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HomeMy WebLinkAbout02-0425 Register of Wills of Cumberland County, Pennsylvania Aa1INISTRATION PETITION FOR GRANT OF LETTERS C.T.A. Estate of CARL L. BRENNEMAN No. Oll-'O<<. ... '1j 0 also known as Late of Silver Sprinq Township. Cumberland Countv. PA , Deceased Social Security No. 210-26-9409 Petitioner(s), who is/are 16 years of age or older, apply(ies) for: (COMPLETE "A" OR "B" BELOW) D A. Probate and Grant of Letters and aver that Petitioner( s) is/are the execut_ named in the Last Will of the Decedent, dated and codicil(s) dated State relevant circumstances, e.g., renunciation, death of executor, etc. Except as follows. Decedent did not marry. was not divorced. and did not have a child born or adopted after execution of the documents offered for probate; was not the victim of a killing and was never adjudicated incompetent: . B. Grant of Letters of Administration CTA. (c.t.a., d.b.n.c.t.a.: pendente lite; durante absentia; durante minoritate) Petitioner avers that Decedent left a Last Will and Testament dated April 8, 2002, which Will did not name an executor. Decedent did not marry. was not divorced. and did not have a child born or adopted after execution of the documents offered for probate; was not the victim of a killing and was never adjudicated incompetent. Decedent was survived by the following spouse and heirs: I Name Relationship Residence I Beverly Brenneman Spouse P.O. Box 18. New Kingstown. PA 17072 Patty Brenneman Williams Daughter 2 Texaco Road. Mechanicsburg. PA 17055 Robin Brenneman Weavadou Daughter 105 Midway Road. York Haven. PA 17370 Michael Brenneman Son 880 Latimore Creek Rd.. York Springs. PA 17372 (COMPLETE IN ALL CASES:) Attach additional sheets if necessary. Decedent was domiciled at death in Cumberland County, Pennsylvania, with his last family or principal residence at P.O. Box 18. 2 Taylor Boulevard. New Kinastown. Silver Sprina Township. Cumberland County. Pennsylvania 17072 (list street. number and municipality) Decedent, then..QL years of age, died April 19. 2002, at Graduate Hospital. Philadelphia. Philadelphia Countv. PA (location) Decedent at death owned property with estimated values as follows: (If domiciled in PAl All personal property ............................................... $ (If not domiciled in PAl Personal property in Pennsylvania . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ (If not domiciled in PAl Personal property in County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Value of real estate in Pennsylvania ........................................................... $ Total ........................................................................... $ Real Estate situated as follows: Silver Sprinq Township. Cumberland County. PA 50.000.00 100.000.00 150.000.00 Wherefore. Petitioner(s) respectfully request(s) the probate of the last Will and Codicil(s) presented with this Petition and the grant of letters in the appropriate form to the undersigned: Typed or printed name and residence Beverly Brenneman P.O. Box 18. 2 Taylor Boulevard. New Kingstown. PA 17072 Form RW-1 Page 1 of 2 (Dauphin County - Rev. 9/92) /7-~O-5 Oath of Personal Representative Commonwealth of Pennsylvania County of Cumberland The Petitioner(s) above-named swear(s) and affirm(s) that the statements in the foregoing Petition are true and correct to the best of the knowledge and belief of Petitioner(s) and that, as personal representative(s) of the Decedent, Petitioner(s) will well and truly administer the estate according to law. H (Lfl~/YY1A/V1 ) P iJ. GAL/.- / ~ - n..u.J-' ~ ~ ~ (2,../ /7 /J 7 <<- Sworn to and affirmed and subscribed before me this 26th day of April . 2002 911.7J{!~~~ Ma . LeW1S ~. Estate of Carl L. Brenneman DECREE OF REGISTER Deceased No. 21-2002-425 also known as Social Security No: 210-26-9409 Date of Death: April 19. 2002 AND NOW, April 29th , 2002, in consideration of the Petition on the reverse side hereon, satisfactory proof having been presented before me, IT IS DECREED that Letters 0 Testamentary . of Administration C.T.A. (c.t.a.; d.b.n.c.t.; pendente lite; durante absentia; durante minoritate) are hereby granted to Beverly Brenneman in the above estate and that the instrument(s), if any, dated April 8. 2002 described in the Petition be admitted to probate and filed of record as the last Will of Decedent. FEES Letters.......................... . Short Certificate( s).. .?..... Renunciation......... ......... Affidavit ( )................. Extra Pages ( 0 )............ Codicil......................... . JCP Fee........................ Inventory & Tax Forms... Other........................... . TOT AL................ Form RW-1 Page 2 of 2 (Dauphin County - Rev. 9/92) $ 235.00 - Mary C: Lewis ~. $ 24.00 $ $ $ -0- $ $ 5.00 $ $ Attorney: I.D. No: Address: Jeffrev A. Ernico. Esauire 07981 3401 North Front Street. P.O. Box 5950 Harrisbura. PA 17110-0950 717-232-5000 April 29, 2002 $ 264.00 Telephone: DATE FILED: MAILED LETTERS TO AT'IDRNEY 293470 .......~ .;;-- .. d 1"-..' 21-2002-425 REGISTER OF WILLS OF DAUPHIN COUNTY OATH OF SUBSCRIBING WITNESS CUmberland 1'\.... c~ !".A...I Lv Craig- S. Bunker and Renate Culton subscribing witnesses to the Will presented herewith, having been duly qualified according to law, depose and say that they were present and saw Carl L. Brenneman, the Testator, sign the same and that they signed as a witness at the request of Testator in his presence and in the presence of the other subscribing witness. Notarial Seal Melisa M. Lucas. Notary Public City of Hanisburg. Dauphin County My Commission Expires Oct. 13. 2003 Member, PennsytvaniaAssociatlonof Notaries {~,{~ S. ~ /~. I 'J-Cf (J7 Mt)~tt)l ('(/I..-( (e ;1r!11S tC 7 i&uw. Y (Mdress) ) ) fJ,(} 'bAl~ 1~3~ (Name) .~/(7;DI4Mfb;{~ te. i~~ (Address) {1 . I 7/0/ Sworn to or affirmed and subscribed before me this r;J.IP ftl day of ~I .2002. .---- h ( ------. ~ 1VI ",-- For the Register REGISTER OF WILLS OF DAUPHIN COUNTY OATH OF NON-SUBSCRIBING WITNESS a subscriber hereto, having been duly qualified according to law, deposes and says that he/she is familiar with the signature of (Testatrix oD (one of the subscribing witnesses to) the Will presented herewith and that he/she believes the signature on the Will is in the handwriting of to the best of his/her knowledge and belief. Sworn to or affirmed and subscribed (Name) before me this day of (Address) ,2002. For the Register :293339 _1 1.IQlnrrn;:n ,-, Y"W'lII1\HJ!Ii_ I"iKJUIrv .......,nn / CERTIFICATION OF NOTICE UNDER RULE 5.6(a) Name of Decedent: Carl L. Brenneman Date of Death: April 19. 2002 Will No. Admin. No. 21-02-0425 To the Register: I certify that notice of est ate administ.ration required by Rule 5.6(a) of the Orphans' Court Rules was served on or mailed to the following beneficiaries ofthe above-captioned estate on May \~. 2002 Name: Address: Beverly Brenneman P.O. Box 18. 2 Taylor Blvd.. New Kingstown. PA 17072 Patty Brenneman Williams 2 Texaco Road. Mechanicsburg. PAl 7055 Robin Brenneman Weavadou 105 Midway Road. York Haven. PA 17370 Michael Brenneman 880 Latimore Creek Road. York Springs. PA 17372 Notice has now been given to all persons entitled thereto under Rule 5.6(a) except: None Signature effrey A. Ernico. Esquire Name 3401 North Front St.. P.O. Box 5950 Harrisburg. PA 17110-0950 Address (717) 232-5000 :.5.- Telephone Date: Mav \'!>. 2002 Capacity: _ Personal Representative ;......" 1=5 ., r -. ".-. ."'-.... --1L- Counsel for Personal Representative :294335 _1 c7- CERTIFICATION OF NOTICE UNDER RULE 5.6(a) Name of Decedent: Carl L. Brenneman Date of Death: April 19. 2002 Will No. Admin. No. 21-02-0425 To the Register: I certify that notice of estate administration required by Rule 5.6(a) of the Orphans' Court Rules was served on or mailed to the following beneficiaries of the above-captioned estate on June \ q . 2002 : Name: Address: Michelle A. Reisinger 3805 Lisburn Road. Mechanicsburg. P A 17055 Notice has now been given to all persons entitled thereto under Rule 5.6(a) except: None i- ~~ - S~ture Jeffrey A. Ernico. Esquire Name 3401 North Front 8t.. P.O. Box 5950 Harrisburg, PA 17110-0950 Address (717) 232-5000 Telephone Date: June \:t . 2002 Capacity: _ Personal Representative - J '",' ~:J ---X- Counsel for Personal Representative :298135 _1 Register of Wills of Cumberland County, Pennsylvania INVENTORY Estate of Carl L. Brenneman No. 21-02-0425 also known as Date of Death April 19, 2002 late of Silver Spring Township, Cumberland County, Pennsylvania, Deceased Social Security No. 210-26-9409 Personal Representative(s) of the above Estate, deceased, verify that the items appearing in the following inventory include all of the personal assets wherever situate and all of the real estate in the Commonwealth of Pennsylvania of said Decedent, that the valuation placed opposite each item of said Inventory represents its fair value as of the date of the Decedent's death, and that Decedent owned no real estate outside of the Commonwealth of Pennsylvania except that which appears in a memorandum at the end of this inventory. I/We verify that the statements made in this Inventory are true and correct. I/We understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities. Name of Attorney: Jeffrey A. Ernico Personal Representative: Beverly J. Brenneman Address ~-~ A~()1 N. Front Street, P.O. Box 5950 Harrisburg, PA 17110-0950 Telephone: (717) 232-5000 I.D. No.: DESCRIPTION VALUE Real Property: Real estate situate in Silver Spring Township, Cumberland County, PA, known as 2 Taylor Boulevard; tax parcel number 38-19-1619-016 270,000.00 Personal Property: 10 Series EE U.S. Savings Bonds in $200, $1,000, $5,000 and $10,000 face amounts 12,269.12 100 shares of common stock in Chefs International at $1.545 per share 154.50 50 shares of common stock in Penn Central Company - worthless First Union business checking account #2000003162943, Carl L. Brenneman, Va Mobile Refrigeration Services Mobile Refrigeration Service - account receivable 0.00 5,286.01 192.24 DESCRIPTION Personal Property (cant.): Bayliner boat Net proceeds from public auction held on June 24,2002, of decedent's refrigeration tools, equipment, vehicles and trailers Social Security payment for April received after death TOTAL (Attach Additional Sheets If Necessary) VALUE 4,500.00 46,661.72 873.00 339,936.59 NOTE: The Memorandum of real estate outside the Commonwealth of Pennsylvania may, at the election of the personal representative, include the value of each item, but such figures should not be extended into the total of the Inventory. Form RW.7 (Dauphin County) - Rev. 9/92 :315129 _1 .-/ //)-60 -6 '\.. BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION DEPT. 280601 HARRISBURG, PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX JEFFREY A ERNICO METTE ET AL PO BOX 5950 HBG DATE ESTATE OF DATE OF DEATH FILE NUMBER . COUNTY ACN 03-03-2003 BRENNEMAN 04-19-2002 21 02-0425 CUMBERLAND 101 ESQ *' REY-1547 EX AFP 101-05> CARL L Allount Rellitted PA 17110 MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 CUT ALONG THIS LINE ~ RETAIN LOWER PORTION FOR YOUR RECORDS ~ ifE'y=is4-f-EX--AFP-foY=oiY-NOYicE--OF-YNHEififANCE-YA'irA-PPRAisEHENT~--Ai:.LOWAN-CE-OR----------------- DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX ESTATE OF BRENNEMAN CARL L FILE NO. 21 02-0425 ACN 101 DATE 03-03-2003 TAX RETURN WAS: (X) ACCEPTED AS FILED ) CHANGED RESERVATION CONCERNING FUTURE INTEREST - SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN 1. Real Estate (Schedule A) 2. Stocks and Bonds (Schedule B) 3. Closely Held Stock/Partnership Interest (Schedule C) 4. Mortgages/Notes Receivable (Schedule D) 5. Cash/Bank Deposits/Misc. Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) 7. Transfers (Schedule G) 8. Total Assets (1) (2) (3) (4) (5) (6) (7) 270,000.00 12,423.62 .00 .00 57,512.97 .00 .00 (8) APPROVED DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Adll. Costs/Misc. Expenses (Schedule H) 10. Debts/Mortgage Liabilities/Liens (Schedule I) 11. Total Deductions 12. Net Value of Tax Return 13. Charitable/Governllental Bequestsj Non-elected 9113 Trusts (Schedule J) 14. Net Value of Estate Subject to Tax (9) (10) 29,178.94 26.261. 99 nl) (2) (3) (14) NOTE: If an assessment was issued previously, lines reflect figures that include the total of ALL ASSESSMENT OF TAX: 15. Allount of Line 14 at Spousal rate (15) 16. Allount of Line 14 taxable at Lineal/Class A rate (16) 17. Allount of Line 14 at Sibling rate (17) 18. Allount of Line 14 taxable at Collateral/Class B rate (18) 19. Principal Tax Due TAX CREDITS: NOTE: To insure proper credit to your account, subllit the upper portion of this forll with your tax paYllent. 339,936.59 1;1;.440 93 284,495.66 .00 284,495.66 14, lS and/or 16, 17, 18 and 19 will returns assessed to date. 284,495.66 X 00 = .00 X 045 = .00 X 12 = .00 X 15 = (19)= .00 .00 .00 .00 .00 ,,~-~_. . I+J AMOUNT PAID DATE NUMBER INTEREST/PEN PAID (-) TOTAL TAX CREDIT .00 BALANCE OF TAX DUE .00 INTEREST AND PEN. .00 TOTAL DUE .00 . IF PAID AFTER DATE INDICATED, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. ( IF TOTAL DUE IS LESS THAN $1, NO PAYMENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) PLEASE FILE THIS REPORT WITHIN TWO YEARS OF DATE OF DEATH REGARDLESS OF THE STATUS OF THE ESTATE. IF THE ESTATE IS NOT COMPLETED, FILE A 6.12 FORM YEARLY UNTIL COMPLETION. Cf~ STATUS REPORT UNDER RULE 6.12 Name of Decedent: Carl L. Brenneman Date of Death: Aoril19. 2002 Will No. Admin. No. 21-02-0425 Pursuant to Rule 6.12 of the Supreme Court Orphans' Court Rules, I report the following with respect to completion of the administration of the above-captioned estate. 1. State whether administration of the estate is complete: Yes....K.- No 2. If the answer is No, state when the personal representative reasonably believes that the administration will be complete: 3. If the answer to No.1 is Yes, state the following: a. Did the personal representative file a final account with the Court? Yes No-K- b. The separate Orphans' Court No. (if any) for the personal representative's account is: c. Did the personal representative state an account informally to the parties in interest? Yes -K- No_ d. Copies of receipts, releases, joinders and approvals of formal or informal accounts may be filed with the Clerk of the Orphans' Court and may be attached to this report. Date: June 24, 2003 Jeffrey A. Ernico, Esquire, LD. #07981 Name (Please type or print) : '::~ C"{LU ~ l~J n!;") 3401 North Front Street. P.O. Box 5950 Address LE: Oid SZ Nnr ro to . Harrisburg, PA 17110-0950 '88 ,<,)c'(')9H (717) 232-5000 Telephone Capacity: _ Personal Representative 329617 ....K.- Counsel for Personal Representative a ~ METTE, EVANtS 8z ~'VOODSIDE A PROFID6HION9.I. OORPORATION ATTORNEYS AT LAW HOWELL C. METTE KATHRYN L. SIMPSON 3401 NORTH FRONT STREET PICKY ANN TRIMMER ROBERT MOORE P. DANIEL ALTLAND - P.O. BOg 6960 TIMOTHY A. HOY CHARLES B. ZWALLY ANDREW H, DOWLING T3ARRTCBIIRC}, PA 17110-0 960 _ KATHLEEN DOYLE YANINEK PETER J. RESSLER MICHAEL D. REED JAMES M. STRONG OF COUNSEL LLOYD R PERSUN PAULA J. LEICHT IRS NO. JENNIFER A. YANKANICH JAMES W. EVANS CRAIG A. STONE GARY J. HEIM gglggg00g RANDALL G, HURST* JAMES A. ULSH DAVID A. FITZSIMONS _ MARK D. HIPP DANIEL L. SULLIVAN GUY P, BENEVENTANO '~T •~AONE FAg RONALD L. FINCK STEVEN D. SNYDER THOMAS F. SMIDA (717) Y.3~lS000 (717) L'38.1818 SCOTT C. SEUFERT *MARYLAND BAR JEFFREY A. ERNICO JOHN F. YANINEK* http://www.mette.com January 14, 2003 VIA CERTIFIED MAIL _ .- RETURN RECEIPT REQUESTED "~ ~~ Mary C. Lewis Register of Wills --.- Cumberland County Courthouse 1 Courthouse Square Carlisle, PA 17013 RE: Estate of Carl L. Brenneman ~ 11426.1 File No. 21-02-0425 Dear Ms. Lewis: Enclosed please find the following documents: 1. The original and one (1) copy of an Inventory; 2. The original and one (1) copy of an Inheritance Tax Return, along with a cover page of the return; 3. A check payable to "Register of Wills" in the amount of $28.00 in payment of your filing fees; 4. Aself-addressed, postage prepaid envelope for return mail. Please file the Inventory and Inheritance Tax Return. Please return adate- stamped copy of the Inventory and cover page of the tax return to my attention in the enclosed envelope. January 14, 2003 Page 2 Thank you for your assistance. Please do not hesitate to call with any questions or concerns. Sincerely, Lisa J. de Paralegal to Jeffrey A. Ernico, Esq. Enclosures cc: Mrs. Beverly J. Brenneman (w/ encs.) 315149 _1 y O w ~ a ~ ~ zoo .. CJ'byCrU'n '~i ~~~~z b~~~~ Z ~ O n Ro ~c~yo c ~~~ o ~ O C o ~ t~ z o H ~ ~ O o ~ .~~ ~ --~~ a o ---- a a ..._..._ ~, 0 u, _ ~, r..•! o., ~._"' w ~ ~~ ~ '~, `~ "~ .U ~ ' _ Rn` Y '- fTj d ' <A , ~',i~ .r ~m ~~ l tt 1 . ~6~it1 ~ ~ ~ . ~ ~,~ ~4~ ~ ~ fY ~ `''~ ~ ~ J+, ^ *~kRl K t'k~*RKR r= OFFICIAL USE ONLY v REV-1500 EX (6-00) COMMONWEALTH OF REV-1500 l ~ - L o - -~ PENNSYLVANIA DEPARTMENT OF REVENUE FILE NUMBER DEPT. 280601 INHERITANCE TAX RETURN HARRISBURG, PA 17128-0601 RESIDENT DECEDENT ~1- - aoo2 0425 - - COI~ITY LADE YEAR NUMBER DECEDENT'S NAME (LAST, FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER Z Brenneman, Carl L. 210-26-9409 C DATE OF DEATH (MM-DD-YEAR) DATE OF BIRTH (MM-0D-YEAR) THIS RETURN MUST BE FILED IN DUPLICATE WITH THE w 04/19/2002 8/19/1934 REGISTER OF WILLS G (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER Brenneman, Beverly J 144-26-1113 Q Supplemental Retum Original Retum 0 2 ®1 C7 3. Remainder Retum (date of death prior to 12-13-82) Y V a . . ~ 4. Limited Estate 0 4a. Future Interest Compromise (date of death after 12-12-82) ~~ 5. Federal Estate Tax Retum Required ,~ tp V ~J m ®6. Decedent Died Testate (Attach copy of Will) 0 7. Decedent Maintained a Living Trust (Attach copy of Trust) -- 8. Total Number of Sate Deposit Boxes na 'l 9. Litigation Proceeds Received ~ 1 O. SpOUS81 POVerty CredR (date of death between 12-3t-91 and 7-1.95) CJ 11. Election to tax under Sec. 9113(A)(gtteebsmo) THIS SECTION MUST BE'COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TOi i NAME COMPLETE MAILING ADDRESS i Jeffrey A. Ernico, Esquire 3401 North Front Street 0 a H FIRM NAME (If Applicable) P•0. Box 5950 Matte, Evans & Woodside Harrisburg, PA 17110-0950 TELEPHONE NUMBER 717-232-5000 1. R~IEstate(ScheduleA) (1) 270,000.00 OFFICW.USEONLY 2. Stocks and Bonds (Schedule B) (2) 12 , 423.62' ' _,_ 3. Closely Held Corporation, Partnership or Sole-Proprietorship (3) 0.00 4. Mortgages & Notes Receivable (Schedule D) (4) 0 ' 00 ,. 5. Cash, Bank Deposits & Miscellaneous Personal Property (5) 57 , 512 . 97 ---- (Schedule E) O 6. Jointly Owned Property (Schedule F) (6) 0 • 00 Separate Billing Requested 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (7) 0 • 00 H a Q V W 11. Total Deductions (total Lines 9 8 10) (11) 12. Net Value of Estate (Line 8 minus Line 11) (12) 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) (Schedule G or L) 8. Total Gross Assets (total Lines 1-7) (8) 9. Funeral Expenses & Administrative Costs (Schedule H) (9) 29.178.94 10 Debts of Decedent Mortgage Liabilities & Liens (sd,adule I) (10) 2 6.2 61.99 339,936.59 55,440.93 284,495.66 0.00 284,495.66 SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES 15. Amount of Line l4 taxable at the spousal tax 284,495.66 00 5 0.00 Z rate, or transfers under Sec. 9116 (a)(1.2) x . (1 ) ~Q 16. Amount of Line 14 taxable at lineal rate 0 . 0 0 x 045 (16) 0.00 a 0.00 0.00 17. Amount of Line 14 taxable at sibling rate x 12 (17) f V 0 • 00 0.00 18. Amount of Line 14 taxable at collateral rate x 15 (18) F 0.00 19. Tax Due (19) • • 20. ~ • • > > BE SURE TO ANSWER ALL QUESTIONS ON REVERSE SIDE AND'RECHECK AAATH < < zwasas t.ooo r ~ , Decedent's Complete Addres STREET ADDRESS P.O. Box 18 2 Taylor Boulevard clTy srATE zIP New Riagstowa PA 17072 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) (1) 0.00 2. Credits/Payments A. Spousal Poverty Credit 0.00 B. Prior Payments 0.00 C. Discount 0.00 Total Credits (A + B + C) (2) 0.00 3. Interest/Penalty if applicable D. Interest 0.0 0 E. Penalty 0.00 Total Interest/Penalty (D + E) (3) 0.00 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 1 Line 20 to request a refund (4) 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) 0.00 A. Enter the interest on the tax due. (5A) 0.00 B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (5B) 0.0 0 Make Check Payable to' REGlSTEROFWILLS. AGENT 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; . b. retain the right to designate who shall use the property transferred or its income; . c. retain a reversionary interest; or d. receive the promise for life of either payments, benefits or care? 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? 0 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? . IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. Under penalties of perjury, 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, cortect and complete. Declaration of preparer other than the personal representative is based on all information of which preparer has any knowledge. 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 3% [72 P.S. § 9916 (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 0% [72 P.S. § 9116 (a) (1.1) (ii)] The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still applicable even ff 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 0% [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 4.5%, except as noted in 72 P.S. § 9116(1.2) [72 P.S. §9116(a)(1)j. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% (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. W 4646 1.000 • REV-1502EX+(1-97) SCHEDULE A COMMONWEALTH OF PENNSYLVANIA REAL ESTATE INHERITANCETAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Bretmeman, Carl L. 21-2002-0425 All real property owned solely or as a tenant In common must be reported at fair market value. Fair market value a defined as the price at which property would be exchanged between a willing buyer and a willing seller, neither being compelled to buy or sell, both having reasonable knowledge ofthe relevant facts. Real propeRy which Is Jolntlyowned with right of survivorship must be disclosed on Schedule F. zwasss z.ooo (If more space is needed, insert additional sheets of the same size) REV-7503 EXt (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Brenneman, Carl L. All property jointly-owned with right of survivorship must be disclosed on Schedule F. FILE NUMBER 21-2002-0425 ITEM VALUE AT GATE NUMBER DE3CRIP110N OF DEATH ~. Series SS II.S. avings Boa s in as $10000 face amouats; see attached iaventory aad valuation from Savings Bond Wizard. 2 100 shares of common stock in Chefs Internatioaal, Inc. at 154.50 $1.545 per share 3 50 shares of common stock in Penn Central Compaay - worthless; 0.00 has aot been actively traded oa the New York Stock Fxchaage since 1979. SCHEDULE B STOCKS 8~ BONDS • _~ TOTAL (Also enter on line 2, Recapitulation) I $ 12, 423.62 2wasss 3.000 (If more space is needed, insert additional sheets of the same size) REV-1508 EX+(1-97) ~ ~ (.OAMAOPIWEALTH OF PENNSYLVANIA INF~RITANCE TAX RETURN RESIDEM DECEDENT SCHEDULE E • CASH, BANK DEPOSITS, 8r MISC. PERSONAL PROPERTY ~ ' ESTATE OF FILE NUMBER Brenneman, Carl L. 21-2002-0425 Include the proceeds of litigation and the date the proceeds were received by fhe estate. All property Jointlyowned with the right of survivorship must be disclosed on Schedule F. ITEM VALUE AT DATE NUMBER DESCRIP110N OF DEATH ~, Firat IInioa business checking account #2000003162943, Carl L. 5,286.01 Brenneman, t/a Mobile Refrigeration Services 2 Mobile Refrigeration Service - Accounts Receivable 3 Bayliner Boat 4 Net proceeds from public auction held oa June 24, 2002, of decedent's refrigeration tools, equipment, vehicles and trailers; see attached settlement statement from Kerry Pae Auctioneers. S~Social Security payment for April received after death 192.24 4,500.00 46,661.72 873.00 57,512.97 2wa6AD 2.000 (If more space is needed, insert additional sheets of the same size) t 1 REV-1517 EX+(1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Brenneman, Carl L. SCHEDULE H • FUNERAL EXPENSES 8~ ADMINISTRATIVE COSTS FILE NUMBER 21-2002-0425 Debts of decedent must be reported on Schedule I. ~M DESCRIPTION AMOUNT NUMBER A. FUNERAL EXPENSES: 1. B. 1 ADMINISTRATNE COSTS: Personal Representative's Commissions Name of Personal Representative(s) Social Security Number(s) / EIN Number of Personal Representative(s) Street Address 2. 3. City State Zip Year(s) Commission Paid: Attorney Fees Name: Mette, Svaas & Woodside Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant See Schedule attached Street Address 4. 5. 6. 7. 8 9 10 11 2W46AG 2.000 City State Zip Relationship of Claimant to Decedent Probate Fees Accountants Fees Tax Retum Preparer's Fees Cumberland Law Journal - legal notice Carlisle Sentinel - legal notice The Sentinel Agency - title abstract PPL Electric Utilities - electric services at decedent's residence Pennsylvania Americas Water Co. - water service at decedent's residence TOTAL (Also enter on line 4 (If more space is needed, insert additional sheets of same size) 0.00 18,000.00 3,500.00 389.00 0.00 0.00 75.00 103.55 135.00 678.33 341.60 .., ~..... z., 29,178.94 • Page 2 Estate of: greaaeman, Carl 21-2002-0425 Schedule H, Part 8 -- Administrative Costs Item No. Description Amount 12 IIGI - gas services at decedent's residence 263.57 13 Debra Wiest, Tax Collector - School real estate taxes 2,207.67 14 RSR Appraiser & Analysts - real estate appraisal 2,400.00 15 Verizon Wireless - decedent's cellular service 238.17 16 Verizon - telephone services at decedent's residence 201.51 17 Erie Insurance - homeowner's insurance on residence 268.00 18 Associated Products Services - pump septic and repair 377.54 broken water line at residence TOTAL. (Carry forward to main schedule) . 5,956.46 ~ ~ . C ~ Page 2 Estate of: Brenneman, Carl 21-2002-0425 Schedule H, Part 8 -- Family Exemption Item No. Description Amount 1 Claimant: Brenneman, Beverly J 3,500.00 Address: P.O. Box 18 2 Taylor Boulevard New Kiagatowa, PA 17072 Relationship: Spouse TOTAL. (Carry forward to main schedule) . 3,500.00 N 1 . z REV-'1512 EX+ (t-97) SCHEDULEI COMMONWEALTH OF PENNSYLVANIA DEBTS OF DECEDENT, INHE~w~T~ T E~~RN MORTGAGE LIABILITIES, 8r, LIENS ESTATE OF FILE NUMBER Brenneman, Carl L. 21-2002-0425 Inc lude unrelmbursed medical ex enses. ITEM NUMBER DESCRIPTION AMOUNT ~. 2002 County/Twp. real estate taxes for decedent's residence 710.78 2 MasterCard Acct. #5490-9912-2002-4570 569.65 3 Motor Truck Equipment Company - account payable of Mobile 64.68 Refrigeration business 4 PA Dept. of Revenue - sales tax on Stor-It rentals for 1st 66.90 Quarter 2002 5 PPL Electric IItilities - electric bill for Stor-It business 21.36 6 PPL Electric IItilities - electric bill for residence 50.81 7 Peaaa-American Water Co. - water bill for residence 32.71 8 Silver Spring Township - per capita tax 11.00 9 UGI - gas bill for residence 94.83 10 United Refrigeration, Inc. - account payable of Mobile 32.08 Refrigeration business 11 Verizon - telephone bill for Stor-It business 47.93 12 Verizon - telephone bill for residence 47.76 13 Verizon Wireless - cellular telephone for Mobile Refrigeration 178.70 business 14 West Shore Tax Bureau - Occupational Privilege Tax 10.00 15 York Waste Disposal - dumpster rental for Stor-It business 75.41 16 Tax Collector, Silver Spring Twp. - 2001 local income tax 247.39 17 First IInioa National Baak - Mortgage Acct. #1028441925, secured 24,000.00 by decedent's residence. TOTAL (Also enter on line 10, Recapitulation) $ 26, 261.99 2W46AH 2.000 (If more space is needed, insert additional sheets Of the same size) REV-1513 EX+ (g-00) SCHEDULE J COMMONWEALTH OF PENNSYLVANIA I BENEFICIARIES INHERITANCE TAX RETURN RESIDENT DECEDENT FILE NUMBER Brenneman, Carl L. 21-2002-0425 RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE I. TAXABLE DISTRIBUTIONS [indude outright spousal distributions, and transfers under Sec. 9116 (a) (1.2)] 1. Brenneman, Beverly J Spouse 284,495.66 P.O. Box 18 2 Taylor Boulevard New Kingstown, PA 17072 ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 T HROUGH 18, AS APPROPRIATE, O N REV-1500 COVER SHEET II. NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE 1. B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 1. TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET $ 0 . 0 0 zwasAi i.ooo (tt more space is needed, insert additional sheets of the same size) • LAST WILL & TESTAMEN~ I, Carl L. Brenneman of PO Box 18 (2Taylor Blvd), New Kingstown, PA, being of sound mind and able to make these important decisions would like to establish the distribution of my estate should I not survive my hospital stay or upcoming heart surgery. This will shall be honored as my final WILL & TESTAMENT and honored in a court of law as it signed, dated, and witnessed below, All possessions including our home residence and existing buildings at PO Box 18 (2 Taylor Blvd), New Kingstown PA 17072 shall be assigned to my wife, Beverly Brenneman, who although married to me for a short period of time has provided me with very much joy and happiness. The Estate assigned to Beverly should also include: All vehicles (to include) the motor home that may currently be assigned in my name. All Bank Accounts, Savings Accounts and other monetary accounts that may currently be existing in my name or in the Business name of STOR IT or Mobile Refrigeration Service. The Proceeds, inventory and belongings of my two existing businesses, which are STOR IT and Mobile Refrigeration Service, located at PO Box 18 {2 Taylor Blvd, New Kingstown PA) These are my final wishes to settle my estate, which shall be held as legal documentation as signed and witnessed below. Carl L. Brenneman ~, (Wi ness) (Witness) ~-~~-~ . ~~ ~ a~,~a 8 aooa ~~.~~ / ~ - ~J t, Date ~~ a ~---- Date ~~ ~ Dt f /~ ~.C~,/1 n uCLn-rt.c~ ~ Notarial Sea( ;ennifer L Watkins, Notary Public Harrisburg, Dauphin County rY}~. Commission Expires Oct. 11, 2004 `,ANmt7yr ~ar,nct~P.. ;~j~ gcSC~Clatlon Ot OtdCiBS I~ti' r,. c,..~iG . • • COMPLETEISUMMARY APPRAISAL OF AN MIXED USE PROPERTY LOCATED AT 2 TAYLOR BLVD. SILVER SPRING TOWNSHIP CUMBERLAND COUNTY, PENNSYLVANIA FOR MR. JEFFREY ERNICO, ESQ. METTE EVANS AND WOODSIDE 3401 N. FRONT STREET HARRISBURG, PA 17110 DATE OF REPORT APRIL 24, 2002 PREPARED BY RSR APPRAISERS AND ANALYSTS 308 EAST PENN DRIVE ENOLA, PA 17025 (717) 763-1212 • , • appraisers analysts April 24, 2002 Mr. Jeffrey Ernico, Esq. Mette Evans and Woodside 3401 N. Front Street Harrisburg, PA 17110 Dear Mr. Ernico: At your request we are transmitting this Complete, Summary appraisal report on the property known as: 2 Taylor Blvd. Silver Spring Township Cumberland County, Pennsylvania Our File #02-96R The subject property was last inspected by William F. Rothman on April 24, 2002. In authorizing this work you indicated that the value conclusions would aid in the future mortgage financing of the subject property.. The report that follows provides a detailed description of the property, and the basis upon which the estimated values have been developed. In this report, we have provided a value estimate, which complies with the regulations of FIRREA. It is our opinion that the market value of the fee simple interest in the subject property, as is, as of April 19, 2002, is: ***TWO HUNDRED SEVENTY THOUSAND DOLLARS*** $270,000 308 East Penn Drive • Enola, PA 17025 • Phone (717) 763-1212 • Fax (717) 763-1656 • Jeffrey Ernico April 24, 2002 Page -2- • Although there did not appear to be any signs of environmentally hazardous materials on the site. A Phase I environmental audit on the subject property is recommended in all cases. This letter does not constitute a full appraisal of the subject property. The narrative which follows contains the data and analyses from which this value conclusion was developed. This appraisal has been developed as if the property were free and clear of any liens or encumbrances. This appraisal does not include the value of any personal property, which may be attached to the real estate. This report has been completed in compliance with the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation. This appraisal has also been completed according to your instructions. Our compensation is in no way contingent upon the value estimate and we will be available to discuss the findings contained within the report with the respective parties at your request and convenience. Respectfully submitted, RSR APPRAISERS ~ 1. `-' William F. Rothman Certified General Appraiser License # GA 000 303 L Expiration June 30, 2003 YSTS • , • TABLE OF CONTENTS SUMMARY OF SALIENT FACTS AND CONCLUSIONS PHOTOGRAPHS OF SUBJECT PROPERTY INTRODUCTION HARRISBURG AREA REGIONAL ANALYSIS NEIGHBORHOOD ANALYSIS SITE DATA DESCRIPTION OF IMPROVEMENTS ZONING TAXES AND ASSESSMENT HIGHEST AND BEST USE THE VALUATION PROCESS THE SALES COMPARISON APPROACH THE INCOME APPROACH RECONCILIATION AND FINAL VALUE ESTIMATE ADDENDA A-- Legal Description B-- Zoning Map & Ordinances C-- Owner's Storage Rent Roll D-- Leases -Garage & Typical storage unit E-- Tax Map, Site Plans & Flood Map F-- Qualifications of Appraisers 1 2 6 9 20 24 25 27 28 29 31 33 41 44 ~ , • M • Property Type: Location: REAL ESTATE APPRAISAL REPORT SUMMARY Effective Date of the Appraisal: Date of the Report: Property Rights Appraised: Site: Improvements: Competitive Position: 1 Zoning: Highest 8~ Best Use of the Site as Vacant: Highest 8~ Best Use of the Site as Improved: Sales Comparison Approach: Income Approach: Final Value Estimate: Mixed Use 2 Taylor Blvd., Silver Spring Township Cumberland County, PA April 19, 2002 April 24, 2002 Fee Simple Interest The total site area included in this appraisal report is 2.90 acres There are three different improvements located on the subject tract. The main structure is a block garage facility of about 2,880 square feet. The second is a 1,400 square foot mini-warehouse and the last is a 1,037 square foot residential dwelling that was formerly a manufactured home. The subject site is located near the south side of Route 11, just east of the Village of New Kingstown. The site is conveniently located along afour-lane thoroughfare leading to the City of Harrisburg, approximately 12 miles to the. east and west to Carlisle. The land uses are predominantly commercial and industrial. I-2 Industrial Mixed Use Mixed Use Value Interest Effective Dates $290,000 Fee Simple 4-19-2002 $250,000 Fee Simple 4-19-2002 $270,000 Fee Simple 4-19-2002 1 ~ • Subiect Photos SUBJECT DWELLING SUBJECT DWELLING -REAR 2 • STREET VIEW -NORTH SUBJECT GARAGE - FRONT 3 • ~ , • • SUBJECT GARAGE -REAR SUBJECT MINISTORAGE UNITS 4 • • Subject Photos SUBJECT STORAGE UNITS 5 • • INTRODUCTION Description of the Appraisal Process The appraisal process included an inspection of the subject property by William F. Rothman on April 24, 2002 (the most recent visit to the subject site), research and collection of data on comparable improvements and land and in the subject's neighborhood. Verification of all information with buyers, sellers, brokers, public records, and/or with other knowledgeable sources; analysis of market conditions, locational factors, physical attributes and other pertinent factors; and potentia{ development of the Cost Approach, Sales Approach and Income Approach to value. Purpose of the Appraisal The purpose of the appraisal is to arrive at a supportable estimate of fee simple value of the subject property, as of the effective date of this report. Definition of Market Value Market value is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined. A current economic definition agreed upon by federal financial institutions in the United States. is: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: i) Buyer and seller are typically motivated; ii) both parties are well informed or well advised and acting in what they consider their best interest; iii) a reasonable time is allowed for exposure in the open market; iv) Payment is made in terms of cash in United States dollars or in terms of financial arrangements compatible thereto; and v) .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.l Property Rights Appraised The property rights under appraisal in this report are the fee simple ownership in the subject property. Fee simple ownership is defined as "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." 2 The Function of the Appraisal The appraisal report will be used for financing purposes in conjunction with the mortgage underwriting process for the proposed improvements. This appraisal is intended for use in a federally related transaction. Effective Date of the Appraisal The effective date of the appraisal is April 19, 2002, the date on which the subject property owner died. lAppraisal Foundation, Standards of Professional Appraisal Practice of the Appraisal Institute, 1995 Edition, (Wash. D.C.: 1995) Pages 7-8. ZAppraisal Institute, The Appraisal of Real Estate, 10th Edition, (Chicago: 1992), Page 122. 6 • • Date of the Report The date of the report is April 24, 2002, the date on which the subject property was last physically inspected. This date indicates the perspective from which the appraiser is examining the market. Identification of the Property The subject property is known as 2 Taylor Blvd. Silver Spring Township, Cumberland County. and numbered as District 38, Map 19-1619, Parcel 016. Ownership The subject property was acquin:d by Carl Brenneman t/d/b/a, Mobile Refrigeration Service, from John W. Doughten, by deed dated October 13, 1971, and recorded in Deed Book I Volume 24, Page 334 for $10,000. A second deed from Martha Joyce Doughten to Carl L. Brenneman dated May 1, 1990 and recorded in Deed Book P, Volume 34, Page 733 was done to convey a small portion of the subject at the cul-de-sac of Taylor Blvd. (see addendum for copies of deeds). Existing Improvements The subject improvements consist of a three separate improvements to be described in detail Reasonable Marketing Time A reasonable marketing time is estimated at six to twelve months. Properties similar to the subject are in demand, and in discussions with local professionals this was the consensus. 5 Market Exposure Market value assumes that a °reasonable time is allowed for exposure in theopen market". Our evaluation is based on an assumed exposure to the market of six to twelve months. 7 ~~,,~ ~~ ~~~ '-'mans . ~ .Dale ;~ ~,~ sI~ ~' - ~' `l ~i y ~ ~, ~ ~ ' SUB,TECT Y• \ ~ry _ F~ `" ~. M `% Ne ~ JaBoWng Springs Hatton ~~ ,G ~ ~ ._ ~. A eddlrf'~'I lO'r~ t ~'-.7, i'i .~jv ~r ~, yspri ~ '~' `w QK ~±~1~ i!I ~~I~'' , u y i~~r Mlll ^ ~ ,..~- /~ ~ __. __ -- - ~, ~~jpNAL ~., _ _ _- _ 1 ~ ~ _ - -~ .~ 4ue Qrr~`~ fps JUf;t i1r t~-'~ U7If1Q IVer .""~--~'----~ _ ~ -~ ~ ~ ~ Cox Island ~ QBerrier Island -`._ r ~ y.~nec Point ~ l ~ 'l 4 Ma ~.~ 850 '' , '~~~ .- , /~~`-~ ~ 850 _. _, _ s ~ 850 `, ` \ ~ ~ _ n ' _ _.__ ~' __ __ - -' - - Hollow, _ ,_ Iyers Gap p= t , n,iv~ur Tin ~ ~~ _.. _.__._._,__ 'Ati 3 a , ilissr ,-r=arn~ , ~~r, / -a~'ibs t.._ ~ ~~el ar ~ - w+ :c;rtanth~a _~~~nY R~ ms G, ~n _ "`'+ Brandtsyille - ~'~^ ~"' 1 ~ 74 4 ~ T o ~ , .~ ddon ~ ~ ton„®r ,~°°c~~ ~ \_~, Mt'Plea. _. "d/ip ~ (( _._,. _ ~ ~~ / "~ f ~ e 4 ~ B $~tO111(~j ~YOFikC Q ~1~E Ali ~ U ~~ ~ _ evenstown Q,,lE ~'-i;li~r;~~, 1 S ~r_„i ~~ _l 4,~ „~ , , as' to Gam hand 8 n • , HARRISBURG AREA REGIONAL ANALYSIS The basic forces that motivate human beings within a given market area have a direct impact on the area's real estate values. These are usua{ly considered in four major categories: 1) social standards and ideas, 2) economic conditions, 3) government controls and standards, and 4) environmental conditions. Below is an analysis in brief, which outlines the general economic conditions and future trends of the subject area. The subject property is located at 2 Taylor Blvd. Silver Spring Township, Cumberland County, approximately 12 miles west of Harrisburg. Regional Overview The Harrisburg MSA may be roughly defined as being between Shippensburg to the west and '!! Lebanon to the east and from northern York County to the south to northern Dauphin County. This _ area includes Dauphin, Cumberland, Perry and Lebanon counties. The projections contained herein have been prepared by a variety of sources, including the Central Penn Business Journal, Pennsylvania State Data Center, West Shore Chamber of Commerce, Bureau of Research and Statistics of the Pennsylvania Department of Labor and ' Industry and other sources. Population and Households The following chart depicts population growth in counties making up the Southcentral Pennsylvania region as compared with the State of Pennsylvania, from 1990 to 2000. s s 1 9 • Location Cumberland Dauphin Lancaster York Lebanon Pennsylvania C Population Growth by County 1990 195,257 237, 813 422, 822 339,574 113, 744 11,881,643 2000 213, 674 251,798 470,658 381,751 120, 327 12, 281, 054 %Change 9.4% 5.9% 11.3% 12.4% 5.$% 3.4% As can be seen by the above figures, each of the counties comprising the Southcentral Pennsylvania region is growing at a rate. substantially above that. experienced by the rest of Pennsylvania. Among the reasons .for this growth rate is the presence of state and federal government facilities in Harrisburg; the relatively low cost of living for the region as compared to Philadelphia and Baltimore; and the excellent interstate highway system serving the region, which has spurred economic development. Despite growth in commercial offices and residential revitalization in the City of Harrisburg, it is expected to have a net decrease in the population as families move to the suburbs in search of better public schools, lower taxes, and less crime. Harrisburg suffers the same social ills of all major urban cities, though to a lessor degree. Employment The Harrisburg MSA employment base is centered around state and federal government and those government servicing industries. Located in the center of the Harrisburg MSA is the Pennsylvania State Capitol and over a dozen state office buildings. Military installations are also prominent in the area: 1) Mechanicsburg Naval Depot, aka Defense Distribution East; 2) New Cumberland Army Depot; 3) the U.S. Army War College in Carlisle; and, 4) Fort Indiantown Gap. Increasing employment in the service sector is expected to be the dominant characteristic in the labor force during the next few years. Business, medical, health services, and other professional services have the greatest growth potential, followed by financial services and transportation. 10 • • Local banking, real estate, and insurance companies have consolidated in response to the overall weakness of the national economy. An example of this is the increased presence through acquisitions by institutions such as Mellon Bank, First Union, PNC Financial Corporation and now Allfirst. However, this consolidation has also resulted in a demand for smaller banks oriented more toward the small business community and individuals. Smaller banks such as Commerce Bank and Pennsylvania State Bank have enjoyed significant growth in the past few years. Furthermore, there have been new start-ups, the most prominent being Legacy Bank, based in Susquehanna Township, Dauphin County. The Harrisburg area still has a large industrial base. Its strength has shifted from manufacturing to warehousing, storage, and distribution. The region is a hub for the distribution of goods due to its proximity to Philadelphia (90 miles), New York City (230 miles), Washington (110 miles), and Baltimore (80 miles). The major traffic arteries and highway system that run through the vicinity (Interstates 76, 81, 83, and U.S. Route 15) provide important links to other primary and secondary markets in Pennsylvania and the northeast.. Trucking and transportation make up a strong industry for the area, with Harrisburg becoming a center for motor-carrier truck terminals, with approximately thirty terminals and seventy-five carriers. The area is also served by the Harrisburg International Airport, which has undergone substantial renovations in recent years. The airport serves many of the major carriers, including: US Air, United, American, and Northwest airlines. Harrisburg International Airport is located approximately ten miles east of Harrisburg. Rail service is provided by Amtrak on Conrail's main line (formerly Penn Central and Reading Companies). The trainlrail terminal is located in downtown Harrisburg at the recently. renovated Harrisburg Transportation Center. Continental Trailways and Greyhound buses run out of a terminal located in the same facility. Intercity bus service is provided by the Capital Area Transit (CAT) with routes throughout the East and West Shores. The bus system provides important transportation services for many city residents who work outside of Harrisburg proper. The growth related to these industries has provided economic strength to the area. Total employment has increased by an estimated 80,000 jobs during the past decade. Employment is expected to increase in all three counties in the next five years. The current unemployment rate 11 • • for the Harrisburg region as of February 2000 stands at 2.8%, which ranks third in the in the state, and well below the national average. Organizations such as Capitol Region Economic Development Corporation (CREDO), Capitol Region Chamber of Commerce, Dauphin County Economic Development, and others have played a significant role in attracting new business to the region. With the aid of these organizations and the continued presence of the state government and the military, the Harrisburg MSA should continue to enjoy a stable economic base and growth. Income Per Capita income in the region has been growing at a significant rate in recent years for all of the counties comprising the Southcentral Pennsylvania region. In 1995, per capita income grew at a rate of 5.5% in both Cumberland and Dauphin Counties over the previous year. Per capita income in York, Lancaster and Lebanon Counties grew at rates ranging from 4.4% to 5.0%. Personal income growth in these counties has been averaging over 5% annually in recent years According to Sales & Marketing Management, the Harrisburg MSA had a total of 29,000 households with effective buying income greater than $150,000. This ranked the MSA 84th out of 320 U.S. metro markets. Lancaster had 21,000 and York had 14,000. Environment Both natural and man-made environmental forces contribute to the character of an area. The Harrisburg region is surrounded by -the Appalachian mountains to the north and south. The Susquehanna River (one of the. widest rivers in the East) flows through the heart of .the area, separating the MSA into two distinct communities, the West Shore and the East Shore. The Susquehanna River provides the Harrisburg area with summer recreation and fishing. The Yellow Breeches creek, located in the area is a renowned fly-fishing attraction. Situated in the center of the Susquehanna River is City Island, a center of sporting and entertainment activities. Numerous rock concerts have been held on the island. City Island also contains Riverfront Stadium, home of the minor league baseball team, the Harrisburg Senators. The Senators are an affiliate of the Montreal Expos. The city is also the host of the professional indoor soccerteam, the Harrisburg Heat. The Hershey Bears, minor league hockey team of the Philadelphia Flyers, 12 • • provides spectator entertainment throughout the winter months. Ski Roundtop, a popular regional ski slope is located 30 minutes to the southwest of Harrisburg. Harrisburg and Hershey also provide cultural entertainment for its population. The Harrisburg Forum and Hershey Theaters host regular symphonies, ballets, off-Broadway shows, and musical concerts. The Harrisburg area also has an active Arts community, receiving substantial support from private citizens. The Maine to Georgia Appalachian Trail runs through the area providing recreational hiking. Much of Pennsylvania's active deer hunting takes place in Perry County and on the numerous acres of State Game land within the Harrisburg MSA. Higher education is offered through the Harrisburg Area Community College, the Temple University Center at Harrisburg, the Widener School of Law, Pennsylvania State University at Harrisburg, Messiah College, Lebanon Valley College, and Dickinson College. Besides provided affordable post-high school education for the region, the colleges and universities also contribute substantially to the employment and economic base. Medical care in the Harrisburg region is offered at seven major hospitals, including the Milton S. Hershey Medical Center and Medical School (affiliated with Penn State), the Harrisburg Hospital, and the Holy Spirit Hospital. Real Estate Markets The following discussion on national real estate trends is taken from Emergin4 Trends in Real Estate 2000, published by Lend Lease Real Estate Investments and PricewaterhouseCoopers. On a national basis, institutional real estate investors are becoming more cautious, as the prospects of a recession are increasing due to higher interest rates. Another potential drag on real estate investment is the continuing evolution of e-commerce. The largest negative impact is expected to be felt in the retail market, as the demand for retail space is expected to decrease over time, due to e-commerce. 13 • • Office Markets It is expected that properties located in central business districts are the best bet for investment in 2000, while it is suggested that suburban office markets will weaken due to over-building. Vacancy rates are expected to increase marginally as development continues. It is suggested that holders of suburban Class B properties unload or upgrade these properties while the market is still strong, before the next downturn. Market rents in central business district properties are expected to continue to rise, while those in suburban properties will level off due to the over construction. Industrial Markets Big box distribution properties continue to be the rage, as demand far these properties with 30 foot ceilings, super-flat floors, efficient loading schemes, sprinklers and enhanced HVAC and lighting offer the flexibility increasingly sought by major manufacturers and shippers. It is expected that the need for this type of space will steadily increase. Itis expected that industrial properties as a whole will continue to produce double digit returns with excellent cash-flows. Most markets should remain in equilibrium with vacancies around 10%. Apartments The strength of this market appears to be in the Class B type space with strong locations. These type of apartments attract people who cannot afford to own a home, and this will especially be the case as interest rates rise. East and West Coast cities are especially attractive, while those in the ' Sun Belt states should be avoided, due to over building. Declining vacancy rates in these strong locations are expected continue to put upward pressure on market rents. This real estate sector continues to be attractive due to its comparatively strong rates of return, especially compared to offices and warehouses. Since 1987, apartments have averaged a 10.8% annual return, compared with 4.3% for offices and 7.7% for warehouses. The strength of this sector is expected to continue into the foreseeable future, as many markets are not keeping up with housing demand. 14 • Hotels It is suggested that most properties in this sector are fully priced. Further, occupancies are down modestly, and room revenue growth is slipping. New supply in the development pipeline will combine with a slowing in the overall economy to calm down the industry's robust profit growth rate. This is the one sector that has been constructing new product ahead of its long-term industry average. Upscale properties offer the best prospects for investment in this sector, while limited- service and older midscale properties should be avoided. I Retail The best bets in this sector are fortress malls and grocery-anchored neighborhood centers. These properties are viewed as excellent core holdings. The fortress centers are viewed as best ' positioned to weather the e-commerce threat. Grocery anchored strips offer excellent cash flows ' and insulation from the on-going shakeout. Essentially, the retail market seems to be in balance. Retail space per capita increased 34% in 15 ' years. Redeveloping old regional shopping centers into town centers with a mix of office, residential and retail space holds some promise. Institutional investors recommend selling weaker malls as well as most power centers. The main concerns for retail real estate are oversupply, shopper's time constraints, suburban congestion and changing consumer tastes. E-commerce potentially exacerbates the impact of these issues. 15 • HARRISBURG REGIONAL REAL ESTATE MARKET Empirical evidence in the local real estate market suggests that the market is quite robust. This is based upon the number of transactions publicized in Cumberland and Dauphin County courthouse records. Leasing activity has also been quite brisk, as demand for space in all asset categories is quite strong. Further evidence of the activity in commercial real estate markets is the record performance in 2001 by Commercial Industrial Realty (CIR). Sizable sales and lease transactions occurred in all types of commercial real estate, including shopping centers, industrial buildings and office facilities. The retail market in the area began its recovery period in late 1994 and is now quite strong, as evidenced by new developments in both Cumberland and Dauphin Counties. This recovery has resulted in the attainment of stabilized occupancy levels throughout the region. Clearly the strongest location for retail space in the Harrisburg region remains in Lower Paxton Township along Route 22. Since the development of Colonial Commons in 1992, there has been significant development along this heavily traveled highway. Recent developments include Builders Square, Dick's Sporting Goods and Media Play. Anew power center, Paxton Towne, to be anchored by a 125,000 square foot Target store opened in August 2000 on the south side of Route 22 in Lower Paxton Township and now includes a Weis Food Store, Media Play, Costco, and other lead tenants. In Cumberland County, the strangest retail locations are along the Carlisle Pike in Hampden and Silver Spring Townships. The largest new developments here include Circuit City and Home Depot at the old Capitol Products site, next to KMart in Hampden .Township. Anew 100,000 square foot Kohl's department store was constructed at the former Silver Spring Drive-In site on the Carlisle Pike (Route 11). Another 100,000 square foot shopping center anchored by Giant Foods was completed in Summer 1999 in East Pennsboro Township along Center Street and is now fully occupied. Giant Foods constructed new stores in Silver Spring, Derry and Lower Paxton Townships in the last two years. Most stores have gasoline sales. 16 • , • The office market is also exhibiting substantial strength, with speculative buildings be constructed throughout the region. Vacancy rates for Class A space have been in the 3-4% range for the past three years, while vacancy rates at Class B and C buildings are stabilizing below 10% for the first time in years. Market rents appear to be topping the $20 per square foot level at prime locations. Clearly, the Harrisburg region has the strongest office sector in South Central Pennsylvania, followed by York County. Lancaster County is the weakest of the three, but is showing signs of improvement. The strength of the Harrisburg market may be seen in several new developments, including some large projects iri the Rossmoyne and Westport Business Centers in Cumberland County and in areas of Susquehanna Township in Dauphin County. ~ The industrial sector in the Harrisburg region is quite strong, as evidenced by the amount of new I development in the past five years, and current projects in the works. It is clear that market rents have surpassed the highs set previously in the decade before the onset of the real estate recession of the early 1990's. As a result of the strength in the market, a substantial amount of speculative space is planned. The stabilized vacancy rate for high cube distribution space is ' currently under 5%. The strength of this market has attracted investment from institutional as well as local investors. ' With the development of new industrial space resulting in more jobs, the residential sector of the market has been a direct beneficiary of this job creation. Hampden and Silver Spring Townships 1 appear to be the strongest locations for single family residential development within Cumberland County, while Lower Paxton and Derry Townships are the strongest locations in Dauphin County. This sector should continue to benefit from the historically low interest rates pervasive throughout this economic boom. Industrial storage rents have leveled off due to the expansion of new warehousing and mini- storage facilities. Current rates for flex garage, storage office uses are in the $5-6 per square foot range with expenses passed through to the tenant. Mini-warehouse leases are gross (all costs by owner) and 17 • • Financing Within the current environment, the real estate financing market has become increasingly competitive. Prior to 1996, lenders were unwilling to finance speculative projects, particularly in the office market. Since that period of time, lenders have offered extremely competitive rates while reducing fees. The recent reductions in the Prime-lending rate have intensified competition. Current financing terms available in the Harrisburg market for the various types of real estate are as follows: Category Interest Rate LTV Amortization Debt Coverage Retail 6.75-7.5% 65-80% 15-20 years 1.20-1.40 Office 6.75-7.5% 70-80% 15-25 years 1.25-1.40 Industrial 7.25-8.0% 70-80% 20-25 years 1.20-1.30 Apartments 6.75-7.5% 70-90% 15-30 years 1.20-1.30 Conclusion The Harrisburg Region continues to be an attractive secondary market forbusiness and industry. Many of the services found in larger metropolitan areas may be found. in the Harrisburg area. Also, Harrisburg is located within two hundred and fifty miles of 25% of the nation's population. The Harrisburg MSA is expected to continue to be attractive to new businesses and new families. 18 N GHBORHOOD MAP D ~p ~ \ ~< ,~~°o // ( \~a ~ f ~ ~ ~~ g RO z 0 0 R,,,r~ w~` az5~0 Z ~.y ~~~'rc 114 p ~ _~ ~ ~ oJohn P Hall am ~ ~OG \~~ ~,\ a !+; ~~ ! Caw ~ ' i ea ~'~~ De lci: ~ \ { ~ '1 ~ o f ° \4, \ ~ t -1/ ~~'R~H l_EZ! RO ,. ! ,. ~~yF ~ %~/ .~~ ~ \~ ~\ ~ . 114 f , Ne \ ingstown ~ ~a FA~R~° LN ew Kingston Station y,~Q~ ~L~ "... _ _ ~ ~G ~° _ _- S~, d~' O 1 _ 'yJ~ / ~°°°`SC~ ~`r'~o _- ~~. 3 .,~ m~ ,p0 ~ ~ ~ 3 „ r`: SUBJECT ' ~ °`'~~ ~o ~ ~~ O O ~ N ^, 4~ P ~ l v~ r _. ~° Z ~'~~, o`~`~'" .o . ~~G - ~~~ g° ~ .~ ,~~ S~~~oa4. ,--_. ..~~ 2 ~~ ~~~~ m 12 a 0 ~~ 2001 DeLorme. Street Atliis L'SA; ~ 2001 GDT, Inc., Rel. 0112001 ~ 4 19 ~Ft~P~ • NEIGHBORHOOD ANALYSIS • The neighborhood analysis provides a bridge between the Area Analysis and the study of the subject property. As in the Regional Analysis, the goal of the Neighborhood Analysis is to determine how the operation of social, economic, governmental and environmental factors influence the value of real estate. Regional Context Silver Spring Township is one of several municipalities situated on the west side of the Susquehanna River, known collectively as the West Shore. The township benefits from its close proximity to Harrisburg, the Capital of Pennsylvania, and to Carlisle, the county seat of Cumberland County. The Township is bordered by Hampden Township to the east, the Borough of Mechanicsburg and the Township of Monroe to the south, Middlesex Township to the west Perry County to the north. These municipalities form the suburban area surrounding the City of Harrisburg. Geographic Area and Access The subject is located along Taylor Blvd. in an area generally bounded to the west with Locust Point Road intersection of Carlisle Pike (Route 11) to the east and Hempt Road and Cumberland Valley Education Complex to the north. Hempt farms (1,000+ acres) is located to the south. This area is mostly zoned for commercial purposes with industrial zoning around the subject. Over the past ten to fifteen years, the demand for industrial properties in this area has grown substantially and the properties within the neighborhood have gradually been changing from agricultural to industrial office and retail uses.. There remains, however, a fair amount of residential uses in the area. Sewer is not readily available in most of Silver Spring Township, and until the last 8-10 years it was non-existent. Sewer is being extended in many areas of the Township and this should rapidly increased land development. 20 • • The foreseeable future of the subject's neighborhood is anticipated to continue to be a good commercial area of Cumberland County. Demographics The property is located in Silver Spring Township, Cumberland County, which had a 1990 population of 8,396 persons and a 2000 population of 10,592 according to the United States Bureau of Census. This represents an 26.6% increase. The Township had a 1980 population of 7,146 which, then equaled an increase of 17.5% to 1990. However, based on the 2000 population, Hampden Township was the most heavily populated of the 33 municipalities in the county, ahead of East Pennsboro Township and Carlisle Borough and contains 11 % of the total Cumberland County population . Hampden Township is considered one of the most prosperous communities in the metropolitan. area. In recent history, it has experienced the highest per-capita income of alf 22 townships in Cumberland County, and with the county's 11 boroughs included, the third highest per-capita income overall. Selected statistics for these areas are summarized in the following tables: I Table 6: Harrisburg and Suburban Areas -Selected Statistics Hampden Silver Spring East Lower Allen Tyvp. Twp. Pennsboro Twp Twp. 2000 Pop. 24,135 10,592 18,254 17,437 Change 1990-00 18.4 26.6 10.0 14.3 1990 Pop. 20,384 8,396 16,588 15,254 Change 198'0-90 15.0 17.5 18.7 8.36 Hampden, East Pennsboro, Lower Allen and Silver Spring Townships have significantly larger portions of owner-gccupied housing, which is a function of both demand and available land. Silver Spring Township has an abundant supply of residentially zoned land for both multi-family and single-family development. 21 c: Residential Demand • Population and household growth are the two strongest indicators of housing demand. The greatest influence is household formation because each household typically requires one unit of housing.. The market for housing is delineated based on countywide and township population and household growth characteristics. The 1990 census statistics as shown in the Tri-County Developer Resource Guide, (1993, Tri- County Regional Planning Commission), indicate that the township closely mirrors Cumberland County in terms of socioeconomic characteristics as shown in the following table: The projected increase in population growth and household formation indicates that there will be a continuing demand for housing units in the township, surrounding townships and in Cumberland County. Commercial Development Commercial development within the township is largely concentrated along the Carlisle Pike corridor. The Carlisle Pike corridor runs the width of Silver Spring and Hampden Townships, and connects Camp Hill with Carlisle. Due to its importance as an arterial roadway, it conveys a high volume of traffic and has evolved into a commercial strip. As a result, there is a wide range of retail businesses ~ operating along this corridor in stand-alone locations and within the Silver Spring Commons, Hampden Commons, Gateway Square and Hampden Center shopping centers. Gateway Square is located at the intersection of the Carlisle Pike and Route 581, and includes 236,600 square feet. The center is anchored by a Pharmor Drugstore, Dunhams Sports, T. J. Max and Office Max. Out parcels include Blockbuster Video, Old Country Buffet, Burger King, Bob Evans, Friendly's and Dunkin Doughnuts. Weis Markets vacated the center in 1.996, citing poor sales. This space is currently occupied by a Salvation Army Thrift Store. Hampden Center is located at the intersection of the Carlisle Pike and Sporting Hill .Road, and contains 228,700 square feet. The center is anchored by Karns Food Market, CVS Drugstore and Border Books, now in the final stages of closing and also includes an 8-screen Cineplex. Out parcels include Ruby Tuesdays and a bank branch. 22 • • A brand new strip center anchored by a Giant Food Store just opened at Car4isfe Pike and route 114 just east of the subject. The Pennsylvania Liquor Control Board joined Giant as an in•line store. M&T Bank built on an adjoining pad site. Conclusion The projected increase in population growth and household formation indicates that there wilt be a continuing demand for housing units in the Harrisburg area as well as the county as a whole. This continued residential growth should have a positive impact on the future prospects of the subject property by exerting upward pressure on land prices and corresponding commercial /industrial real estate values. 23 • , SITE DATA Location: The subject site is located in Silver Spring Township along Taylor Blvd. south of Route 11, just east of the Village of New Kingstown. The subject property is known as 2 Taylor Blvd and numbered as District 38, Map 19-1619, Parcel 016, as shown on the Tax Assessment Map of Cumberland County in the Addenda. Shape 8~ Area: The subject site is rectangularly-shaped and the total site area included in this appraisal report is 2.90 acres according to courthouse records. Land to Building Ratio: The land to building ratio is 24 to 1. (126,324SF _ 5,317SF) Parking: The subject has approximately 3,000 square feet of asphalt parking used by the garage facility. There is also an additional area of stoned parking used for outside storage around the storage unit structure. Topography and Drainage: The subject is relatively flat. Storm water runoff from the said adjacent property towards the rear of the site wilt be carried through the subject property to a low- lying area along the subject's southern boundary by natural means. Utilities: Public water, electric, telephone, cable and natural gas are attached. Flood Zone: The site is located in Flood Zone C, an area of minimal flooding, as shown on the National Flood Insurance Map, Panel 420370-A, dated May 2, 1983, as shown in the Addenda. Easements and Encroachments: Easements include typical utility and drainage easements. The locations of these easements have no adverse affect on the proposed improvements or on the future utility of the property. A title search has not been conducted, and is considered to be beyond the scope of this appraisal. Functional Adequacy: The subject site represents a commercially oriented parcel along Taylor Blvd. with minimal traffic count however, Route 11 is a main east/west corridor in the region. The subject has sufficient shape, access, topography, visibility and utility availability to support industrial development but suffers from the lack of sewer for some of the uses 24 _~ • • DESCRIPTION OF IMPROVEMENTS The following description and analysis of the building is based on a usual inspection, April 24w, 2002. Construction is assumed to comply with applicable zoning and building codes. Construction: The subject has three (3) separate buildings that were constructed in phases. Building #1 This is the garage facility and is comprised of a 2,880 square foot block structure currently leased for $1,000 per month or $4.17 per square foot. The improvements consist of a garage area of 25' x 76' with 16' garage doors at either end. This is used far truck repair and has clear ceiling heights above 20'. This building has a 28' x 35' attached office and parts storage area with private bath. Both areas are heated by gas hot systems (2) and the office area has central air conditioning. A 200amp electric service is included, and the structure has a rubber roof. The overall condition is very good and the actual age of the building is estimated at 32 years and the effective age is at 10 years. Building #2 This building was built in 1985 and is a fully metal including roof, mini-warehouse building. This is a concrete slab and a total of eighteen (18) separate rental units. There is no utility service to this building. it appears that there exist six (6) leased for the units. The total income is estimated at $289.50 monthly or $3,474 per year. Due to the circumstances of the death of Mr. Carl Brenneman many questions are left unanswered as to the- rental income stream, vacancy, and the collection history of the tenants. ` The actual age is 17 years and the effective age is estimated at 10 years. Building #3 This was originally a mobile home and has been altered and placed on a permanent block foundation with basement. This structure contains 1,037 square feet of area and has living room, dining area, office, 2 bedrooms, and two baths. The heat is gas hot air and the structure has central air conditioning and a 200amp electrical service. The exterior is vinyl siding and there is an 25 • • asphalt shingle roof. A partially furnished lower level is accessible from the entrance. There is a 12' x 40' rear covered porch. The actual age is estimated at 35 years and the effective age is 20 years.. There is a chain link fence with a Stanley Automatic gate providing security for the storage units and dwelling. The condition of the improvements is good, there are some miscellaneous vehicles that should be removed prior to marketing. !'~ 26 w w w w i w w t a a • • ZONING The property is zoned 1-2 Industrial as shown on the zoning maps in Silver Spring Township. This district is established to provide opportunities for varied, intensive regional industrial uses. Copies of the zoning map and district regulations are included in the Addenda. Permitted Uses: Manufacturing Processing Sales Storage Machine Shops Repair Shops Sign Makers Public Uses Vocational Schools Welding Shops Heavy Manufacturing and Storage 8 Warehousing are uses by Special Exception. Yard Regulations: 1). Front Yard Setback: 50 Feet 2). Side Yard Requirements: 30 Feet 3). Rear Yard Requirements: 35 Feet 4). Height (Maximum): 45 Feet 5). Lot Coverage: 60% 6). Minimum Lot Area (sf): 43.560S.F. (w/public water and sewer) T). Minimum Building Line Width: 200 feet " 8). Public Utilities: Public water/sewer required According to James Hall (766-0178) at Silver Spring Township Zoning, the subject is an non- conforming use and cannot be expanded without connection to the sewer located across Route 11 via force main and a pump. 27 w w w w w w w i w • , • ASSESSMENT AND TAXES The following table presents the assessment, millage rates and taxes for 3 Derry Street numbered District 38-19-1619 Parcel 016. CUMBERLAND CQUNTY TAXES Gounty Municipal School ~* Total 2001-2002 .: _ . ~, Millage Rates: .Qt11882 ,00065fi .132 .13453$ 2 Taylor Blvd. Silver Spring Township 38-19-1619-016 Assessment ««««««< Taxes Total »»»»»» Land: $59,900 $ $ $ $ Improvements: $194,400 $ $ $ $ Total: $263,400 $476.90 $166.23 $3,344.88 $3,988.01 Common Level Ratio: 100% 7/01-6/02 Indicated Market Value: $253,400 28 • i , HIGHEST AND BEST USE Highest and best use is defined as "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value." 3 Implied in these definitions is that the determination of highest and best use takes into account the contribution of a s ecific use to the communit and P Y community development goals as well as the benefits of that use to individual property owners. In appraising property values, the concept of highest and best use is the basis upon which the value estimate is projected. The market values of land or of an improved property are both estimated under the assumption that potential purchasers will pay a price that reflects their analyses of the most profitable use of the land and property as improved. Therefore, the most profitable use assumption tends to produce the highest offering prices. The highest and best use analysis requires the application of various categories of use oriented decisions. To conclude that a given use is the highest and best use of the land as vacant must meet the following four criteria: 1) legally permissible 2) physically possible 3) financially feasible 4) most profitable Highest and Best Use Of The Site As Vacant An analysis of highest and best use as vacant requires an analysis of those uses, which are legally permissible, physically possible, financially feasible, and most profitable. Legally Permissible The zoning district in which the property is located largely controls uses, which are legally permitted at the subject property. Other factors, which may affect the categories of permitted uses, include deed restrictions, easements and encroachments, covenants, etc. As mentioned in the Zoning section of this report, the subject property is located in the Industrial 3American Institute of Real Estate Appraisers, The Dictionary of Real Estate Aapraisal, 2nd Edition; (Chicago: 1989), 29 • • , Zoning District in Silver Spring Township. Permitted uses allowed in this district include most types of industrial activities including shops, manufacturing, storage, and similar uses, however the lack of sewer is a drawback. No residential uses are permitted. It is clear that the subject as vacant could not be used except for agricultural usage. Physically Possible The pertinent physical factors affecting the highest and best use of the subject site fall under two specific categories: locational characteristics and site characteristics. Locational characteristics include access to transportation, availability of labor and materials, proximity to markets, the impact of the surrounding neighborhood, and conditions of the market within which the property will operate. Site characteristics include size, configuration, topography, soil conditions and the availability of adequate utilities. The subject would suitable to all of the uses included in the zoning section of the addendum, and except for the lack of sewer would be developable. Financially Feasible The appraisal principle of conformity holds that real property value is created and sustained when the characteristics of a property conform to the demands of the market. The industrial markets are relatively strong at present and the site's good access, visibility, location and the continuing commercial development in Silver Spring Township indicate that most of the permitted and conditional uses would be financially feasible. Maximally Productive The final determination in the. highest and best use analysis, as if vacant, is the maximally productive use of the site. The lack of public sewer means that the tract could be used only as agricultural use if vacant. The cost of installing a force main system under Route 11 is not known and is out of the scope of this report. Highest and Best Use Of The Site As Improved The existing improvements tend to maximize the property as improved., and therefore the highest and best use of the subject as improved, is for a mixed use residential, industrial and storage facility as anon-conforming use. 30 • THE VALUATION PROCESS The valuation process is used to develop swell-supported estimate of a defined value, which is based on the consideration of pertinent data. Typically, after defining the appraisal problem and making a detailed investigation of the subject property, market value is estimated by applying specific appraisal procedures which reflect three distinct methods known as the Cost Approach, Sales Comparison Approach, and Income Capitalization Approach. These approaches arrive at a value indication through dissimilar methods and the use of different types of data. The Cost Approach is developed by adding the estimated value of the subject site to the depreciated reproduction cost of the improvements. This approach assumes that, under normal circumstances, a potential buyer will not pay more .for a property than the combined cost of obtaining a similar site and constructing similar building improvements. The site is valued separately by the Sales Comparison Approach. Replacement costs are estimated for the subject improvements. Depreciation from physical, functional or external causes is subtracted out of the reproduction cost to reflect the improvement's current condition. The resultant estimate of value derived from this approach is the sum of the site's value, the depreciated value of the improvements, and an appropriate amount of entrepreneurial profit. This approach is used in newer properties and not normally when the improvements area non- conforming use since if vacant the property could not be developed without sewer. The Sales Comparison Approach is developed by identifying sales of improved properties with similar utility to the property being appraised. This approach is based on the principle that the value of a property, as replaceable in the marketplace, tends to be set by the cost of acquiring an equally desirable substitute property. . Adjustments are made based on various elements of comparison based on the degree of similarity or differences between the sales and the subject. The adjusted sales indicate of range in which the value estimate of the subject will fall. 31 • • The Income Approach to value is a method of analyzing a property's ability to generate monetary benefits and converting these benefits into an indication of value. This approach allows the analyst to step into the shoes of the typical investor-buyer, being concerned with the property's income potential, and future marketability. The investor trades present dollars for the right to receive future dollars in anticipation of making a profit. This is the Principle of Anticipation, which is fundamental to the Income Approach. Each of the approaches seeks the same answer through the analysis of different types of information. The reliability of the indicated value produced by each approach may vary. Therefore, it must be reconciled into a single value indication as shown in the Reconciliation Section of the appraisal report. 32 r1 LJ SALES COMPARISON APPROACH Flex Buildings The Sales Comparison Approach is a method of estimating market value where the subject property is compared to similar properties, which have been sold. This approach is based on the Principle of Substitution, which states that if several competing commodities, goods or services are available, then the one with the lowest price will attract the greatest demand and receive the widest distribution. When applied to real estate, this comparison focuses on those elements of comparison, which cause prices to vary. The Sales Comparison Approach is considered important to most appraisal problems since it is based on the price paid for similar properties by typical buyers in the open market. It is applicable to the appraisal of all properties for which there are a sufficient number of comparable sales. This approach is most reliable when the property type under analysis is bought and sold regularly. Applying this approach is a systematic procedure where similar sales are researched and analyzed through the most relevant elements of comparison. Adjustments are made for differences in the sales that reflect market reaction. Units of Comparison In a flex building like the subject, the price per square foot of building area is the appropriate unit of comparison. Comparable Sales Comparable improved sales were identified in the market. A summary of the four-sales and individual data sheets are presented on the following pages. These sales presented are considered to be most comparable to the subject property and reflect a similar highest and best use of the subject. NOTE: The subjects includes a garage facility (2,880 square feet) mini-warehouse structure (1,400 square feet) and a dwelling house (1,037 square feet). All will be included for the purposes of this report and a total of 5,317 square feet is then developed. 33 tric:h N - CO A,R.ABLE SALES MAP ~_- °Acker B".1.~Q! 'eta ;ame Lan;' Rlo 2~~ ©arsonville _~ ee ' ewp0 •a`lifax - ,~ _ - -- 'J' ew Bu alo Powel! ~ ~ J Creek o" *~~' - Matamoras"-~"r ~: . aas Mckee -_ 2oa5 ° New Bloomfield ~ - ; -' 325 e „ Pa ztts Cr _ _ ! ,: - f, ~-. ~ ~ 225 Dauphin (; " z7a D ~ ncann ~ n Inglenoo ~ -'~ 443 `c` er f ~~a`` ecks Corner Sl, ,47 3z5 cie~ -" - a1~~' `1 'ry4j~ ^ ~\U ~ ti ti ~ °Dellville , Dauphin aa3 2 ~ - He QStat~ Ga m= Lands ~l0 24F - „ inglesto n 2 me View Shermans Dale sso aso 3s 2z a tar, . __. Statz Game L ands PJo .'0 _ Susrtmerd I~ P onia ~,,a ®an 39 Donnell own vt nol 2 r COMP#2 Un on D ~~i sa4 ~ 2 sa4 ~ ~ • 9 a isle Springs e t Fa rvie o~rr,le ~Fiu y ~ Ru rford ghts ° az2 SUBJECT ~ 322 Caprivi ~ odo~u~et G~ree 11 COMP#1 'em0 ne ~, Waltonv ~, ~~ ew King stown 15 58 COMP#3 ° n ~ - ~ _ 7a ~D u ill~b COMP#4 e° 2a3 'Car i P ~, 3o3z sa, ~ d ~ 1 Mid t®vun za3 ,7a 7 2s 6 oyalton 23a 7a ~' n4 -- ,--- -= ~ --- , ' - ---~Botling Spring „a ,5 y~~B-owr~r anstlale ~ ~s ~ Gran~Fra ,77 3sz ~a cum o n {~. o - Mt Pleasant Lel~cisber' ~ ~ f~c,~ Mt Holly Springs rterte ow ~ ~Yo H Upper Mill z9s 1;. aytown ~'a!e ;~ an-~~ Land- "lo ? Strmestow o~`'- f~~rU 'i='in~.^-. ~i. -Par;:. _ "t ~ is Fran lintown M Chester Mt V1 ° Ch ut Hill e Isville ~~, s2, 3a ~ ,03, 74 Peae ' len 194 x ,-, 2a 18, o B udian ~ ~ - Idaville o- o ._ __ _ -~ perrrurd~ ~ Rettt ~ ~ Gardners ~ ~_ '~~ Dover ~- z3e \ - ~ ,,. `'~~ Plea evil) Bermttdia,t Creek © la ~ W i Ist ~Aspers __ ,5 ~\ _ ~ o' E N ~ A mike` ~ 2001 DeLotme. Street Atlas SA; ~r 2001 GDT, Inc., Rel. 01/2001 `~ T ~.~~~IIvO ~~ 34 • • COMPARABLE IMPROVED SALE 1 Address: 5252 Trindle Road, Hampden Township Legal Description: Tax Map 10-23-0561-018 Grantor: Rainbow Foundation Grantee: John M. Thompson Sale Price: $500,000 Sale Date: October 1, 1998 Property Rights Conveyed: Fee Simple Recorded: Deed Book 0170, Page 1075 Condition of Sale: Arm's Length Verification: Cumberland County Tax Assessment records Financing: Conventional Building Description: Year Built: 1970+/-57 Size: 7,854 square feet Stories: One-story Construction: Brick and Block Ceiling Clearance: 12' Warehouse: 5,854 square feet (75%) Finished Showroom: 2,000 square feet (25%) Site Description: Size: 1 acre or 43,560sf Shape/Topography: Rectangular/Level Utilities: Water/Septic Zoning: Commercial LTD Land-to-Bldg. Ratio: 14.3 to 1 Appraisal Measures: Sale Price/Gross SF: $63.66 Comments: This is a communication office, shop, storage are a and has traffic count of 16.000 vehicles per day. 35 • • ' , COMPARABLE IMPROVED SALE 2 Address: 2201 Sycamore Street, Swatara Township Legal Description: Tax Map 63-024-027 Grantor: R and L Associates Grantee: Kenneth H. Hess Sale Price: $360,000 Sale Date: February 16, 1999 Property Rights Conveyed: Fee Simple Recorded: Deed Book 3332, Page 0338 Condition of Sale: Arm's Length Verification: Broker CIR Financing: Conventional Building Description: Year Built: 1950 Size: 8,060 square feet Stories: One-story Construction: Masonry Occupancy: 100% , Height: 18' Size: 1.37 acres or 59,677sf Warehouse/Office: 20% Office - 80% warehouse Site Description: Shape/Topography: Rectangular/Level Utilities: All Utilities Access: Average Visibility: Fair Zoning: Manufacturing Limited Land-to-Bldg. Ratio: 7.4 to 1 Appraisal Measures: Sale Price/Gross SF: $44.67 Comments: This sale is a combination office, .garage, warehouse and is located off of Paxton Street in Swatara , Township. The traffic count is in the 8,500 vehicle per day range. 36 t i i w i i i • • COMPARABLE IMPROVED SALE 3 Address: 2300 Gettysburg Rd., Lower Allen Township Legal Description: Tax Map 13-23-0549-004 Grantor: Salvator Accardi Grantee: Martin R. Kapell Sale Price: $650,000 Sale Date: October 1, 2000 Property Rights Conveyed: Fee Simple Recorded: Deed Book 0229, Page 0136 Condition of Sale: Arm's Length Verification: Cumberland County Tax Records Financing: Conventional Building Description: Year Built: 1960- completely remodeled 1997 Size: 9,164 square feet Stories: One-story Construction: .Mason ry Ceiling Clearance: 16' finished at 10' Condition: Good Size: 1.36 acres or 59,242sf Warehouse/Office: 15% Office - 85% warehouse Site Description: Shape /Topography: Rectangular/Slopes up/ corner Utilities: All Utilities Access: Average Visibility: Good Zoning: Commercial General Land-to-Bldg. Ratio: 6.5:1 Appraisal Measures: Sale Price/Gross SF: 570.93 Comments: This sale is a comb ination office/health club. The traffic volume is 23,000 vehicles pre day. 37 • • „_~ m COMPARABLE IMPROVED SALE 4 Address: 2236 Gettysburg Rd. Lower Allen Township, Cumberland County, PA Legal Description: Tax Map 13-23-0549-007 Grantor: Grmer L. Stephenson III Grantee: Nick Loxas Sale Price: $366,000 Sale Date: October 1, 2000 Property Rights Conveyed: Fee Simple Recorded: Deed Book 0231, Page 0336 Condition of Sale: Arm's Length Verification: Albert Schmidt, RSR Real tors Financing: Conventional Building Description: Year Built: Size: 6,200 square feet Stories: One-story Construction: Masonry Ceiling: 10' + 14' Condition: Good Shop: 5,600 square feet Finished Office: 600 square feet Site Description: Size: .7 acres (30,500 square feet) Shape/Topography: Rectangular/slopes up/corner Utilities: All Utilities Zoning: Commercial General Land-to-Bldg. Ratio: 4.9 to 1 Appraisal Measures: Sale Price/Gross SF: $59.03 Comments: The former Stephenson Tire Store is now part of a larger chain for similar tire and repair stores. The traffic volume is 23,000 vehicles per day. 38 • • Discussion of Comparable Sales In general an upward adjustment will, be made if the comparable is inferior to the subject for a given element of comparison and downward where the comparable is superior to the subject for a given element of comparison. li E{ements of Comparison: Key value elements under scrutiny that may require adjustments are: property rights conveyed, financing terms, conditions of sale, market conditions, and physical characteristics including location, condition, and size. These factors are the primary influences on sale prices and tend to affect the. differences in price levels. Property Rights Conveyed: A transaction price is always predicated on the real property interest conveyed. Many types of real estate, particularly income-producing property, are sold subject to existing leases. The income potential of a property is often limited by the terms of existing leases. In these situations the real property that is sold is the leased fee estate as subject to the existing leases. All of the other comparable sales included fee simple property rights and no adjustment ~ was warranted for property rights conveyed. Financing Adjustments: This adjustment renders the sales price to cash equivalent terms. Where the seller makes favorable (below market rate) financing terms available, the difference between the favorable terms and the market rate terms is estimated. The present value of this difference represents an advantage to the comparable sale and warrants a negative adjustment. While this calculated amount is not always the market's reaction to favorable financing, it serves the appraiser well as a guide in the absence of market .data. All sales included cash and/or conventional bank financing at market terms and no adjustment was warranted for financing. Conditions of Sa{e: This adjustment is applied if there are any unusual circumstances surrounding the transaction, such as foreclosures, bulk sales, related parties, assemblages and the like. All five sales were reported to be arm's length transactions and no adjustments are warranted for conditions of sale. Market Conditions (Time): After adjusting the comparables to a cash equivalent price and for conditions of sale, the sales must be brought current by means of a time adjustment if warranted. The dates of the comparables range from 1999-2000. The sales were adjusted using a two (2%) percent increase per year as per data provided by Central Penn Multi-List, for area. Location Adjustments: Locational adjustments reflect an increase or decrease due to neighborhood characteristics such as land use, traffic, visibility, condition, etc., that affect desirability. Sale 1 is similar. Sale 2 is inferior due to less traffic volume and Sale 3 and 4 are superior traffic counts. Quality of Construction: Another element of comparison to be considered is the quality and condition of the construction of improvements. Obviously, well-maintained properties will normally sell for higher unit price than poorly maintained properties in need of renovations. For example, buildings constructed with brick materials are more costly to build than wood framed and pre- __ engineered metal buildings or concrete block. The sales included Class C masonry construction, adjustments are warranted for quality of construction. 39 • LIGHT If~DUSTRiAL SALES ADJUSTMENT GRID IMPROVEMENT SALES SALE 1 SALE 2 SALE 3 SALE 4 LOCATION 5252 Trindle Rd. 2201 Sycamore 2300 Gettysburg Rd. 2336 Gettysburg Rd. TOWNSHIP Hampden Twp. Swataro Twp. Lower Allen Twp. Lower Allen Twp. COUNTY Cumberland Dauphin Cumberland Cumberland DATE OF SALE Oct-98 Feb-99 Oct-00 Oct-00 CONSIDERATION $500,000 $360,000 $650,000 $366,000 SQUARE FEET 7,854 8,060 9,164 6,200 PRICE PER SQUARE FEET $63.66 $44.67 $70.93 $59.03 PROPERTY RIGHTS CONVEYED 0% 0% 0% 0% ADJUSTED PRICE $63.66 $44.67 $70.93 $59:03 FINANCING 0% 0% ...0% _. , _ -, - . - ~_.,..n . ~~, ADJUSTED PRICE $63.66 $44.67 $70.93 $59.03 CONDITIONS OF SALE 0% 0% 2% 0% ADJUSTED PRICE $63.66 $44.67 $72.35 $59.03 TIME 7% 6°,6 3°.6 3% ADJUSTED PRICE 568.00 $47.35 $74.52 560.30 DJUSTED PRICE PER SQUARE FEET $68.00 $47.35 $74.52 560.90 ,_`. ~ ~w LOCATION 0% 20% -15% -15% QUALITY OF CONSTRUCTION -5% -5°b -5% -5% AGE AND CONDITION -5% -5% -5% 5% INTERIOR FINISH -5% -5% -5% -5% FUNCTIONAL UTILITY -10% -10% -5% -5% SITE CHARACTERISTICS 0% 0% 0% 0°,6 SIZE 10% 10% 70% 10% NET ADJUSTMENT ($/SF) -15% 5% -25% t 15% DJUSTED PRICE PER SQUARE FEET $57.80 $49.72 $55.89 $51.68 • r1 ~J Age and Condition: The comparable sales consist of structures ranging in age from 1950 to 1975. The subject property's structures are 15-30 years old. All of the sales contain some physical depreciation due to age. Adjustments were warranted to reflect; these differences. Some of the properties have been recently remodeled and the subject is original. Interior Finish: This amount of finished office space and showroom area within a flex building, similar to the subject property, is one of the primary factors that affect. sale prices. The subject property includes a smaller percentage of finished area than the comparable sales, warranting an upward adjustment for finished office/showroom space. Functional Utility: This adjustment is concerned with whether the existing improvements at each of the comparable sales are more or less functional than the subject property. Ail of the properties are legal uses while the subject is non-conforming. Adjustments for the lack of future development potential can be seen on the grid. Site Characteristics (Land to Building Area Ratio): This adjustment is concerned with the proportion of land area to gross building area, as compared to the subject property. The subject has a 24 to 1 ratio while the comparables range from 4.9 to 7.4 to 1, however since the subject ~ does not have sewer it cant be expanded. Size: The size adjustment is applied after all prior adjustments are made to the sales. Normally, economies of scale dictate that a larger property will sell for a lower unit value then a small property. All of the sales are larger sized as compared to the subject and adjustments were warranted. Conclusion: The adjustments to the improved sales are indicated in the Sales Comparison Approach Summary shown on the opposite page. The unadjusted prices ranged from $44.67 to $70.93 per square foot. After adjusting the comparable sales, the prices ranged from $49.72 to $57.80 per square foot with a mean of $53.77. All four sales were considered reliable indicators of the market value of the subject property and a price per square foot of $54.00 u~ras chosen, which yields a total market value of $287,118 ($54.00 X 5,317sq. ft.). Therefore, the fee simple value of the improvements based an the Sales Comparison Approach, in its "as is" condition as of April 19, 2002, is $287,118 rounded to: * * *TWO HUNDRED NINETY THOUSAND DOLLARS * * * ($290,000) 40 w A A 1 1 A t • • INCOME APPROACH The lncome Approach is the prime vehicle used in appraising income producing property. The basic premise is that of "anticipation". Anticipation means the right to receive a return on and return of the investment. Investors consider risk and reward and make discussions based on the alternative choices available is the financial markets. Stocks, bonds, mutual funds, annuities, certificates of deposits and many other forms of these are the competitions for real estate as a investment. Real Estate allows the purchaser to leverage his/her investment and this is one of its prime benefits. Investors use capitalization rates to weight returns in all types of investment. Capitalization means "... rates or multiples that are extracted from market data.4 Ideally they come from actual market transaction and in the absence of these two direct methods are substituted. ~ 1. Overall Rate -here the use of leverage is factored. Certain assumptions are necessary and from discussions with mortgage lenders and investors these are as follows: A. Mortgage Rate - 7% -fixed for 5 years B. Loan-to-Value - 80% -debt C. Equity Needed - 20°h D. Equity Divided - 13% -investor required Therefore: M x Rm = .80 x .9304 = .7443 E x Re = .20 x .1300 = .2600 .10043 OR 10% Capitalization Rate 41 • , • 2. Debt Coverage Ratio -Lenders required investors to maintain reserves to provide "insurance" in cases where cash flow is insufficient to carry the debt/mortgage payment. Here many lenders requiring 1.20 to 1.30 to each dollar of net operating income (NOI). ' Therefore: Debt Ratio x M n - o thly Mortgage Constant xLoan-to Value Ratio =Capitalization Rate or 1.30 x .9304 = 9 7 ° x .80 .0 6 6 or rounded. 10 /o Capitalization Rate Economic Rent vs. Contract Rent The subject is currently leased as a combination garage and mini-warehouse stora a facilit .The 9 Y garage lease (see addendum) was written in 1994, and has been renewed on a verbal basis to '~ the current $1,000. Based on other leases in the market, and the limited supply of 2,880 s uare q foot buildings such as the subject a rental value of six ($6.00) dollars per foot or $17,280 per year was developed as the economic rent for this facility. All the costs of operation for this building including utilities should be paid by the tenant. Mini-storage properties Where compared with Capital Self-Storage located in Enola. Based 5'x 5' space leased for $25 ($12 -per square foot per year) monthly and 10' x 10` returned $81 ($9.72 per square foot) monthly. This facility enjoyed superior amenities due to higher population concentration and better visibility. A blended rate per square foot of $8.50 is chosen as best representing the potential rental for this improvement. Therefore: $8.50 x 1400 square feet = $11,900. The subject dwelling house was compared with similar suburban two bedroom properties and an estimate of $600 per month or $7,200 was generated. a Appraisal Foundation, Standards of Professional Appraisal Practice of the Appraisal Institute, 1945 Edition, Wash. D.C.: 1995) Pages 7-8 42 , • • Gross potential Income is then the sum of the three (3) different in<;ome sources or $36;380 ($17,280 + $11,900 + $7,200).. A proforma would then appear like this: Gross Potential Income $36,380 Less: vacancy/credit loss 6% ~ 2,183 Gross Effective Income $34,197 Less: $3,988 Insurance: $1,500* Water: $ 600* Grounds $ 700* Mgmt/Leasing 6% $2,052 Replacement 2% $ 684 Total $9,524 9 524 Net Operating Income $24,673 Value then is the Capitalization Rate of .10, divided into the Net Operating Income, or $24,673+ .10 or $246,730 rounded to: $250,000 Therefore the estimated value by the Income Approach is ***TWO HUNDRED-FIFTY THOUSAND DOLLARS*** ($250,000) *estimated 43 c: • RECONCILIATION AND FINAL VALUE ESTIMATE In the preceding pages of this report, the Cost Approach, Sales Comparison Approach, and Income Capitalization Approach were developed to estimate the fee simple market values of the subject property in its "as proposed" condition as of the effective dates of this report. The values indicated by these approaches are summarized as follows: COST APPROACH SALES APPROACH INCOME APPROACH FINAL VALUE ESTIMATE N/A $290,000 (FEE SIMPLE) $250,000 (FEE SIMPLE) $270,000 The Sales Comparison Approach reflects the market forces and considerations affecting the sales of other similar type properties. Buyers and sellers often base their decisions on recognized value indicators, which for self-storage facilities are price per square foot and the price per unit. The selected sales are all located in central Pennsylvania, are relatively recent and produce a reasonable value range for the subject property. This approach is given moderate consideration. The Income Approach-was and considered equally in the final value estimate. In the final analysis, both methods were give equal weighting. Therefore, the final estimate of the fee simple market value of the subject property in its "as is" condition, as of April 19, 2002, is $270,000. ""` "TWO HUNDRED SEVENTY THOUSAND DOLLARS *'` ($270,000) 44 • CERTIFICATION OF VALUE I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. • , 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and is my personal, unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. 4. My compensation in not contingent upon the reporting of a predetermined value of direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 5. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 6. I have made a personal inspection of the property that is the subject of this report. 7. No one provided significant professional assistance to the person(s) signing this report 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. As of the date of this report, I have completed the requirements of the continuing education program of the Commonwealth of Pennsylvania. 11. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. Signature: l- Date: ~ ' `7 ` a ~` Wi iam F. Rot an, I. :A.S. Certified General Real Estate Appraiser No. GA-000303-L 45 w *1 w • • ASSUMPTIONS AND LIMITING CONDITIONS 1. No responsibility is assumed for the legal descriptions provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable, but no warranty is given for accuracy. 5. All engineering studies are assumed to be correct. The plot plans and- illustrative material in this report are included only to help the reader visualize the property. 6. No survey has been made by the appraiser and no responsibility is assumed in connection with such matters. ~~: 7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such ~`~ conditions or for obtaining the engineering studies that may be required to discover them. 8. It is assumed the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. 9. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted within the report. 10. The distribution of the total valuation in this report between land and improvements applies only under the stated program utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 11. Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing Assumptions and Limiting Conditions. 12. The appraiser of this property will not be required to give testimony or appear in court because of having made this appraisal, unless arrangements have been previously made. 13. There are above ground fuel storage tanks located on the subject. They should be certified and their condition was not ascertained by me. 46 hlJ I • • .ADDENDA • • ADDENDA A Legal Description ~r ALL-STATE LEG PPLY CORP. P f08 - OEEG - E,eeulo,, Trualae a Guardian - A D G R V 1310 ARCH SY_ PMILAOELPHIA. PA. 19107 •~ ~ ~ , J Made the 1st dab of May , in the year "If~~ll Nineteen hundred and Ninetq (1490) '~1~~'l#~PYlt ~,R~ JOYCE DOUGHTEN, Executrix of the Estate of JOHN W. DOUGHTEN, ' deceased, of Perry County, Pennsylvania, GRANTOR A N D CARL L. BRENNEMAN, of Cumberland County, Pennsylvania, GRANTEE ~I~txCA3, JOHN W. DOUGHTEN, died on May 4, 1985, a resident of Perry County, Pennsylvania, having first made his Last Will and Testament dated January 8, 1992; and '~] WHEREAS, his said Will was submitted to probate to Perry County File No. 50-85- 72 on May 30, 1985, which day the Register of Wills appointed Martha Joyce Dough ten ', as Executrix of said Estate; and . WHEREAS, at the time of his death, the said decedent wsa the owner, inter al:ie, of the real estate hereinafter described; and WHEREAS, Martha Joyce Doughten, Executrix, was also the residual beneficiary of the said Will and Donee of said property. Srr~c~;f :;1sc. Curb. C~,L, Na `9G Resl Estate lransfer Tex i7 Data (p ~~'i-~oAmt. ~`~ ~ ~ ~~~ Cu Co. Diet Col. ApL i~ v' !'~^AAi:,i"`F.f',,5,` ",Crf ; ~.1+ ',~-r..li ~ .>/i VA't•lld ~. ~ ~ 7oNmshfp of iv`~1' 1c--{~ --... -..._ + ` Cumh. Co., Pa. v ~ :~ •i-'1L Rssi Estate Transfer Tax o ~ ri -1 c'~ L `, ~ ~~-~1 ~~ Data 6-ra-,'~ 1-mt. rx..~.~ ~ m ; _~ z ~~,° a~ro,. co. oia. Col. n~.,~s rv T ~._i ~~~::~~ -„ .~ ~ -. - :- Y 1 3 (, r 7 rl fV z 1~1 -1 Ri O ~ C_7 "i ~ -,u'~ sao~,~ 34 ~~cE 733 i ~~ t~is ~nasn~uss ~iturssst~, That the said MARTHA JOYCE Do11GHTEN for and in consideration of the sum of One ($I.00) Dollar-------_~________~____ lawful maned of the United States of America, unto has well and truly paid by the said CARL BRENKEMAN at and before the sealini and deliuery hereof, the receipt whereof is hereby acknowl edged, has wanted, bargained, sold, aliened, .released and confirmed, and by theca presents does rant, bargain, sell, alien, enfeojJ', release and confirm unto the said CARL BRENNEMAN, All of_the certain tract of land situate in Silver Springs Township, Cumberland County, more particularly bound and described as follows, to wit: In a southerly direction, beginning at an existing monument, at the Southwestern corner of lands now or formerly of John L. Martin, Eighty-seven and sixty seven hundredths (87.67) feet to the Place of Beginning along an existing cul-de-sack thence along a curve having a radius of One Hundred and Seventy-five (I75) feet to the right with an arc distance of One Hundred Ten and sixty-two hundredths (110.62) feet thence North Seventeen (17) degrees, Eighteen (18) minutes, 00 seconds Weat Nlnety-eight and fifty hundredths (98.50) feet to a point oa the existing cul-de- sac; thence in an arc to the left with a radius of Fifty (50) feet and an arc distance of Fifty and thirty-two hundredths (50.32) feet to the Point of Beginning along the existing cul-de-aac, as shown in a final Subdivision Plan laid out by William B. Whittock and recorded in Cumberland County Recorders Office in Book 23, Page 15 attached hereto ae Exhibit "A", and also as set forth in a plan of property for Quick Claim prepared by George W. Walker, Registered Surveyor, as shown in Exhibit "B" attached hereto. BEING apart of the same premises which Pat Weat Corporation by its Deed dated the 22nd day of December, 1970 and recorded is the Office of the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Deed Book X, Vol. 23, Page 406, grar;ted and conveyed unto John W. Doughten, the Grantor herein. bGGX I~ ~~ PAGE ~~ w w w w w w w w ~ugtk~tes with all and sing ways, waters, water-courses, r'~1[ts, liberties, privileges, hereditaments and appur- tenances whatsoever thereunto belonging, or in any wise appertaining, and r;he rPVersions and remainders, rents, issues and profits thereof; sod also tel./, the estate, right, title, interest, use, trust, property, possession, claim and demand whatsoer,~er, in Zaw, equity, or otherwise howsoever, of, in, to, or out of the same: ~a ~Rbs Alt>yt kD ~p[D the said MARTxA JOYCE DOUGxTEN, Grantor herein hereditaments and premises hereby granted and released, or mentioned and intended so to be, with the appurtenances, unto the said CARL L. BRENNEMAN, his heirs and assigns to and for the only proper use and beltnnf of t.Jte said CARL L. BRENNEMAN, his heirs and assigns forei'er ~xs[1 the .4aid MARTAA JOYCE DOUGHTEN, Grantor herein does Porrnant, prnmis.P and..rusrs~~~t~..~a~d,urith the said .CARL L.' BRENNEMAN, his hairs .~ N a ,:+1~itfLYf~Fi E liiii fjff t.~,: h ~t.~r7d'i ~liO' 1~M1~~6lIIM1 is rr~r~rra~~r ~cw and assign.,4, that, he t.hP..4aid FIARTEiA JOYCE DOUGATEN has not don P, Pnrnmi.ttPd, nr J<atntvinsly nr tcillingdt! sufj'ered to he done or committed, any art, mnttPr or thins u'hatsoer•er whereby t.hP premises herehJ~ Granted, nr any part thPrPnf, is, arP, .4halJ nr nr.ay be impPaPhPd, PhargPd nr tn.rtrmhrred, i.n. tit1P, Phai'BP,TTPSIatP, nT nt~h.-1RT717RP hO7U,C0Pt'Pr. ~$$ ~11?t:~$~iC~ri ~ll~~~~~C~~9 the said ~gTHA JOYCE DOUGHTEN, Grantor herein hereunto sets her hand and seal the day and year first above written. ~ig~ra, $ta[ea and ~e[insss~ in ti~.t ~rsssnrr of ~~ " ~ ~/~ , -~..~~.~ ~oo~~ 34 r~cE ?35 APR-26-2002(FRI) 08~2o Cornerstone Land TransLer • `~~~ c, (FAX) (1 ( ~btib '° I t7~~'Ir{,,,'~'IY111,_w••••~u a.e. sw. t.... ar .t i~w. ~ .~`Y~ .n i.... i«w.r r. ~'~r,s ~ r r ~ r'te' f ~ee~~ ~. eau ee:s ' I, ;,~, .. :~'_ rb b2ADE TXE ~-_. ~ 3 + -- day of October in the year o/ our Lard one thoo~sand nine hundred and seventy-one ( 1971) BETwF.EN JOHN W.~DOUGHTEN,'single man, o£ the Township of Silver Spring, County of Cumberland and State of Pennsylvania, psrty of the first part, • '' Gvvntor , and CARL L. HRENNEMAN T/D/B/A MOBILE REFRIG~RATZON SERVICE, o-* the Township of Silver Spring, County of Cumberland and St,ato of Pennsylvania, party of the second part, 1 Grantee I 1YITNESSETH, that ;n eoneideration of the sum 4f "--Ten Thousand 010,000.00) .Dottara, inhand paid, Lhe,retaipt whcreaj u hereby actnwwledped, the sold grantor dogs htreLU ttrant and convey to the said grantee , ALL THAT CERTASN tract of land situate in the Townshig o:C Silver Spring, County of Cumberland and State o£ Pennsylvania; more pparticularly bounded and described according to survey of William B• Whittock, registered professional engineer, dated June 30, 1970, a~ follows, to wit: 9EGIIVNING at a point in the lrastern line of Taylor Boulevard (50 fees wide, at the Southwe~t• corner of a one (1) acre tract of _, land of John 41_ Doughten and as shown on the Resubdivi~ion Plan of Lot No..y for John W. Doughten as laid out by Vii111am B. Whlttock, registered engineer, dated dune 30, 1970, and to be recorded In the Cumberland County Recorder's Office; thence extending slung the Southern line of said one (1) acre tract,-North 72 dcgree~ 42 mir- y sites 00 seconds East, one hundred thirty-eight and ^eventy ane-hun- dredths (138.74} feet to a point in the line of :ands now or late of James I.1. Patton and tivife, which said point is referenced as being South 15 degrees 29 minuL•es 30 seconds East, a distance of three hundred fifty-eight and fifteen one-hundredths (358.15) feet from the censer line cf the Carlisle Pike, U. S. Route 11; thence c:ctending along the Line of said lands now or late of James H. Patton and wife, South 15 degrccs 29 minutes .30 socond~ East, seventy-seven and forty- five ono-hundredths (77.451 feet to a point; thence by the same, North 72 degrccs 42 •minutes East, one hundred fifty (150.01 SPet to a point marked by a monuument; thence by land of Max 1•temnt, South 15 degrees 29 minutes 30 seconds East, three hundred seventy-three and seventy one-hundredths (373.70) feet to a point marked by a monument i.n the line of lands now or late of crank J. L~ilson; thence along the line of said last mentioned land, South 71 degrees 24 minutes 00 seconds West, three hundred twenty-four and fifty-four one-hundredths (324.541 feet to a point marked by a monument; thence along the line of lands now or late of Patwest Corporation, North 17 degrees 18 minutes 00 ^econds West, L•wo hundred seventy-three and seventeen one-hundredths (273-171 Teet to s point in Eastern line of Taylor Eaulevard, afore- mentioned; thence along the game in a Northerly direction by' the arc of a circle curving to the Ielt, said circle havir~ a radius of ore hundred seventy-five (1711 feet, the -rc di~tancc of one hundred ' thirty-flue and ai.~cty-four ens-hundredths (135.64) feet to a point; thence continuing along the Eastern line of Taylor Boulevard, Plorth i ~.~ '~ • ;~ ,' - ~ • APR-26-2002(FFI) 08 27 rnerstone Land Transfer (FAX)717 ~Ei5 1 IJ~ P. 003/003 ' 17 dcl;rces 18 mi.nutcs OG seconds L'lest, sixty-two and sixty-three one- hundre-dths (62.63) feet to a point: at the Southwost corner of the one (11 acre tract flr.^t above mentioned, at the point and place of DEGINNING. CONTAZNING 2.9 acres. BEING a part of the same premises which Patwest Corporation by its Dced dated the 'L2nd day of December, 197G, and recorded in the Office of the Recorder of lleeds in and for Cumberland'County, Penn- . Sylvania, in Deed Book +'X", Volume 2j, at Page 406, granted and conveyed unto Sohn W, Doughten, the grantor herein. -TOGETHER with the ril;ht of ingress, egress and rel;ress unto the grantee herein, his heirs and assign:., in, over and along Taylor Boulevard as it extends in a general north to south direction from the Carlisle Pike, U, S, Route 11, to the tract•horein conveyed and as more particularly srwwn on the aforementioned plan. AND t)re aaid•prantor hereDU wvenant and aptae that he will warrant generally the yroporty hereby conveyed- IN WITNESS IYHEREOF, sairi praretar haS hernintoaet h15 hmui a+rdxca( the day and Ucar first about mrittrn. r ~~ liipmr. FraLl ~ni ~1rWmfr __~~-.!S_'!~ .... .. sx C . gryr,.rll.r.r Bohn W. Doug on ~_ ...-. 1 ._.__.~._.-.~ ~.-..__~ a1tAL 11 ... _ -. ~_. _~~~~_ ................. ~IDA4 ~..~.~~~.~.._.--~~_ _ .~.~......r.~ ~ .~. ..~._...........~ rfAL loll ....w,l. c, >..~:::.....:.1.:.:a Cur.:b. Co., Pe. ~r Z a.•I E.Id• ir•lul•r Tu e.,.r, e.. or.+. ~+. Aa+. , 4 ~ ~ S ~". Co., Pa. ~ P°1 •itool bitt. Cumb. ~9°9T ~~ xT91 1I R••1 E.r.l•Tr.ni.r T•• Zy~~;o-., ..r. t;.. oru. C•,. wd. ~ J ~ ~~ i d , Stnto o/ Pennsylvania aa. Cm+ney of Cumberlandr, Orr thin, the --• /3 day o/ October , 19 7l , before me, the urrdcraipncd oj1•ieer, perawwlly appenrod John W. Doughten, single :non, knoiun to me (or aatufaetorily proven) to ba G.e person wlwac name 1S suL.+crihcd to the IClthNr 1nttRl+I+CRI, and ae/mowledped that he ezceuted Urt name /or the nrrry~osca thcrcirt eonkrinecL IN A'ITNESS TYHEREOF, !hereunto oat my hand and oglcial Baal. ly d Y~ ~. ~'~ .} J_!F.f,cSra_.C~~. ..~..f V.~.4~4fG~Y•'` ~ r. l'y%~ '.. •J •, 1. r.. 1 J T u•rL j.7.. .7~}~;~,~':~:5 :'~.~ CiL I «rifFy thsl the Rra~ coca _ and Pat C(Gn of ritL~o Craatcc is % -•~~ MfS. cIADrS r. Of.~r,, I,OI~Fr rUDIC ~ ..ftt!!q•, ~, ; PO.B.x if e /h_sr J,~,,•,, ~a. ~~r7z r,ccwrr;uaune roellnc,r `- ° •:'~•1C~'~.i. ~ cut nCUte::u tounrr ~•. d: S~QYa~ : ~~ 1 +Ir enuc,sslaa Fir1aFS DCC b. ull . Gn r Atbr,. BOOx~ 2.3PL;E 335 ii Invento 1 • • Accrual Bonds Redemption Date: 4/2002 Issue Serial Number Denom. Series Date Value M71824474EE $1,000 EE 10/1998 $587.20 M68836447EE $1,000 EE 6/1997 $630.40 M68836445EE $1,000 EE 6/1997 $630.40 M68836446EE $1,000 EE 6/1997 $630.40 M68836444EE $1,000 EE 6/1997 $630.40 R152400644EE .$200 EE 10/1998. $117.44 R152400643EE $200 EE 10/1998 $117.44 R152400642EE $200 EE 10/1998 $117.44 V5430576EE $5,000 EE 10/1998 $2,936.00 X2501101EE $10,000 EE 10/1998 $5,872.00 'Yield Next Final Interest To Date Accrual Maturity $87.20 4.65°s 5/2002 10/2028 $130.40 4.85°s 5/2002 6/2027 $130.40 4.85% 5/2002 6/2027 $130.40 4.85% 5/2002 6/2027 $130.40 4.85°s 5/2002 6/2027 $17.44 4.65% 5/2002 10/2028 $17.44 4.65% 5/2002 10/2028 $17.44 4.65% 5/2002 10/2028 $436.00 4.65% 5/2002 10/2028 $872.00 4.65% 5/2002 10/2028 1 = Not eligible for payment (purchase price) 2 =Matured (exchangeable for HH) 3 = Matured (not exchangeable) * = Possibly eligible for U.S. Savings Bond Education Benefit Program. See footnotes on Inventory Summary page. 1 ' ~ • , • Inventory 1 Inventory Summary Redemption Date: 4/2002 Number Inventory Redemption of Bonds Value Value Interest Accrual Bonds Pre-January 1990 Issue Dates: 0 $0.00 $0.00 $0.00 January 1990 and Later Issue Dates: 10 $12,269.12 $12,269.12 $1,969.12 10 $12,269.12 $12,269.12 $1,969.12 Current Income Bonds 0 $0.00 :?0.00 $0.00 Inventory Totals 10 $12,269.12 $12,269.12 $1,969.12 Footnotes * Proceeds from Series EE & I Savings Bonds with issue dates begiruiing January 1990 may be eligible for special tax exemption when used for post-secondary education. For further information concerning the benefits and restrictions that apply, please contact the Internal Revenue Service. 1 These bonds are not eligible for payment within 6 months of their issue date. 2 These bonds have reached final maturity and will earn no additional interest. They can be exchanged for HH Bonds within a year of their final maturity date. 3 These bonds have reached final maturity and will earn no additional interest. They are not eligible for exchange for Series HH Bonds since they have been held over a year past their final maturity date. 2 c: Date of Death: 04/19/2002 Valuation Date: 04/19/2002 Processing Date: 05/15/2002 Shares Security or Par Description 1) 100 CHEFS INTL INC (163082100) NASDAQ 04/18/2002 04/22/2002 2) 50 PENN CENT CO (707270104) NYSE 07/13/1979 Last price available on 07/13/1979 Total Value: Total Accrual: .Total: $154.50 • Estate Valuation Estate of: Brenneman, Carl L. Account: File #11426-0001 Report Type: Date of Death Number of Securities: 2 File ID: brenneman.carl Mean and/or Div and Int. Security High/Ask Low/Bid Adjustments Accruals Value 1.56000 1.52000 H/L 1.57000 1.53000 H/L 1.545000 154.50 0.75000 A/B 0.750000 N/A $0.00 $154.50 Page 1 This report was prcduced with EstateVal, a product of Estate Valuations & Pricing Systems, Inc. If you have questions, please contact EVP Systems at (B18) 313-6300. (Revision 6..4.0) • F N~ Reference [D: 352644 First Union National Bank Attn: Account Verifications P O Box 40028 Roanoke VA 24022-7313 May 13, 2002 METTE EVANS & WOODSIDE 3401 NORTH FRONT STREET P O BOX 5950 HARRISBURG, PA 17110-0950 SUBJECT: Verification /Confirmation of Account and Balance Information provided for: Customer: CARL L BRENNEMAN (SSN# 210-26-9409) Date of Death: April 19, 2002 Deposit Account Information Account Account Date of Death Average Date Maturity Interest Accrued YTD Date Type Number Balance Balance* Opened Date Rate Interest Interest Paid Closed CHECKING 1010008235963 $8,631.89 3/29/1999 LEGAL TITLE: CARL L. BRENNENMAN D/B/A STOR - IT BEVERLY J.BRENNEMAN NON-INTEREST BEARING ACCOUNT CORPORATE CHECKING 2000003162943 $5,285.33 3/29/1999 $0.68 $3.42 LEGAL TITLE: MOBILE REFRIDGERATION SERVICES * Due to system limitations, we can only provide a twelve month average balance on depository accounts. Loan Account Information Account Account Date of Death Original Date Monthly Interest Times Int Paid Terms Due Type Number Balance Amount Opened Payments Rate Late Thru Date CONSUMER LOAN 1028441925 LEGAL TITLE: CARL L. 3REN1~'L-MAN $24,000.00 4/5/1999 001032 r • F N° Reference lD: 352644 `Date of death balance does not include accrued interest. [f date of death occurrs on a weekend or a holiday, date of death balance does not include any transactions that were made during that time period. Drema Rubinoff ~ May 13, 2002 (540)563-7323 Servicenter Associate Phone Number abs; ag 001032 •} SETTLEMENT STATEMENT CARL BRENNEMAN ESTATE AUCTION JUNE 24, 2002 TOTAL GROSS PROCEEDS AUCTION CO. COMMISSION 15% ADVERTISING EXPENSE TOILET RENTAL TOTAL NET PROCEEDS $ 56,380.00_ 8,457.00 - 1,162.06 - 99.22 $ 46,661.7 ** KPA ESCROW ACCT CK. # ~.~ S~~ REPRESENTING NET PROCEEDS ATTACHED KERRY PAE AUCTIONEERS. -. _ __ _ .~,: ~?..iKIUA. Y.. JL.lfiU(Ci ~~ ~Vt~il; +SUil. C! is L~ ~ , (~.. JJ :`J .l ~ `L'~t J~ v=iG v;i ~.