RockSpringCluB-Hendricks Appraisal.pdf

PURPOSE OF THE APPRAISAL - PROPERTY RIGHTS DEFINED The appraisal is made for the purpose of estimating the Market Value of the property under its highest and best use in connection with a proposed acquisition and as of the date specified herein. The appraisal is based on the assumption that ownership is in fee simple title. Includes all the rights of ownership subject only to the limitations of eminent domain, escheat, police power and taxation. DEFINITION OF MARKET VALUE “Market value means 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 areasonable 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.” This example definition is 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, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, FRS, and FDIC on June 7, 1994, and in the Interagency Appraisal and Evaluation Guidelines, dated October 27, 1994. Source: Uniform Standards of Professional Appraisal Practice (USPAP) Published by the Appraisal Foundation - 2012- 2013 Edition. f i ] REAL ESTATE angOre APPRAISALS | & RESEARCH

PURPOSE OF THE APPRAISAL - PROPERTY RIGHTS DEFINED The purpose of the appraisal is to provide the client with an estimate of the Market Value for the subject property, in fee simple interest as defined herein. The property being appraised involves a closed, former private country club known as Rock Spring Club. The property is located at 90 Rock Spring Road, Township of West Orange, Essex County, New Jersey. It is most commonly known and designated as Block 46.01, Lot 22, Block 160, Lots 2 and 10, Block 160.01, Lots 30 and 34 on the Tax Maps of the Township of West Orange. The value of any furniture, fixtures or equipment that are not permanently affixed to the property or items which are leasehold are excluded from the valuation estimate reported herein. FEE SIMPLE ESTATE The fee simple estate is defined as follows: “Ownership of a title in fee establishes the interest in property known as the fee simple estate - i.e., absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by governmental powers of taxation, eminent domain, police power, and escheat.” Source: The Appraisal of Real Estate - Eleventh (11th) Edition. + 1996 Published by The Appraisal institute. INTENDED USE & USER OF THE REPORT The appraisal has been prepared for the client - Township of West Orange - Ms. Karen Carnevale, R.M.C., Township Clerk. It is my understanding that this appraisal, its contents and conclusions are to be utilized in connection with a proposed acquisition of the property by the municipality. In this regard, the intended use and users of the teport include the client, as well as authorized and elected municipal officials, appointed legal counsel and advisors. It is not the intention of this appraiser that the report, its contents or conclusions, either in whole or in part, be duplicated, distributed, utilized or relied upon by any other person(s) organizations, or entities for any purpose or application. In this regard, any use, duplication, or application of this appraisal, its contents or its conclusions, in whole or in part, shall be considered an unintended and unauthorized use. DATES OF VALUATION ESTIMATE The subject property has been valued as of the most recent inspection conducted on February 14, 2019. - 41 - fEAL ESTATE om APPRAISALS & RESEARCH

REGIONAL & AREA DATA State of New Jersey The State of New Jersey has an area of approximately 8,721 square miles and is situated in the Middle Atlantic Region of the country. It was admitted as a State in 1787. It had a population of 7,364,823 in 1980, a population of 7,730,188 in 1990, a population of 8,414,360 in 2000 and a reported 2010 population of 8,821,155. According to published statistics, there were 3,499,406 total housing units in 2007 (estimate) with a median value level for owner-occupied properties of $372,300.00. The median household income was $67,035.00 in 2007 and a median family income of $81,823.00 as of the same date. Essex County Essex County is located in the northeast section of the State of New Jersey. It comprises approximately 126.26 square miles. There are twenty-two (22) municipalities in the county with a 1980 population of 850,451, a 1990 population of 778,206, a 2000 population of 793,633 and a reported 2010 population of 783,969. The per capita income for 2007 was $31,260.00. According to county tax records, there were 151,966 residential parcels, 12,098 commercial parcels, 1,952 industrial properties, 2,674 apartment properties and 8,448 vacant parcels. The median single family value level for 2007 was $422,800.00. The typical apartment or non-owner occupied unit had a median monthly rental of $932.00 as of 2007. The geographic boundary formed by Essex County does not include the entire Newark SMSA area which typically includes all of Essex County, Union County and Morris County. However, for purposes of this appraisal, the influence of Essex County as well as portions of Union County, specifically the City of Elizabeth are also considered to be relevant. A critical improvement to the county was the completion in 1973 of the east-west freeway. Interstate Highway Route 280 provides direct access to the New Jersey Tumpike on the east, and the relatively undeveloped land masses in Morris and Sussex Counties to the west. Township of West Orange The Township of West Orange is located in the central portion of Essex County. The community is bounded on the north by the Township of Verona, on the south by the Village of South Orange Township, on the east by the City of Orange and the Township of Montclair and on the west by the Borough of Roseland and the Township of Livingston. The community comprises an area of approximately

ge Township, on the east by the City of Orange and the Township of Montclair and on the west by the Borough of Roseland and the Township of Livingston. The community comprises an area of approximately 12.22 square miles. The Per Capita Income for 2017 was $45,470.00. The Township of West Orange had a population of 43,715 in 1970, a 1980 population of 39,510, a 1990 population of 39,103 a 2000 population of 44,943, a population of 46,207 in 2010 and a reported 2017 population of 48,524 with a predominant age in the range of 35 to 54. The municipality had a reported median household income of $93,954.00 in 2017 and a reported median family income level of $113,286.00. There were 17,344 individual housing units within the municipality as of the same date. REAL ESTATE - 42 - [ | APPRAISALB |_| 6 RESEARCH

REGIONAL & AREA DATA Neighborhood Data The subject of this appraisal involves the Rack Spring Club, a private eighteen (18) hole golf and country club facility, established in 1925. The property is located in the south-central portion of the community. It is primarily accessed via Rock Spring Road as it extends south from its intersection with Northfield Avenue. There is also a secondary access drive along Walker Road. The subject's general neighborhood boundaries include Mount Pleasant Avenue to the north, Gregory Avenue to the east, South Mountain Reservation to the west and the Township of South Orange Village along the south. The residential improvements within the neighborhood typically include one and two story detached dwellings having been erected between 1940 and 2018. Based on a review of municipal records involving recent sales within the neighborhood as well as Garden State Multiple Listing Service information, the neighborhood, including portions of the adjoining South Orange Village has an average value range of $500,000.00 to $1,000,000.00. In addition to the single family detached dwellings, a large townhouse development adjoins the northwestern portion of the Rock Spring Club. This development was constructed during the 1980's and features value levels of approximately $450,000.00. Other area improvements and features include the large Essex County South Mountain Reservation and Recreation Complex. There are also several small office properties, retail commercial and restaurants located within one quarter (7%) mile of the subject. The subject property is located in close proximity to Interstate Highway Route 280, both east and west which provides direct access to other major highways including the Garden State Parkway, New Jersey Turnpike and Interstate Highway Routes 80 and 287. An area map denoting the approximate location of the subject property is included on the following page. Please refer to the Addenda for additional, albeit limited, demographic information. f ] REBRAIGALS @ 43: a & REBEARCH

REGIONAL & AREA DATA Breese L/L aS LEE Vay ” Ri: £2 is SA RS ay h 4 nen, UE OS laws { Lessee: - 44 - | & RESEARCH

Introduction There are four (4) basic types of golf courses within the United States, these include: Municipal Courses, Country Clubs, Resort Courses and Retirement Community Courses. The Analysis and Valuation of Golf Courses definitions are as follows: Municipal Course — "the simplest of courses, municipal golf courses are designed to accommodate heavy daily play throughout the year or season and to appeal to a wide variety of players. Typically a core design is used to create a course with playability and enough complexity to challenge a wide range of players, Municipal courses tend to be flat and have few rough areas where balls can be lost, Development and operating costs are typically low due to a concentrated irrigation system, easily mowed grounds, reduced landscape and maintenance costs, and few course obstacles. Municipal courses are shorter than most (approximately 6,000 to 6,500 yards) and fairways tend to be wide.” Country Clubs — “country clubs or private courses must appeal to a wide range of golfers, but they are typically more difficult than municipal courses. The level of play is less intensive and social interaction is emphasized at country clubs so playing time is a less important consideration. A great many of these courses have a core design and most exhibit more intensive maintenance practices. New country clubs are typically associated with a golf course community. These projects emphasize residential development and use a combination of single and double fairways so that many lots have golf course frontage views.” Resort Courses - "are the most complicated type of course. They are designed to appeal to serious golfers and to serve as a marketing tool to attract convention business to the course or residents in a related housing development. Resort courses have memorable holes, scenic beauty, a feeling of privacy or spaciousness, "signature" designers, lakes, and a variety of hazards. They usually feature a core or double fairway layout and have high construction and maintenance costs." Retirement Community Courses - "The typical player at a retirement community course is older, but plays often, so the course should not be situated in difficult terrain. These courses are shorter, have wide fairways for faster play, and are challenging in terms of visibility and the placement of hazards. Retirement community courses range from

ed in difficult terrain. These courses are shorter, have wide fairways for faster play, and are challenging in terms of visibility and the placement of hazards. Retirement community courses range from 5,500 to 6,500 yards in length. They may have a single - or double fairway layout to maximize the frontage of surrounding lots and simplify maintenance." Analysis and Valuation of Golf Courses and Country Clubs - Arthur E. Gimmy, MAI and Suddie A. Johnson. Published by The Appraisal Institute - 2003. - 45 - MEAL ESTATE APPRAIBALS r | & RESEARCH

ADDRESS OF PROPERTY Rock Spring Club - 90 Rock Spring Road, Township of West Orange, Essex County, New Jersey. It is known and designated as Block 46.01, Lot 22; Block 160, Lots 1 and 10; Block 160.01, Lots 30 and 34 on the Tax Maps of the Township of West Orange. The subject property is situated along the south side of Rock Spring Road (main entrance); the south side of West Road and Northfield Avenue; the east, north and south sides of Walker Road; the west side of Undercliff Terrace South and the north side of Hillcrest Avenue (Township of South Orange Village). THELAND - Based on tax maps & survey by G.C. Stewart Associates: Block 46.02, Lot 22: The parcel is triangular in shape having a frontage of 790.93 feet along Undercliff Terrace South, a depth on the north side of 156.36 feet, and is 828.47 feet across the rear. The parcel is generally contour level with the grade of Undercliff Terrace South rising upward along the rear. It is served with all available municipal improvements, services and public utilities including gas, water, sewer, and electric. The parce! contains approximately 86,249 square feet or 1.98 acres. Block 160, Lot 2: The parcel is rectangular in shape having a frontage of 72.00 feet along West Road, a depth on the east side of 150.00 feet, a depth on the west side of 150.00 feet and is 72.00 feet across the rear. The parcel is generally contour level with the grade of West Road. It is served with all available municipal improvements, services and public utilities including gas, water, sewer, and electric. The parcel contains approximately 10,800 square feet or 0.2479 acres. Block 160, Lot 10: The parcel is very irregular in shape having a frontage of 50.00 feet along Rock Spring Road, a combined depth along the east side of 1,830.36 feet in multiple courses, 2 combined depth on the west side of 2,178.61 feet in multiple courses, including approximately 1,329 feet of frontage along Walker Road, a depth on the north side (excluding the Rock Spring Road frontage) of 2,498.46 feet in multiple courses, including 1,453.88 feet of frontage along Northfield Avenue and approximately 254.39 feet of frontage along West Road; the property has a depth on the south side along Walker Road of 1,865.23 feet in multiple courses. The parcel features contour level to rolling topography throughout. It is also the location of Cable Lake. The

ty has a depth on the south side along Walker Road of 1,865.23 feet in multiple courses. The parcel features contour level to rolling topography throughout. It is also the location of Cable Lake. The site is served with all available municipal improvements, services and public utilities including gas, water, sewer, and electric. The parcel contains approximately 5,094,769 square feet or 116.959 acres. - 46 - | t_| | REAL ESTATE APPRAISALS & RESEARCH