposed to be added to the maximum height of 40 feet. Ord 84-2, 3/29/1984, §12.501; as added by Ord. 93-20, 7/7/1993, g2) §1307. LOT AREA ANA WIDTH. 1. For nonresidential lou with public sewer, the area and frontage requiremenu shall be not less than 20,000 square feet and lot width of not less than 100 feet at the street line. 2. For nonresidential lou without public sewer, the area and frontage requiremenu shall be not less than 30,000 square feet and lot width of not less than 150 feet at the street line. Ord 84-2, 3/29/1984; as added by Ord. 93-20, 7/7/1993) §1308. LOT COVERAGE. 1. The maximum coverage of arty lot in this zoning distria shall be 75% of the total area of said lot less any additional area required to be free of impervious material as part of the stormwater n'a~ement facilities required by this Township. • 2. Atry portion of a lot not covered with impervious material and not required to be otherwise developed as part of the stormwater management facilities required by this Township shall be planted and maintained with vegetative material Ord 842, 3/29/1984, §12.501; as added by Ord. 93-20, 7/7/1993, §2) §1309. YARD REGULATIONS. 1. Front Yard - 35 feet. 2. Side Yards - 10 feet each. 3. Rear Yard - 30 feet. Ord 84-2, 3/29/19$4, §12.501; as added by Ord. 93-20.7/7/1993, g2) 27-92 (27, Part 13) ~1310.BITFFER YARDS. Along any residential districx boundary line or when the commercial use abuts an existing residential use, a buffer yard shall be provided which shall be not less than 20 feet in width measured from such boundary line or from the street right-of--way line where such street constitutes the distract boundary line, and which shall be established and planted in accordance with the provisions of Part 17, § 1702, "General Regulations." Ord 84-2, 3/29/1984, §12.501; as added by Ord. 93-20, 7/7/1993, §2) §1311. ACCESSORY BUILDINGS. 1. No accessory budding shall be permitted in any front yard area. 2. An accessory building shall not exceed one story or 15 feet in height . Ord 84-2, 3/29/1984, §12.501; as added by Ord. 93-20, 7/7/1993, §2) X1312. OFF-STREET PARKING. 1. Off-street parking shall be provided in accordance with Part 20, "Off-Street Parking." 2_ All parking shall be located at least 10 feet away from any street right-of--way Line. Curbing shall be installed to enforce this requirement. 3. All parking areas required under this Part shall be enclosed by a vegetative screen buffer, where such parking area abuts a residential zone or residential use_ For an outdoor parking area containing 20 or more spaces, at least one tree for every 10 spaces shall be planted either along the perimeter of such parking area where it abuts a public or private right-of-way, or where it abuts the lot line(s) of land in residential zoning districts or use. A clear site tria.ng~e, as required by§1710(2} of this Chapter, shall be maintained at all street intersections and at all points where private accessways intersect public streeu. The screen may be broken at points of vehicular or pedestrian access and at other points where the Zoning Officer agrees that a bamer is not necessary. The Zoning Officer may determine that a screen along the street or lot lines is not necessary for the protection of the adjacent uses, regardless of the type. 4. Within any outdoor parking area, a landscaped open space having an area of not less than 10% of the outdoor parking area on the lot shall be provided A m~r,;T„um of one-half of the required landscaped open space shaIl be located in the interior of the parking area Ord 84-2, 3/29/ 1984, § 12.501; as added by Ord. 93-20, 7/7/ 1993, §2) 27-93 i ZONING X1313. SCREENING OF DUMPSTERS. ~ i {Section 1313 was repealed by Ord. 00-01, 1/27/00, gD. See 81723.} 27-94 Miscellaneous Data WALTERS APPRAISAL SERVICES, INC. File #08-1446 W Z o ti 0 ~Q X W p ~ ~ ~ O O p 0'a ~ to O p0 p ~ ~ ~ ~ ~ ~ ~ ~ ~ EFt Q O O ~ M M N ~ Y W mot. ~o 0 O ~. ~~ C~ ~~ W Q Q ~ ,n CQ LL W ".~U .. O~ LLO N o o d- o ~ ~a a ~~ QJ ~ h ~ - ~ p; Z ` ` T Q v? Q W H 7' M ~'"' ,~ o mo . -- ~ W ~ t3 Y N .I ~ , rn ~ L N IL ~ ~ ~ ~ O ~ ~ N N ~ W CL iA ~ N ~=- U ~ ~ v ~ ~C r 7C ~ U o U ~ 4. ~ r-~ u a ~ n ~ °".. ~~ ~ ~g ~ c a~ ~ m d 0 ~ x ~ O_ R.. ~ o~ z a ~~ o W F' ~ tL1 ~ O ~ ~ [~ J '= C = N +N+ ~ ~_ ~ W Z 'o p M N N ~ ~ ~ ~' O a o p t p ~ ~ r Y ~~ ~~ ~ O M p ~ Cad N O O M N Y ~ {'~` O ~ ~. r ~ O ~~ ~ N ~~ ~ T~ ~• o ~'" h- a ~ ~ ~: _ p~ N p r N }. M r (Y7 ti ~ .-~ ~ ~. ~ O ~ ~ Y ~ X N p(y N ` ~ ~/Q ~` ~ ~ ' ~ x ~° in ~ ~' ~ Q ~ N ~ r N U `~ ~ O is v U 'C X .L U ~ ~C ?C .. G X otS ~ ~ O` O O ~ F ~ ~ U L1 ~d N ~ Ll p O ~ tid,,, U ;,..! ~ ~ N G . ~ .~-' N O O . c = -p d ~ ~ ~ V W ~ ~ Z ~ Q rn 0 i ~'~ ''{ Estate Valuation Date of Death: 01/29/2008 Valuation Date: 01/29/2006 Processing Date: 10/21/2008 Shares Security or Par Description 1) 16900 CARLISLE COS INC (192339100) COM New York Stock Exchange 01/29/2008 Total Value: Total Accrual: Total: $526,932.00 Estate of: Kanganis, Thomas Account: 12262-1 Report Type: Date of Death Number of Securities: 1 File ID: kanganis, Thomas Mean and/or Div and Int Security High/Ask Low/Bid Adjustments Accruals Value 32.65000 31.61000 H/L 32.130000 526,932.00 $526,932.00 $0.00 Page 1 This report was produced with EstateVal, a product of Estate Valuations 6 Pricing Systems, Inc. If you have questions, please contact EVP Systems at (818) 313-6300 or www.evpsys.com. (Revision 7.1.1) -•~ v G•h~~ y ~~ ~Y f T? C~~7Q ~`~ `'r 7' cs •Y: ~~~~'"~ _„ ~ --t ~_~~~ n ~ C1 pC7~::r N ~;~ '~ ~ ~ / rn _, ~' Z --~ r_n ~~ ~ .4 ~ v"t jt W _y fyii .Q y a m w' ~n 0 m t a m m f a m v C a x m m ~. a H N 1. d n C rn m y a 3 m 9' m m m x d H' O 8~ 7 t t c~ k 0 m c m °, m 0'3 x ~• N m x m_ ~. y m y 3; `c m d O a• 0 a a a• 0 0 S m n ~ m n O O 11 3 Q1 1m N V ~~ ~~ L G m W N O m Q ~~ ~'• w N C m n w 3 v m o_ 5 m e N a a 4 ~c m x 0 ~. r o D m ~ ,~ r w ~ ~m :". n O r~ c ~ N Z z n N -+ ~ A °. $ w 7 N m D 1 m O m 1 2 O G7 Z April 12, 2008 Dana Weisman Johnson, Duffle, Stewart & Weidner 301 Market St PO Box 109 Lemoyne, PA 17043 RE: Estate of: Thomas G. Kanganis Tax Identification Number: 121-22-7089 Date of Death: January 29, 2008 To Whom It May Concern: Commerce CBank This letter is in reference to decedent account information you requested for the individual listed above. We are able to provide the following: Account Type: Checking Account Number: 537909905 Date Opened: October 5, 2007 Primary Owner: Thomas G. Kanganis Date of Death Balance: $10,913.08 Accrued Interest: $.23 Principal Balance: $10,912.85 The decedent also rents safe deposit box 453 located in the Commerce Bank at the i;ampden Plaza. Please feel free to contact me at (717) 412-6127 if I may be of further assistance. Sincerely, r ~.~~~ u Cindy Shultz! (_i Research Associate/Deposit Services Commerce Bank Commerce Bank /Harrisburg, N.A. PO Box 4999 3801 Paxton Street Harrisburg, PA 17111-0999 commercepc.com Sovereign Bank ESTATE OF Thomas G Kanganis SOCIAL SECURITY #: 121-22-7089 DATE OF DEATH: January 29, 2008 Account #: 0574119426 Type Savings Open date: 11/2/2000 In the name of: Thomas G Kanganis Date of Death Balance: $105.01 Int.(YTD) from 1/1/2008 to 1/29/2008 $0.00 Accrued interest to date of death: $0.04 Other Info: Account #: 2331109389 Type: Premier Checking Open date: 2/16/2006 In the name of: Thomas G Kanganis (George T kanganis POA) Date of Death Balance: $983.03 Int.(YTD) from 1/1/2008 to 1/16/2008 $0.25 Accrued interest to date of death: $0.05 Other Info: Closed 2/08/08 Account #: 4527159968 Type: Loan Open date: 2/24/2006 In the name of: Thomas G Kanganis or Clara Kollas Kanganis Date of Death Balance: $117,856.60 DOA payoff$118.035.53 Int.(YTD) from to Accrued interest to date of death: Otherlnfo: Account #: 6817076714 Type: Loan Open date: 11/20/2003 In the name of: Thomas G Kanganis or Clara Kollas Kanganis Date of Death Balance: $4,671.85 Int.(YTD) from to Accrued interest to date of death: Other Info: Account #: 233-249 Type: Safe Deposit Open date: 8/6/2007 In the name of: Thomas GKanganis /POA George T Kanganis Date of Death Balance: Int.(YTD) from to Accrued interest to date of death: Other Info: Branch #233 Camp Hill Mall Maplewood NJ Page 1 of 1 _- ____ APPRAISAL Personal Property of ~ ~~~-,S ~ ,q-~ 1=,.~~15 ,~~7 j~~~7~'~? 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