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Home My WebLink About20152172.tiff To: Rafaela A. Martinez Page 4 of 5 2015-08-25 18:11:51 (GMT) 1-303-496-7960 From: Mark Dyson PETITION TO STATE BOARD OF ASSESSMENT APPEALS € For Office Use Only -- 1 313 herman Street, Room 315 Phone: (303) 866-5880 l _- RECEIVED. Colorado 80203 rat: (3 03)866-4485 Cooke!Na Fee: Y N I AUG 2 5 2015 Check/Credit CardWELD COUNTY Date: 8/25/2015 u COMMISSIONERS �_.. - P Property Owner: Norwest Publishing_company Subject Property: 300 Lang Boulevard, Long Island, NY Street Armrests city Schedule Number(s): 83854686 Attach separate sheet if necessary .M_ O Board of Equalization Appeals the decision of the Weld C Board of Commissioners Dated:$1 1/2015 County O State Property Tax Administrator This Appeal concerns: DValuation 0 Refund/Abatement O Exemption O State Assessed Tax Year: 2013 The subject property is currently classified as: .Agric:ultutal DCu rtrr?eic i 1:1Exempt ®industrial OMixed Use GNatural Resources p Oil & Gas .Z Personal EiPossessory O Producing fResidentiai C State Assessed 0 Vacant Land interest Mines Actual Value assigned to subject property:_$8,546',370 Petitioner's estimate of value: $4,400,000 Estimated time for Petitioner to present the appeal: 60 minutes or 1 hours. Not Less than 30 minutes Board wiii allow equal time to County or Property Tax Administrator. Appearance: O Petitioner will be present at the hearing OPetitioner will appear by telephone 0 Petitioner will be represented by an agent Petitioner is resparstbte for calling the Board at 303-B6ei5880 ®Petitioner will be represented by an attorney rn,tha scherili!CQ,,:into are time of heee g(tkeJtmtain Tuna zone © Petitioner would like to appear by video conference Petitioner rust contact the Board et 303-I36 -58*0 at bast 20 nays In advance of the ukedisied hearing to cortrirrn avaiiatitity c aicieo(:Y)nftSretx.e equipnicrr';t if the property owrtet is an entity,it must appear under the representatiatl of an attorney licensed in Colorado except as follows. A closely heid entity may he represented by an diticer of the entity as long as the amount in controversy does not exceed$10.000.exclusive of costs.interest or statutory penalties. A closely held entity can have tic more than three owners. See Section t3-1.127 C.R.S. A closely held entity that will be represented by an officer of the entity must provide a letter to the Board with this petition stating that it has no more than three owners and that the tax amount at issue does not exceed$10,060.A!must filing a petition as of August 3,2012 may be represented by a trustee,art attorney or en agent. Filing Fee: q None Petitioner is appearing pro se(self-represented) and has not fated more than two Petitions with the eoarct of Assessment Appeals during this fiscal year(July 1 —June 30)_ O $ 33.75 Petitioner is appearing pro se(self-represented)and has filed more than two Petitior,s with the Board of Assessment Appeals during this fiscal year(July 1 --June 30). 4 $101.25 Petitioner will be represented by an agent or by an attorney, In the space below, please explain why you disagree with the value assigned tet the etthjart property The rail spur cannot be used by any party other than the current owner. 0lfithrULRLiAlWide4a. aols al?a 5 009 To• Rafaela A. Martinez Page 5 of 5 2015-08-25 18:11.51 (GMT) 1-303-496-7960 From Mark Dyson Required attachments to this form: 21 Assessors or Property Tax Administrators Notice of Valuation or Notice of Denial Decision of County Board of Equalization, County Board of Commissioners or Property Tax Administrator Attachments required under certain circumstances; sit A notarized Letter of Authorization if an agent will be representing Petitioner p A list of names, last known addresses and telephone numbers of co-owners or parties directly interested in the subject property if applicable. Certificate of Service I hereby certify that a true arid correct copy of the foregoing Petition to the Stare Board of Assessment Appeals and attachments were mailed,faxed or hand delivered to: 0 Board of Equalization Weld O Board of Commissioners County O State Property Tax Administrator at the following address: 1150 P Street (PCB Box 758), Greeley, CO 80632 on 8/25/2015 bat! i hereby certify that a true and correct copy of the foregoing Petition to the State Board of Assessment Appeals and attachments were mailed,faxed or hand delivered to all co-owners or parties directly interested in the subject property on 8/25/2015 R� Gate I hereby certify that four (4) true and correct copies of the foregoing Petition to the State Roerri of Assessment Annuls and attachments were mailed or hand delivered to the Board of Assessment Appeals at 1313 Sherman Street, Room 315, Denver, CO 80203 on 8/25/2015 • Date (One copy may he faxed to.the Board but the original and two additional copier must be mailed or hand delivered.) Petitioner's Mailing. Addre is.Required Even if Petitioner is R resented b An Anent or Attorney (per C.ftS, 8-1O3) • Sigrjatt,,,rd Sri'f e i or Attorney Signature of PetitionerA. Mark son Norvvest Publishing Company __.. ... Printed Name Printed Name 795 McIntyre Street, Suite 205 -__._.. 300 Lang Boulevard Mailing Address Mailing Address Golden, 80401 Long island, NY 14072 City, State,Zip Code City, State, Zip Code Telephone: 303-810-6805 . Telephone: 716-564-6533 Daytime number E-Mail: mdysan@di1codiy.corn w~-Mail: kristina.martinez@rrd-cof Attorney Reg. No.: It is the Petitioner's responsibility to notify the BAA of any change of address. Petitioners are strongly encouraged to read the Instructions and Rules of the Board of Assessment Appeals prior•to completing this Petition Form. The Instructions and Rules are available on the Web at www.dola.Colorado.govtbaa or may be requested by phone at 303-866-5880. RESOLUTION RE: ACTION OF THE BOARD CONCERNING PETITION FOR ABATEMENT OR REFUND OF TAXES - NORWEST PUBLISHING COMPANY NKA RR DONNELLEY AND SONS COMPANY, C/O DYCO DIVERSIFIED, INC. WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board of County Commissioners of Weld County, State of Colorado, at a duly and lawfully called regular meeting held on the 20th day of July, 2015, at which meeting there were present the following members: Chair Barbara Kirkmeyer, and Commissioners Mike Freeman, Sean P. Conway, Julie A. Cozad, and Steve Moreno, and WHEREAS, notice of such meeting and an opportunity to be present has been given to the taxpayer and the Assessor of said County, with said Assessor, Christopher Woodruff, being represented by Brenda Dones, Deputy County Assessor, and taxpayer, Norwest Publishing Company NKA RR Donnelley and Sons Company, c/o Dyco Diversified, Inc., being present, and WHEREAS, the Board of County Commissioners has carefully considered the attached petition, and is fully advised in relation thereto. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Board concurs with the recommendation of the Assessor and the petition be and hereby is, denied, and an abatement or refund be allowed as follows: CORRECTION TO ASSESSED ABATEMENT TAX VALUATION OR REFUND YEAR $0.00 $0.00 2013 2015-2172 B�II AS0090 TAX ABATEMENT PETITION - NORWEST PUBLISHING COMPANY NKA RR DONNELLEY AND SONS COMPANY, C/O DYCO DIVERSIFIED, INC. PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 20th day of July, A.D., 2015. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: darAiv o;ok Barbara Kirkmeyer, hair Weld County Clerk to the Board •/'�: �''� Mike Freeman, Pro-Tern BY: Deputy Cle to th t oa1861 O''s /► c 4O Sean P. Conway 7F0:NED �� j Julie AC4Zit> Cou y Attorney in 0 Steve Moreno Date of signature: 2015-2172 AS0090 PETITION FOR ABATEMENT OR REFUND OF TAXES County:Weld Date Received (Use Assessor' i EnotED Section I: Petitioner, please complete Section I only. Date: February 17, 2015 FEB 18 2015 Month Day Year Petitioner's Name: Norwest Publishing Co NKA RR Donnelley&Sons Company, TnyAS SOR Petitioner's Mailing Address: 300 Lang Boulevard Grand Island NY 14072 City or Town State Zip Code SCHEDULE OR PARCEL NUMBER(S) PROPERTY ADDRESS OR LEGAL DESCRIPTION OF PROPERTY 096120101015 259 30th Street,Greeley, CO R3854686 Petitioner requests an abatement or refund of the appropriate taxes and states that the taxes assessed against the above property for the property tax year 2013 are incorrect for the following reasons: (Briefly describe why the taxes have been levied erroneously or illegally,whether due to erroneous valuation, irregularity in levying, clerical error, or overvaluation. Attach additional sheets if necessary.) See the enclosed broker opinion report RECEIVED JUN 222015 $4,400,000 2012 WELD COUNTY Petitioner's estimate of value: $ ( COMMISSIONERS Value Year I declare, under penalty of perjury in the second degree,that this petition,together with any accompanying exhibits or statements, has been prepared or examined by me, and to the best of my knowledge, information, and belief, is true, correct, and complete. Daytime Phone Number( Petitioner's Signature By Daytime Phone Number(303-81)0-6805 Agent's Signature* 'Letter of agency must be attached when petition is submitted by an agent. If the Board of County Commissioners,pursuant to§39-10-114(1),C.R.S.,or the Property Tax Administrator,pursuant to§39-2-116,C.R.S., denies the petition for refund or abatement of taxes in whole or in part,the Petitioner may appeal to the Board of Assessment Appeals pursuant to the provisions of§39-2-125,C.R.S.,within thirty days of the entry of any such decision,§39-10-114.5(1),C.R.S. Section II: Assessor's Recommendation (For Assessor's Use Only) Tax Year Actual Assessed Original 3 Corrected 7 , Abate/Refund S�-' 0 S2` ❑Assessor recommends approval as outlined above. If the request for abatement is based upon the grounds of overvaluation,no abatement or refund of taxes shall be made if an objection or protest to such valuation has been filed and a Notice of Determination has been mailed to the taxpayer,§39-10-114(1)(a)(I)(D),C.R.S. Tax year: Protest? ❑No ❑Yes (If a protest was filed,please attach a copy of the NOD.) 2015-2172 ❑Assessor recommends denial for the following reason(s): • sessor's or ty Assessor's Signet 15-DPT-AR No.920-66/11 FOR ASSESSORS AND COUNTY COMMISSIONERS USE ONLY (Section III or Section IV must be completed) Every petition for abatement or refund filed pursuant to§39-10-114,C.R.S.shall be acted upon pursuant to the provisions of this section by the Board of County Commissioners or the Assessor,as appropriate,within six months of the date of filing such petition,§39-1-113(1.7),C.R.S. Section III: Written Mutual Agreement of Assessor and Petitioner (Only for abatements up to$10,000) The Commissioners of County authorize the Assessor by Resolution No. to review petitions for abatement or refund and to settle by written mutual agreement any such petition for abatement or refund in an amount of$10,000 or less per tract, parcel,or lot of land or per schedule of personal property, in accordance with§39-1-113(1.5),C.R.S. The Assessor and Petitioner mutually agree to the values and tax abatement/refund of: Tax Year Actual Assessed Tax Original Corrected Abate/Refund Note:The total tax amount does not include accrued interest,penalties,and fees associated with late and/or delinquent tax payments,if applicable. Please contact the County Treasurer for full payment information. Petitioner's Signature Date Assessor's or Deputy Assessor's Signature Date Section IV: Decision of the County Commissioners (Must be completed if Section III does not apply) WHEREAS, the County Commissioners of County, State of Colorado,at a duly and lawfully called regular meeting held on / / ,at which meeting there were present the following members: Month Day Year with notice of such meeting and an opportunity to be present having been given to the Petitioner and the Assessor of said County and Assessor (being present--not present)and Name Petitioner (being present--not present),and WHEREAS,the said Name County Commissioners have carefully considered the within petition,and are fully advised in relation thereto, NOW BE IT RESOLVED that the Board(agrees--does not agree)with the recommendation of the Assessor, and that the petition be(approved—approved in part--denied)with an abatement/refund as follows: Year Assessed Value Taxes Abate/Refund Chairperson of the Board of County Commissioners'Signature County Clerk and Ex-Officio Clerk of the Board of County Commissioners in and for the aforementioned county,do hereby certify that the above and foregoing order is truly copied from the record of the proceedings of the Board of County Commissioners. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said County this day of Month Year County Clerk's or Deputy County Clerk's Signature Note: Abatements greater than$10,000 per schedule,per year,must be submitted in duplicate to the Property Tax Administrator for review. Section V: Action of the Property Tax Administrator (For all abatements greater than$10,000) The action of the Board of County Commissioners, relative to this petition, is hereby ['Approved ❑Approved in part$ ❑Denied for the following reason(s): Secretary's Signature Property Tax Administrator's Signature Date • 15-DPT-AR No.920-66/11 * . z LETTER OF AGENCY Date 01/02/15 Name of Party with Standing: Norwest Publishing Co NKA RR Donnelley&Sons Company Address of Property Owner: 300 Lang Boulevard,Grand Island NY 14072 Telephone Number of Owner: 716.564.6533 Email Address of Owner: kristina.martinez(a rrd.com Name of agent authorized to pursue property tax valuations for Owner:_ Mark Dyson Address of Agent: 795 McIntyre Street, Suite 205, Golden,CO 80401 Telephone Number of Agent 303-810-6805 Email Address of Agent: mark.dyson(a)comcast.net Party with Standing hereby gives authority to person or entity listed above to pursue property tax abatements. If Party with Standing is an entity,the person whose signature appears below hereby verifies that he/she has the authority to act on behalf of the entity. This agency is for the specific tax year(s): 2013 This agency is for the specific property: Industrial property at 259 30'h Street Greeley,CO Signature of P rty with Stan If Party with Standing is an Entity: Signatory's Name: (print) Kristina Martinez Signatory's Position: Tax Manager Address of Signatory: 300 Lang Boulevard, Grand Island, NY 14072 Telephone Number of Signatory: 716.564.6533 Email Address of Signatory: kristina.martinezrrd.com 2 06/10/2015 Attn: Chris Woodruff RE: 2013 Abatement received 02/2015 R3854686/0961-20-1-01-015 Norwest Publishing Co NKA 259 30th St. Greeley, CO 2012 Assessors Value$8,546,370($30/sf) SUBJECT: The subject property is located at 259 30th St. in Greeley. The subject is a large publishing facility, located in the southeast corner of Highway 85 and Highway 34 with excellent access and visibility. The subject contains 590,238 square feet or 13.55 acres of land and is improved with two buildings totaling 284,879 square feet. The largest building contains 269,739 sq.ft.was built in 1984 with additions in 1995, is constructed of average quality tilt-up concrete with an average wall height of 35 feet. The second building contains 15,140 sq.ft. and was built in 2007, is constructed of average quality metal frame. Both buildings are considered in typical condition. The main building has rail access. Cost Approach: A portion of the subject's improvements are more than twenty seven years old,for older buildings it is harder to quantify the proper amount of depreciation to apply in the cost approach to value. For this analysis the cost approach was not performed Market Approach: Research revealed four sales similar to the subject during the extended data collection period of 07/01/2009-06/30/2012. 4455 Table Mountain Dr., Golden Mar. 2012 $30 per sq.ft. has rail service 2460 Airport Blvd.,Aurora May 2011 $37 per sq.ft. no rail service 18001 E Colfax Ave.,Aurora Aug. 2011 $41 per sq.ft. no rail service 3620 Weicker Dr., Fort Collins Aug. 2009 $35 per sq.ft. no rail service These sales support a Market Approach value of$30/sf, equating to a value of$8,546,370. Income Approach: The property at 4185 Salazar Way in Frederick has over 200,000 sq.ft. and is leased by a single tenant was under lease in base period for$5/sf nnn. Applying this lease rate to the subject,with 20%vacancy, 8%expenses, and a 10%cap rate equates to a total value for the subject of$10,483,547 or$37/sf. Reconciliation and Summary: In reconciling the Cost, Market, Income Approach the most weight is given to the Market Approach based on the subject being owner occupied. The Assessor recommends the value for 2012 be sustained at$8,546,370($30/sf) 1 Building One Building Two 1 ' n Ia „,.. * a 8005 _, { 1 1000' 1410' h0 ReiDrck arcs 68000 1539 2.101 8a9 °I!9 9 ilea 2360' P0assre0m Papa 90144 awn 61105 38w6 Bindery i P o i 1 811881 Mae 6on Coal 32x6 1 3866 ) gb M 3819 (1318x18 on dear no E09 luu 1R9 b g meta Pre5Smam Prepess Truck 81 a i6A- ^U00:0!I. 616394!98 bDoch t Bindery 1995 by Rma Plalemake1Ple88atea 2 �,wn N9 1Jaa sea 639 a0 2326 ea 3360' 0.6«1.1- Arial View Sek t- '.. cnon Parcels _ 0 s Base lnforrnaeron - - '- — Imagery 2014 J- Imagery 2013 _ 2-'a 4 211—,Base __ a 'o1 - . U ",:.. .„ "•;iii\ �. t . �` %` Ft: • . - +8100 - . `•\ :s - • - V(5 ., a r � 4455 Table Mountain Dr Golden.CO 80403 Class B Warehouse Building of 336.606 SF Sold on 312312012 for 510,000,000-Research Complete z buyer • CoorsTek,Inc. 16000 Table Mountain Pky - Golden,CO 80403 (303)278.4000 ; seller Graphic Packaging Holding Company Y _ s 814 Livingston Ct SE Marietta,GA 30067 (770)499-4800 . .. •',. ,`" vital data Escrow/Contract. 90 days Sale Price: $10,000,000 Sale Date 3/23/2012 Status: Confirmed Days on Market: 517 days Building SF: 336,606 SF Exchange. No Prce/SF: $29.71 Conditions: High Vacancy Property Pct Office: 13.7% Land Area SF 631,089 Pro Forma Cap Rate • Acres: 14.49 Actual Cap Rate- - 5/SF Land Gross' $15.85 Down Pmnt $10,000,000 Year Built,Age 1996 Age:16 Pct Down: 100.0% Parking Spaces. 215 Doc No' 0032238 Parking Ratio: 311000 SF Trans Tax: - FAR 0.53 Corner: No Lot Dimensions: - Zoning. PD Frontage: • No Tenants. 1 Tenancy: Single Percent Improved. 80.0% Comp ID: 2295399 Submarkel West Denver led Map Page. • Parcel No. 30.242-01.027[Partial List] Property Type Industrial income expense data Listing Broker Cushman 8 Wakefield of Colorado 1050 17th St Denver,CO 80265 (303)813.6400 Steve Hager,Matthew Trone Buyer Broker No Buyer Broker on Deal financing Ccpynuntsx rope+t*Cen6NJ to MCICxulny Axxevv 'x c Olpce-et 1CID 619/2015 Page 7 2460 Airport Blvd Bldg 2-Airways Business Center Aurora.CO 80011 Class A Warehouse Building of 161,524 SF Sold on 5+912011 for $6,000,000-Research Complete buyer Principal Real Estate Investors LLC do Morgan Deal 801 W Grand Ave 1 West Des Moines,IA 50265 t - „ (515)247.6582 A�61 seller Pacifica Real Estate Group,LLC 222 E Carrillo St Santa Barbara,CA 93101 (805)899.2400 vital data Escrow/Contract: 30 days Sale Price: $6,000,000 Sale Date 5/9/2011 Status: Confirmed Days on Market 82 days Building SF: 161,524 SF Exchange: No Price/SF $37.15 Conditions: High Vacancy Property Pro Forma Cap Rate' • Land Area SF' 345,866 Actual Cap Rate- - Acres 7.94 Down Pmnt- $6,000,000 &'SF Land Gross $17.35 Pct Down- 100.0% Year Built,Age- 2007 Age:3 Doc No: 0030362 Parking Spaces 161 Trans Tax- - Parking Ratio. 1/1000 SF Corner: No FAR 0.47 Zoning: M2 Lot Dimensions. • Percent Improved. - Frontage. • SubmarkeL SW DIA/Pena Blvd Ind Tenancy. Multi Map Page. - Comp ID: 2112361 Parcel No. 1821.33-2.01-004 Property Type Industrial income expense data Listing Broker Expenses -Taxes $309,152 JLL -Operating Expenses 5324,663 1225 17th St Total Expenses 5633,815 Denver, 00202 (303)260.-66 500 Mitch Zatz.Carmon Hicks.Dawn McCombs Buyer Broker CBRE 8390 E Crescent Pky Greenwood Village,CO 80111 (720)528.6300 Todd Witty.Doug Viseur financing prior sale Date/Doc No. 511512009 Sale Price. $7,274,932 Cornell): 1710389 • .._ Ccnvrehoee whet icenisi to wee County AwAsoe$OThCe-611ron 619/2015 Page 5 18001 E Colfax Ave rower Road Distribution Center Aurora CO 50011 r tT9 Class B Warehouse Building of 190,035 SF Sold on 812612011kr for$7.866.558-Research Complete ` 1c,kx, 12 • buyer Cooper Industries.Inc. 600 Travis StHouston,TX TX 77002 (713)209.8400 _,, seller CSM Corporation c/o Bradley Kittleson 500 Washington Ave S Minneapolis,MN 55415 (612)395-7000 vital data EscrowlCanVac Sale Price. $7,866,558 Sale Date 8/2612011 Status Confirmed Days on Market. - Building SF: 190,035 SF Exchange No Price/SE $41,40 Conditions Pro Forma Cap Rate - Land Area SF 626,828 Actual Cap Rate - Acres" 14.39 poem Pmnf - SISF Land Gross $12.55 Pct Down - Year Built,Age- 1998 Age.13 Doc No 0055952 Parking Spaces 150 Trans Tax - Parking Ratio: 1.5211000 SF Corner. No FAR 0.30 Zoning. M-1 Lot Dimensions - No Tenants. 2 Frontage. - Percent Improved. 65.1 Tenancy. Single Submarket. Sri;IA/Pena Blvd Ind Comp ID: 2167225 Map Page. • Parcel No. 1821.33-0.11-009 Property Type: Industrial income expense data Listing Broker Expenses -Taxes $155,954 -Operating Expenses Total Expenses $155,954 Buyer Broker NAt Partners NAI Shames Makovsky 1900 West Loop S 1400 Glenarm PI Houston,TX 77027 Denver,CO 80202 (713)629.0500 (303)534.5005 Jon Silberman,Grill Bandy Byron Johnson financing CcpprgnbM repot iceesea 1)3 Weld countyASSeeea'5 OIAce-811890 6/9/2015 Page 6 3620 Weicker Dr Weider Business Parts Fort Collins.CO 80524 Class B Distribution Building of 250.400 SF Sold on 8128/2009 . for$8,900,000-Research Complete buyer • The BROE Group _.,. do Eric Helwig $' 252 Clayton St KM " ;r :�• DOD I ` t! Denver,CO 80206 (303)393-0033 ^- _r-. - seller „ xa Karl Bohn - 7000 Mccoll Dr Savage,MN 55378 (612)8393880 vital data Escrow/Contract. 170 days Sale Price: $8,900,000 Sale Date: 8/20/2009 Status Confirmed Days on Market: 436 days Building SF: 250,400 SF Exchange: No Price/SF $35.54 Conditions- Investment Triple Net,Deferred Pro Forma Cap Rate Maintenance Land Area SF: 753,183 Actual Cap Rate: - Acres: 17.29 Down Pmnt $2,900,000 S/SF Land Gross. 511.82 Pct Down: 32.6% Year Built,Age 1992 Age;17 Doc No: 20090060092 Parking Spaces 50 Trans Tax-- - Parking Ratio- 0.1911000 SF Comer No FAR 0-33 Zoning PD Lot Dimensions: - Percent Improved- 76.6% Frontage- - Submarkei: Fort CollinslLoveland Ind Tenancy: Multi Map Page: Comp ID: 1765519 Parcel No: 87094-20-001 Property Type. Industrial income expense data Listing Broker Income Gross Scheduled Income 51,011,720 Sperry Van NessfThe Group Commercial +Other Income 2020 Lowe St -Vacancy Allowance Fort Collins,CO 80525 (970(207.0700 Effective Gross income Dan Leuschen Net Income Net Operating Income $1,011,720 -Debl Service Buyer Broker -Capital Expenditure No Buyer Broker on Deal Cash Flow financing 1st American Investors Life Ins B a l;p rit t. 5600 0.000 Cipyngnteu'spun sceniet to Wee C000nty Aseeeecis Omce-611500 6/9/2015 Page 8 Mb Valuation of Industrial Property at 259 30th Street City of Greeley,Weld County, CO Schedule Parcel ID R3854686 Prepared for Kristina Martinez Property Tax Manager Norwest Publishing Co NKA RR Donnelley&Sons Company 300 Lang Boulevard Grand Island, NY 14072 Intended Users Weld County Board of County Commissioners And Weld County Assessor Intended Use Petition for Abatement of 2013 Real Estate Taxes IReport Date February 17, 2015 Valuation Date June 30, 2012 Prepared by DYCO Diversified, Inc. 795 McIntyre Street Golden, CO 80401 SUBJECT PROPERTY AERIAL PHOTO This picture was provided by the former Listing Broker. It shows land to the south and southeast of the subject property that is not part of this petition for abatement of real estate taxes. That excess land and the subject of this petition comprise the property sold for$4,400,000. c - F . liMbilltAkiilittiiith, Y Fort Collins• 30 miles 3S2�°1g�ela L_ '% (-) , 87 SUBJECT MAIN AND RECEIVING ENTRANCES . . •;: 7 1 I kill c I k 11 lir , , , J r .. 4 i tie'4. . r 0 OEElio Subject Property Street Map •• .••. c d St _ a' . 6 a ;ivy rn9 m sths a' < 'A'7e,sk t.; y 7t,St A A Q§ w•8h St m f Si 879 J K Y:91 SI 5th St a 9th 9 ey 51,w 10th st a 10th St O r.eley min s 9 a4. u i +119 5 a _ 12th ,g 4. a d a 13th St a' W 73th St ,.a i a' ≥ww m E m A 1.411,Stave R:1 a ^ 14th S . �'' 9 1`A+9 34 8 15111 St A' W 16th St c °' a'` e 16th St t e c E 11ith S a' 17th I+ Inn St Et s= r, a' rj &en Grt»re Cemetery 7-� 9 18th 9 �3 {"` X. 85) E 18th St n v a Crank-OP Ts 14tH St •`..✓ a' m Zi G4+::.^.tra f''xk 1LQ1 S1 — 01 E`9th A n a W 2 S1 <SI3 19 .F 20th SI Q E 20t158q: fi S:rc'xre,Rwk p t. x D 21519 y D A Cc,r4.,,,,,,V1,4-1. 22M9 ,4 a E2IstSm �`�� Z2ro1 SI E'.1nd51P c1 23.4 1 '14.- W 23d Qn �W 24th S m 247 t 4 s 444. E 24th Si t 359 ee,y' 9 g 7 y Yfh9 * r' _ E?ST9 S .i1Q-e a ` g >t D W V a d>.rift gG 2F�5< oGarden City E2Ft+9 51278 9 D^` — ` 5 m > Is n> �34 1 Ste 259 30th St» W 2&h St W 28th St 28r. :281,51 P w29hs .,, Greeley CO 80631-7425 �-- (A 85 r, 30111 St ENZ St > aSt 5` rs oRosedale �¢` W32nd St 31s1S St 39 A4;N.e S 1 1 33rd S e. e-41 3515 a 341E'Ili ii ,4 1 5`,, H,cnr?� o g e u 9 — . S 3515 1 - N lib- Subject Property Approximate Parcel Map(Subject is R3854686) ON(' u, r* *' 2901'/ _ • ; , y.11inilli iti - t, 211 I 29• _ R38'54686 ib ;t al r ;t I 12• #1 i1Mu , #2 F " 12 #3 'I 2: #41 big ,. ,;,-, 44. i w y, J rf(r 505' w _ rn ,3,-„,.,, ... , x ..,„... _ 31 'I 5T CORE HOLDINGS 795 McIntyre Street, Suite 206 Golden, CO 80401 February 17,2015 Kristina Martinez Property Tax Manager Norwest Publishing Co NKA RR Donnelley&Sons Company 300 Lang Boulevard Grand Island, NY 14072 RE: Petition for Abatement of 2013 Real Estate Taxes Industrial property 259 30th Street Greeley, CO 81001 Assessor's Parcel ID R3854686 Dear Ms.Martinez: At your request, I have prepared this valuation of the referenced property for the purpose of estimating the"As Is"fee simple value,as of June 30, 2012. This report is a Broker Opinion of Value as defined by the Colorado Division of Real Estate. I am not acting as an appraiser. Intended users of this valuation are expressly limited to the County Assessor and Board of County Commissioners (BOCC). No other party may rely upon this report for any other purpose. The intended use of this report is to assist in the Assessor and BOCC decision making regarding amendment of the County Assessor's 2012 actual value for the referenced property.As per our agreement,my compensation is contingent upon the findings of the intended users. The subject property is a super-adequate single tenant office/warehouse/manufacturing property that was phased construction for a publishing company. Two different listing brokers for the property state the building is too large for the subject submarket and on the date of value had challenges with deferred maintenance and reinstatement of a rail spur. The biggest challenge is rail access. Loss of access causes the improvements to no longer function as designed and constructed and now be super-adequate(see Property Description, Site, Rail Spur). The building was specifically constructed for manufacturing that utilized rail delivery of raw paper materials. Placement of the building on the site focused on rail access and made no concession for alternative delivery of raw materials by truck. The raw materials storage area of the building is within 45 feet of the east property line and so does not have enough room for long haul trucks. Consequently,without rail access only a portion of the building remains useable for heavy manufacturing. Closure of the publishing plant was publically announced February 10,2011 in the Greeley Tribune newspaper. A letter to this effect was sent to the Mayor of Greeley in January 2011. Internet phone directories made hard copy directories obsolete as early as 2008. Bill Gates of Microsoft predicted that in a few years no one under the age of 50 would use a hard copy of the yellow pages. This structural change to the phone industry has caused Donnelley&Sons to close plants nationwide commencing near the middle of the first decade of the 21st century. Closure of the Greeley plant was under consideration in early 2009. Si- Norwest Publishing Co NKA RR Donnelley&Sons Company Page 2 The subject neighborhood is the southeast quadrant of the City in a predominately heavy industrial and outside storage area known as the Greeley Commerce Center. Aerial imagery shows the neighborhood/trade area is approximately 30 to 45%built-out. Valuation of this owner-user type property uses the Cost and Sales Comparison approaches to value. The recent sale is outside the based data period,but provides has noteworthy market and property condition insights. These market and property conditions existed on the date of value. They are relevant to the historic value date because any prospective purchaser would have uncovered them during their due diligence. The property was listed for sale April 2011,during the 2013 tax year base data period at$10,700,000. The important observations from the listing activity are as follows: 1. The three brokers from CBRE and two from Binzwinger found the property too large for the mostly small manufacturer market. All major manufacturers for Northern Colorado were contacted and several toured the property, including but not limited to,Vestas the wind turbine manufacturer and Budweiser Brewing. The property did not work for any of the larger Northern Colorado manufacturers. 2. Liquidity contraction of the capital markets impacted the potential purchaser universe. The highest offer price was approximately$6,000,000,but the constrained capital markets did not provide a financing source ready and willing to underwrite the deal. The chosen prospective purchaser paid only$4,400,000,but had funds to close. This transaction closing occurred after the value date, but capital markets were even more constrained on the value date. As liquidity increases,availability of capital to buyers and lender competition drives real estate market values up. In the future,the$6,000,000 buyer may have been able to get financing,but not on the date of value. Until then,value remains below$6,000,000. 3. Rail access was to be lost by the next purchaser. Although the regional Union Pacific(UP)rail representative said reinstatement,if even possible,would be$3,000,000,she thought continued use was unlikely. There is not enough land for a rail siding between the 31St Street,at-grade crossing and the Highway 34 overpass. UP is careful not to constrain traffic on the Greeley Subdivision main line that travels between Cheyenne,'NY,and Denver,CO to intersect with other mainlines. Loss of this rail access changes utility of the subject property for heavy manufacturers. Norwest Publishing Co NKA RR Donnelley&Sons Company Page 3 Taking into consideration the Northern Colorado and specifically Greeley industrial market characteristics,as well as larger economic conditions and finally,the loss of rail access, it is my opinion,the market value of the subject property's fee simple estate,as of June 30,2012,was$4,400,000. Amended Market Value— "As Is" Four Million Four Hundred Thousand Dollars $4,400,000 Respectfully submitted, DYCO Diversified, Inc. By:A. Mark Dyson,CCIM License Real Estate Broker State of Colorado,#1328371 I CONTENTS Subject Property Aerial Photo Subject Main and Receiving Entrances Scope of Work 1 Property History 2 Occupancy History 2 Transaction History 2 Greeley Conditions 3 Neighborhood Conditions 3 Property Description 4 Real Estate Taxes 6 Highest and Best Use 6 As If Vacant 6 As Improved 7 Valuation 8 Valuation Challenge 8 Valuation Method 8 Cost Approach to Value 8 Land Value 8 Reproduction Cost New 8 Value Indication-Cost Approach—"As Is" 11 Sales Comparison Approach to Value 12 Process Obtaining"As Is"Value 12 Unit of Comparison 12 Subject Property Transaction 12 Comparable Sales—"As If Rail Served" 12 Elements of Comparison 15 Quantitative Adjustment Grid 17 Reconciliation—"As If Rail Served" 17 Value Indication-Sales Comparison Approach—"As If Rail Served" 17 Reconciliation—"As Is"............ .......................................:...............:::17 Value Indication-Sales Comparison Approach—"As Is" 18 Reconciliation of Value Approaches 19 Property Value"As Is" 19 Certification 20 Addenda 21 Assumptions and Limiting Conditions 21 Qualifications 23 DYCO DIVERSIFIED, INC. FORMER NORWEST PUBLISHING BUILDING Scope of Work Characteristic Detail Problem Identification(Assignment Elements and Conditions) Property Valued Former publishing facility Use of Property Office/warehouse/manufacturing Street Address 259 30th Street Greeley,CO Parcel Identification(County#) R3854686 Intended Use Aid in establishing value for tax reporting Intended Purpose Estimate value'As Is' Intended User Weld County Board of County Commissioners&Assessor Value Date(Effective Date) June 30,2012 Value Type Market Value *Rules&Regulations,Federal Register,Vol.55,No.165,p.24696. Property Rights Appraised Fee Simple Estate Personal and Intangible Property None included Hypothetical Conditions None Extraordinary Assumptions None Inspection of Property Mark Dyson inspected the property.Personal observations were the primary source of data for relevant property characteristics. Secondary means of inspection included aerial,interior and exterior building photographs;and street and plat maps. Extent of property inspection was adequate to develop credible assignment results. Data Research Extent All market and sales data was obtained from parties believed to be reliable third party sources. When deemed necessary,Mark Dyson conducted additional research to test dependability of market and sales data. Mark Dyson did not measure the subject site or improvements. Mark Dyson did not conduct interior inspections of all comparable properties. Highest and Best Use "As if Vacant" Hold for future industrial development when the foregoing becomes feasible to construct. "As Improved" Continued use as industrial property. Disclosure Requirements Valuation Methods Not Used None Value Methods Used Cost and Sales Comparison approaches DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 2 Property History Occupancy History • Sources for this information include listing and selling brokers, R.R.Donnelly&Sons real estate department director,and a former R.R. Donnelley employee responsible for on-site management of the property for 30 years. The property was designed and constructed for the Norwest Publishing Company in 1984. In 1986, R.R. Donnelley and Sons,the nation's largest publishing company,acquired Norwest Publishing. This R.R.Donnelley property published phone directories. Raw paper arrived by rail and finished products were shipped out by truck. Significant expansion of the property occurred 1995 when they won a contract to produce Southwestern Bell phone directories. A smaller addition occurred in either 2002 or 2005,the property manager was not certain. R.R.Donnelley publically announced in January 2011 that the Greeley publishing plant would close in April 2011. Transaction Histo Owner with Standing As of Value Date R.R.Donnelley&Sons Company,as successor in interest to R.R. Donnelley Norwest Inc Source Prior owner and public records Transaction•Most Recent Date 04/15/2014 Buyer CJBL Land Limited 1 LLC Seller RR Donnelley&Sons Company,as successor in interest to RR Donnelley Norwest Inc Price $4,400,000 (includes subject property plus two adjacent parcels of vacant land comprising 4.291 and 7.86 acres) Sale Price PSF GBA $13.69 Financing Cash to seller Contingencies Not available(NA) Occupancy 0% Comments The purchaser was chosen from several offers ranging in price from$2 to $6 million. The highest offer was pursued but the significant detriment to that deal was the prospective buyer's contingency to obtain financing for both the real estate and the business. The buyer was attempting to obtain financing for both entities(company and real estate)and was having difficulties. The actual purchaser was at a lower price and the second choice. They had originally made their offer at$3 million. The Seller countered at$4.4 million and a purchase contract was signed by all parties. The purchaser is a single purpose entity that leases the property to their pet food manufacturing company,American Pet Proteins. Essentially, they are an owner-occupant. However,they only utilize part of the building and will keep a total of 59%for current and future use. 41%(190,896 SF)of the building is available for long term lease with CB DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 3 Richard Ellis as listing agent. Listing-Most Recent Date June 2013(term of 10 months) Broker&Phone Eric Dienstbach,303-7794345 Brokerage Binswanger Ask Price $10,700,000 (includes the subject property plus two adjacent parcels of vacant land comprising 4.291 and 7.86 acres) Ask Price PSF GBA $33.29 Financing Cash to seller Occupancy 0% Comments Brokers stated the list price assumed they could find the ideal buyer/user, i.e.,another printing company,and that the rail use could continue. He further stated that none of the prospective purchasers said they could use the building in its entirety. They looked to see if there were building segments suitable for their use and if so,made offers based on that portion's worth and nothing for the remainder. Listing-Prior Date April 2011 (term of 2 years) 0 Broker&Phone Jim Bolt,720-528-6310 Brokerage CB Richard Ellis Ask Price $10,700,000 (includes subject property plus two adjacent parcels of vacant land comprising 4.291 and 7.86 acres) Ask Price PSF GBA $33.29 Financing Cash to seller Occupancy 0%- Comments Many businesses toured,but did not make an offer. Prospects included cold storage companies,Budweiser Brewing,oil and gas companies,and a wind turbine blade manufacturer. Although objections may not be know with certainty,reportedly the human food related companies objected to the cleanliness of the former print areas of the facility and the wind turbine manufacturer did not believe the truck loading ramps/maneuvering areas were long enough. Greeley Conditions All intended users are believed to be generally familiar with socio-economic conditions in the Greeley area. Briefly,at the time of value the area was in recovery from the 2009 recession. Job growth was up and the unemployment rate down. Neighborhood Conditions All intended users are believed to be generally familiar with the subject neighborhood. Briefly,the neighborhood is an older industrial area known as the Greeley Commerce Center. It is comprised of mostly outdoor storage. The few existing industrial buildings are predominately small pre-engineered steel frame structures with metal DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 4 siding. The subject property is one of two heavy industrial manufacturing uses contained in a building. Industrial property is of average quality and condition. Uses in the area are a batch plant,oil tank battery,greenhouses, landscape material supply,a cold storage building and a steel plate manufacturer. The area is 30 to 45%built- out. Given that there has been no new construction in almost a decade,the area is generally stable. Property values were declining from 2010 soon after the national recession started and have yet to recover. Property Description Characteristic Detail Site Street Address 259 30th Street,Greeley,CO 80631 Location Northwest corner of 30th Street and 4th Avenue Assessor's Parcel ID R3854686 Legal Description Per Assessor records-GR GCC-TB3 PARCEL IN TRACT B GREELEY COMMERCE CENTER COMM CEN SEC 20 5 65 N89D48'E 1191.98'N0D11'W 102.74'N0D11'W 527'TO TRUE FOB N58D28'W 641.95'N23D37'E 495.65'TH ALG CURVE TO RIGHT N76D39'E 339.45'N89D31'E 490.54'S0D28'E 485' S89D31'W 149.26'SWLY TO POB Zoning Industrial Land Size 13.55 acres Shape Irregular similar to an°L" Topography Level,generally Floodplain No Surrounding Uses Industrial to the north,south and east;Union Pacific railway right of way to the west Site Improvements Paved surface parking and a rail spur Rail Spur Although advertised as having an active rail spur by two different real estate brokerage companies(CB Richard Ellis and Binswanger),neither knew the rail spur is grandfathered for Donnelley&Sons only and cannot be used by anyone else. This includes any third party,tenants or owners. According to Cheryl Schow,Regional Manager(402-233-3538)for Union Pacific,continued use of the spur requires the spur meet Industry Access Guidelines(IAG)published in 2006. She has visited the site and determined it is not likely the spur could be brought to industry access guidelines. Ms.Schow indicates the spur needs the existing mechanical rail switch upgraded to two automated switches controlled in Omaha,NB,and construction of an approximately 8,500 to 9,000-lineal foot siding in the UP right-of-way. If it were physically possible to construct,she estimates total cost to update would be approximately$3 million. The switches alone are$1 million each and the track about$100 per lineal foot. However,the bigger concern is the siding. There is only about 3,000 lineal feet between the US 34 overpass and the 31st Street crossing. That is not enough room to construct the necessary rail siding. UP would have to grant a special exemption from the access guidelines to allow only a 3,000-foot siding. Since the main rail between Denver,CO and Cheyenne,WY(known as Greeley Sub)is like an interstate highway, exemptions to the IAG are rare. Summary The site is within an industrial park adjacent to the Union Pacific main rail line. Its size and zoning are suited to industrial development. Except for the inability DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 5 Characteristic Detail to use the rail spur°as is"and the"L°shape,no other detriments to development are noted. Improvements Overview One,precast,Twin-T,concrete building with first and second floor office,as well as warehouse space Age 1984(original structure), 1995(large addition)and 2002/5(small addition) Effective age of 21 years on January 1,2013. See the picture following the Improvement Description table Buildings 1 Gross Building Area 321,390 square feet(per Assessor records and real estate broker flyers) Office Square Feet 1d floor 0 SF(per brokers and property manager) 2nd floor 30,000 SF+1- Warehouse Square Feet 290,000 SF 4 (per brokers and property manager) Clear Height Varies from 8 to 40 feet;west half warehouse is 32 feet;the former pressroom is 40 feet and the former paper storage area is 38 feet Dock-high Doors Truck 8(8'x 10') Rail 6 Drive-in Doors 3(16'x16) Fire Sprinkler System Yes Construction Type Concrete and steel Parking Spaces Adequate Parking Ratio NA Physical Condition Building Exterior—Good Building Interior—Good,but dated Parking areas—Average Roofing—Poor HVAC units—Assume good Deferred Maintenance Roof—The listing broker reports the original structure's roof had many leaks and was at the end of its economic life. A replacement cost of$600,000($3 PSF x 200,000 SF+I-original structure)was used during negotiations. Environmental Condition Ink—The 60,500 SF former Pressroom has extensive ink contamination from many years of production. All venting systems,electrical,and solid surfaces require remediation. Solvent—The 35,596 SF former Paper Storage area(added in 1995)was contaminated by a leaking underground storage tank. The tank was originally outside the original building. The Colorado Department of Labor and Employment,Division of Oil and Public Safety report states"A confirmed release (Event ID 3454)was reported at the above referenced site on October 12, 1990." "A No Further Action(NFA)determination letter was issued for the release on August 5,1996". During buyer due diligence in early 2014,the seller was required to conduct a Phase II study with concrete and soil coring to test samples. No further clean-up was required,but environmental stigma remains. Function The property was originally designed and constructed as single tenant, DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 6 Characteristic Detail manufacturing warehouse for the publishing industry. Ninety-five percent of the publishing industry raw material arrives by rail. The original and expanded building design is built around upon raw materials arriving by rail,stored in the east half of the building then moving from east to west for processing/manufacturing in the middle and storage and shipping on the west side. This can no longer occur. Without a useable rail siding for future tenants or property owners,the ability to conduct a heavy manufacturing process throughout the entire building is unlikely. Floor thicknesses,power and walls heights in the east half of the structure are superadequate. Summary The property has functional challenges. It was designed for heavy industrial manufacturing dependent upon rail access. Without rail access the building does not function well for heavy manufacturing. There is only a small area for receiving raw materials by truck on the east side of the building. Many heavy industrial components and raw material are too large to be shipped by truck. Continued rail access is not likely. Dates of Construction ''',.'.:,,,,..!:'.'"11,,,,: ,- 1984 x. 1984 F "til r; _r 1995 i Eli 240 4 — C. i . r- f f• 4 rte. _ C 1995 _— -. ,..,• . INV , ,,,.,, , ._,, . , . 2002/05 r E. Real Estate Taxes The intended use of this report is to amend the actual and assessed values and obtain a tax refund. County values and taxes paid are not discussed here-in. Highest and Best Use As If Vacant Highest and best use of the site,"as if vacant",is based on legal,physical,financial,and surrounding use considerations. DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 7 Legally,the subject property is zoned for industrial use. Physically,location is within a larger industrial park. Financially,new development is not feasible. Maximally,highest and best use is to hold the site vacant until demand warrants. As Improved Highest and best use of the property"as improved"is based on whether or not there is a more valuable use for the property"as improved",modified or demolished and redeveloped. As is,the apparent absence of rail access and use specific design has many functional problems. The most significant is arrival of raw materials must now be by truck. The raw materials storage area has only two truck doors. One is a dock-high door and the other can be converted from drive-in to dock-high. However,truck maneuvering space is too short for long haul trailers. This makes continued use as originally design and constructed unlikely. Small market location also makes reuse of the building by a single tenant highly unlikely. Greeley has only two major employers, Leprino and Monfort,that utilize large industrial facilities. One is a producer of cheese and the other a beef processer. According to Costar data,there are only three industrial properties greater than 200,000 square feet in Greeley. One of those is the Leprino facility,another a Monfort facility and finally the subject property. The Donnelley publishing company located in Greeley because of the low cost workforce and rail access. Without rail access another publisher would not use the property. Examples of small market industrial properties built for specific users and then sold for alternate,lesser use include,but are not limited to the following properties. 1. 1900 South Freeway,Pueblo, CO Size: 102,575 SF GBA Sold: 5/16/2013 Price: $700,000 Price: $6.82 PSF GBA This was a former Pepsi distribution facility. 2. 4038 Dover Drive,Colorado City, CO Size: 249,200 SF GBA Sold: 4/23/2012 Price: $700,000 Price: $2.81 PSF GBA This was built as the Columbia House distribution facility. Finally,small market and rail challenges were evident when marketing the property. Almost the entire three year marketing time there were no prospective users for the entire structure. Alternative use for the building is demising for two tenants. This is how it is being used by the current owner,a pet food processing/manufacturing business. The west half of the building has receiving and storage of raw materials,and processing,storage and shipping of finished product. It continues to function as manufacturing space,but this is because it has eight dock-high and one drive-in door. The east half of the building has a greater challenge of finding an alternative use. A distribution warehouse use is suited to the high ceilings,but the limited number of doors that are drive-in versus dock-high doors as well as the short truck maneuvering area excludes this use. Warehouse use of the east half of the building makes the most sense. This could be dry storage of any items that are moveable under their own power and do not move frequently. This could be personal possessions such as automobiles,RVs,camper trailers, boats,etc.. Although this does not take advantage of the high pile storage capability,it is not hampered by having only two drive-in doors(dock high DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 8 could be converted with a ramp addition). This type of reuse can be seen in buildings throughout the Front Range that were originally user specific design and construction and had to be retrofitted for reuse. The Highest and Best Use is for the existing structure to be utilized by two businesses. The west side would be a manufacturer who finds utility in the existing heavy power,thick concrete floors,high bays and dock-high doors. The east half of the structure has far less value is merely a dry storage area. Valuation Valuation Challenge As discussed in the Function section of the Property Description and the Highest and Best Use,As Improved,the property is not suited to single occupant use. Moreover,the likely two user division results in two very different value building sections. This significant difference is dealt with differently in each applicable valuation section, i.e.,Cost and Sales Comparison. The Income Approach is neither applicable nor relevant because the building is not designed or constructed to be speculative income producing real estate. The Cost Approach will measure the functional obsolescence due to superadequacy of construction materials and ceiling heights for dry storage space in the east building half,as well as all rail access improvements that are not useable. The Sales Approach will correlate two value estimates. The first value will be one unit price for the entire 321,000 square feet of building area. The second valuation or test of reasonableness will apply a manufacturing unit value to the west half of the structure and a dry storage rate to the east half. Valuation Method Cost and Sales Comparison approaches are used. Cost Approach to Value Land Value With no recent development activity, I use the Assessor's land value at$531,214;rounded to$530,000($0.90 per SF). Reproduction Cost New To estimate Reproduction Cost New(RCN)I use Marshall Valuation Service for cost estimating. The overall building is classified as an average Class C,Low Cost, Heavy Manufacturing(Section 14, Page 15)structure with a portion classified as average office(Section 14, Page 35). The structure itself has a 290,000 square foot floor plate,plus about 30,000 SF of open office area in the mezzanine. Part of the 290,000 square feet is the attached warehouse built in 2002. It is a shell with nominal lighting and heating. It has a different cost(Low Cost S)to construct at$23 PSF GBA. The weighted average unit cost for the 290,000 square foot building is below. Storage Building 15,155 SF(5%) $23 PSF GBA $1.15 PSF GBA Manufacturing Building 274,845 SF(95%) $79 $75.05 $76.20 PSF GBA Rounded $76 DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 9 Direct and Indirect Costs Marshall Valuation Service-Calculator Cost Method S•uare Foot Costs Item Category Results 1 Subscriber Making Survey Mark Dyson Survey Date 2/03/2015 2 Building Name Former Norwest Publishing 3 Location 239 30th Street,Greeley,CO 4 Occupancy Manufacturing warehouse 5 Building Class C Building Quality Low Cost 6 Exterior Wall Concrete 7 Number of Stories 1 Height Per Story 36 FT approx.average of entire structure 8 Average Floor Area 290,000 SF approx.. 9 Average Perimeter N/A 10 Age 21 years(average) Condition Average 11 Region Western 12 Climate Moderate 13 Base Square Foot Cost(PSF) $76(rounded weighted average) 14 Heating/CoolingNentilation Included 15 Elevator Deduction(PSF) None 16 Total Lines 13 through 15(PSF) $76 17 Number of Stories Multiplier 1.00 18 Height Per Story Multiplier NA 19 Floor Area Perimeter Multiplier NA 20 Combined Height&Size Multiplier NA 21 Refined Square Foot Cost(PSF) $76 22 Current Cost Multiplier 1.00 23 Local Multiplier 1.00 24 Final Square Foot Cost $76 25 Area 290,000 SF 26 Line 24 x Line 25 $22,040,000 27 Replacement Cost-Rounded $22.000,000 DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 10 Office Costs The prior cost estimate does not include office space. The building has approximately 30,000 square feet of finished area within the structure. Most of it few demising walls. MVS section 14,page 35 shows average cost office at about$30 PSF,adding$900,000 to the subject property building cost. Site Improvements The finished land area of the subject site is roughly 300,000 SF which is calculated by taking all of the site size (590,238 SF)less the building foot print(290,000 square feet). Marshall Valuation Services estimates for good quality surface parking lot(includes landscaping,lighting,sidewalk,and drainage)will cost approximately$3.50 per square foot.This estimate indicates the replacement cost for the subject site improvements to be$1,050,000 (300,000 SF x 3.50). Rail Spur The rail spur cost is the$3 million previously discussed in the Site Description,plus the actual, 1,560 lineal feet of spur rail at$100 per lineal feet. Total cost is$3,156,000,rounded to$3,200,000. This does not include the cost for a rail siding required by the 2006 Industry Access Guidelines because it is not physically possible. Other Indirect(Soft)Costs Soft costs not included in the MVS construction cost estimates include interim taxes,construction loan interest, permanent loan origination costs,developer's fee,leasing commissions, appraisal,and entrepreneurial profit. Each of these costs is not itemized. My experience is that additional soft costs are typically 10-15%of MVS costs. I estimate soft costs to approximate 10%of hard costs. In my opinion,additional soft costs total$2,715,000[($22,000,000+$900,000+$1,050,000+$3,200,000)x 10%. Total RCN Combining direct and indirect costs the total cost new is$29,865,000($22,000,000+$900,000+$1,050,000+ $3,200,000+$2,715,000). Accrued Depreciation I use the breakdown method of estimating depreciation. The main form of depreciation is external obsolescence. Physical Depreciation The property was originally constructed in 1985.This indicates physical age,on the date of value,for the property improvements of 28 years. Given that another roughly half of the structure was built in 1995 the average age is Marshall and Swift indicate average economic life of this type of property of 23 years. Incurable physical depreciation is estimated at 52%(23 years old/45 year life). Functional and External Depreciation Functional depreciation results mostly from loss of rail use making many aspects of the building of no use to many heavy manufacturers. Items of no use include the rail spur and switches,extra thick floors in the paper storage and pressroom buildings,heavy power in the pressroom and wall heights greater than a light to medium, manufacturing warehouse at about 24 to 30 feet,say 28 feet. As a result of the eastern half of the building likely becoming storage space,there is also little need for office space in that area and 30,000 SF is superadequate for the west half. Typical office ratios for manufacturing buildings are 3 to 10%at most. Using 7%my calculation of functional obsolescence due to superadequate office space is$501,798{$900,000 total cost—[(189,620 SF GBA x 7%)x$30 PSF GBA]},rounded to$500,000. External depreciation is due to location in a small market excluding potential users for the entirety of the property, even if it had guaranteed rail access. Greeley has two major employers,Leprino and Monfort. One is a DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 11 producer of cheese and the other a beef processer. According to Costar data,there are only three industrial properties greater than 200,000 square feet in Greeley. One of those is the Leprino facility,another a Monfort facility and finally the subject property. Over the three year listing period,the two different listing brokerages showed the property to every major manufacturer in northern Colorado. These included Budweiser Brewing and Vestas the winder turbine and blade manufacturer. No manufacturer able to take the entire property was found. The Donnelley publishing company was willing to locate in Greeley because of the low cost workforce and rail access. Without rail access the mostly likely manufacturing uses are light to medium and will probably be tied to the existing food producers in the area. As a user of Leprino or Monfort by-products,this means they are smaller and not likely to need the entire subject building. If they cannot use the entire building,the design of the structure does not allow for multi-tenant use. It was never intended for multi-tenant use and so the east half of the building has limited truck access. The west half of the building has many truck dock doors and is well suited for a user. This is evident in the current configuration and use of the building by American Pet Proteins. Location of a large manufacturing facility in a small industrial market makes roughly 50%of the building of nominal use. Likely use is for storage only to a different user than the viable manufacturing section of the building. Using MVS the difference in cost to construct between manufacturing($79 PSF)and storage space (Class C,low cost at$25 PSF)is$54 PSF for($54 PSF x 145,000 SF)totaling$7,830,000. This is external obsolescence but can also be considered functional obsolescence due to superadequacy. The cost of the rail spur and switches is also functional obsolescence due to superadequacy because without a siding it cannot be used. That cost is$3,200,000. Total functional and external depreciation is$11,530,000($7,830,000+$3,200,000+$500,000). Summary of Cost and Depreciation Estimates Replacement Cost New $29,865,000 LESS Accrued Depreciation Physical(incurable only)(52%) ($15,529,800) Functional&External ($11,530,000) Total Accrued Depreciation ($27,059,800) Depreciated Cost New of Improvements $2,805,200 PLUS Land Value $180,000 Total Value of Subject Property $2,985,200 Rounded $3,000,000 Value Indication - Cost Approach — "As Is" In my opinion,the market value of the subject property's fee simple estate,as indicated by the Cost Approach,as of June 30,2012,was$3,000,000. Cost Approach Value Indication Three Million Dollars $3,000,000 DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 12 Sales Comparison Approach to Value Process Obtaining "As Is" Value The property is likely to have no rail service and at best it will cost$3,000,000 to reinstate. This impact of rail service to the subject property directly relates to it use. Without rail roughly half of the building will be a much less intensive and valuable use. Quantification of the rail access adjustment to each property would be problematic to impossible as each was property was built to function without rail access versus the subject that was built around rail access. Subsequently, I first value the property"as if rail served"rather than adjusting each comparable sale for rail access. The"as if rail served"value then has the cost of possible rail service at the subject property deducted to get the"as is"value. Unit of Comparison The most relevant units of comparison for commercial real estate are based on the income generating portions of the property. Office buildings are compared on the basis of net rentable area, hotels per room, self-storage per rental unit and apartments per dwelling unit. The subject and comparable sale properties will be compared on the basis of price per gross building area. Subject Property Transaction Public records show the subject property has been sold once in the past five years. The two listings and resulting transaction are discussed in the prior Property History section of this report. I recognize the occurred after the base data period. However, between the base data period and sale date there was no material change in the property condition, yet the economy and market improved. Theoretically,the 2014 property sale is in a better/improved economy and subject value in the 2010 and 2012 base periods would be lower. The sale is summarized below. Sale Date Sale Price Sale Price PSF Buyer/Seller April 15,2014 $4,400,000 $13.69 CJBL Land Limited 1 LLC/ RR Donnelley&Sons Company, as successor in interest to RR Donnelley Norwest Inc Comparable Sales— "As If Rail Served" Using real estate broker and appraiser interviews and third party data sources of COSTAR,Xceligent, Colorado Real Estate Journal, many Eastern Slope County public records, I searched for relevant comparable sales. Primary considerations made when searching for comparable sales were date of sale(during statutory time frame or before), location,size,construction age and quality, and design. Only one large industrial property sale was found in Weld County. I expanded the date of sale,geographic and size search criteria until I located 8 useful comparable sales and one listing. The comparable sales I use in this valuation are from 74,640 to 230,636 square feet in gross building size,and the time period in which the sales took place was from June 2006 to June 2011. A spreadsheet of the comparable sales can be found on the following pages. Pictures of the sale properties are contained in the Addenda. DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING a) .L >. L I— U a) O co . r-- _�. 0 N co L co f6 m co 0 a) c6 a) .0 o 0 a) O O t >,) L 0 c 6 c _c a) O _c L 2 ` a) c Q E O w O) L —_ 7 a. V E cn .-� T-... 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N0 — c(a c 3 as v u).- E mc� v ° 0cc oe ` wm a3 1O ` -O O a) — . c O = • (a D -a ° CL' ai -)C YO O -O = a) u) C IQ O 12 CO O p - ,_ OO � Y 3 m aS) LO 0 � 0 mo c � z a) U (C) N o u) o.,...; -O ,, u a) 0 • 0 c co_W = L O C6 CL c � U � y C" E N ca cu O O N O CC(O QL~ c•- tiZ CD CO a) c 3O) 3 a) m�OO `aN (, Z Co 3a) z r O U O = 8 00- d O 13 c � a fi "O O � r L /) a) ( N Co L N as s,.. t _0EA f - O 0 0 Z U O O w a 0 O o o CI) c r N CO C p to U til 69- o L o ct 0 I; ON O) Q N N N C) (O c O '- O) a N U) N CO r J (O ni- O LL O in '_ CO Co oo to c(s N O) Co N (C) Q LC) V.n h• ci a < LL O O co U) a al CO CNo Co -o OO r O (NN-1 ,- Co ED- r U CO N co O O) O00 r) ar) r ,- s- co co C..> _ Z D 4 4 al E o rn0 LT NNru) Jy = y w Q. r (V r N O > o > > o o a) L) OO 0 LO a) o a NO r 0 O 0 O 0 0 CC) CD r Co 15 Elements of Comparison The following seven elements of comparison allow for quantitative adjustment. Sale Price as a Percentage of List Price Only one relevant listing was found. This is the former Hewlett Packard manufacturing facility in Greeley. It has excess land and that is adjusted out, reducing the list price for the manufacturing building to$6,154,630. This land adjustment is described in the Comments column of the prior Summary of Comparable Sales spreadsheet. The following transactions show the sales price as a percentage of list price for large manufacturing facilities. Not all of the comparable sales had list price data available. Property Bldg Size SF List Price Sale Price Percentage 8221 East 96th Ave, 110,000 $4,100,000 $2,325,000 43% Henderson, CO 5590 High St, 230,636 $5,495,000 $4,100,000 75% Denver, CO 5000 Lima St, 151,929 $5,495,000 $3,250,000 59% Denver,CO The range is 43 to 75%and the average is 59%. Given that these properties are in markets with many more prospective buyers, i.e., alternate industry uses,the Greeley discount would be greater. The percentage of sales price to list price would be at the low end of the range;say 45%. The subject property sold at$4,400,000 and was listed at$10,700,000. This is 41%of its list price, supporting a 45% discount for large manufacturing facilities in Greeley. Property Rights Conveyed All sales involved conveyance of the fee simple interest, indicating no adjustments are necessary. Financing Terms The comparable sales all involved cash to the seller. No adjustments for financing are necessary. Terms and Conditions of Sale Sale prices are influenced by the terms and conditions of a transaction. Higher sale prices are the result of a motivated buyer such as an adjacent property owner. Conversely, lower sale prices are influenced by a motivated seller such as a bank seeking to liquidate real estate they own. Auction sales can be construed as motivated sellers;however,when the sold property was listed for sale by third party brokers for a reasonable marketing time then went to auction,there is little doubt that the auction was the only way to sell the property and representative of market value. None of the comparable sales were by unusually motivated buyers or sellers;subsequently, none require adjustment. Expenditures Immediately After Sale A property buyer will typically recognize necessary expenses in a sale's price to make the property fully useable,thereby maximizing its development potential and value. Costs to correct these deficiencies are incurred immediately after the purchase. Such items may include: • Unpaid or outstanding real estate taxes • Curing title issues • Resolution of any litigation DYCO DIVERSIFIED, INC. FORMER NORWEST PUBLISHING BUILDING 16 • Resolution of environmental issues • Deferred maintenance requiring immediate repair for occupancy No comparable sale requires an adjustment. None of the properties are new construction and all had some form of deferred maintenance,but none had deferred maintenance requiring immediate attention prior to occupancy. Market Conditions Data sources often considered for estimation of a market conditions adjustment are broker and investor interviews, regional inflation,paired sales and rental rate growth. Relevant sources for this appraisal are broker interviews and paired sales. Broker interviews and third party surveys throughout the Front Range indicate that occupancy and rental rates declined between approximately 2008 and 2011. They could not quantify the amount for the entire Front Range, but the impact was a decline in value. In addition,they stated that capitalization rates increased slightly,causing further declines in value. I make no quantitative adjustment, but my comparison recognizes that sale prices rose until approximately 2009, and then declined to the statutory date of value,June 31,2012. Location Given that large,single tenant industrial facilities are mostly bought and sold by owner-occupants,economic considerations such as labor and shipping cost,and tax incentives determine what market they buy property. Within a target market their decision is also partly driven by a comparison of the cost of land and the building construction versus available substitute property. This is contrary to speculative investors who care more about occupancy and rental rates. Comparison of the entire Colorado Front Range construction cost multiplier published by Marshall Valuation Service (MVS)shows at best a 5%difference. This is insignificant when all other location considerations such as enterprise zones,etc,are included. Land costs are also generally similar in outlying industrial locations. As an additional test, I compared household income for each area. The lower income makes the location desirable for manufacturers wanting to be more cost competitive. Greeley Pueblo Denver Metro) $46,000 approx. $42,000 approx. $50,000 approx. Adjustment to Greeley +10% -9%;say 10% In reality,the size/depth of the markets'industrial sector has more of an impact on property resale values. If a property is the largest or most unique design for a market,it has a small resale universe and that drives value down. I know of no way to quantify this adjustment. The comparison shows the Greeley market values are likely between the two market areas shown. This will be taken into consideration when correlating to a final unit value. No quantitative adjustment is made for the city in which the properties are located. Construction Pre-engineered steel structures are less expensive than pre-cast and tilt-up concrete buildings. Comparison of MVS costs(Class C-Average v. Class S-Average)shows they are roughly 10%less expensive to construct. Applying this factor to the comparable sales,adjustments are as follows: No Construction Adjustment Sale Price Adjustment Adj Price 3 Pre-engineered Steel +10% $19.09 $1.91 $21.00 4 Pre-engineered Steel +10% $21.14 $2.10 $23.24 5 Pre-engineered Steel +10% $21.54 $2.15 $23.69 DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 17 Quantitative Adjustment Grid The quantitatively derived adjustments are applied to the comparable sales as either percentage or dollar amounts. Where no quantitative adjustment is required the cell remains blank. Adjustments Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6 Sale 7 Sale 8 Unadjust Price(PSF GBA) $19.15 $16.65 $19.09 $21.14 $21.54 $22.64* $21.39 $19.78 Sale pnce to List Price $10.19 Property Right Conveyed Financing Terms&Conditions of Sale Expenditures After Sale Market Conditions - - - - - - - Location Construction +1.91 +$2.10 +$2.15 Quantitatively Adjusted $19.15 $16.65 $21.00 $23.24 $23.69 $12.45 $21.39 $19.78 Price(PSF) *After adjustment for excess land Condition, Building Coverage Ratio, Clear Heights, Percent Office All of these elements of comparison effect value,but do not lend themselves to quantitative adjustment. Comparative analysis is best when comparing these physical elements. All the properties are different, but none of the differences are material. Each building has utility and they have been put to use. No significant adjustments are warranted and so none made. Reconciliation — "As If Rail Served" Usually sale of the subject property is the best comparable. However,the only arm's length sale is outside the base period. Excluding the former Hewlett Packard property listing and the outliers of the comparable sold properties,the adjusted unit value range is narrow from$19.15 to$23.31 PSF GBA. I conclude the subject unit value is at the approximate middle of this range at$22 PSF of GBA. Value Indication - Sales Comparison Approach — "As If Rail Served" In my opinion,the value of the subject property, as indicated by the Sales Comparison Approach, as of June 30, 2012,is $7,070,580($22 PSF x 321,390 SF GBA);rounded to$7,100,000 Sales Comparison Approach As If Rail Served Seven Million One Hundred Thousand Dollars $7,100,000 Reconciliation — "As Is" Deducting the cost of rail service the value"as is"is$4,100,000($7,100,000-$3,000,000). DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 18 Value Indication - Sales Comparison Approach — "As Is" In my opinion,the value of the subject property, as indicated by the Sales Comparison Approach, as of June 30, 2012, is $4,100,000. Sales Comparison Approach As is Four Million One Hundred Thousand Dollars $4,100,000 Test of Reasonableness Little weight is given to this approach because part of the comparable value data is taken from outside the base period. The buyers that ultimately acquired the subject property did not want a building so large. They use less than half, but have set aside up to half of the building for their future use. That is the area still suited for manufacturing by importing raw material and exporting finished goods from the dock-high doors on the west building elevation. The east half of the building is likely to have less utility. This means the unit values for the two different building sections are different. The full utility unit value was previously concluded"as if rail served"at$22 PSF GBA. The east half of the building's unit value is best determined by the following comparable sales. 1900 South Freeway, Pueblo, CO This is the former Pepsi distribution facility for southern Size: 102,575 SF GBA Colorado Sold: 5/16/2013 Price: $700,000 Price: $6.82 PSF GBA 4038 Dover Drive, Colorado City, CO This was built as the Columbia House music distribution Size: 249,200 SF GBA facility. Sold: 4/23/2012 Price: $700,000 Price: $2.81 PSF GBA The Dover Drive property had extensive water damage occurring during the long marketing period when it sat empty. The buyer estimated cost to make the building habitable again at$500,000. This adjusts the unit price up$2 PSF GBA to$4.81 PSF. The two sales'unit prices implies large scale,lesser utility building unit values in small industrial markets are low. They are from approximately$5 to$7 PSF GBA. Adjusting both up 10%for southern Colorado location the range is$6 to $8.40 PSF. I correlate to$7 PSF GBA for the east half of the subject building. Using both unit values the weighted average building value is as follows: Building Unit Value Percentage Weighted Unit Value East half(storage) $7 50% $3.50 West half(manufacturing $22 50% $11 Total $14.50 Applying the weighted average unit value of$14.50 PSF GBA results in total value of$4,660,155($14.50 PSF x 321,390 SF);rounded to$4,700,00Q. This supports the prior value estimate of $4,100,000. DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 19 Reconciliation of Value Approaches The Cost and Sales Comparison approaches indicate the value is between$3,000,000 and$4,100,000. As expected, this range is broad. The Cost Approach weakness is it does not directly estimate value, it estimates replacement cost less depreciation. In addition,only a general contractor can provide a truly reliable reproduction cost new. Finally, Cost is of little use for estimating value of a 30 year old property with significant accrued depreciation from all sources. The best estimate of value is the Sales Comparison approach because it reflects actions of the market participants. It shows how investors and owner occupants attribute value to specific property types and locations. Giving most weight to the Sales Comparison Approach, I reconcile to the value for the subject"As Is"of$4,400,000. Property Value "As Is" As of June 30, 2012, it is my opinion,that on the statutory valuation date for the 2013 valuation period, the subject property was worth, Amended Market Value— "As Is" Four Million Four Hundred Sixty Thousand Dollars $4,400,000 Sincerely, DYCO Diversified, Inc. By:A. Mark Dyson, CCIM License Real Estate Broker State of Colorado,#1328371 DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 20 Certification I,the undersigned,do hereby certify that I have personally inspected the site and existing improvements located at: 259 30th Street, Greeley, CO • To the best of my knowledge,the statements of fact contained in this report are true and correct. • The reported analyses,opinions and conclusions are limited only by the reported assumptions and limiting conditions,and is my personal, professional analyses,opinions and conclusions. • No one provided professional assistance in preparing this report. • The Colorado Real Estate Commission currently licenses me as an independent real estate broker and a certified general appraiser. • I have obtained all licenses that are required under any state, local or federal laws in order to perform the services described herein. • I have sufficient educational background and experience in the sale and valuation of real estate properties similar to the subject to complete this assignment in a credible manner. • As of the date of this report,A. Mark Dyson, has completed the requirements of the continuing education program of the State of Colorado for a real estate sales license. DYCO Diversified, Inc. By:A. Mark Dyson, CCIM License Real Estate Broker State of Colorado,#1328371 DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 21 Addenda Assumptions and Limiting Conditions The value conclusions contained in this report are subject to the following extraordinary and general assumptions and limiting conditions Number Detail Extraordinary Assumptions and Limiting Conditions 1. None General Assumptions and Limiting Conditions 1. This report is prepared for the sole use and benefit of the intended users, and is based, in part, upon documents,writings, and information owned and possessed by me. Neither this report, nor any of the information contained herein shall be used, relied upon, or distributed for any purpose by any person or entity other than the client without written permission of DYCO Diversified, Inc. 2. The valuation herein is the fee simple interest,and the subject property is valued free and clear of any and all liens or encumbrances unless otherwise stated. Encumbrances considered in the valuation include,where applicable: real estate taxes,recorded easements and/or covenants, CC&R's,purchase options or sale agreements,signed leases,and unpaid bond debt. 3. No responsibility is assumed for the legal description or other matters involving legal or title considerations.Title to the property is assumed to be good and marketable unless otherwise stated. 4. County treasurer and assessment personnel are the source for tax liens and special assessments considered in this valuation. County personnel are believed to be a reliable source for this information. However,concerned and interested parties are advised to seek professional assistance in identifying all tax and special assessment Hens. 5. Information furnished by others is believed to be reliable I made efforts to independently verify it. However,no warranty is given for its accuracy 6. Responsible ownership and competent property management are assumed 7. It is assumed that all customary public utilities for this property type and market are reasonably available to the subject property,unless where specifically noted s. It is assumed that the subject is in compliance with all applicable zoning use regulations and restrictions,unless otherwise stated. It is further assumed that any required governmental entitlements,licenses,certificates of occupancy,consents,etc. have been or can be obtained or renewed for any use upon which the value estimate in this report is based 9. All opinions in the report and all conclusions are my own,except where clearly stated as in part being derived from the opinion of others,and are supported by what market evidence I am able to find,but are not guarantees that any future prediction will actually happen W. It is assumed that there are no hidden or unapparent conditions of the subject property,subsoil,or structures that would render it more or less valuable than other comparable properties. No responsibility is assumed for any such conditions or for professional engineering services,which might be required to discover such facts. No soils or geologic reports were made available to DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 22 Number Detail provide further input in this matter. 16. Unless otherwise stated in the report,any possible existence of hazardous substances,including, without limitation, asbestos, urea formaldehyde,foam insulation, polychlorinated biphenyls, petroleum leakage,agricultural chemicals,or other environmental concerns,was not called to the attention of the me, nor did I become aware of such during my inspection. I have no knowledge of the existence of such materials on or in the property unless otherwise stated and, in any case, are not qualified to test for such substances or conditions.The values estimated are predicated on the assumption that there are no such conditions on or in the property,or in such proximity that they would cause a loss in value. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required to discover them.The client is urged to retain an expert in the field of chemical or industrial hygiene if so desired 24. I am not required to give testimony or to appear in court by reason of this report,with reference to the property in question,unless arrangements have been previously made DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING 23 Qualifications A. Mark Dyson, CCIM, MAI, AI-GRS Experience 2012 to Present ERA Herman Group Real Estate, Denver, CO; Commercial real estate broker responsible for real estate sales as a buyer and seller representative, and real estate leasing as a tenant representative. 2007 to Present DYCO Diversified, Inc., Denver, CO; President, responsible for real estate appraisal review and real estate tax abatement and appeal. 2007 to 2011 CORE Holdings, Denver, CO; Commercial real estate broker responsible for real estate sales as a buyer and seller representative, and leasing as a tenant representative. 1991-2007 DYCO Real Estate, Inc., Denver, CO; President, responsible for overseeing all appraisal and feasibility assignments, real estate investment consultation and appraisal review. 1990-1991 Equitable Real Estate Investment Management, Denver, CO;Assistant Director responsible for equity and mortgage portfolio valuation. 1987-1990 Van Court and Company, Denver, CO; Associate appraiser involved in the appraisal and/or consulting of existing or proposed properties. Memberships, Designations and Awards Member,Commercial Investment Real Estate Institute(CCIM since 1998) Member,Denver Board of Realtors Member,Appraisal Institute(MAI since 1992) Member,Colorado Chapter 22,Appraisal Institute(since 1990) Independent Broker,State of Colorado#1328371 Certified Appraiser,State of Colorado#CGO1313324 2008 Million Dollar Roundtable Award(Denver Board of Realtors)Qualifier Real Estate Courses Completed All necessary for obtaining CCIM, MAI and Colorado Independent Broker and appraiser licenses Expert Witness Work Qualified as a real estate expert witness in all Denver metro counties. Testified or deposed in over 40 cases(trial and deposition log available upon request) Education Masters of Finance, University of Colorado, 1990 Bachelors of Business Administration, University of Oklahoma, 1984 DYCO DIVERSIFIED,INC. FORMER NORWEST PUBLISHING BUILDING g ` :' S r 11,- iw" R'e.i.`' 4.-,,,,,„;7-7;0'.." .#M M,11i '.?",, -'-'" Ie. 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C CC 0 as •7 Co A0 O . 0 41 � O o L C 0 0 o 2 17'3— Co Z E ca z 3 ayzi 3 a o 'Z3 ■M /�� t. ..O RS o a) �' C �' 45 5 0 o co �L, W Gv♦ 0 r w a E2 > c > ca 2 E E c a- `y I) CD 0 ca o) O) 0 o 0 2 0 G? ca o O a .N C .Co o. y U' p O.n V v Y > ; . — y ` Q W -oa o m a 0 O a caa @ IZ O ar N N C N Cl) N N N +' N N O 0 2 2 2 2 N >, a' a• a- L .5 C_ 0 C- C- ccaa a• ccaa C ii D 1 1,3.. C< _ Q tXWQW� r cc - e- N M et if) t0 h 00 Cr) In CLERK TO THE BOARD PHONE: (970) 336-7215, EXT. 5226 k°\..... .....,'\1861 /' FAX: (970) 352-0242 1150 O STREET �r ,�. P.O. BOX 758 ` �� GREELEY, COLORADO 80632 v _ J\ COUNTY June 29, 2015 Norwest Publishing Company NKA RR Donnelley & Sons Company 300 Lang Boulevard Long Island, NY 14072 RE: SCHEDULE NUMBER R3854686 (Tax Years 2012 and 2013) Dear Property Owner: This is to advise you that the Weld County Board of Commissioners will hear your petition for abatement or refund of taxes on the property described as: 259 30th St, Greeley, Colorado. The meeting is scheduled for Monday, July 20, 2015, at 9:00 a.m., in the Chambers of the Board of County Commissioners of Weld County, Colorado, Weld County Administration Building, 1150 O Street, Assembly Room, Greeley, Colorado 80631. The Assessor is recommending that the Board deny your petition. You are not required to be present at this hearing; however, this is your opportunity to have your position heard, particularly if your position is opposed to the Assessor's recommendation. If you intend to submit any documentation in support of your position for this hearing, all such documentation must be submitted to the Office of the Clerk to the Board and to the Weld County Assessor's Office at least seven calendar days prior to the meeting date in order for it to be considered at the scheduled hearing. If you have any questions concerning this matter, please do not hesitate to contact me at (970) 336-7215, Extension 5226. Sincerely, /� 0( /1 R faela A. Martin z°j-6U13 Deputy Clerk to the Board cc: Assessor DYCO Diversified, Inc. Attn: Mark Dyson 795 McIntyre St, Suite 205 Golden, CO 80401 RM/EG U.S. Postal Service,. U.S. Postal Services.. w CERTIFIED MAIL, RECEIPT -n CERTIFIED MAIL., RECEIPT r.. (Domestic Mail Only;No Insurance Coverage Provided) o (Domestic Mail Only;No Insurance Coverage Provided) CI F • • • • • • • • F•r alive mf•rm ti•n visit•ur we•site at www.us•s.c•m-.;,r tiv ryinfrm tinvisit urw sit twww.uss.cme, • rY� CI Postage $ to/a9 Postage $ M rn O Certified Fee 0 Certified Fee Postmark O Return Receipt Fee Postmark 0 Return Receipt Fee Here 0 (Endorsement Required) Here (Endorsement Required) 0 Restricted Delivery Fee 0 Restricted Delivery Fee p— (Endorsement Required) (Endorsement Required) 17O .43 ru ru Total Postage&Fees Total Postage&Fees g 0 Sent To Q ant To .,,0 ..-4-. j 4aftL,__lain: 111.0)44424_ 0 '.t Kt. - - � -i`i`-"` -- -! '. N Street,A t.No..r- Street,Apt.No.; ��- P or PO Box No. ��.,�. 'J,I-L J q or PO Box No."7(5' rAn�,. *„_1�C. J. ..7 nC-. City,State,ZIP+4 ��Ad V.L�.c�1WAd 4\I q )L7 4._+ City,State,ZIP+4 J � L4'l `, VON4IYX.I. S,LA.1ybS�• 9S�1-1- SF.rm3:rr,Jpn 2lrz s „ SF.rm :rrJun 2002 S.. • • •• SENDER: COMPLETE THIS SECTION CO.1 DLETE THIS.+ECTION ON DELIVERY • Complete items 1,2, and 3.Also complete Al ture item 4 if Restricted Delivery is desired. regent 1.-\, so that we can return the card to you. -�• ce' d by(Pri ame) C.7ioiefier5-1■ Attach this card to the back of the maiipiece,or on the front if space permits.,- 1 4'. Is (very address differetrom item 1? 1. Article Addressed to: If YES,enter delivery address below: O No b\I CO b��' r�i'L�. rr�Y1tt..-ot.4,o.f� 7 9 5 '' t Q, -41,2� 3. Service Type G cth, �o god 01 2'3 Certified Malt® 0 Priority Mail Express" ❑ Registered O Return Receipt for Merchandise ❑ Insured Mail O Collect on Delivery 4. Restricted Delivery?(Extra Fee) 0 Yes 2. Article Number 7004 2890 0003 5709 0796 (Transfer from service label) r , PS P--r Pnrrn 15411 ,,,i„OO1 d n-- °"-----71 Receipt SENDER: COMPLETE THIS SECTION C.M•LETE THIS SECT:JAt JN •ELIVE•Y • Complete items 1,2, and 3.Also complete A. Signature -' item 4 if Restricted Delivery is desired. X ❑Agent • Print your name and address on the reverse O Addressee so that we can return the card to you. .ecei e• •y P• d Name) C. Date of Delivery • Attach this card to the back of the mailpiece, I� , •Ste., or on the front if space permits. D. I .-''ery address.Iff rent from item 1? O Yes 1. Article Addressed to: ES,enter delivery address below: O No li Oxprafoa4 NKR�� ►>. / ut 4. s.al a Cant 3. Service Type L 1(LY1 ttilt, d, NI q i-107a.. 1B1 Certified Mail° O Priority Mail Express" O Registered O Return Receipt for Merchandise ❑ Insured Mail 0 Collect on Delivery 4. Restricted Delivery?(Extra Fee) O Yes 2. Article Number 700-4 2890 0003 5709 0772 (Transfer from service label) PS Form 3811,July 2013 Domestic Return Receipt CLERK TO THE BOARD PHONE: (970) 336-7215, EXT. 5226 1861/ FAX: (970) 352-0242 1150 O ST REET II l� P.O. BOX 758 GREELEY, COLORADO 80632 COUNTY August 11, 2015 Norwest Publishing Company NKA RR Donnelley & Sons Company 300 Lang Boulevard Long Island, NY 14072 RE: SCHEDULE NUMBER R3854686 (Tax Years 2012 and 2013) Dear Property Owner: On July 20, 2015, the Board of Weld County Commissioners considered your petition for abatement or refund of taxes and denied same. Pursuant to Section 39-2-125(f), C.R.S., you have the right to appeal this decision to the State Board of Assessment Appeals within thirty days. You may obtain the appropriate forms and instructions from: Board of Assessment Appeals, Department of Local Affairs, 1313 Sherman Street, Room 315 Denver, CO 80203 Phone: 303-866-5880 In preparation for appealing to the State Board of Assessment Appeals you may also go to the following state link to obtain any further information you may need to proceed, http://www.dola.state.co.us/baa/index.htm Very truly yours, W Ra aela A. Martinez Deputy Clerk to the Board cc: Assessor DYCO Diversified, Inc. Attn: Mark Dyson 795 McIntyre St, Suite 205 Golden, CO 80401 RM/EG Hello