RockSpringCluB-Hendricks Appraisal.pdf

Appraisal Report Rock Spring Club 90 Rock Spring Road Block 160, Lots 2 & 10 Block 160.01, Lots 30 & 34 Block 46.01, Lot 22 West Orange, New Jersey kok kk kok kk & Prepared For Township of West Orange iH Hendricks Appraisal Company, tc SEVEN HUTTON AVENUE, WEST ORANGE, NJ 07052

Hendricks Appraisal Company, uc [ i srenagats SEVEN HUTTON AVENUE, WEST ORANGE, NEW JERSEY 07052 « 973-736-5656-7 * FAX 973-736-2364 JEFFREY R. HENDRICKS, CTA, SCGREA MARK &. HENDAICKS, CRF, FRICS, CTA, SCGREA NEW JERSEY STATE CERTIFIED ANITA M. HENDRICKS, SCGREA GENERAL REAL ESTATE APPRAISEAS ROBERT W HENDRICKS, MAI, CRE, SCGREA (1923-2000) February 16, 2019 Karen Carnevale, R.M.C. Municipal Clerk Township of West Orange Municipal Building 66 Main Street West Orange, New Jersey 07052 Re: Rock Spring Club 90 Rock Spring Road Block 160, Lots 2 & 10 Block 160.01, Lots 30 & 34 Block 46.01, Lot 22 West Orange, New Jersey Dear Ms. Carnevale: In accordance with your authorization, | am pleased to submit the accompanying narrative appraisal report in connection with the above captioned property. The subject of this appraisal involves a private golf and country club known as Rock Spring which was originally founded in 1925. The facility was merged with Montclair Golf Club in 2016 and in December 2018, Rock Spring Club ceased operations. This appraisal assignment is specifically limited to only the Rock Spring Club portion of the Montclair Golf Club. The Rock Spring Club features an eighteen (18) hole championship caliber golf course having a slope rating of 72.5 and total yardage of 6,611. The property also includes an expansive one and two story frame clubhouse containing approximately 22,291 square feet; a one story masonry and frame pool house and snack bar containing approximately 2,916 square feet; a one story frame cart storage building with three (3) overhead doors containing approximately 3,072 square feet; two (2) in-ground pools; four (4) har-tru tennis courts and a tennis house containing approximately 512 square feet, three (3) elevated paddle tennis courts; a one story masonry and frame grounds maintenance facility containing approximately 3,384 square feet; a half-way house containing approximately 256 square feet along with several smaller non-descript support structures. The golf course features its signature first hole which extends over and along the south side of Cable Lake, a large natural water hazard. The golf course is partially bisected by Walker Road which separates two (2) holes (four and five - Block 160.01, Lots 30 & 34) from the balance of the property. The combined area for the entire Rock Spring Club encompasses

ially bisected by Walker Road which separates two (2) holes (four and five - Block 160.01, Lots 30 & 34) from the balance of the property. The combined area for the entire Rock Spring Club encompasses approximately 139.9755 acres. = www handricksappraisalcompany.com »

Karen Carnevale, R.M.C. Municipal Clerk Township of West Orange February 16, 2019 The Rock Spring Club was originally designed by Charles “steamshovel” Banks and Seth Raynor, both nationally renowned golf course architects. According to published reports as well as digital media, Charles Banks was also responsibe for the design of the Francis Byrne Golf Course in West Orange, the Hackensack Golf Club and the Knoll in Parsippany. In addition, Seth Raynor had also designed a number of courses including the Essex County Golf Club (East) as well as Essex Fells Country Club. This appraisal has been prepared in connection with a proposed acquisition by the Township of West Orange. It is my understanding that the municipality shall, upon acquisition, retain the services of a professional golf course management firm to oversee and supervise the daily operations of the facility. In addition, the golf course will no longer be a private country club, but will be operated as a public daily fee course. In connection with the appraisal of the fee simple interest, and based on my tesearch, analysis and interpretation of the data assembled herein, it is my opinion that the highest and best use of the property is single family residential subdivision and development in accordance with the requirements and regulations applicable under the R-1 - One Family Residence District Zoning. Therefore, in this appraisal assignment, | have valued the subject property under its highest and best use, specifically, as a single family residential subdivision. However, it has also been noted that the typical developer of a large parcel such as the subject would undoubtedly pursue a change in zoning that would permit multi-family (condominium-townhouse-rental apartment and/or mixed-use) development at a substantially greater density. This type of use is not a legally permitted use under current zoning. Furthermore, a change in zoning which would allow greater density and multi-family development of the property cannot be reasonably assumed, anticipated or projected. Based on a review of the survey and tax map information, along with zoning regulations and requirements, | have estimated that the subject property could be subdivided and support sixty-six (66) individual conforming residential building lots. The foregoing includes an allocation of approximately ten (10%) percent of the land

the subject property could be subdivided and support sixty-six (66) individual conforming residential building lots. The foregoing includes an allocation of approximately ten (10%) percent of the land area for infrastructure, setbacks, etc. It also recognizes and considers that approximately five (5) acres of the property is occupied by Cable Lake. In my opinion, as of February 14, 2019, the Market Value of the subject property, in fee simple interest and based on the assumptions definitions, terms, and conditions included herein, is the sum of: Fourteen Million Dollars ($14,000,000.00) iH REAL ESTATE APPRAISALS WoO & researcn

Karen Carnevale, R.M.C. Municipal Clerk Township of West Orange February 16, 2019 The appraisal is based on a complete, personal inspection of the property conducted by Mark E. Hendricks on February 14, 2019 along with a substantial number of prior (informal) inspections. In addition, the appraiser had also been a member of Rock Spring Club during the period 1974 to 2001. | have accepted as accurate and correct the dimensions of the site as depicted on the Tax Maps of the Township of West Orange, Essex County, New Jersey. | have also accepted as accurate and correct the data contained on the survey of the property prepared by G.C. Stewart Associates dated June 30, 2014. A copy of both the municipal tax maps and the survey have been reproduced elsewhere in this appraisal. This appraisal is made subject to the underlying assumptions, definitions, and limiting conditions set forth in the report. The appraisal report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) applicable to this type of appraisal report. I trust you will find this narrative appraisal report to be complete and its conclusions sound. Very tluly yours, NS Markle, lendricks, CRE, FRICS, CTA, SCGREA New Jersey State Certified General Real Estate Appraiser Hendricks Appraisal Company, LLC Real Estate Appraisals, Research & Consulting MEH:mm REAL ESTATE APPRAISALS @ OB reseancu

SUMMARY OF FACTS & CONCLUSIONS Subject Property Rock Spring Club 90 Rock Spring Road Block 46.01, Lot 22 Block 160, Lots 2 & 10 Block 160.01, Lots 30 & 34 West Orange, New Jersey Description of Property The subject of this appraisal involves a private golf and country club known as Rock Spring which was originally founded in 1925, it was merged with Montclair Golf Club in 2016 and in December 2018, Rock Spring Club ceased operations. This appraisal assignment is specifically limited to only the Rock Spring Club portion of the Montclair Golf Club. The Rock Spring Club features an eighteen (18) hole championship caliber golf course having a slope rating of 72.5 and total yardage of 6,611. The individual subject improvements are detailed below and on the following page. Clubhouse — an expansive one and two story with partial basement, frame club house facility. This structure was originally erected around 1925, with several additions over the years. The building has also been partially renovated and modernized, however, portions of the structure appear to be In need of modernization and renovation. The club house contains approximately 22,291 square feet, which includes approximately 18,686 square feet of first floor developed area, including approximately 1,400 square feet of retail-golf pro-shop area. The second floor is improved with support offices and contains approximately 3,605 square feet. Other features of the clubhouse include both men's and women's locker room facilities, a grill (19th hole) room, a combination living-reception area with full bar services and access to the terrace overlooking Cable Lake; and a large open restaurant-banquet room featuring unobstructed views of the New York City skyline. There is also a full commercial kitchen and support facilities. Pool - There are two (2) inground concrete pools - a small wadding pool containing approximately 400 square feet and a larger "T" shaped pool comprising approximately 3,700 square feet, both of which are located along the east bank of Cable Lake. The pool area is served by a one story masonry and frame, combination snack (Cable Lake Cafe) bar and locker-changing rooms. This building contains approximately 2,916 square feet and also features a large covered exterior dining area. | T ] REAL ESTATE APPRAISALS [| & RESEARCH

SUMMARY OF FACTS & CONCLUSIONS Description of Property Cart Storage-Charging Building - this is a one story frame structure featuring three (3) overhead doors. The building contains approximately 3,072 square feet. Grounds Maintenance Building - a one story masonry and frame garage type building featuring five (5) overhead doors. The building contains approximately 3,384 square feet. Grounds Maintenance - Equipment Storage Building - a one story masonry and frame garage type building featuring four (4) overhead doors. The building contains approximately 1,800 square feet. Tennis Building - this is a one story frame structure utilized for tennis pro-shop and observation. It is located along the four (4) har-tru tennis courts and contains approximately 512 square feet. Guard-House - a one story masonry and frame structure containing approximately 90 square feet. Half-Way House - a one story masonry and frame snack-bar and restroom Structure. The building contains approximately 256 square feet. Miscellaneous - three (3) elevated paddle tennis courts with an attached one story observation structure containing 290 square feet. Surface macadam paved and illuminated parking lots, both upper and lower having an approximate Capacity for 172 vehicles. A non-descript driving range located along the north side of the eighteenth (18th) fairway. Golf Course - An extensive eighteen (18) hole championship caliber quality golf course featuring undulating terrain, a natural water hazard (Cable Lake), bunkers at various fairway locations along with positions at most greens. The Rock Spring Club has hosted a number of prestigious golf tournaments including the New Jersey State Open several times as well as the State Amateur championship. Condition Based on observations during the physical inspection, the building improvements were found to be in fair overall condition. Although winter weather conditions existed during the inspection by this appraiser, my most recent (golf) seasonal visit (August 2018) to the course revealed that the golf course, including the greens, fairways, tee boxes, hazards, bunkers, and cart paths were well maintained by a large ground maintenance staff and considered to be in good Overall condition. Please refer to the photographic exhibits included elsewhere in this report. t a | REAL ESTATE APPRAISALS & RESEARCH

SUMMARY OF FACTS & CONCLUSIONS Zoning R-1 - One Family Residential District - 80,000 Sq. Ft. Minimum Lot Area (Block 46.01, Lot 22 - Block 160, Lot 10 - Block 160.01, Lot 30) R-3 - One Family Residential District - 20,000 Sq. Ft. Minimum Lot Area (Block 160, Lot 2) R-4 - One Family Residential District - 15,000 Sq. Ft. Minimum Lot Area (Block 160.01, Lot 34) The primary or controlling zone is the R-1 District which has been utilized in the valuation of the subject property. The two subject parcels located within the R-3 & R-4 Districts have a combined lot area of 13,000 Sq. Ft. Assessed Valuation Block 46.01, Lot 22 Block 160, Lot 2 Land $ 182,000.00 Land $ 1,000.00 Improvement $ 000,000.00 Improvement $ 0,000.00 Total $ 182,000.00 Total $ 1,000.00 Block 160, Lot 10 Block 160.01, Lot 30 Land $10, 124,600.00 Land $ 1,210,000.00 Improvement $ 2,467,400.00 Improvement $ 500,000.00 Total $12,592,000.00 Total $ 1,710,000.00 Block 160.01, Lot 34 ’ Aggregate Assessment Land $ 15,000.00 Land $11,532,600.00 Improvement $00,000.00 Improvement $ 2.967.400.00 Total $ 15,000.00 Total $14,500,000.00 2018 Tax Rate: $4.038 Per One Hundred Dollars of Assessed Value 2018 Real Estate Taxes: $585,510.00 2019 Equalization Ratio: 87.74% 2019 Equalized Valuation: $16,526,100.00 REAL ESTATE APPRAISALB a & RESEARCH

SUMMARY OF FACTS & CONCLUSIONS Highest and Best Use: As Vacant — under current (controlling) R-1 - One Family Residential District zoning having an 80,000 square foot minimum lot size, it is my opinion that the highest and best use of the subject property as vacant land, is for residential single family subdivision and development. As Improved - it is my opinion that as of the date of valuation estimate, the existing country club and golf course improvements do not represent the highest and best use of the property. Therefore, as improved, the highest and best use of the subject property is considered to be removal of the existing improvements followed by residential single family subdivision and development in accordance with zoning. Estimated Exposure Period: Exposure time has been defined by USPAP as ". . the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.” The subject property represents a significantly large parcel of land and under its highest and best use discussed herein, and assuming the typical purchaser would be a large area or regional developer, with additional consideration given to prevailing market conditions, | have estimated a minimum exposure period in the range of two to six months would have been required. Estimated Marketing Period: Marketing time has been defined by USPAP as ”. . . an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value during the period immediately after the effective date of the appraisal.” Again, as noted above, based on the physical features of the property (large relatively undeveloped land mass) and with recognition of its highest and best use as well as its location within this particular market, | have estimated a marketing period in the range of one to six months would have been required as of each relevant tax year. Valuation Estimate In my opinion, as of February 14, 2019, the Market Value of the subject property, in fee simple interest and based on the assumptions definitions, terms, and conditions included herein, is the sum of: Fourteen Million Dollars {$14,000,000.00) | L | REAL ESTATE APPRAISALS t_| & RESEARCH