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MEDLIN Johnny R From: ROYER Russ C Sent: Thursday, November 04, 2010 8:38 AM To: MEDLIN Johnny R; BJORKLUND Neil H Subject: Comparable sale indicators Good morning Johnny and Neil, I know some of you have been working on the potential acquisition of additional acreage from Arlie. With that there has been considerable discussion of donation value relative to market value. I am not sure if the proposal is to be subject to an appraisal and assume it would be, but I thought it might be helpful to you to be aware of some more recent sales and relative appraisal activity if you get involved in such discussions. There had been an appraisal completed of the Arlie property by Spencer Powell's office a few years ago at about the peak of the market which concluded values a little higher than some expected, but there is always a range of opinions of values. 1. We have had the Gonyea property in west Eugene adjacent to Willow Creek Road appraised twice — this is about a 200 acre parcel. The earlier appraisal was completed by Roxanne Gillespie about 2 or 3 years ago and concluded a value of about $6,500 per acre. Earlier this year Duncan & Brown's office completed an appraisal of the same area and determined a value of about $9,500 per acre. This parcel is immediately adjacent to the UGB and as such D &B concluded the market recognized some added value because of the proximity to the UGB. There is now sewer and water services available in that area that could be extended to the property if the UGB were adjusted to include the area. 2. I had asked Dan Bell of the TNC about the appraised value of the recent acquisition they completed from Wildish. He said the sand and gravel zoned portions of the ownership were estimated to be $25,000 per acre based on the mining rights and the remainder of the property (probably F2 or EFU) was valued at $5,000 per acre. More similar to the subject Arlie parcel, the Wildish site is not immediately adjacent to the UGB as the Gonyea parcels. 3. The Gonyea appraisal had a couple other F2 zoned comparable sales as supporting data including a 126 acre parcel on Briggs Hill Road that sold in October of 2008 for $875,000 or approximately $6,900 per acre. And another F2 zoned parcel on Pickens Road that sold in June of 2009 for $518,230 or about $4,300 per acre. F2 zoning is impacted forest land such that the area is impacted by nearby development. I believe the remaining Arlie property, or at least some of it south of the ridgeline is zoned F1 which is non - impacted and therefore may be considered more restricted for development potential. One might expect the portion of the Arlie property on the north or city side of the ridge parcel may be more similar to the Gonyea property that is adjacent to the UGB and may have development opportunity, whereas the portions south of the ridgeline and considered the non - impacted area may be more similar to the Wildish, Briggs Hill, and Pickens Road parcels. Recognizing further adjustments may be appropriate for differences in location, size, etc. Typically larger acreages sell for less per acre. Anyway, I just wanted to share a few thoughts, all of which you may have already considered. Let me know if we can provide any further assistance depending on how this proceeds. In working with the Gonyea family representatives they had recently contracted with Spencer Powell's office for an appraised value in response to our acquisition attempts. 1 am waiting and interested to hear the outcome of that appraisal and can let you know when I do. Have a good day. Russ 5264 1