HomeMy WebLinkAboutCity of Tamarac Resolution R-2016-108Temp. Reso. No. 12852
September 14, 2016
Page 1 of 5
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2016 - /0 �
A RESOLUTION OF THE CITY COMMISSION OF
THE CITY OF TAMARAC, FLORIDA, AUTHORIZING
AND DIRECTING THE APPROPRIATE CITY
OFFICIALS TO EXECUTE THAT CERTAIN FOURTH
AMENDMENT TO CONTRACT FOR SALE AND
PURCHASE, ATTACHED HERETO AS EXHIBIT 1",
BY AND BETWEEN THE CITY OF TAMARAC, A
MUNICIPAL CORPORATION AND AD1 TAMARAC
HOTELS, LLC, A FLORIDA LIMITED LIABILITY
COMPANY FOR THE SALE OF A 2.24 (+/-) ACRE
PARCEL OF REAL PROPERTY LOCATED ON THE
EAST SIDE OF PINE ISLAND ROAD, SOUTH OF
WEST MCNAB ROAD, KNOWN AS A PORTION OF
TRACT A, COLONY WEST CLUBHOUSE PLAT,
ACCORDING TO THE PLAT THEREOF, AS
RECORDED IN PLAT BOOK 71, PAGE 18 OF THE
PUBLIC RECORDS OF BROWARD COUNTY,
FLORIDA, BEING MORE PARTICULARLY
DESCRIBED IN EXHIBIT "A", ATTACHED HERETO
AND INCORPORATED HEREIN; PROVIDING FOR
CONFLICTS; PROVIDING FOR SEVERABILITY:
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, The City of Tamarac (City) approved, authorized and directed
appropriate city officials to execute a Contract for Sale and Purchase (Contract)
dated November 10, 2015 between the City of Tamarac (Seller) and AD1 Group
LLC (Buyer) via Resolution R-2015-118; and
WHEREAS, on March 23, 2016, the City Commission approved Resolution
R2016-28, authorizing the execution of a First Amendment to Contract for Sale
and Purchase (the "First Amendment") and ratifying the City Manager's March 17,
2016 execution of same, extending the one hundred and twenty (120) day
Inspection Period for an additional sixty (60) days, providing for a total of one
hundred eighty (180) day Inspection Period; and
Temp. Reso. No. 12852
September 14, 2016
Page 2 of 5
WHEREAS, In addition, the Resolution supporting the First Amendment
authorized the City Manager to amend the Contract for Sale and Purchase, from
time to time, but only for minor non -monetary changes or modifications consistent
with the tenor of the original approval by the City Commission; and
WHEREAS, On May 11, 2016, the City Manager entered into a Second
Amendment to Contract for Sale and Purchase, extending the Inspection Period
an additional one hundred and twenty (120) days, providing for a total of a three
hundred (300) day Inspection Period to allow the Buyer to explore relocating the
hotel to the City's golf course property ("Alternate Property"); and
WHEREAS, On May 31, 2016, the City Manager entered into an
Assignment of Contract for Sale and Purchase, assigning the rights, title and
privileges of the Contract for Sale and Purchase to AD1 Tamarac Hotels LLC, the
entity created for the hotel project; and
WHEREAS, on September 1, 2016, the City Manager entered into a Third
Amendment to Contract for Sale and Purchase, extending the Inspection Period
an additional thirty (30) days to allow for an aggregate Inspection Period of three
hundred and thirty (330) days in order to garner sufficient time to properly
schedule the matter of relocating the hotel to the Alternate Property for City
Commission consideration; and
WHEREAS, after much exploration and inspection, it has been determined
that the Alternate Property is an optimal location to place the Fairfield Inn by
Marriott hotel, maximizing its proximity to the proposed newly constructed
clubhouse while providing sufficient separation of the uses from residentially
zoned properties; and
Temp. Reso. No. 12852
September 14, 2016
Page 3 of 5
WHEREAS, the parties desire to amend Exhibit "A" to the Contract to
reflect the legal description of the Alternate Property; and
WHEREAS, in accordance with Section 6-156.2 of the City of Tamarac
Code of Ordinances, an appraisal was obtained for the proposed disposition of
the Alternate Property; and
WHEREAS, the Director of Community Development and the Director of
Financial Services recommends that the appropriate City Officials execute the
Fourth Amendment to Contract for Sale and Purchase with AD1 Tamarac Hotels
LLC; and
WHEREAS, the City Commission of the City of Tamarac, Florida, deems it
to be in the best interest of the citizens and residents of the City of Tamarac to
authorize the execution of the Fourth Amendment to Contract for Sale and
Purchase between the City of Tamarac and AD1 Tamarac Hotels, LLC; a copy of
said Contract is included herein as Exhibit 1" (attached hereto, incorporated
herein, and made a specific part thereof).
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA:
SECTION 1: The foregoing "WHEREAS" clauses are HEREBY ratified and
confirmed as being true and correct and are hereby made a specific part of this
Resolution upon adoption hereof; all exhibits referenced and attached hereto are
incorporated herein and made a specific part of this resolution.
Temp. Reso. No. 12852
September 14, 2016
Page 4of5
SECTION 2: It is hereby found and determined that the authorization to
execute the Fourth Amendment to Contract for Sale and Purchase with AD1
Tamarac Hotels, LLC is in the best interest of the City of Tamarac and the
residents and businesses located within the described area.
SECTION 3: The appropriate City officials are hereby authorized to
execute a Fourth Amendment to Contract for Sale and Purchase with AD1
Tamarac Hotels LLC, a copy of said Contract is attached hereto as Exhibit "'I".
SECTION 4: All Resolutions or parts of Resolutions in conflict herewith
are hereby repealed to the extent of such conflict.
SECTION 5: If any clause, section, other part or application of this
Resolution is held by any court of competent jurisdiction to be unconstitutional or
invalid, in part or application, it shall not affect the validity of the remaining
portions or applications of this Resolution.
SECTION 6: This Resolution shall become effective immediately upon its
passage and adoption.
1
1
Temp. Reso. No. 12852
September 14, 2016
Page 5of5
PASSED, ADOPTED AND APPROVED this day 2016.
�/' aJd7AA 0 lqj/'--�-
R Wy DRESSLER,
MAYOR
ATTEST:
�[ r, , e��
PATRICIA
0MC
CITY CLERK
RECORD OF COMMISSION VOTE:
MAYOR DRESSLER /
DIST 1: COMM. BUSHNELL
DIST 2: COMM. GOMEZ
DIST 3: VICE MAYOR GLASSER
DIST 4: COMM. PLACKO
I HEREBY CERTIFY THAT I HAVE
APPROVED THIS RESOLUTION
AS TO FORM
/ _ '2 Ih 6
SAMU L S. GOREN
CITY ATTORNEY
1
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FOURTH AMENDMENT
TO CONTRACT FOR SALE AND PURCHASE
This Fourth Amendment to Contract for Sale and Purchase is entered into as of the
Effective Date (hereinafter defined), by and between the City of Tamarac, a Florida
municipal corporation (the "Seller") and AD1 Tamarac Hotels, LLC, a Florida limited
liability company (the "Buyer").
RECITALS:
WHEREAS, Buyer and Seller are parties to that certain Contract for Sale and
Purchase dated November 10, 2015 ("Contract") for certain real property located in
Tamarac, Broward County, Florida, as amended by that certain First Amendment to
Contract for Sale and Purchase dated March 17, 2016, that certain Second Amendment to
Contract for Sale and Purchase dated May 11, 2016 and that certain Third Amendment to
Contract for Sale and Purchase dated September 1, 2016 ; and
WHEREAS, the parties desire to amend Exhibit "A" to the Contract to reflect the
legal description of the Alternate Property; and
WHEREAS, Buyer and Seller desire to modify the terms of the Contract to require
Seller to mitigate/remediate any environmental contamination present on the Property as
more particularly set forth below.
NOW THEREFORE, in consideration of the foregoing premises, mutual
covenants and conditions herein contained, the parties hereto agree as follows:
The parties agree to the following:
1. The recitals set forth above are hereby ratified and confirmed.
2. The legal description set forth on Exhibit "A" to the Contract is hereby deleted in its
entirety and replaced with the legal description set forth on Exhibit "A" attached
hereto and incorporated herein.
3. The following provision is hereby added as a new Section 7(c):
Seller shall remediate any and all environmental
contamination currently located on or affecting the
Property, and shall deliver to Buyer an environmental
report/study that confirms the completion of such
remediation and states that the Property is suitable for
development for its intended use.
4. The third (3`d) sentence of Section S(a) is hereby amended and restated to read as
follows:
(00150439.1 2704-9499232)
Buyer agrees that, on or December 5, 2016, Buyer, at
Buyer's expense, shall submit to the City of Tamarac an
application for zoning change and formal site plan approval
of the Contemplated Improvements.
5. The third (3�) sentence of Section 8(b) of the Contract is hereby amended and restated
to read as follows:
The "Approvals Application Period" shall mean the period
commencing on the Effective Date hereof and ending on
March 9, 2011f provided that Buyer shall have the right,
upon giving notice to Seller no later than fifteen (15) days
prior to the originally scheduled expiration date of the
Approvals Application Period, to extend the Approvals
Application Period for an additional sixty (60) days, so
long as Buyer is still seeking, and continues to seek, in
good faith, to obtain the Approvals.
6. Section 15 of the Contract is hereby deleted in its entirety and replaced with the
following language:
Tax Rebate. Seller shall provide the Property with a tax rebate (as defined below)
against municipal ad valorem taxes for the first (In two (2) calendar years following
the issuance of the certificate of occupancy for the Property. The tax rebate shall be
calculated as follows:
The total aggregate amount of municipal ad valorem taxes assessed against the
improved Property after the issuance of the certificate of occupancy
MINUS
2. The total aggregate amount of municipal ad valorem taxes assessed against the
Property as vacant land the year immediately preceding the issuance of the
certificate of occupancy.
For the avoidance of doubt, for the first (111) two (2) calendar years after the issuance
of a certificate of occupancy for the Property, Buyer shall only be responsible to pay
municipal ad valorem taxes on the Property in an amount equal to the municipal ad
valorem taxes assessed against the Property as vacant land the year prior to issuance
of the certificate of occupancy.
7. In the event of any inconsistencies between this Fourth Amendment and the Contract,
the provisions contained in this Fourth Amendment shall prevail. In any other
respects, the Contract remains unchanged.
100150438.12704.9499232) 2
8. The effective date of this Fourth Amendment (the "Effective Date") shall be the date
upon which the last of Buyer and Seller have executed same.
(00150438.1 2704-94992321
IN WITNESS WHEREOF, Buyer and Seller have executed this Fourth
Amendment as of the date set forth beneath their signatures.
SELLER:
CITY OF TAMARAC, a Florida
municipal corporation
By: _
Title:
Signed on
BUYER:
AD I
Florida
by and
Inc., it,$
Tamarac
LLC, a
Signed on �( , 2016
10015 8.l27N.94"23zt 4
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
1001 SN39.1 2704-9499232)
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SUMMARY APPRAISAL REPORT
OF
LOCATED AT
PART OF COLONY WEST COUNTRY CLUB
6800 NW 88TH AVENUE
TAMARAC, FLORIDA
OWNER: CITY OF TAMARAC
AS OF
AUGUST 25, 2016
PREPARED FOR
MR. MARK MASON, CPA
DIRECTOR OF FINANCIAL SERVICES
CITY OF TAMARAC
7525 NW 88TH AVENUE
TAMARAC, FLORIDA 33321
September 1, 2016
Mr. Mark Mason, CPA
Director of Financial Services
City of Tamarac
7525 NW 881h Avenue
Tamarac, Florida 33321
Re: Appraisal of Proposed Re -Development Parcel
Part of Colony West Country Club
97,812 Square Foot Site
6800 NW 88th Avenue (Pine Island Road)
Tamarac, Florida
Land Owner: City of Tamarac
Dear Mr. Mason:
Per your request, we have reviewed the above captioned property for the purpose of providing you
with a current valuation on the property, which consists of a 97,812 square foot site located on the
east side of Pine Island Road approximately 650 feet south of West McNab Road in Tamarac. The
subject site is currently part of the parking lot and portico for the existing Colony West Country Club.
The purpose of our analysis is to form an opinion of the market value of the fee simple ownership of
the whole property. The function of this report is for client's internal use as an aid in the potential re-
development of the property. The report is subject to a special assumption that the zoning will be
changed to allow for the proposed development of the site with a hotel development. Further, we
have valued the designated site as a stand-alone parcel and have not considered any damages to the
remaining site utilized as the golf course. We have been advised that the existing clubhouse property
is to be razed as part of this redevelopment project and that a new clubhouse and required ancillary
buildings will be rebuilt as part of the overall redevelopment on the remaining country club property.
Market value is defined as "the most probable price, as of a specified date, in cash, or in terms
equivalent to cash, or in other precisely revealed terms, for which the specified property rights
should sell after reasonable exposure in a competitive market under all conditions requisite to a
fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest,
and assuming that neither is under undue duress."
We have prepared the attached Summary Appraisal Report, which contains a recapitulation of the
data utilized to form an opinion of the market value as of August 25, 2016. If any additional data is
required, please advise.
Mr. Mark Mason
September 1, 2016
Page 2
Our review of the highest and best use is based on the proposed development and the assumption that
the required rezoning will be granted by the City of Tamarac. As the City controls the rezoning, it is
very feasible and most probable that a rezoning will be completed and that the proposed development
will be approved for the site.
Based upon our inspection of the property and market data analysis, it is our opinion that the market
value of the whole property, legally described herein, as of August 25, 2016 is:
ONE MILLION SEVEN HUNDRED SIXTY THOUSAND DOLLARS
($1,760,000)
We have made a special assumption that the subject property could be developed with a hotel
use under the S-1 Recreation zoning. Our review indicated that the rezoning was in process
with the City and we have assumed that the zoning change would be approved and the potential
redevelopment would be allowed. The other special assumption deals with the continuing
operation of the Colony West Country Club as a golf course operation. As part of the sale of
or development of the subject property, the existing country club building will be razed and a
new clubhouse structure and other ancillary buildings will be developed on the remaining golf
course property.
Sincerely,
Robert D. Miller, ASA
State Certified General R.E. Appraiser No. RZ1270
TABLE OF CONTENTS
Tableof Contents...................................................................................................................................1
Summary of Salient Facts and Conclusions..........................................................................................2
Sketchof the Subject Site......................................................................................................................4
Definitionof Market Value................................................................................................................... 7
CompetencyProvision.......................................................................................................................... 7
SalesHistory of the Subject Property.................................................................................................... 8
Purpose and Function of the Appraisal................................................................................................. 8
LegalDescription.................................................................................................................................. 8
Scopeof Services...................................................................................................................................9
MarketingPeriod................................................................................................................................... 9
PropertyDescription............................................................................................................................10
AreaMap.............................................................................................................................................14
NeighborhoodDescription..................................................................................................................15
NeighborhoodMap..............................................................................................................................17
Highestand Best Use...........................................................................................................................18
AppraisalProcess................................................................................................................................20
Market Approach — Vacant Land..................................................................................................21
Conclusion...................................................................................................................................... 45
Reconciliation...................................................................................................................................... 46
Assumptionsand Limiting Conditions................................................................................................47
Certification......................................................................................................................................... 49
ADDENDUM
Photographs of the Subject Property
Acquiring Deed
Zoning Code
Qualifications of the Appraiser
1
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
PROPERTY LOCATION: The whole property consists of a basically rectangular shaped
parcel of land located in the parking lot of the existing Colony
West Country Club. The property is located on the east side
of Pine Island Road, approximately 650 feet south of McNab
Road in the City of Tamarac, Broward County, Florida. The
property is located in the parking lot at 6800 NW 88 h Avenue
in Tamarac.
OWNER'S NAME/ADDRESS: City of Tamarac
7525 Northwest 88 h Avenue
Tamarac, FL 33321
INSPECTION DATE: August 15th to August 25th, 2016
FOLIO NUMBER: Part of 49-41-09-33-0010 and 49-41-09-06-0020
ASSESSED VALUE (2015): $3,475,380 (Under Golf Course (38) use code) -Part of larger
golf course property. No separate assessment for the property
being appraised.
2015 REAL ESTATE TAXES: $0* (Government entities are currently exempt from taxation)
SITE SIZE: 97,812 Square Feet or 2.2455 Acres —whole property land area
DIMENSIONS: The whole property consists of an irregular shaped parcel of
land with 276.94 feet of frontage on Pine Island (NW W'
Avenue). See the sketch, plat and aerials on pages 4 to 6 for
further delineation of the site location and dimensions.
ZONING:
S-1 Recreation District, Tamarac
PRESENT USE: The property is currently used as the parking lot, driveway and
portico for the existing Colony West Country Club and golf
course. Adjoining properties were developed with a residential
development, a Walgreens and the Colony West Country Club
and golf course.
HIGHEST AND BEST USE: Future commercial development -proposed Hotel
Development
IMPROVEMENTS: Site is improved with asphalt paved larking, landscaping,
lighting and portions of the portico for the building.
SUMMARY OF SALIENT FACTS AND CONCLUSIONS (CONTINUED)
SALES HISTORY: The property is owned by the City of Tamarac. According to
the Broward County Property Appraiser, the property was
acquired by the City on December 27t', 2011 for March 20,
2012 from Edward Rack Corporation for $3,000,000. A copy
of the deed is included in the addendum. There have been no
other arm's-length transfers of the property in the last five
years. Based on our review, it does not appear the subject
property is currently listed for sale as of the date of this report.
This sales history is for the larger property utilized for the
Colony West Country Club. There is no separate sales history
for the subject property.
COST APPROACH TO
VALUE: Not applicable
INCOME APPROACH
TO VALUE: Not applicable
SALES COMPARISON
APPROACH TO VALUE: $1,760,000 or $18.00 per square feet of land area
DATE OF VALUE: August 25, 2016
3
SURVEY OF PROPERTY
4
PLAT OF SUBJECT PARCEL
.1
tol
No Text
DEFINITION OF MARKET VALUE
Market value is defined in the 2012-2013 Edition of the Uniform Standards of Professional Practice
from regulations published by federal regulatory agencies pursuant to Title XI of the Financial
Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5, 1990 and
August 24, 1990 as follows:
The most probable price which a property should bring in a competitive and open market under all
conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably, and
assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation
of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
............1. Buyer and seller are typically motivated;
............ 2. Both parties are well informed or well advised, and acting in what they consider
their own best interests;
............ 3. A reasonable time is allowed for exposure in the open market;
............4. Payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto, and;
............ 5. The price represents the normal consideration for the property sold unaffected
by special or creative financing or sales concessions granted by anyone
associated with the sale.
COMPETENCY PROVISION
The appraiser has completed similar type appraisals throughout the Broward County area during his
34 years as a real estate appraiser in South Florida. Further, the appraiser has completed numerous
appraisals of commercial properties in this area and throughout the Tri-County area. As a result of
these experiences, the appraiser meets the competency provision of USPAP.
7
PURPOSE AND FUNCTION OF APPRAISAL
The purpose of the appraisal is to form an opinion of the market value of the property as of a current
date. The function of this report is for internal use and planning by the client in their consideration of
the potential disposition and/or redevelopment of the property. The intended user of the report is the
client, the City of Tamarac and their legal and financial representatives. No other appraisal
assignments were completed on this property by the appraiser during the last three years.
LEGAL DESCRIPTION
The whole property is legally described as follows:
A portion of Tract A, Colony West Clubhouse Plat, according to the Plat thereof, as recorded in Plat
Book 103, Page 36 of the public records of Broward County and a portion of Parcel G of Woodland
Lakes, according to the Plat thereof, as recorded in Plat Book 71, Page 18 of the public records of
Broward County. The complete legal description is included on the Survey included in this report on
Page 4 of this document.
8
SCOPE OF SERVICES
We have compiled all the necessary data in order to formulate an opinion of value. We have presented
the applicable data in this Summary Appraisal Report format. Any additional supporting data can be
found in our working or office files. In preparing our report, we have reviewed and relied upon the
following data.
1. Sales and listings of properties with similar utility and highest and best use throughout
Broward County over the past five years.
2. Review of public records for all pertinent sales data. Retrieved from LoopNet., IRIS,
CO -Star Comps, MLS, and the Property Appraiser's Office.
3. Review and considered the sales history of the subject property and surrounding
properties.
4. Review of Broward County and neighborhood trends
Inspection of neighborhood and analysis of land use patterns and trends.
6. Inspection of subject property and comparable sales and listings and verification of
sales and listings.
EXPOSURE/MARKETING PERIOD
Based upon review of the neighborhood and competing properties, it is our opinion that the property,
if competitively priced, will sell if marketed and exposed to the market place for a period of between
nine and twelve months and development approvals may take up to an additional 12 months.
0
PROPERTY DESCRIPTION
PROPERTY LOCATION: The whole property consists of a rectangular shaped parcel of
land located just south of the intersection of Pine Island Road
and McNab Road. The property is located on the east side of
Pine Island Road, approximately 650 feet south of McNab
Road in the City of Tamarac, Broward County, Florida and the
common address of the Colony West Country Club is 6800
NW 88t' Avenue, Tamarac, Florida 33321.
OWNER'S NAME/ADDRESS: The City of Tamarac
7525 NW 88th Avenue
Tamarac, Florida 33321
FOLIO NUMBER: 49-41-09-33-0010 and 49-41-09-06-0020
ASSESSED VALUE (2015): $3,475,380 (Under Golf Course (38) use code)
2015 REAL ESTATE TAXES: $0* (Government entities are currently exempt from taxation)
SITE SIZE: 97,812 Square Feet or 2.2455 Acres —whole property land area
DIMENSIONS: The whole property consists of an irregular shaped parcel of
land with 276.94 feet of frontage on Pine Island (NW 88t'
Avenue). See the sketch, plat and aerials on pages 4 to 6 for
further delineation of the site location and dimensions.
ZONING: S-1 Recreation District, Tamarac
PRESENT USE: The property is part of the parking lot, driveways and portico
for the existing Colony West County Club use.
HIGHEST AND BEST USE: For future commercial development -hotel development.
IMPROVEMENTS: The property is currently used as the parking lot, driveway and
portico for the existing Colony West Country Club and golf
course. Adjoining properties were developed with a residential
development, a Walgreens and the Colony West Country Club
and golf course.
UTILITIES: Public utilities include water, sewer, electric and telephone
TOPOGRAPHY: The site is level and at street grade in the area of the parking
lot. The existing building is elevated and the entrance is at a
second story level. The property being appraised will need to
be leveled off for a ground level development of the site.
10
REAL ESTATE TAXES
Folio Numbers:
Use Code:
(2015)ASSESSED VALUE:
LAND
BUILDING
TOTAL
(2015) REAL ESTATE TAXES:
49-41-09-33-0010 49-41-09-06-0020
38 (Golf Course, Driving Range use)
$3,475,380 Total
$ 37,470 $1,768,970
$230,000 $1,439,270
$267,140 $3,208,240
$0*
The property assessment is generally reviewed and changed after the change of ownership.
*Governmental entities are currently exempt from taxation. The above assessment information is
for the larger golf course property. A separate folio for the subject site would be developed by the
Property Appraiser office upon any sale of this property.
ZONING
The subject property is zoned S-1 Recreation District in the City of Tamarac with a Commercial
Recreation land use designation. A copy of the zoning code is included in the addendum of this
report.
The subject property is zoned S-1, Recreation District by the City of Tamarac. According to the Land
Development Code, the S-1 district is intended to encourage the development of recreational type
uses for the benefit of the residents of Tamarac. "The operation of any recreation area shall,
regardless of anything else in this chapter, be subject to the reasonable control and direction of the
city and the city commission as regulatory authorities."
We have made a special assumption that the subject property could be developed with a hotel
use although it is not a permitted use under the current subject's S-1 zoning district. This
assumption is based on our discussions with city officials in Tamarac that the City is in the
process of changing the zoning to allow a hotel development on S-1 lands in conjunction with
an approved use on the S-1 lands.
11
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FLOOD ZONE MAP
FLOOD ZONE: Flood Zone AH and X, according to Flood Insurance Rate Map
Community Panel Number 12011C0335H effective 8-18-2014
13
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14
NEIGHBORHOOD DESCRIPTION
The subject property is located to the south of City Hall in the City of Tamarac, Florida. The
Cities of Lauderhill and Sunrise are located to the south across Commercial Boulevard. The City
of Tamarac extends from Commercial Boulevard to Southgate Boulevard in the western area and
abuts the City of Coral Springs to the north. The City extends east of State Road 7 along
Commercial Boulevard with the majority of the City located to the west of the Florida Turnpike.
The neighborhood is located in an area generally described as being bound on the south by
Commercial Boulevard, on the west by the Sawgrass Expressway, on the north by Southgate
Boulevard and on the east by University Drive. The uses in the neighborhood are indicative of a
middle class suburban community with single family and multifamily residential uses located on
the interior streets and neighborhood and highway commercial uses located along the major
thoroughfares. The main north south commercial traffic way in the city is University Drive with
some commercial development along Pine Island and Nob Hill Road. More recent developments
in the City are the industrial office park that has been developed at the northeast quadrant of the
Commercial Boulevard and the Sawgrass Expressway. This development includes gas stations,
office building, hotels, automobile dealership, warehouse, distribution centers, regional
headquarters and warehouse space.
The City of Tamarac has rezoned numerous properties along Commercial Boulevard to allow for
a mixed use master development similar to other downtown type projects proposed and
developed in other suburban communities in Broward County. The city has acquired numerous
parcels of vacant and improved acreage for the potential mixed use development known as
Tamarac Village. The mixed use project will begin, just west of Pine Island Road and extend to
just east of NW 941h Avenue on the north side of Commercial Boulevard and the north side of
NW 57th Street. The development plans to include a parking garage located on NW 57th Street.
This development is projected to create some additional demand for both residential and
commercial properties in the Tamarac area. The City of Tamarac has good transportation with
access to the Sawgrass Expressway at Commercial Boulevard and just north of the city limits on
Atlantic Boulevard in Coral Springs. Further the Florida Turnpike is accessible at both streets
further east.
The north and south sides of Commercial Boulevard between University Drive and the Sawgrass
consists of numerous small lots that have been developed independently or as an assemblage of
numerous lots. This stretch has not experienced the same development as other areas of the county
and the vacant land parcels at this location are some of the only vacant lots that have never been
developed in the county. The residential development of this area is near build out and additional
commercial development has been slow in western areas of the county. Generally speaking, all
necessary retail, religious and school facilities are easily accessible from the subject neighborhood.
Pine Island Road is a combination of residential, office and retail development.
In summary, the area has several vacant land parcels for future development. The neighborhood
contains a good mixture of compatible uses with some industrial, commercial, residential, public
and transportation uses. Access to the neighborhood is good. The long-term outlook for the
market in this area is for values to remain stable with growth expected. Overall the subject
neighborhood would be rated as stable after the downturn of the market in early 2007. The
market has shown signs of stabilization and the future outlook for continued growth is
considered good.
15
NEIGHBORHOOD MAP
16
DEFINITION OF HIGHEST AND BEST USE
That reasonable and probable use that will support the highest and present value, as defined, as of
the effective date of the appraisal.
Alternatively, that use, from among reasonable, probable and legal alternative uses, found to be
physically possible, appropriately supported, financially feasible and which results in the highest
land value. Implied within this definition is recognition of the contribution of that specific use to
community environment or to community development goals in addition to wealth maximization of
individual owners.
Also implied is that the determination of the highest and best use results from the appraiser's
judgment and analytical skill, i.e., that the use determined from the analysis represents an opinion,
not a fact to be found. In appraisal practice, the concept of highest and best use represents the
premise upon which value is based. In the context of probable selling price (Market Value), another
appropriate term to reflect highest and best use would be "most probable use". In the context of
investment value, an alternative term would be "most profitable use".
HIGHEST AND BEST USE
The size and dimensions of the subject whole property are suitable for many types of development
including residential, commercial and industrial. The subject is zoned S-1 Recreation District with a
Commercial Recreation land use designation. The S-1 zoning district is intended to provide for
recreational type uses with country club and golf course the top permitted uses. Other uses include
public parks, swimming pools and schools. The proposed zoning change in the City would allow for
a change to this zoning district to allow the construction of an ancillary use on a golf course for a hotel
development. The hotel use would be in conjunction with the golf course use. Based on our review
of the zoning change and its effect on the subject property and the surrounding uses, it is our opinion
that the zoning change would and should be allowed.
The review of the hotel market indicated a strong demand for sites of this size for small local hotel
uses. These sites are typically developed with a 150 to 200 room hotel with an affiliated chain hotel.
The first 3 tests have been analyzed. The maximally productive use is that which has met the first
3 tests of the HBU and which will result in the highest land value, or the highest net return to the
site. The subject with the proposed zoning change could be developed with some type of hotel
development. This would be the highest and best use, as without the zoning change the land would
have no financially feasible alternate uses without a zoning change to a commercial zoning district.
In summary, the highest and best use, in our opinion is for some type of future commercial
development with a hotel use.
We have made a special assumption that the subject property could be developed with a hotel
use although it is not a permitted use under the current subject's S-1 zoning district, however
the City has indicated a willingness to allow some type of hotel use on the site.
17
APPRAISAL PROCESS
In order to arrive at the market value for the property, special attention must be given to the typical
purchaser who might have an interest in a particular property. Market Value is the most probable
sales price, which a property will bring and this price depends upon the typical purchaser's reaction
to the various supply and demand factors that affect the market value.
The Appraisal Process is basically an economic analysis consisting of a review of the factors that
affect market value. There are three approaches to value to be considered in any appraisal, The
Cost, Income and Market Approaches. Considering our estimate of the highest and best use for
this property, the Income and Cost Approaches were not deemed applicable for this assignment.
The highest and best use is for redevelopment of the site with some type of hotel development.
Therefore, the Cost and Income Approaches to Value would not be applicable in this assignment.
We have reviewed vacant land sales in our overall analysis to arrive at the highest and best use
for the subject property and our opinion of the market value.
Therefore, the Market Approach to Value will be considered as the most applicable method of
valuation for the subject whole property. Initially, we attempted to investigate sales purchased
for hotel development, although there were few sales in the current time frame. In expanding our
sales search, we investigated commercial sites with similar type locations or potential for hotel
use. On the following pages, we will submit the comparable sales considered in our analysis of
the market value, followed by a sales table, map, and our analysis and conclusion.
18
COMPARABLE VACANT LAND SALE NUMBER 1
RECORDED: Broward County
Instrument Number 112760119
GRANTOR:
GRANTEE:
DATE OF SALE:
DATE INSPECTED:
SITE SIZE/DIMENSIONS:
TOPOGRAPHY/ELEVATION:
CC Broward Property V, LLC
ALDI (Florida), LLC.
January 20, 2015
August 26, 2016
101,009 SF
At the time of sale, the site was
level and at street grade.
W
COMPARABLE VACANT LAND SALE NUMBER 1 (Continued)
CONSIDERATION:
UNIT SALE PRICE PER
SQUARE FOOT:
TYPE OF INSTRUMENT:
FOLIO NO:
LOCATION:
LEGAL DESCRIPTION:
$1,800,000
$17.82 per square foot of land area
Special Warranty Deed
51-41-04-03-0033
4298 N University Drive, Cooper
City, Florida
Lengthy, See deed. A Portion of
parcels "B" and C-l" of Monterra
Plat, according to the plat
thereof, as recorded in Plat Book
175, Page 155, of the Public
Records of Broward County, Florida
ZONING: PMUD Planned Mixed Use Development
PRESENT USE: Developed with ALDI super market.
HIGHEST AND BEST USE:
CONDITION OF SALE:
FINANCING:
Commercial
Arm's-length transaction
Cash to Seller
ENCUMBRANCES: Restrictions, covenants,
limitations, zoning, regulations
imposed by government authority,
and easement of record.
REMARKS/COMMENTS: Superior corner location on
University Drive in Cooper City.
Purchased for development with an
ALDI super market.
20
PROPERTY SKETCH
- 77
L
21
PHOTOGRAPH OF LAND SALE 1
View of Property looking west from the parking lot Taken By Brian
Stark Of The Urban Group Inc. On August 26, 2016
22
COMPARABLE VACANT LAND SALE NUMBER 2
RECORDED: Broward County
Instrument Number 112997138
GRANTOR:
GRANTEE:
DATE OF SALE:
DATE INSPECTED:
SITE SIZE/DIMENSIONS:
TOPOGRAPHY/ELEVATION:
Crystal Pointe Developers, LLC
Good Way Oil 15th Corporation
May 14, 2015
August 26, 2016
68,749 SF
At the time of sale, the site was
level and at street grade.
23
COMPARABLE VACANT LAND SALE NUMBER 2 (Continued)
CONSIDERATION: $1,208,300
UNIT SALE PRICE PER
SQUARE FOOT: $17.58 per square foot of land area
TYPE OF INSTRUMENT: Warranty Deed
FOLIO NO: 48-42-15-14-0012
LOCATION: 4950 N Powerline Road, Deerfield
Beach, Florida
LEGAL DESCRIPTION: Parcel "A" less the South 1,284
feet, Oriole Industrial Park,
according to the Plat thereof, as
recorded in Plat Book 116, Page 1,
of the Public Records of Broward
County, Florida
ZONING: B-3 Business, General
PRESENT USE: Vacant Land
HIGHEST AND BEST USE: Commercial
CONDITION OF SALE: Arm's-length transaction
FINANCING: Cash to Seller
ENCUMBRANCES: Restrictions, covenants,
limitations, zoning, regulations
imposed by government authority,
and easement of record.
REMARKS/COMMENTS: Corner site located on Powerline
Road and Wiles(Green) Road.
Located across the street from the
landfill. Purchased for service
station use. Superior zoning.
24
PROPERTY SKETCH
r
25
t
PHOTOGRAPH OF LAND SALE 2
View of Property looking South from north side of NW 49t' Court
Taken BY Brian Stark of The Urban Group Inc. on August 26, 2016
26
COMPARABLE VACANT LAND SALE NUMBER 3
RECORDED: Broward County
Instrument Number 112759787
GRANTOR: Palmetto Hospitality of Dania Beach
OP, LLC, Palmetto Hospitality of
Dania Beach HP, LLC and Palmetto
Hospitality of Dania Beach SS, LLC
GRANTEE:
DATE OF SALE:
DATE INSPECTED:
SITE SIZE/DIMENSIONS:
TOPOGRAPHY/ELEVATION:
Dania Live 1748, LLC
January 19, 2015
August 26, 2016
125,721 SF
At the time of sale, the site was
level and at street grade.
27
COMPARABLE VACANT LAND SALE NUMBER 3 (Continued)
CONSIDERATION: $2,850,000
UNIT SALE PRICE PER
SQUARE FOOT:
TYPE OF INSTRUMENT:
FOLIO NO:
LOCATION:
LEGAL DESCRIPTION:
ZONING:
PRESENT USE:
HIGHEST AND BEST USE:
CONDITION OF SALE:
FINANCING:
$22.67 per square foot of land area
Special Warranty Deed
50-42-33-39-0011 & -0012
81 SW 18th Avenue, Dania Beach,
Florida
Lengthy, See Deed.
PMUD Planned Mixed Use Development
Vacant Land
Commercial
Arm's-length transaction
Cash to Seller
ENCUMBRANCES: Restrictions, covenants,
limitations, zoning, regulations
imposed by government authority,
and easement of record.
REMARKS/COMMENTS: Sold by hotel developer. Interior
site with I-95 exposure. Located
south of the airport in area of
heavy concentration of hotels.
28
PROPERTY SKETCH
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PHOTOGRAPH OF LAND SALE 3
View of Property looking north from the south side of the property
Taken By Brian Stark Of The Urban Group Inc. On August 26, 2016
30
COMPARABLE VACANT LAND SALE NUMBER 4
RECORDED: Broward County
Instrument Number 113253297
GRANTOR:
GRANTEE:
DATE OF SALE:
DATE INSPECTED:
SITE SIZE/DIMENSIONS:
TOPOGRAPHY/ELEVATION:
Weekley Five Davie, LLC
4th Ave Land Holdings, LLC
September 24, 2015
August 26, 2016
130,786 SF
At the time of sale, the site was
level and at street grade.
31
COMPARABLE VACANT LAND SALE NUMBER 4 (Continued)
CONSIDERATION: $2,615,000
UNIT SALE PRICE PER
SQUARE FOOT: $19.99 per square foot of land area
TYPE OF INSTRUMENT: Special Warranty Deed
FOLIO NO: 50-41-26-02-0054, -0053, 50-41-26-
09-0010 & -0020
LOCATION: 3890 Davie Road, Davie, Florida
LEGAL DESCRIPTION: Lengthy, See deed.
ZONING: RAC-TC Davie Town Center District
PRESENT USE: Vacant Land
HIGHEST AND BEST USE: Commercial
CONDITION OF SALE: Arm's-length transaction
FINANCING: Cash to Seller
ENCUMBRANCES: Restrictions, covenants,
limitations, zoning, regulations
imposed by government authority,
and easement of record.
REMARKS/COMMENTS: Irregular shaped parcel of land
located near the Nova Southeastern
and Broward College campus in
Davie. Superior zoning for mixed
use development.
32
33
PHOTOGRAPH OF LAND SALE 4
View of Property looking South from the access road Taken By Brian
Stark Of The Urban Group Inc. On August 26, 2016
34
COMPARABLE VACANT LAND SALES LOCATION MAP
35
COMPARABLE VACANT SALES TABLE
SALE
SALE
SALE
LAND
PRICE
#
DATE
LOCATION
PRICE
SIZE
PER SF
UNIVERSITY
DRIVE, COOPER
1
1/20/2015
CITY
$1,800,000
101,009
$17.82
POWERLINE
ROAD, DEERFIELD
2
05/14/2015
BEACH
$1,208,300
68,749
$17.58
SW 18T" AVENUE,
3
1/19/2015
DANIA BEACH
$2,850,000
125,721
$22.67
DAVIE ROAD,
4
9/24/2015
DAVIE
$2,615,000
130,786
$19.99
E/S PINE ISLAND
ROAD, 650 FEET
S/O MCNAB ROAD,
S U BJ TAMARAC 97,812
36
SALES COMPARISON APPROACH — LAND
We have reviewed vacant land sales located in the surrounding area and throughout Broward County
which were deemed to have similar utility and similar highest and best use as the subject land. Careful
consideration was given to sales with a similar highest and best use for commercial development. We
have utilized a unit sale price per square foot of land area as the unit of measurement in this appraisal.
This is the typical units of comparison in the market place. The subject land area is 97,812 square
feet.
MARKET DATA ANALYSIS
Overall, the sale properties range in size from 68,749 square feet of land area to 130,786 square feet
of land area. Sale 2 was the smallest size property and that property contained 68,749 square feet of
land area with a unit sale price of $17058 per square foot of land area. Sale 4 was the largest sale at
130,786 square feet of land area with a sale price of $19.99 per square foot of land area. The sales
indicated a unit sale price range from $17.82 per square foot of land area to $22.67 per square foot of
land area. The primary differences with the sales are locations and potential uses.
Conditions of Sales
All of the comparable sales utilized in direct comparison were arm's-length transactions. Thus, no
adjustment for conditions of sales is indicated.
Property Rights Conveyed
The property rights appraised for the subject are fee simple. The property rights conveyed for the
sales utilized in direct comparison are fee simple with existing easements of record. No adjustment
for property rights is indicated.
Financing
Vacant land of this type is generally acquired for cash with institutional financing. Often times,
the financing is obtained in the form of an acquisition and development loan. However it is not
uncommon for the seller to provide short term financing. All of the sales presented for direct
comparison were acquired for cash or with market -based financing. Therefore, no adjustment for
financing is indicated.
Market Conditions
We have analyzed numerous sales in the subject area in the time period from roughly 2014 to the
present. All of the sales occurred within the past 19 months of the date of value and were
considered to be applicable. The sales sold in similar market conditions and within a more recent
time frame. We will consider the actual sale dates in our final analysis but no adjustment was
warranted.
37
SALES COMPARISON APPROACH — LAND (CONT.)
Location
Locational characteristics deemed significant for this type of land includes access, surrounding
demographics, surrounding properties, supply of competitive land, etc.
The subject is located on the east side of Pine Island Road approximately 650 feet south of W.
McNab Road in Tamarac. Access and frontage to the property is along Pine Island Road. The
subject is located in less intensive commercial district along Pine Island Road. The subject is
immediately surrounded by Walgreens Pharmacy on the north and Colony West Country Club and
golf course to the east, west and south. Residential uses are prominent in the surrounding area.
This stretch of Pine Island Road has not experienced the same development as other areas of the
county and the vacant land parcels in close proximity to the subject are some of the only vacant lots
that have never been developed in the county.
We have considered sales primarily with locations in less intensive commercial districts similar to
the subject location. Sale 1 is located in the southern portion of Broward County in the City of
Cooper City with a location on University Drive. This area has a large supply of commercial sites
and thus the supply has a negative effect on the market values. This property was purchased and
developed with an ALDI supermarket. Sale 2 is located in a non-residential area that limits the
demand for commercial sites. This property is located in Deerfield Beach across the street from
the landfill. This property was purchased for a service station development. Sale 4 is located on
the east side of Davie Road, south of State Road 84 in Davie. This site is located in an area with
numerous commercial sites owned by the CRA and thus the completion for potential users includes
some governmental action and potential subsidies. Sale 3 is located on an interior location with
exposure to I-95. This property was sold by a hotel developer and is located in an area of several
hotel developments, being a few miles south of the airport and Port Everglades. This sale is
considered superior for location as compared to the subject.
Platting/Concurrency
The subject is platted as are each of the comparable sales; therefore, no adjustment is warranted
for this factor.
Size
The subject land area is estimated at 97,812 square feet of land area. Sales 3 and 4 are slightly
larger in size than the subject. Sale 2 was the smallest size and a little over ''/z acre smaller than the
subject. Sale 1 was most similar in size with a land size of 101,009 square feet of land area. Based
on the review of the sales, no adjustment for size was deemed applicable, however, we have
considered this factor in our final analysis.
38
SALES COMPARISON APPROACH — LAND (CONT.)
Zoning
The subject is zoned S-1 Recreation District by the City of Tamarac. All of the sales had a superior
zoning district with some type of commercial zoning or the potential for a mixed use zoning. All
of the sales would allow the development with a hotel development. The subject property is being
appraised in consideration that the zoning will be changed to allow for the hotel development of
the site. The zoning differential in connection with our analysis of the locational differences was
considered in our final analysis of the market value.
FINAL CONCLUSION OF VALUE- SALES COMPARISON APPROACH- LAND
Based upon our review of the sales data, it is our opinion that these land sales are most comparable
and indicative of the land value of the subject property.
We have considered various factors in our analysis as addressed earlier. Based upon the factors
discussed, it is our opinion that a unit price at the lower end of the range would be applicable. The
value conclusion is based on the potential rezoning that would allow a proposed development of
the site with a hotel development as an ancillary use the existing Colony West Golf and Country
Club.
We have considered the four sales presented in this report as well as numerous other sales having
superior locational and zoning attributes. The four sales were in the range of $17.58 to $22.67 per
square foot of land area. Sale 3 was considered superior with a unit sale price of $22.67 per square
foot for the site located adjacent to I-95 in Dania Beach, Florida. Considering the subject's size,
location, access, zoning, physical features and the potential for future development of the property,
we are of the opinion that a unit sale price for the subject land would be at $18.00 per square foot
of land area. This indicates the following valuation for the subject vacant land:
SUBJECT LAND
97,812 SF X $18.00 per SF = $1,760.616
SAY $1,760,000
39
RECONCILIATION
The reconciliation involves the analysis of the various approaches to value. In this assignment, we
have only considered the Market or Sales Comparison Approach to be most applicable. The Cost and
Income Approaches to Value were not considered to be applicable.
The Sales Comparison Approach indicated a value of $1,760,000 utilizing the unit sale price per
square foot of land area as a unit of measure. Based on a suburban hotel development of 125 to 150
rooms, this equates to a per unit sale price between $11,733 to $14,080 per unit. This is in the range
of sales in other areas for this type of hotel development and this supports our value conclusion.
Based upon our review of all these factors, it is our opinion that the market value of the subject whole
property as of August 25, 2016 is as follows:
ONE MILLION SEVEN HUNDRED SIXTY THOUSAND DOLLARS
$1,760,000
40
ASSUMPTIONS AND LIMITING CONDITIONS
The legal description furnished to the appraiser is assumed to be correct.
All existing liens and encumbrances have been considered, however, the property is appraised as
though free and clear, under responsible ownership and competent management.
The information identified in this report as being furnished to the appraiser by others is believed
to be reliable, however, the appraiser assumes no responsibility for its accuracy.
The plot plans and illustrative material in this report are included only to assist the reader in
visualizing the property.
It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures that render it more or less valuable. No responsibility is assumed for such conditions
or for arranging for engineering studies that may be required to discover them.
It is assumed that there is full compliance with all applicable federal, state, and local
environmental regulations and laws unless noncompliance is stated, defined, and considered in
the appraisal report.
It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or
administrative authority from any local, state, or national government or private entity or
organization have been or can be obtained or renewed for any use on which the value estimate
contained in this report is based.
It is assumed that the utilization of the land and any improvements is within the boundaries or
property lines of the property described and that there is no encroachment or trespass unless
noted in the report.
The distribution, if any, of the total valuation in this report between land and any improvements
applies only under the stated program of utilization. The separate allocations for land and
buildings must not be used in conjunction with any other appraisal and are invalid if so used.
Possession of this report, or copy thereof, does not carry with it the right of publication. It may
not be used for any purpose by any person other than the party to whom it is addressed without
the written consent of the appraiser, and in any event, only with proper written qualifications and
only in its entirety.
41
ASSUMPTIONS AND LIMITING CONDITIONS (Continued)
Disclosure of the contents of this appraisal is governed by the By -Laws and Regulations of the
American Society of Appraisers.
The appraiser herein by reason of the appraisal is not required to give further consultation,
testimony, or be in attendance in court with reference to the property in question unless
arrangements have been previously made.
Neither all, nor part of the contents of this report, especially any conclusions as to value, the
identity of the appraiser, or the firm with which the appraiser is connected, shall be disseminated
to the public through advertising, public relations, news, sales, or other media without the prior
written consent and approval of the appraiser.
The Americans with Disabilities Act ("ADA") became effective January 26, 1992. I have not
made a specific compliance survey and analysis of this property to determine whether or not it is
in conformity with the various detailed requirements of the ADA. It is possible that a
compliance survey of the property, together with a detailed analysis of the requirements of the
ADA, could reveal that the property is not in compliance with one or more of the requirements of
the Act. If so, this fact could have a negative effect upon the value of the property. Since I have
no direct evidence relating to this issue, I did not consider possible non-compliance with the
requirements of ADA in estimating the value of the property.
Unless otherwise stated in this report, the existence of hazardous materials, which may or may
not be present on the property, was not observed by the appraiser. The appraiser has no
knowledge of the existence of such materials on, or in the property. The appraiser is not
qualified to detect such substances. The presence of substances such as asbestos, urea -
formaldehyde foam insulation, or other potentially hazardous materials may affect the value of
the property. The value estimate is predicated on the assumption that there is no such material
on or in the property that would cause a loss in value. No responsibility is assumed for any such
conditions, or for any expertise or engineering knowledge required to discover them. The client
is urged to retain an expert in this field, if desired.
Special Assumption
We have made a special assumption that the subject property could be developed with a hotel
use although it is not a permitted use under the current subject's B-2 zoning district; however,
the City has indicated a willingness to rezone to allow that use. The site has numerous trees on
the site and although some mitigation will be required for development, it is our assumption,
that the trees will not have a negative impact on any potential development.
42
CERTIFICATION
The undersigned does hereby certify that except as otherwise noted in this appraisal report:
To the best of our knowledge and belief, the statements of fact contained in this appraisal
report, upon which the analysis, opinions, and conclusions expressed herein are based,
are true and correct.
2. The reported analysis, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and is my personal, unbiased professional analysis,
opinions, and conclusions.
We have no present or prospective interest in the property that is the subject of this
report, and I (we) have no personal interest or bias with respect to the parties involved.
4. Our compensation is not contingent on an action or event resulting from the analysis,
opinions, or conclusions in, or the use of, this report.
5. Our analysis, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Uniform Standards of Professional
Appraisal Practice.
6. Brian Stark provided significant professional assistance in the preparation of this report.
7. Robert D. Miller has met or exceeded the minimum prescribed educational requirements
for Re -certification as an Accredited Senior Appraiser (ASA) or the American Society of
Appraisers.
The appraiser completed an inspection of the property that is the subject of this report.
Based on the highest and best use analysis, an exterior inspection was considered to be
most applicable.
9. The appraiser previously completed an appraisal on the entire golf course property, but
that occurred over three years prior to this assignment. The appraiser has not specifically
appraised the parcel as delineated in this report.
Robert D. Miller, ASA
State Certified General R.E. Appraiser No. RZ1270
43
ADDENDUM
SUBJECT PHOTOGRAPHS
View of portico looking northerly
No Text
SUBJECT PHOTOGRAPHS
View looking southerly along NW 88' Avenue
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ZONING CODE
DIVISION 13. - S-1 RECREATIONAL DISTRICTu
Footnotes:
--- (16) ---
Cross reference— Minimum landscape requirements in S-1 district, § 11-10.
Sec. 24-306. — Scope.
The regulations contained in this division shall apply in all S-1 recreational districts.
(Code 1975, § 28-127)
Sec. 24-307. - Purposes and characteristics.
The S-1 recreational district is intended for outdoor sports and recreational activities in which
participants may be actively or passively engaged. The activities for which the S-1 district is provided are
normally and primarily conducted in the open air, while related accessory uses may be in the open air or in
a building or structure. The functional characteristics of an S-1 district may require its location within, or in
close relationship to, residential areas, schools, public recreational areas or scenic areas. Because of the
nature of uses involved and the variety of arrangement of uses and facilities on the site plan of development,
broad general regulations for plot size, yards, setbacks and height must be adequate for any location at
which an S-1 district may be established.
(Code 1975, § 28-128; Ord. No. 0-2014-06, § 2, 4-23-14)
Sec. 24-308. - Permitted uses.
In S-1 districts, no building or structure or part thereof shall be erected, altered or used, or land or
water used, in whole or in part, for other than one (1) or more of the following specified uses:
(1) Public or private country club. A dining room, bar and grill and snack bar may be operated at a
public or private country club through special exception approval of the city commission. Such
special exception approval shall be consistent with the provisions governing special exceptions
as set out in this Code and consistent with the regulations concerning restaurants in section 24-
434. No external advertising of the dining room, bar and grill and snack bar shall be permitted.
(2)
Golf course.
(3)
Shuffleboard court.
(4)
Swimming pool.
(5) Tennis courts.
(6) Neighborhood or community club operated by nonprofit or public corporation.
(7) Public parks and open spaces.
(8) Public and private elementary, middle or high schools on properties greater than 6.5 acres in size
with a land use designation of "Recreation", subject to the special exception procedures set forth
in chapter 24, article IV of the City's Code of Ordinances. Private schools shall offer curricula
substantially equivalent to public schools of comparable grades and shall meet the academic
requirements of the state department of education.
The operation of any recreation area shall, regardless of anything else in this chapter, be subject to the
reasonable control and direction of the city and the city commission as regulatory authorities.
(Code 1975, § 28-129; Ord. No. 88-12, § 1, 5-11-88; Ord. No. 0-2014-06, § 3, 4-23-14)
Sec. 24-309. - Prohibited uses.
The permissible uses enumerated in section 24-308 shall not be construed to include, either as a
principal or accessory use, any of the following:
(1) Any business or commercial use not permitted as a principal use;
(2) Any industrial or manufacturing use;
(3) Drive-in theater, drive-in restaurant or drive-in refreshment stand.
(Code 1975, § 28-130)
Sec. 24-310. — Landscaping.
(a) In S-1 districts, all required yards and open spaces adjacent to streets and contiguous to residential
property shall be planted and properly maintained with suitable planting in the form of grass, shrubs,
hedges and trees to present an attractive appearance appropriate to the neighborhood.
(b) Any site upon which a golf course is developed shall be landscaped and maintained in a neat and
clean, live, healthy and growing condition, properly watered and trimmed, free of any structure, refuse
or debris, for a distance of not less than one hundred (100) feet from any abutting property zoned for
residential use.
(c) Any use that seeks relief by a special exception must ensure the following actions are completed or
are proposed to be completed through a site plan revision or building permit prior to approval by the
city commission:
(1) The entire site in which the proposed use is located shall be in compliance with current
landscaping requirements to the greatest extent possible as stated in Chapter 11, Landscaping.
(2) All vehicular use areas shall be in compliance with current requirements to the greatest extent
possible as stated in Chapter 9, Health, Sanitation and Nuisances, Chapter 24, Zoning and in the
city's engineering standards.
(Code 1975, § 28-132; Ord. No. 0-2014-06, § 4, 4-23-14)
Cross reference— Landscaping, Ch. 11.
Sec. 24-311. — Height of buildings or structures.
In S-1 districts, no building or structure, or part thereof, shall be erected or altered to a height exceeding
sixty (60) feet. This requirement shall not include wireless or light poles and antennas installed by the city
for government use or a city related purpose.
(Code 1975, § 28-133; Ord. No. 0-2014-06, § 5, 4-23-14)
Sec. 24-312. — Plot size.
Every plot in an S-1 district shall be not less than one hundred (100) feet in width and ten thousand
(10,000) square feet in area.
(Code 1975, § 28-134)
Sec. 24-313. — Yards, setback areas, open spaces, etc.
(a) No parking area in an S-1 district shall be located within ten (10) feet of any residentially zoned
property.
(b) No building or roofed portion of any structure shall be located within twenty-five (25) feet of any plot
line.
(c) No required open space, yard or setback area shall be used or developed for any purpose other than
by landscaping and by the minimum amount of walkways or driveways reasonably necessary to serve
the permitted S-1 uses.
(Code 1975, § 28-135)
Sec. 24-314. — Walls and fences.
(a) No fence or wall in an S-1 district situated within ten (10) feet of any residentially zoned property shall
exceed five (5) feet in height.
(b) No hedge or continuous planting exceeding five (5) feet in height shall be placed or maintained within
ten (10) feet of any residentially zoned property.
(Code 1975, § 28-136)
Sec. 24-315. - Assembly areas.
(a) Definition. For purposes of this section, the term "assembly area" means part of a recreational building
used for the gathering together of persons primarily for the purposes of group meetings, deliberation
or entertainment.
(b) Minimum floor area. The minimum floor area proposed for room in recreation buildings used for public
or private assembly shall be based on the following formula:
(1) For each seat there shall be a minimum net floor area of eight (8) square feet. The term "net area"
excludes stage area, storage areas and other accessory use areas.
(2) The minimum seating capacity shall be one (1) seat for each eight -tenths of the proposed total
number of units in the subdivision plat as filed.
(c) Location. The recreation building shall be located within the subdivision area as platted and shall be
zoned S-1.
(Ord. No. 91-35, § 1, 10-9-91
QUALIFICATIONS
ROBERT D. MILLER, ASA
EDUCATION: Appraisal Institute Courses
SSP Standards of Professional Practice
I -A Fundamentals of Real Estate Appraisal
I-B Capitalization Theory and Techniques
8 Appraising a Single -Family Residence
Case Studies in Real Estate Valuation
Report Writing
Business Valuation Seminar
Litigation Valuation
Other Appraisal Courses
Mass Appraisal of Residential Properties
Florida State Law and USPAP
Factory Built Housing
Automated Valuation Models
PROFESSIONAL
AFFILIATION:
LICENSED:
EXPERIENCE:
QUALIFIED AS
EXPERT WITNESS FOR:
HAS COMPLETED:
Senior Member of American Society of Appraisers -
South Florida Chapter No. 82 — Accredited Senior Appraiser (ASA) Real
Property Urban
Certified General Real Estate Appraiser #0001270- State of Florida
1995-Present Real Estate Appraiser- Owner Appraisal Firm
1993-1995 Vice President -The Urban Group, Inc.
1978-1993 Real Property Analysts, Inc., Fort Lauderdale,
Florida, Executive Vice President
1987 Involved in United States Senate Study Right -of -
Way Acquisition Procedures
Condemnation proceeding in Broward, Miami -Dade, Monroe, Palm Beach
and Duval Counties, Florida and Lake, Kankakee, Cook and DuPage
Counties, Illinois. Testified in Bankruptcy Court in Florida and Texas and
Federal Court in Miami, Florida
Appraisal Assignments
Commercial, vacant and improved
Condemnation projects
Industrial, vacant and improved
Multi -family residential,
Mobile Home Parks
Office, vacant and improved
Special purpose properties
Counseling
Acquisition projects
Income tax analysis
Investment analysis
Tax assessments
ROW Cost Analysis
Special assessments
Review Services
VARIOUS CLIENTS OVER THE PAST TEN YEARS
GOVERNMENT
PRIVATE
ATTORNEY
BROWARD COUNTY
BROWARD COUNTY AVIATION DEPARTMENT
BROWARD COUNTY SCHOOL BOARD
CHARLOTTE COUNTY
CITY OF BOYNTON BEACH
CITY OF CORAL SPRINGS
CITY OF DELRAY BEACH
CITY OF FORT LAUDERDALE
CITY OF FORT MYERS
CITY OF HALLANDALE BEACH
CITY OF HOLLYWOOD
CITY OF LAUDERDALE LAKES
CITY OF KEY WEST
CITY OF MARGATE
CITY OF MIAMI SPRINGS
CITY OF NORTH LAUDERDALE
CITY OF POMPANO BEACH
CITY OF RIVIERA BEACH
CITY OF SUNRISE
CITY OF WEST PALM BEACH
FEDERAL AVIATION ADMINISTRATION
FLORIDA DEPARTMENT OF TRANSPORTATION
PALM BEACH COUNTY
PALM BEACH COUNTY SCHOOL BOARD
SOUTH FLORIDA WATER MANAGEMENT
TOWN OF DAVIE
US DEPARTMENT OF HOUSING & URBAN DEVELOPMENT
ALTMAN DEVELOPMENT CORPORATION
BELLSOUTH MOBILITY
CLEAR CHANNEL OUTDOOR
CLEVELAND CLINIC
LENNAR HOMES
THE TAUBMAN COMPANY
SBA TOWERS INC.
UNITED HOMES
WAL-MART CORPORATION
ACKERMAN SENTERFITT
BECKER & POLIAKOPF
TOBY BRIGHAM-
BRUSCHI LP
COKER AND FEINER
BRIAN PATCHEN PA
HOLLAND & KNIGHT
GREENSPOON MARDER
TEW CARDENAS
GOREN CHEROF DOODY & EZROL PA
W E I S S-S E ROTA -HE LF MAN
�rn�cr ci�'
Ar 2
Summary of Findings and Conclusions
The Fairfield Inn & Suites by Marriott will have numerous positive impacts on the
City of Tamarac, its residents and its guests.
Economic Impact of the Hotel on the City of Tamarac and Its Businesses
• Initially, the hotel will pay the City of Tamarac approximately $50,000 in
building permit fees and will employ +/- 50 workers per day associated with its
construction for approximately one year.
• Nearby businesses, especially those offering food, fuel and convenience items
will benefit from the presence of the construction workers.
• Sixteen full-time jobs will be created to staff the hotel.
• In addition, the hotel will require the services of outside vendors and local
businesses in its operations.
• Guests of the hotel will provide a brand new source of revenue for nearby
businesses, especially restaurants and retail, as shopping and going to
restaurants are first on the list of favorite things to do for visitors to a new
place.
• Guests of the hotel will provide a brand new source of revenue for food and
beverage at the new Colony West Clubhouse and for play at the course.
• While the hotel may not spur new development, it likely will improve
occupancy rates at nearby shopping centers.
• The hotel will pay approximately $80,000 annually in property taxes.
Impact of the Hotel on the Nearby Residents
• The statistics for the residential developments serving as Experimental Groups
1 and 2 in this report, namely, Golf Villas II Condominium in Port St. Lucie, and
The Falls at Heron Bay in Parkland, were only positive for the residents.
• Property owners in close proximity to, and often with a direct view of the
hotels from their properties experienced only positive effects in value and
demand for their homes.
4
• At both the Golf Villas and The Falls, even though price and product were very
different, the statistics from our analysis showed increases in price and
number of sales during both construction and openings of the hotels.
• It was not the placement of hotels near their properties that caused any
decreases in values and number of sales in their homes, but rather it was
solely the economic conditions of the times.
• The hotels reviewed in this study serve as a source of visitors to the area who
may wish to move there and live and play on that golf course. Residential real
estate on and near this golf club will be desirable to that category of visitors to
this new hotel.
• Residents will enjoy the hotel's proximity for their out-of-town guests.
• A nice hotel nearby is excellent to have for residents who may require a hotel
room for reasons such as home remodeling/repairs or flooding in the home.
• Interviews with expert real estate agents, who sold homes in PGA Village or
Heron Bay throughout their initial absorption periods and well beyond, made
only positive statements and associations with the construction and openings
of the hotels critiqued in this report.
Benefits of this Location for the Hotelier
RealMark Research reviewed approximately fifty properties in order to find a
situation similar to the placement of the proposed Fairfield Inn & Suites directly
on the golf course and in view of residential real estate. This in itself is significant.
Due to the rarity of the Fairfield Inn's location directly on the golf course, it will
have a very unique opportunity in its advertising strategy; namely, to boast of its
location directly on the greens. Search Engine Result Placements (SERPs) will
provide results nowhere else found in Broward County in an internet search for a
new, affordable and national chain hotel on a golf course. Visitors and residents
alike can enjoy this golf experience. While the Fort Lauderdale Marriott Coral
Springs Hotel and Convention Center at Heron Bay has similar locational
attributes, it is a larger, more impersonal hotel catering to the corporate and
convention market. It also is about twelve miles from the subject property for
motorists traveling on the Sawgrass Expressway.
3
Business travelers with a love for golf will welcome this opportunity to utilize the
course and clubhouse after work or during the day with clients. And they can
walk there. The new clubhouse will provide meeting space and food and bar
service adjacent to their moderately sized, nationally branded hotel in a suburban
locale. Leisure travelers will have the same appreciation for the proximity of the
hotel to the golf course and the offerings of the clubhouse.
All residents and visitors can enjoy the golf course setting of the hotel. This
tranquil image, which can be conveyed in advertising media, is often preferred by
visitors and residents to a bustling, noisy downtown hotel, or a crowded beach
venue with nighttime partiers.
4
Introduction: Fairfield Inn & Suites by Marriott and New Colony West Clubhouse
The subject property currently is a vacant, partially wooded tract on the east side
of Pine Island Road and south of McNab Road in the City of Tamarac. The site is
about 2.7 acres (117,028 square feet). It is bounded on the north by a Walgreens
and the Cypress Walk residential development. The southern portion of the
property features the City -owned clubhouse and parking lot. The 36-hole Colony
West golf course forms the site's eastern boundary, and is owned by the City of
Tamarac and operated by Billy Casper Golf. The existing 22,000 square foot
clubhouse is planned for demolition and rebuilding, thereby offering a
significantly upgraded facility. The parking lot also is targeted for an upgrade with
new surfacing, curbing and more attractive landscaping.
The clubhouse is promoted as a location for "Meetings, Parties, Award Dinners,
Holiday Gatherings, Bar/Bat Mitzvahs, Quinceaneras, Weddings and More". The
new clubhouse is planned at 16,500 square feet. Although it will be smaller in
size than the existing facility, it will be far more efficiently designed, functional
and attractive, and will serve the needs of all current and future users well.
The proposed Fairfield Inn & Suites is a 120-room hotel with a swimming pool,
business center, fitness center and complimentary breakfast. It is a limited
service hotel in the upper midscale category. The hotel will not have any meeting
space as the new Colony West clubhouse will provide this amenity.
Economic Impact: Fairfield Inn & Suites by Marriott and New Colony West
Clubhouse
The Fairfield Inn & Suites will have both short-term and long-term economic
impact on the City of Tamarac.
Short-term Impact — Building Permits and Temporary Employment
• According to the City of Tamarac, the construction of the Fairfield Inn will
generate approximately $50,000 in building permit fees.
5
• The hotel can be built in about a year and will employ approximately 50
workers per day. Workers may patronize nearby businesses, especially
convenience stores, restaurants, and gas stations.
• It is likely some of the workers will be from the City of Tamarac.
Long-term Impact — Property Taxes and Permanent Employment
Annual property taxes for the hotel are estimated as follows.
Estimated Cost to Build
Tamarac's Current Millage Rate
Total
$11,000,000
x 0.007289
$ 80,199
Say $80,000 Annual Property Taxes
• Note the City will not collect bed tax from the daily operations of the hotel as
this is strictly Broward County's revenue.
• Additional revenue could be generated through a land sale or lease
agreement.
• According to the hotel operator, the hotel will maintain 16 full-time
employees, some of whom will patronize surrounding businesses.
• Of course hotel guests also will be a source of revenue for nearby businesses.
• We agree with the hotel consultant, Brush & Company that due to the location
of the site and residential and commercial characteristics of the surrounding
community, demand for the hotel's facilities will emanate primarily from
leisure travelers, particularly those visiting the area because of the heavily
residential nature of the City of Tamarac.
• The hotel's market segments also will include commercial/business travelers
and groups of all kinds such as those attending meetings/conferences and
social functions such as weddings, anniversaries, family reunions, quinces, bar
and bat mitzvahs and others.
• The proposed hotel also will have a fair share of extended stay business due to
its partial suite configuration.
0
Average Daily Expenditures
RealMark Research conducted extensive research to determine the average daily
expenditure of business and leisure hotel guests on restaurants, food, retail,
sporting goods, gasoline, office supplies, healthcare and other services.
Unfortunately, the sources could not provide sufficient details necessary to
accurately project average daily expenditures by guests at the planned Fairfield
Inn & Suites. However, a relatively low average daily expenditure per guest of
only $40 on restaurants, retail and other goods and services, results in a total
estimated annual expenditure of almost $2,000,000.
The following text table begins with the calculation of the average number of
occupied room nights at the proposed Fairfield Inn, and concludes with an
estimate of the hotel guests' annual expenditure.
Number of Rooms
Average Annual Occupancy Rate
Average Number of Occupied Room Nights
Average Number of Guests/Room
Average Number Guests/Night
Number of Days/Year
Number of Guests per Year
Average Daily Expenditure/Guest
(Restaurants, other retail/services)
Total Estimated Annual Expenditure
120
x 0.70 (70% as per Brush & Co.)
84
x 1.5 to 1.7
126 to 143
x 365
45,990 to 52,195
Say 49,100
x 40
$1,964,000
Say $2,000,000
Note some of this money will be spent outside the City of Tamarac.
1I
he Great Recession and Economic Trends
The initial piercing of the real estate housing bubble became evident in late
summer, 2005. The classic feature of this speculative era was a condition in which
temporarily high housing prices were sustained largely by investors' enthusiasm
rather than realistic estimates of value. Investors and speculators paid
unreasonably high prices, and banks contributed to the Great Recession and
economic downfall by utilizing lax lending practices with a disregard for indicators
of affordability. Borrowers happily cooperated in acquiring these "liar loans" with
hardly any proof of their abilities to meet monthly payments.
In an effort to increase their loan portfolios, banks offered subprime mortgages to
borrowers with lower credit ratings. The irrational exuberance on the parts of the
investors, speculators home builders (who overbuilt), banks and other lenders
resulted in the Great Recession which began about December, 2006 and ended in
June, 2009. Lingering effects of the economic downfall continued through 2011.
Single Family and Multi -Family Permits and Construction in Florida
The downturn of the Florida housing market was underscored by the significant
decline in the number of single and multi -family housing permits and construction
starts.
Single Family Housing Permits
Between 2005 and 2011, single family permits issued in Florida peaked at 200,832
in 2005 and dropped to 31,874 in 2011— a plunge of 84.1%.
Multi -Family Housing Permits
Between 2005 and 2011, multi -family permits issued in Florida decreased by
85.4% from 72,046 in 2005 to 10,486 in 2011.
8
Single Family Construction Starts
Single family construction starts in Florida reached a peak of 195,246 in 2005 and
declined by 87.3% to a meager 24,788 starts in 2009.
Multi -Family Construction Starts
Multi -family construction starts in Florida took a major hit, falling by 92.2% from
67,219 in 2005 to 5,214 in 2009.
Florida's Mortgage Debt
• According to Florida Trend magazine, Florida's mortgage debt was about $723
billion by 2011, with a corresponding property value of $814 billion. This
reflects a very high debt to value ratio of 0.89.
• Almost half of all outstanding mortgage loans in Florida were in negative
territory at the end of the first quarter of 2011, i.e., almost half of the
borrowers were upside down and owed more than the value of their homes.
• Past due mortgages in Florida increased by 75.3% from 100,300 in the first
quarter of 2005 to 175,900 in the second quarter of 2007.
Other Trends
Other trends of this recession and continued economic downturn included:
• Decrease in the number of homes sold
• Increase in housing inventory/overbuilding
• Increase in foreclosures
• Increase in the number of days homes were on the market
• Increase in unemployment
• Decrease in consumer spending.
0
The Effect of the Great Recession on a Microeconomic Scale
In the final section of this report, RealMark Research proves the negative effect of
the Great Recession and its aftermath on home prices in three residential
communities:
• Experimental Group 1— Golf Villas II Condominium, Port St. Lucie
• Experimental Group 2 —The Falls at Heron Bay, Parkland
• Control Group 3 —Cypress Walk, Tamarac.
The same problems associated with the recession which plagued the State of
Florida and much of the nation caused the decreases in home prices at these
communities and not the opening of nearby hotels. In fact, the control group,
Cypress Walk with no hotel nearby, had the worst decline in value among the
three and experienced the slowest recovery, even though it is an attractive
development in a good location.
10
Impact of the Proposed Hotel on Prices of Homes Located in Close Proximit
In order to evaluate the potential impact of a hotel on the sales prices of
residential units in a golf course environment, RealMark Research analyzed trends
in two experimental groups with a hotel, and one control group without a hotel.
Criteria for selecting the two experimental groups included:
• Residential development on a golf course in southern Florida
• Not located on the Atlantic Ocean, Gulf of Mexico or at Disney World
• Hotel(s) located within close proximity to the residential development
• Hotel(s) constructed during release of community and/or after community was
built.
Among the approximately 50 communities reviewed, the following were selected:
Experimental Group 1— Golf Villas II Condominium, PGA Village in Port St. Lucie
This development incorporates two hotels — Main Stay Suites/Sleep Inn and Hilton
Garden Inn.
Experimental Group 2 — The Falls at Heron Bay in Parkland
The Fort Lauderdale Marriott Coral Springs Hotel, Golf & Convention Center faces
the Heron Bay golf course.
Control Group 3 — Cypress Walk in Tamarac
Cypress Walk is a townhome community near the proposed Fairfield Inn & Suites
Marriott Hotel.
Individual sales were researched for each development, and percentage changes
in average sales prices or average prices per square foot (if the sizes of the homes
were different) were calculated by year. Our analysis of the period covered for
each development clearly reveals the decreases in average prices over the years
were caused by negative macroeconomic trends including the Great Recession
and its lingering aftermath, and not by the construction or opening of hotels.
11
Experimental Group 1- Golf Villas II Condominium at PGA Village, Main Stay
Suites -Sleep Inn, and Hilton Garden Inn in Port St. Lucie
Overview of PGA Village
• PGA Village is a 2,600-acre master planned community located on the west
side of Interstate 95 at the western edge of Port St. Lucie. It began as a
smaller development, The Reserve, which grew in the 1980's and 1990's to a
few hundred homes on a golf course, later to be named Legacy. A new master
plan for PGA Village was drawn in the early 2000's and included PGA of
America's golf club, golf training center and golf museum on thirty-five acres.
• PGA Village maintains three manned gatehouses to access the 2,500+
residences in thirty-four subdivisions. Residential real estate ranges from
condominiums and villas to traditional and estate single family homes.
• There are four golf courses within PGA Village: three public courses owned by
PGA (54 holes of championship golf) and one at the private Legacy Golf and
Tennis Club (one 18-hole championship course plus one 9-hole short course).
• Other amenities include forty-eight lakes and waterways (about one sixth of
the entire community), a large clubhouse with recreational activities, fitness
center, lap pool and meeting space.
• For visitors to this golf destination, Main Stay Suites -Sleep Inn, Hilton Garden
Inn and Sheraton PGA (a timeshare) provide an assortment of hotels. Some
owners of Golf Villas, including the condominium project reviewed in this
report, place their units in a rental pool for short- or long-term occupancy.
Main Stay Suites/Sleep Inn — Constructed in 1998, Opened in 1999
Main Stay Suites/Sleep Inn is a dual brand Choice° hotel with:
80 rooms — Sleep Inn
17 suites — Main Stay
97 Total Rooms and Suites
The 2-story hotel is directly east of Golf Villas II on the northwest corner of
Champions Way and Commerce Centre Drive in Port St. Lucie. Amenities include
12
a pool, fitness center, meeting room and business center. The hotel also is pet
friendly.
Hilton Garden Inn — Constructed in 2005, Opened in 2006
Hilton Garden Inn is located across Champions Way from Main Stay/Sleep Inn at
the northeast corner of Champions Way and Commerce Centre Drive. The hotel
has 130 rooms and suites in a 3-story, u-shaped building with a pool and patio in
the center courtyard. In addition to the amenities at the Main Stay/Sleep Inn, this
property also has a restaurant, lounge, gift shop and convenience store.
Golf Villas II Condominium in PGA Village
• Reserve Developers, LLP built this 136-unit condominium project in 1997 and
1998. All units are the same size at 1,196 square feet.
• The complex has fourteen 2-story buildings with barrel tile roofs and a
community swimming pool. Five of the buildings front a golf course.
• Golf Villas II Condominium is not gated and has lower price points than other
gated estate home communities within PGA Village.
• The units sold very well, and absorption, average prices and percent changes
in average prices are shown in the following text table. Main Stay Suites Hotel
was under construction and opened during the second and third years of sales,
1998 and 1999.
• Hilton Garden Inn was under construction in 2005 and opened in 2006.
13
Number of
% Change in
Year
Units Sold
Average Price
Average Price
1997
43
$128,053
-----
4 Main Stay U/C 11998
38
$130,934
2.2%
Main Stay Open 11999
38
$145,613
11.2%
2000
23
$158,822
9.1 %
2001
7
$155,843
- 1.9%
2002
12
$132,650
- 14.9%
2003
17
$131,059
- 1.2%
2004
47
$147,406
12.5 %
2007
2
$160,000
- 21.0%
2008
4
$113,125
- 29.3%
2009
5
$111,200
- 1.7%
2010
1
$110,000
- 1.1%
2011
5
$ 86,520
- 21.3%
2012
10
$ 64,110
- 25.9%
2013
13
$ 75,154
17.2 %
2014
6
$ 81,033
7.8%
2015
15
$ 83,927
3.6%
2016
9
$ 97,344
16.0%
• Average prices at Golf Villas II increased in all
years the hotels were under
construction and opened.
Number of
% Change in
Year
Units Sold
Average Price
Average Price
1997
43
$128,053
-----
4 Main Stay U/C
11998
38
$130,934
2.2%
Main Stay Open 11999
38
$145,613
11.2%
14
• The 2016 average sales price of $97,344 is $30,709, or 24.0% less than the
average sales price of $128,053 at initial offering. When compared with the
peak year (2006 at $202,500), the current average sales price is 51.9% less.
• In sum, the economic downturn, recession and slow recovery are clearly
depicted in the history of this property.
Figure 1, an aerial photograph showing the locations of Golf Villas II
Condominium, Main Stay Suites/Sleep Inn and the Hilton Garden Inn appear in
the appendix of this report. Table 1, Golf Villas II Condominium Sales 1997 —
2016, and Table 2, Golf Villas II Sales Summary 1997 - 2016, and the
corresponding bar chart follow Figure 1.
Interview with a REALTOR
An interview with a real estate broker, who sold all types of residential real estate
at PGA Village for almost twenty years, starting in 1996, had the following
comments.
■ The presence of the hotels always helped the sales of the Golf Villas.
■ Golfers would come to stay for three or four days, fall in love with the golf and
other aspects of the community such as proximity to so many amenities, and
would purchase a unit.
■ Having the hotels provided a continuous source of buyers for both initial sales
and resales. Golf pros bought a considerable number of units.
• The rental pool provided golfers the opportunity to play and stay for a week or
so every year for free as the rental pool income paid the taxes and HOA fees
on their condominium.
■ After the (real estate) market crashed, prices have been slow to recover
because many of the buyers who purchased the units were investors, who
basically gave away the units during the troubled times.
• When the broker began selling real estate in 1996, there were 400 homes. By
the time she stopped in 2014, only twelve to eighteen estate lots were left in
all of PGA Village.
15
Experimental Group 2 - The Falls at Heron Bay and the Fort Lauderdale Marriott
Coral Springs Hotel, Golf Club & Convention Center in Coral Springs/Parkland
Overview of Heron Bay
• Heron Bay is a private, gated community of almost 3,000 homes (about 6,800
residents) located on 1,100 acres in Parkland and in Coral Springs in the
northwest quadrant of the Sawgrass Expressway and Coral Ridge Drive/Nob
:.. •
• The development began over twenty years ago, and a count on its master plan
finds more than thirty subdivisions. Currently, WCI Communities has an active
sales center offering new executive and estate homes, with land remaining for
future development.
• Most homes have water and/or golf frontage.
■ Amenities at Heron Bay include two well-appointed clubhouses with swimming
pools and fitness centers, twelve clay and Har-tru tennis courts, and the 18-
hole golf course designed by Mark McCumber.
• Heron Bay's golf course and golf clubhouse are open to the public.
• In 2011, an annual review by Forbes Magazine showed how the City of
Parkland was voted in the top ten (8t" overall) of 17,589 towns and cities in the
United States where homeowners' housing dollars went the furthest for local
education. Parkland received the highest ranking in the category of homes
ranging from $400, 000 to $599,999. Forbes's review was conducted in
conjunction with GreatSchools, which analyzed standard test results for more
than 200,000 U.S. public and charter schools. In sum, the City of Parkland was
named by Forbes as one of the best cities in the nation for their public schools.
This was a tremendous accolade for the City and likely helped its residential
sales.
16
Fort Lauderdale Marriott Coral Springs Hotel, Golf Club & Convention Center
The Fort Lauderdale Marriott Coral Springs is a 7-story, 224-room hotel and
convention center located on the Heron Bay Golf Course in Coral Springs. The
Heron Bay Golf Club is situated on the northwest quadrant of the same parcel as
the hotel, along with a 2-building, 3-story office complex on the east side. Coral
Ridge Drive (also called Nob Hill Road) borders the east side and intersects Heron
Bay Boulevard, providing a single access point to the parcel. Mature palm trees line
interior roads to and from the hotel, golf club and office complex. Architectural
styles and colors are complementary among the three developments and blend
well with the surrounding golf course and subdivisions.
Amenities at the Marriott include:
■ Swimming pool
■ Jacuzzi
■ Fitness center with cardio equipment and free weights
■ Fairway Grill - serving breakfast, lunch and dinner
■ Bar at the Fairway Grill - serving lunch and dinner
■ The Coffee Bar - serving breakfast, lunch and dinner
■ Adjacent 18-hole Heron Bay golf course and clubhouse.
Sized and marketed as a convention center, the hotel's meeting space can
accommodate the following large events and groups:
■ 24,538 square feet of event space
■ 10 event rooms
■ Almost 20,000 square feet of meeting space
■ 12 breakout rooms
■ Receptions up to 1,200
■ Theatre -style seating up to 1,000
■ Banquet seating up to 850
■ Classroom seating up to 650.
17
The Heron Bay Golf Club also has a restaurant, the Heron Bay Grill, and has indoor
meeting and event space able to accommodate 100 persons inside and 150
outside. On its website, the golf club offers a "Play and Stay" package, and the
Marriott includes the golf club in its formal title, showing the strong relationship
between these two businesses.
An interview with the event planning director informed us the vast majority of
events at the Coral Springs Marriott Convention Center are corporate ones. Heron
Bay residents do hold an occasional wedding, but Bar Mitzvahs are their most
frequent social event at this hotel.
The Heron Bay community is comprised of almost 3,000 homes on approximately
1,100 acres. The development began over 20 years ago and has grown to about
7,000 residents. In addition to the Heron Bay Golf Clubhouse (currently closed
from June through August, 2016 for renovations), the residents have two
clubhouses with swimming pools, fitness centers and space to hold events.
Unless an event is too large for one of these clubhouses, the residents are
welcome to hold meetings or parties at a clubhouse.
The Falls at Heron Bay
• The Falls is a subdivision of fifty-three single family estate homes located
within the Heron Bay community.
• Perimeter lots have golf and water views, with some directly across from the
Marriott Hotel and Conference Center.
• The neighborhood began in 1996, selling lots both to builders and future
homeowners for custom homes.
• For the purpose of this report, initial lot sales are not included as it is not
known if the lots were released all at once or if they were released in sections.
The means by which the lots were released could affect absorption pace;
hence, this research focuses on home sales only. In addition, the initial buyers
of lots were both contractors and future homeowners — a very different
market than that of other communities reviewed in this report.
18
• Average price per square foot for homes sold at The Falls are summarized in
the following text table.
Number of
Average Price
% Change in
Year
Homes Sold
Per Square Ft.
Price/Sq. Ft.
1996
1
$134
-----
1997
9
$128
- 4.5%
y,
2000
9
$134
- 13.5
2001
9
$137
2.2%
2002
8
$158
15.3
2003
10
$161
1.9%
2004
7
$203
26.1
2005
3
$231
13.8%
2006
2
$266
15.2
2007
3
$248
- 6.8%
2008
4
$229
- 7.7%
2009
0
(None)
(None)
2010
4
$157
- 31.4%
2011
3
$182
15.9%
2012
5
$199
9.3
2013
4
$163
- 18.1%
2014
6
$150
- 8.0%
2015
4
$175
16.7%
2016
2
$173
- 1.1%
• In sum, Sales Prices per Square Foot at The Falls rose by 3.9% in 1998 over the
previous year while the Marriott was under construction, and increased again
by 16.5% in 1999 when the hotel opened.
• The average price per square foot of $173 is greater in 2016 than when the
community opened in 1996 at $134/square foot. However, when compared
19
with the peak year (2006 at $266/square foot), the current average price per
square foot is 50.0% less.
Interview with a REALTOR
An interview with an active REALTOR associated with a nationally recognized real
estate agency who both owns a home overlooking the Marriott and has sold
homes in the community for many years had the following comments.
• The Marriott Hotel is an asset to the community as it provides residents a
great place for their out-of-town guests to stay, especially if they have
numerous guests and/or entertain frequently.
• Neither the construction nor the opening of the hotel had any effect on the
pace or sales prices of any of the homes with or without views of the hotel.
Interview with the Marriott
RealMark Research also interviewed the sales director at the Marriott Hotel and
Convention Center. She stated the vast majority of events at the hotel are
corporate ones, but the residents of Heron Bay will hold Bar Mitzvahs or an
occasional wedding.
Figure 2, an aerial photograph showing the locations of The Falls at Heron Bay and
the Marriott Hotel & Convention Center appear in the appendix of this report.
Table 3, Home Sales at the Falls of Heron Bay 1996 — 2016, Table 4, Summary of
Home Sales at the Falls of Heron Bay 1996 - 2016, and the corresponding bar
chart follow Figure 2.
Control Group 3 - Cypress Walk in Tamarac
Cypress Walk is located on the south side of West McNab Road, west of Pine
Island Road. It is close to the northwest corner of the Colony West Golf Course
and is near the Colony West Clubhouse. There is no hotel in the vicinity at the
present time which qualifies this development as an excellent control group
20
compared with the Falls at Heron Bay (Marriott Hotel) and Golf Villas II (Main Stay
Suites -Sleep Inn & Hilton Garden Inn).
• Lennar Homes constructed this attractive 36-unit townhome project in 2006.
• The complex has six, 2-story buildings and a community swimming pool.
■ Two thirds of the units are 2-bedroom/2 %-baths at 1,234 square feet, and the
remaining one third are 3-bedroom/2 %-baths at 1,625 square feet.
• Each unit has a one -car garage.
• Initial offerings by the developer ranged from $275,000 to $315,000 for the 2-
bedroom units and $325,000 to $355,700 for the 3-bedroom units.
• Average Sales prices for all units are presented below.
Number of
% Change in
Year
Homes Sold
Average Price
Price/Sq. Ft.
2006
31
$315,439
-----
2007
0
(None)
(None)
2008
4
$159,250
- 49.5%
2009
16
$111,256
- 30.1%
2010
11
$102,645
- 7.7%
2011
5
$ 89,200
- 13.1
2012
0
(None)
(None)
2013
6
$133,817
50.0%
2014
4
$138,350
3.4%
2015
4
$160,750
16.2%
2016
2
$135,750
- 15.6%
• 31 of the 36 (86%) were sold in the first year of sales, 2006, an excellent
absorption pace.
• There were no sales in 2007, and in 2008, the average prices fell considerably
from $315,439 to $159,250 — almost half of initial offering price.
• This community has experienced the slowest recovery from the effects of the
Great Recession. The 2016 average price of $135,750 is $179,689, or 57.0%
less than the average sales price at initial offering of $315,439.
21
■ In sum, the economic downturn, recession and slow recovery are clearly
shown in the history of this property.
Figure 3, an aerial photograph showing the locations of Cypress Walk and the
Colony West Golf Club appear in the appendix of this report. Table 5, Home Sales
at Cypress Walk Condominium 2006 — 2016, and the corresponding bar chart
follow Figure 3.