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BARRETT APPRAISAL SERVICES, LLC

Commercial Appraisal
Summary Report


Six Acres of Commercial Land
Site of Proposed Spaceport America Welcome Center
Within The New Hot Springs Retail Center
A Commercial Subdivision
Truth or Consequences, Sierra County, New Mexico


July 2014


Prepared for:
New Mexico Spaceport Authority
901 E. University Ave., Suite 356L
Las Cruces, NM 88001
And
New Mexico Finance Authority
207 Shelby Street, Santa Fe, NM


Prepared by
G. Vincent Barrett, Ph.D., MAI
NM Certification 506-G




BAS, LLC


Approximate Area of Commercial Subdivision and Subject Site




























Approx HSRC Area
Wal-Mart
Site
Subject 6 Ac Area
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July 10, 2014

Ms. Christine Anderson, Executive Director
NM Spaceport Authority
901 E. University Ave., Suite 356L
Las Cruces, NM 88001

Letter of Transmittal

RE: Proposed location of Spaceport America Welcome Center a 6 acre Commercial Site located in
Truth or Consequences Sierra County, NM

Dear Ms. Anderson:
At your request, Barrett Appraisal Services, LLC has completed an appraisal and arrived at an
estimated market value for the six acre site planned as the future site of the Spaceport America Welcome
Center that is located within the 39.945 platted and approved commercial subdivision, known as the
New Hot Springs Retail Center that is to be located on the SEC of I-25 and Date Street within the City
limits of Truth or Consequences, NM. The property is accessed from Date Street.
The objective of this appraisal is to estimate the current market value of the six acres within the
subdivision. The 39.945 acre site including the six acre subject is currently under the ownership of
Ashbaugh Construction Co. Inc. as recorded in WD Book 102 pg 1659-1660 recorded 17 December
2004 and WD Bk 106 pg 130-134 recorded 20 April 2006 and WD book 94 pages 2659 in the Clerks
Office of Sierra County, NM. The original subdivision involved a total of 65 +- acres, the subject
subdivision being a remaining portion of that total.
The value determined, in the course of the analysis is based on the existing condition that the
subject commercial subdivision parcels are undeveloped lots as zoned and platted and that the value
represents the current market value of the subdivided six acre site.
The attached complete narrative appraisal report describes the data, methodology and reasoning
used in the analysis. The analysis is subject to the assumptions and limiting conditions detailed in the
report. The assumptions and limiting conditions should be carefully reviewed as they may affect the
conclusions drawn and the final estimate of market value.
The research and analysis indicates the following market value of the subject property.
Effective Date: July 5, 2014
Market Value: $1,244,000
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This is a summary report, which is intended to comply with the reporting requirements set forth
under Standards Rule 2 of the Uniform Standards of Professional Appraisal Practice. As such, it may
only present descriptive discussions of the data, reasoning, and analyses that were used in the appraisal
process to develop the appraisers opinion of value. Where not presented directly in the report, then
supporting documentation concerning the data, reasoning, and analyses is retained in the appraisers file.
The depth of discussion contained in this report is specific to the needs of the client and for the intended
use as stated herein. The appraiser is not responsible for unauthorized use of this report.
In preparing the report, the conduct of the appraiser and all research associates has been governed
by the professional standards and code of ethics of the Appraisal Institute and the Appraisal Foundation.
My compensation is not contingent upon the reporting of a predetermined value or direction in value that
favors the cause of the client, the attainment of a loan, the amount of the value estimate, the attainment
of stipulated result or the occurrence of a subsequent event.
The analysis contained in this appraisal may be based upon hypothetical assumptions, and
estimates that are subject to uncertainty and variation. These estimates may be based on data obtained in
interviews with third parties or documents obtained from third parties, and such data may not always be
completely reliable. In addition, the analysis makes assumptions as to the future behavior of consumers,
and the general economy, which are highly uncertain by their nature. It may be that some assumptions
will not materialize and that unanticipated events may occur which will cause actual achieved results to
differ from the analysis contained in this report, and these differences may be material. Therefore, while
the analysis was conscientiously prepared on the basis of prudent research of the available data no
warranty can be made of any kind that the projected results will, in fact, be achieved. Additionally,
Barrett Appraisal Services, LLC has not been engaged to evaluate the effectiveness of
management/marketing, and is not responsible for future management/marketing efforts and actions
upon which actual results may depend.
We did not ascertain the legal, engineering, and regulatory requirements that may be applicable
to the property, including zoning certification and other state and local government regulations, permits
and licenses. No effort has been made to determine the possible effect on the property of present or
future federal, state or local legislation, including any environmental or ecological matters or
interpretations thereof. With respect to market demand analysis, our work did not include analysis of the
potential impact of any unanticipated rise or decline in local or general economic conditions.
It is the opinion of the appraiser, based on the assumptions employed in the investment
parameters for the subject, that the value conclusion represents a market value achievable within 18-24
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months exposure on the open market. No responsibility for any event, condition, or circumstance
affecting the market that may take place subsequent to the last day of our fieldwork, i.e., July 5, 2014.
The appraiser has satisfied all competency requirements of USPAP and the Appraisal Institute
and states that he is qualified to conduct the appraisal assignment. All FIRREA and USPAP research and
reporting guidelines have been meet.
This letter is invalid as an opinion of value if detached from the report, which contains the text,
exhibits, and addenda. Barrett Appraisal Services, LLC appreciates the opportunity to be of service to
you. Should you or any other authorized user of this appraisal have further questions arising from the
report, they will be welcomed.

Barrett Appraisal Services, LLC


G. Vincent Barrett, Ph.D, MAI,
NM General Certification 506-G
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TABLE OF CONTENTS
Number Page
TABLE OF CONTENTS ......................................................................................................................... V
EXECUTIVE SUMMARY .................................................................................................................... VI
SECTION I PREFACE ........................................................................................................................... 2
SECTION II INTRODUCTION .......................................................................................................... 18
SECTION III GENERAL AREA ANALYSIS ................................................................................... 26
SECTION IV SITE DATA ................................................................................................................... 42
SECTION V VALUATION ................................................................................................................... 46
SECTION VI CERTIFICATION ......................................................................................................... 61

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EXECUTIVE SUMMARY
Appraisal Assignment: Determine the current market value of 6 acres that are contained within the
existing New Hot Springs Retail Center which is a commercial
subdivision located in Sierra County within the SEC of the intersection of
Date Street and I-25.

Client: Ms. Christine Anderson, Executive Director
NM Spaceport Authority
901 E. University Ave., Suite 356L
Las Cruces, NM 88001
And
New Mexico Mortgage Finance Authority
207 Shelby Street
Santa Fe, NM

Intended Use: For the client to use for asset valuation and in the mortgage loan review
process.
Intended User: The intended user of this report is the above client and their assignees
including the NM Finance Authority and no others. This appraisal is not to be
relied upon by any other third parties for any purpose, whatsoever. No third
parties are authorized to rely upon this report for any reason without the
express written consent of the appraiser. A third party being defined as
anyone but the client and assignees. The above client is an experienced user
of appraisals and is considered the responsible party for payment of the
appraisal fee.
Ownership Interest: Fee Simple
Appraiser Interest: The appraiser has no current, past or future anticipated interest in the
subject 6 acre site.
Improvements: The subject is within an existing platted, commercial subdivision with
Phases 1through 5. The original size was 65.208 acres and the remaining
unsold acreage is approximately 39.945 acres. Access roads are in with all
utilities to the lots.
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Locational Data: The subject property is located within the City limits of Truth or
Consequences, Sierra County, NM within the SEC of the Intersection of
Date Street and I-25.
Highest & Best Use: The highest and best use analysis indicates that the highest and best use is
to developed as the location of a commercial site.
Zoning: The subject is within the zoning jurisdiction of Truth or Consequences
and is zoned C-1 general commercial.
Valuation Method: The valuation method used is the estimation of per square foot values
using the sales comparison approach leading to the formulation of a
current market value.
Market Value Estimate $1,244.000





Section I



Preface
2

SECTION I - PREFACE
The preface to the report contains the various maps and photographs that relate to the property
and its environment. They should be reviewed prior to the reading of this report. They will be
referenced by figure number where appropriate throughout the narrative part of the appraisal. Detailed
maps and other figures are contained in the body of the report where necessary for clarification or
illustrative explanation.

Figure Subject Page
1-1 Regional Location 3
1-2 Relative Location 3
1-3 Neighborhood Location 4
1-4 Illustrative Site Plan 5
1-5 Plat Map 6
1-6 Flood Zone 7
1-7 Aerial Photo A 9
1-8 Aerial Photo B 9
1-9 Welcome Center Site Location Map 10
1-10 Site Survey 10
1-11 Photos of Subject Site 11

3

FIGURE 1-1 REGIONAL LOCATION MAP

FIGURE 1-2 RELATIVE CITY LOCATION
4

FIGURE 1-3 NEIGHBORHOOD MAP

5


FIGURE 1-4 ILLUSTRATIVE SITE PLAN OF HSRC WITH SUBJECT INDICATED

Subject Area
6

FIGURE 1-5 PLAT MAP

Holiday
Inn
Spaceport Welcome
Center 6 Ac
7


FIGURE 1-6 FLOOD ZONE MAP PANEL 350073-0005C 7/16/1996


Area of Subject
8


Moderate to Low Risk Areas
In communities that participate in the NFIP, flood insurance is available to all property owners and
renters in these zones:
ZONE DESCRIPTION
B and X (shaded)
Area of moderate flood hazard, usually the area between the limits of the 100-
year and 500-year floods. Are also used to designate base floodplains of lesser
hazards, such as areas protected by levees from 100-year flood, or shallow
flooding areas with average depths of less than one foot or drainage areas less
than 1 square mile.
C and X (unshaded)
Area of minimal flood hazard, usually depicted on FIRMs as above the 500-year
flood level.


High Risk Areas
In communities that participate in the NFIP, mandatory flood insurance purchase requirements
apply to all of these zones:
ZONE DESCRIPTION
A
Areas with a 1% annual chance of flooding and a 26% chance of flooding over the life
of a 30-year mortgage. Because detailed analyses are not performed for such areas;
no depths or base flood elevations are shown within these zones.
AE
The base floodplain where base flood elevations are provided. AE Zones are now
used on new format FIRMs instead of A1-A30 Zones.
A1-30
These are known as numbered A Zones (e.g., A7 or A14). This is the base floodplain
where the FIRM shows a BFE (old format).
AH
Areas with a 1% annual chance of shallow flooding, usually in the form of a pond, with
an average depth ranging from 1 to 3 feet. These areas have a 26% chance of
flooding over the life of a 30-year mortgage. Base flood elevations derived from
detailed analyses are shown at selected intervals within these zones.
AO
River or stream flood hazard areas, and areas with a 1% or greater chance of shallow
flooding each year, usually in the form of sheet flow, with an average depth ranging
from 1 to 3 feet. These areas have a 26% chance of flooding over the life of a 30-year
mortgage. Average flood depths derived from detailed analyses are shown within
these zones.
AR
Areas with a temporarily increased flood risk due to the building or restoration of a
flood control system (such as a levee or a dam). Mandatory flood insurance purchase
requirements will apply, but rates will not exceed the rates for unnumbered A zones if
the structure is built or restored in compliance with Zone AR floodplain management
regulations.
A99
Areas with a 1% annual chance of flooding that will be protected by a Federal flood
control system where construction has reached specified legal requirements. No
depths or base flood elevations are shown within these zones.


9


FIGURE 1-7 AERIAL PHOTO



FIGURE 1-8 AERIAL PHOTO PROPOSED WELCOME CENTER LOCATION

Location of WC
Building
10

FIGURE 1-9 WELCOME CENTER LOCATION WITHIN HSRT


FIGURE 1-10 SITE SURVEY

Subject
11


FIGURE 1-8 PHOTOS OF SUBJECT SITE

1. Entrance Street to Hot Springs Retail Center subdivision from Nth Date Street, i.e., H.R. Ashbaugh Dr


.
2. View North from intersection of Buck Greer St and H.R. Ashbaugh Dr.
12



3. View East along H.R. Ashbaugh Drive from intersection with Sanford Wilson Dr.


4. View west along proposed entrance rd to welcome center from Sanford Wilson Rd.
13


5. View east from between Block 5 and 6 towards Wal-Mart. Note Elevation.



6. View North from proposed welcome center site. Holiday Inn Express in foreground.
14


7. Location of proposed welcome center building. Sign to be removed.


8. VIEW SOUTH FROM INTERSECTION OF F.G. AMIN ST AND BUCK GREER ST.

15


9. VIEW NORTH FROM WEST LINE OF SUBJECT ALONG I-25


10. VIEW NORTH FROM INTERIOR OF SUBJECT SITE. HOLIDAY INN EXPRESS IN DISTANCE
16


11. View south along I-25 from welcome center building site.


12. View North along I-25 from welcome center building site.
17





Section II



Introduction
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SECTION II - INTRODUCTION

1. IDENTIFICATION OF THE SUBJECT PROPERTY
The subject of this report is a six acre site located within the 39.945 remaining acres of the New
Hot Springs commercial subdivision. The subject original acreage was 65.208 of which 25.263 acres
have been sold or are under contract to be sold. The County records show that 10 parcels have been
platted into Blocks and lots ranging in size from .45 acres to 2.491 acres. Two of the smaller lots are for
utility and access only. One larger parcel of 8.81 acres has been subdivided into two parcels one of 6
acres which is the subject site and a second parcel of 2.81 acres as well as 26.93 acres that are not yet
subdivided. The general area of the subject is on the east side of Interstate 25 and west of Date Street (I-
25 Business Loop) at exit 79 which is the intersection of I-25 and Date Street in Truth or Consequences,
Sierra County, NM. The following Table 2-1 illustrates the subject lots and parcels. The highlighted
BAS # 11 is the original 8.81 acres from which the six acre subject has been subdivided.

TABLE 2-1 SUBJECT LOTS & PARCELS
BAS # Owner Prop ID Map Code Legal Size Ac. Size sf
1 AC Co. Inc 18179 3022077021202 Blk 1 Lot 2 0.45 19,602
2 AC Co. Inc 18181 3022077120113 Blk 3 Lot 1-A 0.98 42,689
3 AC Co. Inc 18182 3022077136101 Blk 3 Lot 2-A 0.83 36,155
4 AC Co. Inc 18981 3022077160132 Blk 4 Lot 1 0.534 23,261
5 AC Co. Inc 18987 3022077159119 Blk 4 Lot 2 0.534 23,261
6 AC Co. Inc 18988 3022077159105 Blk 4 Lot 3 0.534 23,261
7 AC Co. Inc 18989 3022077158092 Blk 4 Lot 4 0.534 23,261
8 AC Co. Inc 18990 3022077147068 Blk 4 Lot 5 1.892 82,416
9 H. I. 18991 3022077121069 Blk 4 Lot 6 -2.491 -108,508
10 AC Co. Inc 18992 3022077085074 Blk 4 Lot 7 0.408 17,772
11 AC Co. Inc 16585 3022077144172 S2,NE4,S28,T13S, R4W 8.81 383,764
12 AC Co. Inc 18008 3022077100235 S28,T13S, R4W 26.93 1,173,071
Totals 39.945 1,740,004


2. ZONING
The subject is within the City limits of Truth or Consequences and zoned C-1 Commercial. The
subdivision is encumbered with Covenants, Restrictions and Conditions. The commercial Covenants,
Restrictions and Conditions are in place to accommodate appropriate commercial development and to
maximize the commercial developmental values.
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3. LEGAL IDENTIFICATION
The original subject subdivision site contained a total of approximately 65.208 acres and is
legally identified by metes and bounds as contained on the warrantee deed which is contained in the
Addenda. Each remaining lot is identified by the block and lot number within the subdivision as
illustrated above. The subject six acres is platted and recorded as a summary replat of Plat of Parcel 1
and Parcel 2 (subject), New Hot Springs Retail Center as recorded 26 September, 2013 in Book 122
Page 1736, Sierra County, NM. The subject tract lies within the Section 28, Township 13 south, Range
4 west, NMPM.

4. HISTORY OF OWNERSHIP
The subject acreage is currently under the ownership of Ashbaugh Construction Co. Inc. as
recorded in WD Book 102 pg 1659-1660 recorded 17 December 2004 and WD Bk 106 pg 130-134
recorded 20 April 2006 and WD book 94 pages 2659 in the Clerks Office of Sierra County, NM.

5. PURPOSE AND SCOPE OF WORK THE APPRAISAL
The purpose of this appraisal is to determine the current market value of a specific six acre site
that is located within the new Hot Springs Retail Center and that is proposed to be purchased and
developed as the site of the future Spaceport Welcome Center in Truth or Consequences, New Mexico.
The intent of this appraisal is to determine the current market value of the subject property in its as is
condition, which is unimproved but with some public roads and all trunk utility infrastructure in place
and as subdivided in accordance with the platted and recorded Summary Plat of Parcel 1 and Parcel 2
(subject), New Hot Springs Retail Center as recorded 26 September, 2013 in Book 122 Page 1736,
Sierra County, NM.
The scope of work of the appraisal is to analyze the physical, economic and legal dimensions of
the subject parcel and then to conduct an analysis of the supply and demand sides of comparable
properties. One purpose of which is to find those sales of comparable properties that will best reflect the
characteristics of the subject. Those sales chosen, as the most representative will be analyzed and their
sale prices adjusted so that they reflect the physical, legal and economic conditions of the subject parcel.

6. DEFINITION OF MARKET VALUE
Market Value 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,
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 whereby:
Buyer and Seller are typically motivated.
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Both parties are well informed or well advised, and each acting in what he considers
his own best interest.
A reasonable time is allowed for exposure in the open market.
Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
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.
Source: Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Federal
Register, Vol. 55, no. 163 August 22, 1990 Pg. 34228 and 34229

7. PROPERTY RIGHTS APPRAISED
The property right appraised is the market value of the fee simple ownership.
8. EFFECTIVE DATE OF APPRAISAL AND DATE OF REPORT
The effective date of this appraisal is July 5, 2014. The date of the report is July 10, 2014.
9. COMPETENCY TO PERFORM
The appraiser involved in this assignment has past experience in appraising this property type
and in addition is actively engaged in appraisal work in the geographical area of the subject property.
All steps necessary to acquire adequate data on this area for similar properties has been taken, resulting
in adequate knowledge of the property type and location to meet the competency requirements of
USPAP (Uniform Standards of Professional Appraisal Practice).
10. EXPOSURE TIME AS DEVELOPED
Exposure time is assumed to be 18 to 24 months. Exposure time is 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: a retrospective opinion
based on an analysis of past events assuming a competitive and open market.

11. ASSUMPTIONS AND LIMITING CONDITIONS

This appraisal is made subject to the following assumptions and limiting conditions:
It is assumed that all lot release agreements or release clauses have been agreed to by the
developer/owners and any lending institution that may hold a mortgage or have other financing
arrangements regarding the subject property.

The valuation of the subject property is based, in part, on the conceptual specific land
use plan put forth by Ashbaugh Construction Co., Inc. It is further assumed that all
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governmental approvals have been granted to allow such a plan. I reserve the right to
alter the conclusion of the estimated values contained in this report in the event that any
change in the development costs occur or there is a change in the specific land use plan
as to the number of units/lots or acreage or change in any one of the zoned/defined land
uses.
The appraiser has examined the available flood maps that are provided by the Federal
Emergency Management Agency (or other data sources) and has noted in the appraisal
report whether the subject site is located in an identified Special Flood Hazard Area.
Because the appraiser is not a surveyor, he or she makes no guarantees, express or
implied regarding the determination.
The valuation is based on the approval of the final subdivision development plat as may
be submitted to and approved by the relevant Planning Department prior to recording.
Improvements are assumed to be completed as defined in any structures building
specifications that may be provided, a copy of which may be located in the Addenda of
this report. Improvements are assumed to be designed and constructed using appropriate
market standards.
New Mexico is non-public disclosure State and as such the comparable sales data used in
the analysis are believed to be reasonably correct. Where certain holes in the data cannot
be filled from available documents or confirmed by grantee or grantor then it may be
necessary to extrapolate certain figures. The appraiser makes no guarantees, express or
implied regarding the exactness of the data so obtained. The data so obtained is used
solely to assist the appraiser in forming an opinion of value and more or less weight may
be given to any comparable data.
The appraiser is not a licensed real property inspector. This report should not be relied
upon to disclose any conditions present in the subject property. The appraisal report does
not guarantee that the property is free of defects. A professional property inspection is
recommended, if this is of concern to the client.
No responsibility is assumed for matters that are legal in nature, nor is any opinion of title
rendered. The appraiser is not qualified to conduct a title search or land survey and is not
responsible for flaws in the title or any interests that may exist in the subject that have not
been specifically identified and provided to him.
No survey of the property has been made by the appraiser. No responsibility is assumed in
connection with such matters. Sketches in this report may not be to scale and are included
only to assist the reader in visualizing the property.
Barrett Appraisal Services, LLC is unaware of any cross easements or any covenants,
conditions or restrictions impacting the subject property. We assume adequate ingress
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and egress to the property and we assume any reasonable sale of the property would not
be inhibited by any covenants, conditions, or restrictions.
Liens against the property, if any, have been disregarded, and the property is appraised as
though free and clear, under responsible ownership and competent management. Any
rights or interest claimed by any grantees under existing contracts for sale are disregarded.
Information furnished by others and contained in this report is so noted and is believed to
be reliable, but no responsibility is assumed for its accuracy.
No responsibility is assumed for the accuracy of diagrams, sketches, or maps included in
this report. These are for illustrative purposes only and provided solely for the purpose of
assisting the reader to visualize the subject property being appraised.
It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures which would 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 applicable zoning use regulations and restrictions have been
complied with, unless nonconformity has been 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 improvements is within the boundaries of
the property lines of the property described and that there is no encroachment or trespass
unless noted in the report. Land area calculations derived from recorded documents are
considered correct.
Any distribution of the value in this report between land and improvements applies only
under the stated program of utilization. The separate valuations for land and
improvements must not be used in conjunction with any other appraisal and are invalid if
so used.
The appraisal of any interest less than the whole fee simple estate relates only to the
fractional interest defined. The value of such a fractional interest plus the value of all
other fractional interests may or may not equal the value of the entire fee simple estate
considered as a whole.
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The liability of Barrett Appraisal Services, LLC and employees and affiliated independent
contractors is limited to the client only and to the fee actually received by the appraiser
for this appraisal. Further, there is no accountability, obligation, or liability to any third
party.
The Contract for appraisal, consultation or analytical service is fulfilled, and the total fee
is payable upon the completion of the report. The Appraiser or those assisting in the
preparation of the report will not be asked or required to give testimony in court or
hearings because of having made the appraisal, in full or in part, nor engage in post
appraisal consultation with client or third parties, except under separate and special
arrangements, and at additional fees. If testimony or deposition is required because of
any subpoena, the client shall be responsible for any additional time, fees, and charges
regardless of the issuing party.
Possession of this report, or a 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 qualification and only in its entirety.
Neither all, nor any part of the contents of this report 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.
Unless otherwise stated in this report, the existence of hazardous substances, including
without limitation asbestos, polychlorinated biphenyl's, petroleum leakage, or agricultural
chemicals, which may or may not be present on the property, or other environmental
conditions, were not called to the attention of the appraiser, nor did I become aware of
such during my inspection. The appraiser has no knowledge of the existence of such
materials on or in the property unless otherwise stated. The appraiser is not qualified to
test such substances or conditions. The presence of such substances, such as asbestos,
urea formaldehyde foam insulation, or other hazardous substances or environmental
conditions, may effect the value of the property. The value estimated is predicted on the
assumption that there is no such condition on or in the property or in such proximity
there-to that it would cause a loss in value. No responsibility is assumed for any such
conditions, nor for any expertise or engineering knowledge required to discover them.
The client is urged to retain an expert in this field, if desired.
The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We
have not made a specific compliance survey and analysis of this property, as proposed or
existing, 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,
24

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 we have no direct
evidence relating to this issue, we did not consider possible compliance with the
requirements of ADA in estimating the value of the property.


The following Section III presents the general population, economic and real estate market
conditions impacting the subject site.

25




Section III



General Area Analysis
26

SECTION III GENERAL AREA ANALYSIS

The general area analysis is provided to the reader so that they may have a clearer understanding
of the socio/ economic environment within which the subject property must operate. Although in some
cases much of the analysis may not appear to be linked directly to the subject, there is always an indirect
linkage through the aggregated larger social and economic influences in the community that should be of
interest as well as helpful to the reader.
The subject property is located just north of the downtown commercial business district of Truth
or Consequences, NM in an area locally known as the north business district. The site is in the SEC of
the intersection of North Date Street and I-25. The commercial districts in T or C run the length of Main
Street/Broadway and Date Streets north and south through T or C and for approximately three miles east
west along Third Street. The City of Truth or Consequences is the County seat and dominant market area
in Sierra County, NM. Truth or Consequences is estimated to have a current population of approximately
8,500.
Sierra County is largely a low density county with approximately 13,500 in population. The
economy depends largely on agriculture and tourism at Elephant Butte Lake State Park three miles east
of Truth or Consequences, which is the largest nearby City. The subject is approximately 80 miles
northeast of the dominant trade area, Las Cruces, which is to the south in Dona Ana County. The City of
Las Cruces forms the principal trade area and provides the economic base of the region. The City of
Truth or Consequences is geographically positioned near the center of Sierra County and is the county
seat. Truth or Consequences is bisected from north to south by I-25. The New Mexico/Texas Border is
approximately 120 miles south of the city. Also located along the eastern portion of Sierra County is the
White Sands Missile Range and Military Reservation.
Elephant Butte is currently one of the newest cities in New Mexico with a year round population
of approximately 1,500. During weekend holidays the population will swell to 100,000 +- with the
visitors to Elephant Butte State Park and Lake. Truth or Consequences has a population of
approximately 8,000. Also located in Sierra County are the small rural communities of Garfield, Derry,
Arrey, Hillsboro, Kingston, Las Palomas, Williamsburg, Engle, Cuchillo, Hermosa, Winston, Chloride,
Placita and Monticello. Elephant Butte NM, adjoins Truth or Consequences, New Mexico on the
northeast boundary of T or C.
The City of Truth or Consequences is the County seat and dominant market area in Sierra
County, NM. The City is estimated to have a current population of approximately 8,500. The economy
of the County depends largely on agriculture and tourism at Elephant Butte Lake State Park three miles
east of Truth or Consequences. Truth or Consequences was originally named Hot Springs. In 1950,
NBC television and radio producer Ralph Edwards requested a name change from Hot Springs to the
27

name of his nationally recognized Truth or Consequences radio program. The entire downtown area
of Truth or Consequences is located over a supply of hot mineral water, which is available at the surface
through wells or pools. Temperatures range from 98 to 115 degrees. In the early 1880s, businesses
arose around these mineral hot springs, which were locally considered medicinal for both mental and
physical healing. In addition to the several minerals within these waters, there is a small percentage of
radium, which is considered by many as one of the most healing elements known. Even though a small
percentage, the radium content is reportedly much higher than average.
Elephant Butte has a year round population of approximately 1,500. During weekend holidays
the population will swell to 100,000 +- with the visitors to Elephant Butte State Park and Lake.
Elephant Butte Lake is the largest lake within the State. This reservoir was primarily constructed during
four-year time frame (1912 1916) for irrigation purposes for surrounding farms and ranches. Elephant
Butte Reservoir heads a large network of dams, rivers and irrigation canals built to store and carry water
to approximately 115,000 acres of land, extending 200 miles along the Rio Grande from the reservoir in
Socorro County, through Sierra and Dona Ana Counties in New Mexico, as well as El Paso County
Texas. The project area reportedly extends from 100 miles northwest to 40 miles southeast of the City
of El Paso, with 88,000 acres of land in New Mexico and 67,000 acres in Texas.
In addition to the recreational amenities of Elephant Butte Lake, Caballo Lake State Park also
offers numerous aspects of outdoor recreation, and is located roughly 14 miles south of Truth or
Consequences. The park also hosts a reservoir with its original design capacity of 42,831 acre-feet of
water. It is one of a series of reservoirs created to control the erratic flow of the Rio Grande.
There are 8,880 acres of irrigated farmland and approximately 146 ranches with livestock in
Sierra County. The County has over a million and a half acres of grazing land, which is divided up
among both large ranches and modest spreads. Chile has become the major crop for farmers in Sierra
County. With this increase in crop production, processing plants have been developed in the Rio Grande
Valley near Truth or Consequences.

1. POPULATION
The city of Truth or Consequences is approximately 60% Anglo, 39% Hispanic and 1% other
ethnic groups. The ethnic mix gives the city a rich cultural heritage. Spanish and English are both
spoken as Truth or Consequences is a bilingual community.
At the heart of all demand is population. Sierra County experienced an approximate 33.9%
growth rate between census years 1990 and 2000, New Mexico as a whole experienced a growth rate of
20.1% percent for the same period. Estimated 2000 population for the county was estimated to be
13,270. City population of Truth or Consequences for census year 2000 was 7,289. Located directly
south of T or C is Williamsburg with a 2000 census population of 527. The following Table 3-1
28

indicates the T or C relative ranking in terms of population within the state. Table 3-2 illustrates the
population estimates for Sierra County 1970-2010.

TABLE 3-1 20 LARGEST CITIES IN NEW MEXICO


City
2000
Population
1990
Population
1980
Population
%
Growth
1980-1990
1990/2000
Growth
Rate
Albuquerque 448,607 384,736 332,920 15.56% 16.6%
Las Cruces 74,267 62,176 46,999 32.29% 19.4%
Santa Fe 62,203 55,859 49,299 13.31% 11.4%
Roswell 45,293 44,654 39,676 12.55% 1.4%
Farmington 37,844 33,997 32,677 4.04% 11.3%
Rio Rancho 51,765 32,505 9,985 225.54% 59.3%
Clovis 32,667 30,954 31,194 -0.77% 5.5%
Hobbs 28,657 29,115 29,187 -0.25% -1.6%
Alamogordo 35,582 27,596 24,024 14.87% 28.9%
Carlsbad 25,625 24,952 25,496 -2.13% 2.7%
Gallup 20,209 19,154 18,167 5.43% 5.5%
Las Vegas 14,565 14,753 14,322 3.01% -1.3%
Deming 14,116 10,970 9,964 10.10% 28.7%
Sunland Park 13,309 8,179 4,313 89.64% 62.7%
Portales 11,131 10,690 9,940 7.55% 4.1%
Silver City 10,545 10,683 10,474 2.00% -1.3%
Artesia 10,692 10,610 10,385 2.17% 0.8%
Los Lunas 10,034 6,013 4,369 37.63% 66.9%
Lovington 9,471 9,322 9,727 -4.16% 1.6%
Socorro 8,877 8,159 4,313 89.17% 8.8%
Grants 8,806 8,626 11,439 -24.59% 2.1%
Espanola 9,688 8,389 7,296 14.98% 15.5%
T or C 7,289 6,221 5,412 14.95% 17.2%
Total 983,953 852,092 736,166 0.15747264 15.5%
29

TABLE 3-2 NM COUNTYS POPULATION AND HOUSING 1970-2010


Although the population is continuing to slowly expand, the age distribution within the overall
population figures is changing and the median age is increasing. The changing age composition of the
population structure will have an effect on housing and commercial demand, but it is uncertain at this
time what that effect will be. The fastest growing age component of the population is the 45-75 age
group. This age group historically has not been the prime home purchasing market, but may foster a
need for retirement units.
3. ECONOMY-INCOME AND EMPLOYMENT
Located on I-25 and the edge of Elephant Butte Lake the economy of Truth or Consequences has
historically been tied to tourism, transportation and agriculture. Employment figures for the town of
Truth or Consequences are reported as part of Sierra County. Based upon January 2013 employment
figures that were released by the New Mexico Department of Labor, nonagricultural employment for the
county has remained stable with current employment of 6,060 persons while unemployment for Sierra
County is approximately 6.3%, which is below the 2012 figure of 7.3%. Statewide New Mexico
unemployment for the period is approximately 7.1%, down from 7.9% for the same period in 2012.
Sierra County currently has one of the lowest unemployment rates of any county in New Mexico.
The following Table 3-3 indicates the relative slow rate of employment growth in Sierra County
from 2000 thru 2013.

30

Table 3-3 Annual Average Employment 2000-2013 Sierra County
.
Year
Dec.
Labor
Force Employment Unemp Rate
>< Total
Labor Force
% Change in
Labor Force
2000-2013
2013 5,962 5,634 328 5.50% 3.33% 10.82%
2012 5,770 5,408 362 6.27% -1.40%
2011 5,852 5,475 377 6.44% -1.20%
2010 5,923 5,555 368 6.21% -0.50%
2009 5,953 5,641 312 5.24% 0.83%
2008 5,904 5,663 241 4.08% 6.19%
2007 5,560 5,378 182 3.27% 3.02%
2006 5,397 5,162 235 4.35% -0.50%
2005 5,424 5,131 293 5.40% 1.16%
2004 5,362 5,048 314 5.86% 0.62%
2003 5,329 5,031 298 5.59% -0.41%
2002 5,351 5,063 288 5.38% -0.54%
2001 5,380 5,126 254 4.72% 1.61%
2000 5,295 5,060 235 4.44%


During the summer months the population within the T or C and Elephant Butte market area
increases dramatically due to the recreational attraction of Elephant Butte Lake. On the primary holidays
such as the 4
th
of July and Labor days the population will increase to more than 100,000 persons. The
annual attendance approaches 1.8 million.
Although the nature of the economic base of the community tends to protect it somewhat from
down swings in the national economy, there is a cost. Table 3-4 indicates the median income of the 50
US States. New Mexico ranks in the lower 25% but also ranks third among states with the fastest per-
capita income growth over the previous five years and first among southwestern states.
The community, as a result of the generally low household income as a whole is price sensitive.
This in turn leads to price competition in all sectors of the local economy. The result is a lower than
average cost of living in the community. This lower cost of living including housing, commercial
services and property taxes is seen as an attraction to those planning on moving from other parts of the
country.
31

Table 3-4 Median Incomes U.S. 2010
United States 50,740
Alabama 40,554
Alaska 64,333
Arizona 49,889
Arkansas 38,134
California 59,948
Colorado 55,212
Connecticut 65,967
Delaware 54,610
District of Columbia 54,317
Florida 47,804
Georgia 49,136
Hawaii 63,746
Idaho 46,253
Illinois 54,124
Indiana 47,448
Iowa 47,292
Kansas 47,451
Kentucky 40,267
Louisiana 40,926
Maine 45,888
Maryland 68,080
Massachusetts 62,365
Michigan 47,950
Minnesota 55,802
Mississippi 36,338
Missouri 45,114
Montana 43,531
Nebraska 47,085
Nevada 55,062
New Hampshire 62,369
New Jersey 67,035
New Mexico 41,452
New York 53,514
North Carolina 44,670
North Dakota 43,753
Ohio 46,597
Oklahoma 41,567
Oregon 48,730
Pennsylvania 48,576
Rhode Island 53,568
South Carolina 43,329
South Dakota 43,424
Tennessee 42,367
Texas 47,548
Utah 55,109
Vermont 49,907
Virginia 59,562
Washington 55,591
West Virginia 37,060
Wisconsin 50,578
Wyoming 51,731
Puerto Rico 17,741
State
Median
income

Source: U.S. Bureau of Economic Analysis
32

5. CLIMATE
The climate of Truth or Consequences is semi-arid which provides for very mild winters and hot,
dry summers. Truth or Consequences has an average daily high/low temperature of 74 and 46 degrees
and an average rainfall of 12.0 inches annually. Mild climate is a major appealing factor to many retired
citizens of the community and others that may be contemplating moving to the area.
6. GOVERNMENT
The governments of Elephant, Truth or Consequences and Sierra County are similar to most
communities in New Mexico. The Cities of Elephant Butte and Truth or Consequences have a mayoral
form of government with a City Council. The five member City Council is elected as is the mayor. The
County is run by an elected county commission consisting of three members.
7. UTILITIES
Following is a list of utility suppliers to the residents of Sierra County.
Electricity City of T or C/ Sierra Electric Coop
Natural Gas Gas Company of New Mexico
Water City of Truth or Consequences/GarfieldWater Assoc./
Lakeshore/National Utility Company/ Rincon Water
Sewers City of Truth or Consequences & Elephant Butte
Telephone Windstream, Verizon
Sanitation City of Truth or Consequences
8. HOUSING
Housing is relatively affordable in the community. Housing as compiled from the 2010 Census
included 8,356 dwelling units. The median value of an existing single family home is approximately
$130,000. Conversations with city personal indicate a reasonably active commercial building market
with several new projects having been completed during 2005-2013 and several new projects currently
under construction.
9. SCHOOLS
The Truth or Consequences Public School System 2012 enrollment was approaching 2,000
students. The Truth or Consequences School System consists of.
A) One high school
B) One middle school
C) Two elementary schools
Also located Truth or Consequences Western New Mexico University distant learning center,
which offers several college credit courses per semester. Located within commuting distance in Las
Cruces New Mexico is New Mexico State University.




33

10. TRANSPORTATION
Transportation in and out of Truth or Consequences is good with Interstate 25 (north-south) at its
center. Greyhound Bus Lines provides passenger service to and from Truth or Consequences. The
nearest major commercial air service available to Truth or Consequences is located in El Paso, TX
approximately 120 miles south and Albuquerque approximately 130 miles north. Currently no local
public transit system is available to Truth or Consequences residents.
11. MEDICAL FACILITIES
Located within the community of Truth or Consequences is Sierra Vista hospital with 43 beds,
emergency room and skilled nursing unit. Sierra Vista Hospital provides helicopter ambulance service
to both Las Cruces and Albuquerque hospitals. Also located in the community is the Ben Archer Health
Center, Sierra Health Care Center nursing home with 110 beds and the New Mexico Veterans Home
with 170 beds. The nearest regional hospitals are located in Las Cruces, NM approximately 80 miles
south and Albuquerque which is approximately 140 miles north. Sierra Vista Hospital provides
helicopter ambulance service to both Las Cruces and Albuquerque hospitals.
12. RECREATION
Truth or Consequences municipality provided sports facilities include baseball and softball
fields, basketball courts, and picnic areas. Located just east of the city is Elephant Butte Lake State Park
with over one million visitors in 2013. Other travel destinations located within a one hour drive of the
city are Caballo Lake and Percha Dam State Parks, Gila National Forest and Bosque Del Apache
National Wildlife Refuge.
13. CHURCHES
Most major denominations are available to serve the religious preferences of the community.
14. MORTGAGE MARKET FACTORS
Located within the city are four banks and one savings bank. The local lending institutions have
sufficient deposits to handle the level and nature of growth predicted for the area. Existing local lenders
are considered to be in good financial shape. One reason is the diversified nature of the local
commercial loan portfolio.
In the Truth or Consequences market area, most business tend to be small and locally owned.
These small, locally owned businesses are entrepreneurial responses to the increasing population and its
varied demands. These small businesses do not require a great deal of space. Hence, there are numerous
small commercial buildings for retail and office space. The underlying loans are individually relatively
small and the total is well diversified.
The local mortgage market for residential as well as commercial and other type of loans until
recently has been rather isolated from the volatility in the national and international markets. However,
local lenders have been forced, as a result of competition and liquidity requirements, to become more
integrated with secondary market operations. Local lenders are now adept at pooling mortgages for
34

resale in the secondary markets and using pools of residential and commercial mortgages for the
collateralization of securities sold in the capital markets. As a result of this activity, local interest rates
move with the same volatility as they do in the national and international capital markets.

15. NEW COMMUNITY DEVELOPMENTS

The New Mexico Spaceport America
In 2006 two studies commissioned by the New Mexico Economic Development
Department reported their findings. The reports were similar in their observations and projections. One
of those studies conducted by the Arrowhead Center at New Mexico State University reported that by
the fifth year of operation, the spaceport would sustain close to $1 billion in new revenues creating
approximately $350 million in new payroll and generating over 4,970 new jobs. For Sierra County this
provides dramatic growth potential. Truth or Consequences/Elephant butte is the metropolitan area
closest to the Spaceport and despite the smaller community size, and a reasonably estimate is that 40%
of the holders of new jobs would choose to live in Sierra County because of the nearness to the job site
and recreational amenities available. Based on an estimated total of 4,970 new jobs by 2016 this
percentage would equate to approximately 1,988 new jobs in Sierra County. Given an historic
employment to population ratio of 2.6 this would result in a population increase of 5,168 m/l due to the
Spaceport alone. Forty percent of the new jobs related to building and road construction, i.e., (992) could
similarly add 2,579 additional persons during the 2014/2020 period.
Super Wal-Mart
In December 2005 Wal-Mart announced plans to construct a Super Store near Exit 79 on I-25 in
Truth or Consequences. This represented a $30 million, 110,000 square foot facility, construction
project. The facility is now in operation and has added over 300 new jobs (Est. 780 increase in
population) and significantly increased GRT.
Hot Springs Land Development
The Hot Springs Land Development, LLC is expected to bring economic development to New
Mexico and Sierra County through the combined economic strength of Spaceport America support
industries, auto racing, business aviation, national security and associated R & D activities along with
residential development. HSLD has identified a logistical opportunity to create a permanent industrial
complex to include shops, garages, parts warehouses and tracks for testing and education to support all
races west of the Mississippi as well as support and supply facilities for the developing Spaceport
America. Currently nearly 7,388 acres, or about 12 square miles bracketing Interstate 25 have been
assembled for the express purpose of the HSLD PUD. The appraiser estimates of employment in the
development will be on the order of 2,500 with a population of 16,000 +_ in the next 25-30 years. The
necessary land swaps and leases between the State, BLM and the County have been completed and
development could be expected to begin in late 2016 to mid 2017.
35

Illustrative Development Plan for HSLD


Sierra Del Rio Resort and other Developments
Sierra Del Rio Resort is being developed on over 1,049 acres of land in Elephant Butte. An 18-
hole championship golf course intended by the development company to be the premier golf experience
in New Mexico. Lots range in prices from $47,000 to $250,000. Approximately 120 lots have been
sold. Approximately 75% of the buyers are from out of the area. At the present time approximately a
dozen homes have been started surrounding the operating golf course.
Sierra Vista Hospital Replacement Facility Project
The Hospital Board and community leaders are actively working towards the funding of a new
$28,000,000 hospital facility that will replace the existing facility on a 15 to 20 acre site. Construction
on the new emergency facility and physical is to begin in the second quarter of 2014.
Truth or Consequences Community Golf Course Expansion and other Developments
The City of Truth or Consequences is currently planning for the expansion of its nine-
hole community course to 18 holes.
There are several small retail/office centers in the planning process.
An expanding art community is rejuvenating the downtown area of Truth or
Consequences.
36

Lake levels although low are continuing to bring in more recreational visitors and
permanent residents that are attracted to the lake.
The County airport is scheduled for expansion.
New Hot Springs Retail Center the location of Wal-Mart is also the location of a newly
developed Holiday Inn Express.
A copper mine is in the process of opening near Hillsboro with an initial investment in
excess of $300,000,000. Operational in late 2015 early 2016.
An alge/biofuel plant is being planned for developed for $250,000,000 over the next
three to four years near Spaceport America.
A new motel is being discussed for construction that is to be leased by Virgin Galactic
for its space clients.
The 6,000 sf Spaceport Welcome Center located in T or C is to begin construction in late
of 2015 within the Hot Springs Retail Center.
Ted Turner recently purchased the Sierra Grande Lodge in anticipation of future
developments.
There is clear evidence that the new developments are having an effect on the market place and
generating effective demand for the subject. The City of Truth of Consequences is a gateway city for the
States $210M Spaceport and Virgin Galactic space tourism operation. Recently the Governor of NM,
while in T or C, signed the informed Consent Legislation into Law. This widely anticipated legislation
is already creating opportunities for both commercial and residential expansion in the area as a result of
Spaceport Americas need for supply chain contractors who do not currently have a presence in the area.
In addition to this it has been confirmed that the near term construction of two major employers in the
area as outlined above will require housing and support business structures for professional engineers
and high end technical personnel. These companies include the Copper Flat Mine and an alternative Bio
Fuel production plant and refinery in Sierra County. These two companies alone may provide an
additional 250 + high net technical and engineering jobs in Sierra County in the immediate future.
Changing Real Estate Market Demand
The housing demand and supply in Sierra County appeared to be in reasonable balance during the
period 01/01/02 through 01/01/04. However, from 2004 through 2009 the market shifted upward. The
Sierra County Multiple Listing Service (of which this appraiser is a member) indicated total residential
sales during 1/1/2002-12/31/2006 of 994 out of which 523 were site built, 432 manufactured housing
and 39, one to four family. The median price of all sf site built sales in 2002 was $62,356, by the end of
2008 this figure has risen to $133,505. In 2009 the figure dropped to $130,027 but jumped in 2011 to
$165,000. The following Table 3-5 illustrates the changes in total sales as well as residential sales.
Brokers have reported that the drop in single-family sales in 2006-2008 was not due to demand but
rather the lack of supply on the market that was available to sell. However, 2009 also saw a drop in
37

demand which has continued thru 2013. For 2013 the figure was 210 DOM. The year 2013 saw a further
decline in the real estate market sales. The actual number of total sales in 2013 was only 26% of the total
sales in 2006.
Additionally total sales in 2013 of 8,565,370 represent the lowest volume of sales passing
through the MLS since 2002. Any increase in 2014 is generally believed to be tied to the development of
Spaceport America.

TABLE 3-5 HOUSING SALES 2002-- 2013
Year
Total # of
all MLS
Sales
Total #
Residential
Sales
SF Site
Built
Dwelling
Mfg
Housing
multi
family
Avg Sale
Price Site
Built
% Change in
Avg Price
2013 94 74 36 44 0 $124,371 -2.91%
2012 130 96 52 44 0 $128,102 -22.36%
2011 76 40 19 21 0 $165,000 23.57%
2010 87 66 31 35 0 $133,531 2.69%
2009 141 118 60 57 1 $130,027 -2.61%
2008 210 162 92 66 4 $133,505 19.91%
2007 276 203 114 81 7 $111,334 2.39%
2006 400 104 104 103 10 $108,733 -7.74%
2005 342 243 135 101 7 $117,860 18.09%


Although it is impossible to determine with a great deal of specificity at this time as to what the
newly developing economic environment in Sierra County will bring in terms of population and income
growth it is speculated that growth will occur at a rate not historically seen in Sierra County. This
impending growth rate can be seen in the surge of real sales in the last few years leading up to 2006. As
the overall local economy slumped in 2007-2013 so did real estate sales. Based on data through
December 2013 real estate sales were nearly 73% below 2006.

TABLE 3-6 TOTAL REAL PROPERTY $ SALES SIERRA COUNTY 2002 -2013
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Residential $6,563,570 $9,306,970 $4,990,619 $7,392,673 $12,337,900 $22,687,287 $21,377,713 $18,045,670 $20,320,780 $12,271,650
Land $953,800 $485,250 $697,300 $944,900 $1,356,500 $3,571,706 $4,628,750 $6,619,148 $3,187,010 $771,040
Comm-Ind $923,000 $1,248,000 $4,168,450 $235,500 $580,000 $1,200,000 $2,811,900 $6,215,552 $2,138,250 $981,500
Multi-Family $125,000 $0 $0 $0 $240,000 $465,000 $376,200 $1,629,000 $366,000 $886,000
Total Sales $8,565,370 $11,040,220 $9,856,369 $8,573,073 $14,514,400 $27,923,993 $29,194,563 $32,509,370 $26,012,040 $14,910,190
% <> -22.42% 12.01% 14.97% -40.93% -48.02% -4.35% -10.20% 24.98% 74.46% 2.56%

The following Table 3-7 illustrates the deposit base of the Countys banks and provides another
indicator of the communitys economic growth. It can be seen that the total deposit base has fluctuated
over the last ten years from between $80,598,000+- to $121,400,000 +-. Although there are variations,
there is a slow but discernible upward growth of approximately 2.83% per year. During the period
6/30/2011 to 6/30/2013 total deposits in local banks increased by a significant 11%.



38

TABLE 3-7 DEPOSITS BY BANK- SIERRA COUNTY, NM 6/30/00 TO 6/30/13
Deposits/Bank Name
Bank of the
Southwest
(State National) to
Compass First Savings Citizens Bank Total % Change
Deposits 6/30/2013 $59,608,000 $17,230,000 $25,372,000 $19,200,000 $121,410,000 3.99%
Percentage 49.10% 14.19% 20.90% 15.81% 100.00%
Deposits 6/30/2012 $56,713,000 $20,360,000 $22,297,000 $17,386,000 $116,756,000 6.99%
Percentage 48.57% 17.44% 19.10% 14.89% 100.00%
Deposits 6/30/2011 $51,637,000 $23,539,000 $21,818,000 $12,133,000 $109,127,000 -1.89%
Percentage 47.32% 21.57% 19.99% 11.12% 100.00%
Deposits 6/30/2010 $51,113,000 $25,216,000 $22,567,000 $12,329,000 $111,225,000 15.29%
Percentage 45.95% 22.67% 20.29% 11.08% 100.00%
Deposits 6/30/2009* $42,525,000 $27,500,000 $18,768,000 $7,682,000 $96,475,000 -0.82%
Percentage 44.08% 28.50% 19.45% 7.96% 100.00%
Deposits 6/30/2008 $39,717,000 $38,421,000 $19,136,000 $97,274,000 9.73%
Percentage 40.83% 39.50% 19.67% 100.00%
Deposits 6/30/2007 $39,587,000 $31,249,000 $17,811,000 $88,647,000 -6.62%
Percentage 44.66% 35.25% 20.09% 100.00%
Deposits 6/30/2006 $42,615,000 $33,609,000 $18,705,000 $94,929,000 7.97%
Percentage 44.89% 35.40% 19.70% 100.00%
Deposits 6/30/2005 $39,731,000 $32,565,000 $15,626,000 $87,922,000 4.58%
Percentage 45.19% 37.04% 17.77% 100.00%
Deposits 6/30/2004 $39,288,000 $30,421,000 $14,366,000 $84,075,000 0.90%
Percentage 46.73% 36.18% 17.09% 100.00%
Deposits 6/30/2003 $39,629,000 $29,008,000 $14,685,000 $83,322,000 3.38%
Percentage 47.56% 34.81% 17.62% 100.00%
Deposits 6/30/2002 $38,465,000 $29,035,000 $13,098,000 $80,598,000 -5.29%
Percentage 47.72% 36.02% 16.25% 100.00%
Deposits 6/30/2001 $41,833,000 $30,146,000 $13,117,000 $85,096,000 -1.38%
Percentage 49.16% 35.43% 15.41% 100.00%
Deposits 6/30/2000 $40,849,000 $31,558,000 $13,877,000 $86,284,000
Percentage 47.34% 36.57% 16.08% 100.00%
Average $ $47,946,923 $30,758,231 $19,326,385 $5,286,923 $103,318,462
Average % 46.41% 29.77% 18.71% 5.12% 100.00% 2.83%

It is the appraisers opinion, based on the known developments mentioned above and the current
expected expansion, as well as a review of Chamber of Commerce inquiries, gross receipts tax, lodgers
tax, utility connections, bank deposits, and other indices, that the historic population annual growth rate
seen above will move from current levels up to a reasonable estimate of 3% during the period 2014 to
2020 and 4% from 2020 to 2030. This rate is also less than but consistent with a recent study conducted
by SMPC Architects for the Sierra Vista Hospital Replacement Facility Project. The following Table 3-7
reflects these projections.
39

Table 3-8 1980-2030 Sierra County Pop. Projections at 3% to 4% 2011- 2030

The above Table although general in structure indicates that in Sierra County proper, during the
period 2011 through 2030 annual household formations could increase from 144 in 2011 to 367 in 2030.
Each household formation will require an additional dwelling unit of some type to be added to the Sierra
County housing stock. The impact on the subject should be that the subject should maintain its
competitive position within the commercial land market as there does not appear to be any negative
Year Population Total Annual Annual
Projection Household Household Population
Formations Formations Increase
1980 8,454 3,019
1981 8,589 3,068 48 135
1982 8,727 3,117 49 137
1983 8,866 3,166 50 140
1984 9,008 3,217 51 142
1985 9,152 3,269 51 144
1986 9,298 3,321 52 146
1987 9,447 3,374 53 149
1988 9,598 3,428 54 151
1989 9,751 3,483 55 153
1990 9,907 3,538 56 156
1991 10,003 3,705 35 95
1992 10,099 3,740 36 96
1993 10,196 3,776 36 97
1994 10,294 3,813 36 98
1995 10,393 3,849 37 99
1996 10,493 3,886 37 100
1997 10,594 3,924 37 101
1998 10,696 3,961 38 102
1999 10,799 4,000 38 103
2000 10,903 4,038 38 104
2001 11,008 4,077 39 105
2002 11,114 4,116 39 106
2003 11,220 4,156 40 107
2004 11,328 4,196 40 108
2005 11,437 4,236 40 109
2006 11,547 4,277 41 110
2007 11,658 4,663 44 111
2008 11,771 4,708 45 112
2009 11,884 4,754 45 113
2010 11,998 4,799 46 114
2011 12,358 4,943 144 360
2012 12,729 5,092 148 371
2013 13,111 5,244 153 382
2014 13,504 5,402 157 393
2015 13,909 5,564 162 405
2016 14,326 5,731 167 417
2017 14,756 5,903 172 430
2018 15,199 6,080 177 443
2019 15,655 6,262 182 456
2020 16,125 6,450 188 470
2021 16,770 6,708 258 645
2022 17,440 6,976 268 671
2023 18,138 7,255 279 698
2024 18,863 7,545 290 726
2025 19,618 7,847 302 755
2026 20,403 8,161 314 785
2027 21,219 8,488 326 816
2028 22,068 8,827 340 849
2029 22,950 9,180 353 883
2030 23,868 9,547 367 918
Rate of Growth 1.01599 to 1990
Rate of Growth 1.00962 to 2010
Rate of Growth 1.03 2011--2020
Rate of Growth 1.04 2021-2030
HH Size 2.8 to 1990
HH Size 2.7 to 2006
HH Size 2.5 2007 to 2030
40

external factors within the real estate market that would impact its locational attributes, nor are there any
new development that would impact on its competitive position.
Additionally it should be noted that there is another employment/population scenario that is
based on very likely and known conditions that are scheduled to develop within the next 12-24 months
and that is the final development of the Spaceport and its welcome center in T or C, the ongoing
development of Copper Flat Mine, the initial phases of the Bio Fuel Plant, the new emergency room and
physical plant at Sierra Vista Hospital as well as related developments. Table 3-9 below illustrate the
potential impact on employment and population within the County as these commercial developments
come on line. The associated population projections are based on an historic employment to population
ratio of .42 which is also what it was in the 2010 census. It is unknown if this ratio will hold at the
margin but is likely to be consistent with long run projections. New housing requirements are based on a
household size of 2.75 persons. Bear in mind that the high point in historic employment in the County
was in July of 2010 with an labor force of 6,256 and total employment of 5,885 according to NMD of
Workforce Solutions-Economic Research and Analysis.

TABLE 3-9 SIERRA COUNTY EMPLOYMENT/POPULATION PROJECTIONS 2013--2020
Source/Year 2014 2015 2016 2017 2018 2019 2020
Copper Flat Mine 50 100 150 50 0 0 0
Bio Fuel 50 100 150 25 0 0 0
Spaceport America & Related Industries 50 100 160 200 250 300 350
Health and Related 10 10 10 10 12 12 12
Other Services 10 10 10 10 12 12 12
Government 5 5 5 5 5 5 5
Other Industrial Sectors
Increase in Employment 175 325 485 300 279 329 379
Projected Employment(Dec 2000 5408) 5583 5908 6393 6693 6972 7301 7680
Annual Percentage Change 1.00% 5.82% 8.21% 4.69% 4.17% 4.72% 5.19%
Estimted Population (.42 emp/pop) 13,293 14,067 15,221 15,936 16,600 17,383 18,286
Percentage Change 5.82% 8.21% 4.69% 4.17% 4.72% 5.19%
New Housing Requirements @2.75 pph 114 118 176 109 101 120 138



The following Section IV presents details of the subject site.
41







Section IV



Site Data

42

SECTION IV SITE DATA
1. SITE DESCRIPTION
The subject is located in the northern business district of Truth or Consequences in the SEC of
the intersection of Nth Date Street and I-25. The site is generally rectangular with observed elevation
variations of 10 more or less in some areas. The entire property is within the New Hot Springs Retail
Center and adjoins the Super Wal-Mart site on its East and Interstate 25 on its West. To the immediate
North and South are undeveloped parcels. The entire site is within the City limits of Truth or
Consequences. The original HSRTC development is broken into five phases. Phases 1 through 4 are on
the north end of the tract while Phase 5, a 26 +- acre tract, is on the south side of the area and sits
approximately 12 to 15 feet higher in elevation. The north portion of the subdivision is platted and
approved and broken into Blocks and Lots. The subject is on the SWC of the Northern portion.

2. TOPOGRAPHY AND SOILS
The subject in its natural state is made up almost entirely of high mesa desert grazing lands with
sparse vegetation and six to eight inches of rain fall per year. The animal unit grazing allotment is
typically 6 to 7.2 per section (640 acres). The undulating and shifting elevation of the topography of the
site is common to the region and surrounding land uses. The region is generally undulating to steep
slopes with mild rock outcroppings and generally sloping towards the east and south into natural arroyos
that ultimately wind their way to the Rio Grande to the east. The soil is typical for the area and should
pose no problem for future improvements. Discussions with the US Soil Conservation Service indicates
that no comprehensive soil survey of Sierra County has been made.

3. DRAINAGE FEATURES AND FLOOD ZONE
The area drains naturally to the east and south into undeveloped natural drainage areas extending
through natural arroyos to the Rio Grande. However, the developer has equipped the subdivision with a
fully functioning underground storm water system that drains the entire area. The drainage appears to be
adequate and poses no problems to further development. The site is not in a FEMA hazardous flood
zone. See the flood map in the preface.

4. UTILITIES AND ACCESS
The area is within the City limits of Truth or Consequences and is serviced with City power, via
overhead power lines and underground through the subdivision. Power is underground to the lots. Sewer
will be by City sewer. Water is provided by City water. Gas is provided by New Mexico Gas Company.
Current access to the site is via North on Date Street to H.R. Ashbaugh Drive then West to
Sanford Wilson Rd. The site is located on the NWC of H.R. Ashbaugh Dr and Sanford Wilson Road.
43

The regional access is easily available from I-25 Exit 79 to the immediate north from which the
proposed visitor center building will be imminently visible from I-25 both North and South Bound.

5. SETBACKS AND EASEMENTS
There are no unusual setbacks, easements or encroachments on the deeded acres noted on the plat
at the County Assessors Office, nor were any observed. However, there are utility easements as well as
covenants and deed restrictions put in place to maintain the quality and architectural styles and values of
the area.

6. SURROUNDING IMPROVEMENTS
The surrounding land uses to the North and East of the subject are all commercial activities
consisting of an existing Wal-Mart, three motels as well as restaurant and auto fueling stations. To the
SE of the site is a high school and public golf course. To the West across I-25 and the immediate south is
vacant land. There are no negative external factors resulting from the immediately surrounding land
uses.

7. PROPERTY TAXES
The following Table 4-1 is a breakdown of the subject propertys assessed and market values for
the subject land as determined by the Sierra County Assessors office for the 2013 tax year. The
subdivided parcels 1 and 2 of the 8.81 acre lot have yet to be assessed separately by the County
Assessors office.

TABLE 4-1 SUBJECT PROPERTY FULL AND TAXABLE VALUE 2013
Owner Prop ID Legal Size Ac. Size sf Bk Pg
Assessor's
Full Value
Taxable
Value
Est Tax
2013
AC Co. Inc 18179 Blk 1 Lot 2 0.45 19,602 NHSRC $63,939 $21,313 $520
AC Co. Inc 18181 Blk 3 Lot 1-A 0.98 42,689 NHSRC $137,496 $45,832 $1,118
AC Co. Inc 18182 Blk 3 Lot 2-A 0.83 36,155 NHSRC $116,751 $38,917 $949
AC Co. Inc 18981 Blk 4 Lot 1 0.534 23,261 NHSRC $74,475 $24,825 $606
AC Co. Inc 18987 Blk 4 Lot 2 0.534 23,261 94 2659 $74,619 $24,873 $607
AC Co. Inc 18988 Blk 4 Lot 3 0.534 23,261 NHSRC $74,499 $24,833 $606
AC Co. Inc 18989 Blk 4 Lot 4 0.534 23,261 94 2659 $74,400 $24,800 $605
AC Co. Inc 18990 Blk 4 Lot 5 1.892 82,416 94 2659 $263,706 $87,902 $2,144
H.I. 18991 Blk 4 Lot 6 2.491 108,508 94 2659 $347,241 $115,747 $2,823
AC Co. Inc 18992 Blk 4 Lot 7 0.408 17,772 94 2659 $28,434 $9,478 $231
AC Co. Inc 16585 S2,NE4,S28,T13S, R4W 8.81 383,764 102 1659 $654,555 $218,185 $5,322
AC Co. Inc 18008 S28,T13S, R4W 26.93 1,173,071 106 130 $411,978 $137,326 $3,350
44.927 1,957,020 $1,910,115 $636,705 $18,881


44

These taxes are reasonable and in line with other commercial properties and undeveloped land in
the same area. All the taxes are current.

8. IMPROVEMENT ANALYSIS
Paved access roads have been constructed and power, gas, sewer and water are to each lot line
and immediately available to the larger tracts. A drainage plan is in place and an underground storm
water system is on site.

9. ENVIRONMENTAL CONSIDERATIONS
The appraiser has made a personal inspection of the site and did not uncover any apparent signs
of hazardous materials. Hazardous materials may or may not be present on the site, but the appraiser is
not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde
foam insulation, leaking oil or gas tanks, or other potentially hazardous materials may effect the value of
the property. The value estimate is predicted on the assumption that there is no such material on or in
the property that would cause a loss of 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.

The following Section V discusses the market environment of the subject and its relative position
within the commercial land market within the County and T or C.
45







Section V



Valuation
46

SECTION V - VALUATION

The following Section V develops the reasoning and methodology utilized in arriving at a
determination of highest and best use and a valuation conclusion for the subject commercial parcel.

1. HIGHEST AND BEST USE

Highest and best use of land is defined as "The reasonably probable and legal use of vacant land
or an improved property which is physically possible, appropriately supported, financially feasible, and
that results in the highest value." (The Appraisal of Real Estate, Tenth Edition, 1992.) In order to
estimate the highest and best use, there are essentially four points of analysis. These are as follows:

I. Physically Possible Use of the Site - What uses are physically possible, given the size,
shape, and topography and location of the site?

II. Legally Permissible Uses of the Site - among the physically possible uses, what uses
are legally allowed given the zoning, easements, and deed restrictions?

III. Financially Feasible Uses of the Site - among the uses, which are physically possible
and legally permissible? What uses would provide a reasonable residual net return to
the land?

IV. Most Productive Use of the Site - among the financially feasible uses, which use
would result in the greatest net return to the land?

PHYSICALLY POSSIBLE USES
Constraints imposed on the possible use of the property relate to the physical aspects of the site
itself. The size, shape, topography, and physical location influence ultimate development. The physical
aspects of the property would allow a multitude of possible uses. Given the physical location of the
property and its proximity to Date Street and I-25 as well as nearby commercial development, only
commercial uses are physically probable.

LEGALLY PERMISSIBLE USES
The subdivision is zoned C-1 Commercial. Legal restrictions as they apply to the subject are the
common restrictions of utility easements, public zoning ordinances, and deed restrictions. The subject
site is an existing platted commercial subdivision. Restrictions prohibit mobile home, industrial,
commercial or residential uses. All lots are encumbered with deed restrictions and protective covenants.
The main thrust of the restrictions and covenants is to provide a legal framework for the preservation,
maintenance, and control of the character of the development. The restrictions and covenants are
47

beneficial in protecting the development character and future property values for a commercial
subdivision. The restrictions are assumed to be in conformity with the sites existing zoning and
development plan. The possible permissible uses for the subject tract are retail/commercial. Therefore,
the only physically and legally possible use of the site is as a commercial/retail/office development.

FINANCIALLY FEASIBLE USES
The financially feasible uses of the site are restricted to those that are physically possible, legally
permissible and that produce a positive economic return to the land. The most probable financially
feasible use of the site is for commercial development. Of the legally permitted uses that would be likely
users of the site, the most probable one that would have market acceptance at that site and not be
restricted by the current supply of existing similar activities, is a retail/office facility catering to the
traffic on Date Street and Interstate 25. Note worthy is the fact that Wal-Mart and Holiday Inn Express
have already located within the commercial subdivision. Given the reality of the development of
Spaceport America located 35 miles south and the current activities of Virgin Galactic and Space X as
well as the expressed desires of other space related firms locating their businesses at the Spaceport
together with the national and international interest in Spaceport America it highly likely that the
projected number of visitors to the proposed facility would make it a financially feasible use.
Additionally studies that have been commissioned by the Spaceport Authority have demonstrated that
the financial feasibility of the Spaceport Welcome Center as proposed on the subject site is positive.

MOST PRODUCTIVE USE OF SITE AS THOUGH VACANT
The most productive use of the site as though vacant is the physically possible, legally
permissible, and financially feasible use that would return the highest net return to the land. The site as
proposed to be developed fits the criteria of highest and best use. The most logical financially feasible
use of the site is as proposed i.e., the future site of the Spaceport America Welcome Center.

2. VALUATION METHODOLOGY
The subject land is valued according to the determined highest and best use, i.e., the future site of
the Spaceport America Welcome Center. Comparable sales analysis is employed in the determination of
the retail market value of the commercial six acre on a sf basis. The analysis uses the average lot sale /
contract prices of available recent commercial lot sales within the subject neighborhood both outside and
inside of the subjects commercial subdivision. The average psf retail value serves as the base retail sale
price used to determine the market value of the subject.




48

3. COMPARABLE SALES ANALYSIS
The Sales Comparison or Market Approach is based upon the principle of substitution. The
process produces an estimate of value of the property by comparing it with similar properties of the same
type, class, and location that have sold recently or are currently offered for sale in the same or competing
areas. The process of comparison involves judgment concerning their similarities with respect to several
factors such as location, physical condition, terms of sale, and conditions of the subject property. The
comparable sales are compared to the subject property and ranked as equal, superior or inferior to the
subject. Qualitative adjustments are then made to the sale prices for differences between comparables.
The value range as indicated by the final adjusted sale price is then correlated into a final indicated value
for the subject property. The common denominator of the dollar sale price per square foot is used as unit
of comparison.
A search of the current commercial land sales in the area turned up several representative
comparables that are appropriate and that are used to assist the appraiser in forming his opinion of value.
The following is a descriptive list of the comparables used in the analysis. The comparable sales that are
used reflect the demand side of the market while the active listings are proxies for the supply side of the
market. Figure 6-1 illustrates the location of the comparables and Table 6-2 demonstrates adjustments to
their prices.

FIGURE 6-1 LAND SALE COMPARABLES LOCATION MAP



49

COMPARABLE LAND SALE # 1 1920 N DATE STREET T OR C
Date of Sale: August 2009 Recording: Sierra County
Grantor: Neudecker Grantee: Citizens Bank Agent: NA
Sale Price: $750,000/ $14.50 psf//Additional development cost demolition $28,000,
Size: 1.187 Ac./ 51,724 SF
Terms: Cash Zoning: C1
Location: NWC of Date Street and New School Road
Comments: Level site of Dairy Queen and Car wash purchased for land only. Demolition and dirt work
required.
Flood zone: X
Utilities: Power , Water, Sewer to site.
Intended Use: New Citizens bank development
Confirmed By: Grantee
COMPARABLE LAND SALE # 2 CBD AUSTIN STREET
Date of Sale: 8/20/2009 Recording: MLS 20104741
Grantor: Grinsted Grantee: NA Agent: Susan Lowe
Sale Price: $96,000/ $12.96 psf//
Size: .17 Ac./7,405 SF
Terms: Cash Zoning: C1
Legal Description: blk 8 lot 27, 28, e2 of lot 29 Palomas Hotsprings
Location: Austin between Foch and Daniel. South side of Austin middle of block.
Comments: Commercial Small lot level all utilities
Flood zone: X
Utilities: Power , Water, Sewer to site.
Intended Use: Parking or commercial development
Confirmed By: MLS 20104741/ agent
COMPARABLE LAND SALE # 3 NWC 3
RD
AND DATE , T OR C
Listing: 7/2014 Source: Grantor
Grantor: Anderson Grantee: NA
Sale Price: $450,000, $ 10.76 psf Size: .9599Ac./ 41,816 sq. ft.
Terms: Cash to Seller Zoning: C-1
Legal Description: Lots 11-12 Block 63 La Vista Addition
Location: East Side of Date Street, Signaled intersection
Comments: Level all utilities
Intended Use: Commercial-Mfg home sales lot
Confirmed By: Grantor to BAS

COMPARABLE LAND SALE # 4 NEW HOT SPRINGS RETAIL CENTER
Active Listing: 7/2014 Source: Grantor
Grantor: Barking Dog Mesa Land Co. Grantee: NA
List Price: $589,000, $ 8.00 psf Size: 1.69 Ac./ 73,616 sq. ft.
Terms: Cash to Seller Zoning: C-1
Legal Description: Block 2 Lot 1 New Hot Springs Retail Center
Location: SWC H.R. Ashbaugh Drive and Buck Greer Street
Comments: Level all utilities, adjacent to Wal-Mart site on East Side and just Nort of planned Spaceport
welcome Center site.
Intended Use: Commercial-Development.
Confirmed By: Grantor Barking Dog Mesa Land Co. (Barrett)
50

COMPARABLE LAND SALE # 5 NEW HOT SPRINGS RETAIL CENTER
Sold: 6/2007 Source: Grantor
Grantor: Ashbaugh Construction Co. Grantee: Crowson
Sale Price: $552,123, $ 7.54 psf Size: 1.69 Ac./ 73,616 sq. ft.
Terms: Cash to Seller Zoning: C-1
Legal Description: Block 2 Lot 1 New Hot Springs Retail Center
Location: SWC H.R. Ashbaugh Drive and Buck Greer Street
Comments: Level all utilities, adjacent to Wal-Mart site on East Side and just Nort of planned Spaceport
welcome Center site. Original sale of site from developer.
Intended Use: Commercial-Development.
Confirmed By: Grantor

COMPARABLE LAND SALE # 6 NWC 3
RD
AND DATE , T OR C
Date Sold: 2/2007 Source: Grantee
Grantor: NA Grantee: Anderson
Sale Price: $250,000, $ 5.98 psf Size: .9599Ac./ 41,816 sq. ft.
Terms: Cash to Seller Zoning: C-1
Legal Description: Lots 11-12 Block 63 La Vista Addition
Location: East Side of Date Street, Signaled intersection one of two in community.
Comments: Level all utilities.
Intended Use: Commercial-Mfg home sales-owner retired and site currently listed for $450,000 see comparable # 3.
Confirmed By: Grantee

COMPARABLE LAND SALE # 7 I-25 HUBBLE , T OR C
Listing: 7/2014 Source: MLS 20131077
Grantor: Rogers Grantee: NA
List Price: $1,500,000, $ 5.74 psf Size: 6.0Ac./ 261,360 sq. ft.
Terms: Cash to Seller Zoning: C-1
Legal Description: Tract 4 Just east of Water tank at I-25 Exit 79
Location: West of I-25 across from planned Spaceport Welcome Center West of Date Street Signaled
intersection
Comments: Hilly Topo Driveway to City Street near City golf Course back nine as planned.
Intended Use: Commercial development
Confirmed By: Grantee
COMPARABLE LAND SALE # 8 905 DATE STREET, T OR C
Date of Sale: 6/2009 Recording: Sierra County
Grantor: Lockhart Grantee:NA
Sale Price: $264,023, $5.27 psf, plus demolation cost of $15,000
Effective sale price for land only is est at $279,023 or $5.57 sf.
Size: Approximately 50,000 sf
Terms: Cash to seller Zoning: C-1
Legal Description: Lots 5 & 6 Block 12 Country Club Heights
Location: East Side of Date Street Site of Old Sonic.
Comments: Interior, level parcel w/all utilities available on site. Located in Zone X (outside 500 yr.
flood zone) The buyer demolished the old Sonic and the purchase was for the land only. The
intended use is for an retail auto parts facility.
Intended Use: Commercial Development
Confirmed By: C-21 D. Hogan 505 894 6611
51

COMPARABLE LAND SALE # 9 NEW HOT SPRINGS RETAIL CENTER
Date of Sale: 10/2011 Recording: Sierra County
Grantor: Ashbaugh Construction Co. Grantee: Holiday Inn Express
Size: 2.491 Acres
Sale Price: $600,000, $5.53 psf,
Terms: Cash to seller Zoning: C-1
Legal Description: Lot 4 Block 6 New Hot Springs Retail Center
Location: North end of Cul de Sac F.G. Amin Street
Comments: Interior, level parcel w/all utilities available on site. Located in Zone X (outside 500 yr.
flood zone) The site is on the north most point of the NHSRC and can be seen fro I-25 and
Date Street. Purchased for site of new Holiday Inn Express.
Intended Use: Three story HIE
Confirmed By: Grantor

COMPARABLE LAND SALE # 10 1980 N DATE ST, T OR C
Active Listing: 7/2014 Source: MLS 20141169
Grantor: Campbell Grantee: NA
List Price: $950,000, $ 4.00 psf Size: 5.46 Ac./ 237,837 sq. ft.
Terms: Cash to Seller Zoning: C-1
Location: One lot south of SWC Nth Date and Lake Way Loop
Comments: Hilly Cobby Terrain, utilities nearby, NE corner frontson Date Street, close to I-25 near
Wal-Mart, Dennys,McDonalds, K-Bobs, Comfort Inn, Motel 6 and new Holiday Inn
Express.
Intended Use: Commercial-Development.
Confirmed By: MLS 20141169

COMPARABLE LAND SALE # 11 NEW HOT SPRINGS RETAIL CENTER
Date Sold: 7/2012 Source: Grantor
Grantor: Citi Bank El Paso (REO). Grantee: Barking Dog Mesa Land Co.
List Price: $257,000, $ 3.50 psf Size: 1.69 Ac.m/l
Terms: Cash to Seller Zoning: C-1
Legal Description: Block 2 Lot 1 New Hot Springs Retail Center
Location: SWC H.R. Ashbaugh Drive and Buck Greer Street
Comments: Distress sale, purchased from bank after foreclosure. Bank held for considerable time. Level
all utilities, adjacent to Wal-Mart site on East Side and just North of planned Spaceport
welcome Center site.
Intended Use: Commercial-Development.
Confirmed By: Grantor (Barrett)

COMPARABLE LAND SALE # 12 1502 DATE ST T OR C
Date of Sale: February 2008 Recording: Sierra County
Grantor: Blake Chanslor Revocable Trust Grantee: NAPA Agent: NA
Sale Price: $179,000/ $3.25 psf Size: 1.262 Ac./ 54,973 SF
Terms: Cash to Seller Zoning: C1
Legal Description: Length Metes Bounds
Location: 1502 Date St T or C
52

Comments: Flood zone X. Cobby topography with large drainage area on north line. Estimated cost of
dirt work and box culvert is $100,000 for an effective sale price of a buildable site of $5.08
sf. Power , Water, Sewer to site.
Intended Use: Commercial development
Confirmed By: BAS Contract Review

COMPARABLE LAND SALE # 13 1748 E 3RD, T OR C
Active Listing: 7/2014 Source: MLS 20118400
Grantor: Alex Arrow Grantee: NA
List Price: $575,000, $ 2.43 psf Size: 5.429 Ac.m/l
Terms: Cash to Seller Zoning: C-1/R3
Location: East on 3
rd
past Pine Knot Bar
Comments: Level to medium slop all utilities nearby. Driveway to City Street
Intended Use: Commercial-Development.
Confirmed By: MLS 20118400

ELEMENTS OF COMPARISON
The nine common elements of comparison which are considered in the sales comparison analysis
in Table 6-1 are as follows:
Real Property Rights Conveyed
Financing Terms
Conditions of Sale
Market Conditions
Location
Physical Characteristics
Economic Characteristics
Intended Use
Non-Realty Components of Value
Under ideal circumstances, each adjustment would be supported by a paired set analysis; i.e. two
comparables being exactly the same except for one variable which would then account for the difference
in sale price. However, adequate paired sets seldom exist, even in the simple residential market. The
more complex the property the less likely it is that any type of paired set analysis would produce
reasonable or reliable results.
Therefore, in the absence of reliable paired set analysis qualitative adjustments may be employed.
Qualitative adjustments are used to adjust the sales price of any given comparable sale so it will more
accurately reflect the market value of the subject property. A qualitative adjustment is used on elements
of comparison that differ between the subject and the comparable sale. The use of qualitative
adjustments is also expected to narrow the range between the sale prices of the comparables and the
resultant range of the final adjusted sale prices. If a comparable has a superior characteristic relative to
the subject, it is adjusted downward i.e., a negative adjustment. The reason being that if it were superior
in this one characteristic, it would have logically sold for more than could be expected of the subject
property. An inferior rating would warrant an upward adjustment following the same logic.
53

The determination of the rating specific qualitative adjustment used is largely the result of four
factors; the result of any quantitative analysis that can be made from the data available, the experience of
the appraiser, the judgment of the appraiser and the test of reasonableness. In the final analysis, do the
adjustments make sense? Are they reasonable? Do they lead to a logical and reasoned conclusion for
the final estimate of market value.
Thus the relative comparison analysis, using a ranking process, is where an appraiser studies the
relationships indicated by market data without recourse to quantification. The normal approach for the
appraiser to follow is to analyze comparable sales in order to determine whether their characteristics are
inferior, superior or equal to those of the subject property. The process is similar to paired set analysis
without the quantitative analysis. Ranking analysis arrays properties according to their degree of
similarity to the subject. The application of qualitative adjustments involves separating the comparables
into those that are superior overall and those that are inferior overall. Ideally, the ranking of the prices of
these two groups brackets the probable value range of the subject. The analysis leads the appraiser to
conclude a single value indication for the subject property.
The transactions that are used in the following analysis are believed to be the best representative
comparables. The following factors are considered in the qualitative analysis.
Real Property Rights Conveyed
The real property interest conveyed is Fee Simple for all comparables.
Financing Terms
All comparables used in the analysis were sold for cash or other market equivalent condition.
Thus no adjustment is warranted.
Conditions of Sale
This element of comparison relates to the nature of the parties to the transaction and their
relationship. Where sales are not believed to be totally arms length or otherwise influenced transactions,
they may require adjustment for this variable.
Market Conditions
An adjustment for market conditions is used to show market price trends over time. Although
the generally stable market conditions since 2000 do not reflect conclusive evidence of precise price
increases over time, BAS' in house file data does provide some evidence for a positive time adjustment.
Locational Characteristics
All comparables are within the same general market area as the subject, with similar locational
characteristics. However, locational adjustments are necessary for selected comparables.
UTILITIES
Not all comparables are equal with respect to the cost of the provision of utilities, which are fully
available to the subject site. Therefore, adjustments for utilities are required.

54

ACCESS
All comparables have similar but not equal access to Broadway or Date Street, the main
thoroughfare of T or C.
TOPOGRAPHY
Topography is an important factor in a community with steep bluffs and hillside developments.
There are differences in topography that may affect the cost of development and may be adjusted for.
Frontage
All of the comparables have substantial frontages, as does the subject, on a major thoroughfare.
Therefore, no positive or negative adjustment is appropriate for the subject.
Flood Zone
The subject appears to be located in FEMA Flood Zone X areas outside the 500 year flood plain.
Some of the FEMA maps are unclear and if this is of concern to the reader then an elevation study
should be requested. Although some flood zone classifications may exert a negative influence on a sites
value, in general it is not as immediately apparent as is the impact of size. All flood zone classifications
are equal to the subject and no adjustment is required.
Size
The general trend in this market area is that within ranges as the size of the land tract increases,
the price per SF declines. Although it is not unusual to have a size factor offset by location or other
considerations.
Comparable #1 is the sale of a 1.19 acre parcel located at 1920 Nth Date St. The comparable
consisted of two lots with a DQ on one and an older car wash on the other. Citizens bank purchased the
property for $750,000 for the land only. The purchase price and demolition give an effective sale price of
$778,000 or $15.09 sf. The site is rated as over all superior to the subject due to the very visible location
on Date Street and proximity to the signaled intersection. Thus the net rating is superior due primarily to
the location and improvements involved and the overall adjustment is negative.
Comparable #2 is the sale of a .1722 acre parcel located in the middle of the block on Austin
within the CBD of T or C. The comparable consisted of one lot with no improvements. The purchase
price was $96,000 or $9.47 sf. The site is rated as over all superior to the subject due to the much smaller
size and CBD location. Also the purchase by the adjoining land owner. Thus the net rating is superior
due primarily to the smaller size and CBD location and the overall adjustment is negative.
Comparable #3 is the current listing for $450,000 or $10.76 psf of a commercially zoned .9599
acre site on the NWC of Date Street and 3rd Street which is one of the two signaled intersections in
Truth or Consequences. The site is level and at street grade. The seller is retiring from the mobile home
sales business and selling the site. The comparable is considered generally superior due to the much
smaller size, the corner location at a signaled intersection and the listing status. The net adjustment to the
list price psf of $10.76 psf is negative.
55

Comparable #4 is the current listing of a 1.69 acre parcel located just north of and adjoining the
subject site within the New Hot Springs Retail Center on the SWC of H.R. Ahbaugh Drive and Buck
Greer Street and just West of the Wal-Mart site. The comparable is a current listing consisting of one
commercial lot with no improvements. The listing price is $589,000 or $8.00 sf +-. The site is rated as
over all superior to the subject due to the corner location, visibility, smaller size and listing status. Thus
the net rating is superior and the overall adjustment is negative.
Comparable #5 is the prior sale of comparable 4 which is a 1.69 acre parcel located just north of
and adjoining the subject site within the New Hot Springs Retail Center on the SWC of H.R. Ahbaugh
Drive and Buck Greer Street and just West of the Wal-Mart site. The site sold in 2007 for $552,123 or
$7.54 psf. The sale was the original sale from the developer. The purchase price was financed and the
site was subsequently foreclosed upon. The site is rated as over all superior to the subject due to the
corner location, visibility, smaller size and listing status. Thus the net rating is superior and the overall
adjustment is negative.
Comparable #6 is the 2007 sale for $250,000 or $5.98 sf of a commercially zoned .9599 acre
site on the NWC of Date Street and 3rd Street which is one of the two signaled intersections in Truth or
Consequences. The comparable is the prior purchase of comparable #3 listing by the current owner. The
site is level and at street grade and fully serviced with all utilities. The site was purchased by the lessee
as part of the lease agreement. The comparable is considered generally superior due to the much smaller
size the corner location at a signaled intersection as well as the influenced nature of the sale. The net
adjustment to the sale price psf of $5.98 psf is negative.
Comparable #7 is a current listing of a commercially zoned 6.00 acre site on the West side of I-
25 across from the proposed Spaceport Welcome center site. The site is North of Date Street and East of
the water tank. The site is hilly with a driveway to Date Street. The site is listed for $1,500,000 or $5.74
psf. The comparable is considered on average overall superior due primarily to the listing status which
more than outweighs the inferior location and the net adjustment to the sale price psf of $5.74 psf is
negative.
Comparable #8 is the recent sale of a commercially zoned 1.15 acre site one lot north of the
NEC of Marr and Date St with a street address of 905 Date Street. The site was sold for $264,023 with
an addition $15,000 estimated for demolition. The site was the former location of the old Sonic drive in
The site is sloped to the east and above street grade. The site was purchased for the land only and the old
Sonic has been demolished. The comparable is considered overall as generally superior to the subject
due to the smaller site and improvements involved. The intended use is for a auto parts store. The net
adjustment to the sale price psf of $5.57 psf is negative.
Comparable #9 is the sale of a 2.491 acre parcel located 2 blocks north of the subject site within
the New Hot Springs Retail Center on the North end of F.G. Amin Street and just Northwest of the Wal-
Mart site. The site sold in 2011 for $600,000 or $5.53 psf. The sale was the original sale from the
56

developer to the buyers for the development of a new Holiday Inn Express Motel. The site is rated as
over all superior to the subject due to the overlook location, visibility and smaller size. Thus the net
rating is superior and the overall adjustment is negative.
Comparable #10 is a current listing of a commercially zoned 5.46 acre site on the West side of
Date Street across from the intersection of Nth Date Street and Lakeway Loop. The site is on the West
side of Date Street and adjoins the Wal-mart site on the comparables West line. The site is hilly and
cobby with a driveway to Date Street on its NEC. The site is listed for $950,000 or $4.00 psf. The
comparable is considered on average overall inferior due to the inferior terrain, location and inferior
utilities more than offsetting the listing status and the net adjustment to the list price psf of $4.00 psf is
positive.
Comparable #11 is the 2012 sale of comparable 4 which is a 1.69 acre parcel located just north
of and adjoining the subject site within the New Hot Springs Retail Center on the SWC of H.R.
Ahbaugh Drive and Buck Greer Street and just West of the Wal-Mart site. The site sold in July of 2012
2007 for $257,000 or $3.50 psf +-. The sale is considered a distress sale as it was purchased from Citi
Bank El Paso which had obtained the property through foreclosure proceedings. The bank had held the
property for some time and was anxious to sell. The site/sale is rated as over all inferior to the subject
due to the bank owned status of the property and the influenced sale. Thus the net rating is inferior and
the overall adjustment is positive.
Comparable #12 is the sale of a 54,973 sf parcel located at 1502 Date Street. The comparable
was sold for $179,000 or $3.25 psf. The site is very cobby with an arroyo along the north line. The site
will require considerable dirt work and a box culvert in the arroyo. The cost of which is estimated at
$100,000 bringing the possible effective sale price to $289,000 or $5.08 psf. The location is also
considered inferior to the subject. Thus the overall net rating for the actual purchase price is inferior and
the overall adjustment is positive.
Comparable #13 is the current listing of a 5.429 acre parcel located at 1748 E. 3
rd
Street. The
comparable is a current listing consisting of one lot with no improvements. The list purchase price is
$575,000 or $2.43 sf. The site is rated as over all inferior to the subject due to the inferior commercial
location as well as inferior terrain and utilities availability more than outweighing the listing status. Thus
the net rating is inferior and the overall adjustment is positive.

57

Table 6-1 Land Sale Ranking Analysis Grid














































ITEM Subject COMP NO. 1 COMP NO. 2 COMP NO. 3 COMP NO. 4 COMP NO. 5 COMP NO. 6
Address
6 Acres Hot
Springs Retail
Center
1920 Nth date
St Austin Street
NWC 3rd and
Date St.
New Hot Springs
Retail Center
New Hot Springs
Retail Center
NWC 3rd &
Date
Source
Grantor 20104741 Grantee Grantor Grantor Grantee
Proximity to Sub 2miles NW 3/4 mile south 3 miles South Adjoins on North Adjoins on North 3 miles South
Sales Price NA $750,000 $96,000 $450,000 $589,000 $552,123 $250,000
Adj Sale Price $750,000 $96,000 $450,000 $589,000 $552,123 $250,000
Price per Ac NA $631,845 $564,706 $468,799 $348,521 $326,700 $260,444
Price psf $14.51 $12.96 $10.76 $8.00 $7.50 $5.98
Conditions ofSale Normal Normal Listing Listing Normal Normal
Adjustment No Adj No Adj Negative Negative No Adj No Adj
Data Source Coldwell Banker MLS 20104741 Grantee/Anderson Grantee/Anderson Ciodwell Banker Howell Asso
DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION
Date of Sale/List 8/1/2009 9/1/2009 7/1/2014 7/1/2014 6/1/2007 2/1/2007
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj
Size Acres 6 1.19 0.1700 0.96 1.69 1.69 0.96
Size SF 261,360 51,706 7,405 41,813 73,616 73,616 41,813
Adjustment sm/sup/neg Sm/sup/neg Sm/sup/neg Sm/sup/neg Sm/sup/neg Sm/sup/neg
Location Good Superior Superior Superior Superior Superior Superior
Adjustment Negative Negative Negative Negative Negative Negative
Site/View City similar similar similar similar similar similar
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj
Topo level Similar Similar Similar Similar Similar Similar
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj
Utilities/water All on Site similar similar similar similar similar similar
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj
Irrigated none similar similar similar similar similar similar
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj
Flood Zone FEMA Zone X similar similar similar similar similar similar
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj
Improvements Rds Utilities Demo similar similar similar similar similar
Adjustment sup/neg No Adj No Adj No Adj No Adj No Adj
Easements Normal similar Similar similar similar similar similar
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj
Access Good Superior Similar Similar Similar Similar Similar
Adjustment Negative No Adj No Adj No Adj No Adj No Adj
Utility of Use Good Similar Similar Similar Similar Similar Inferior
Adjustment No Adj No Adj No Adj No Adj No Adj Positive
Net Rating Superior Superior Superior Superior Superior Superior
Net Adj. Negative Negative Negative Negative Negative Negative
Ind. Value of <$14.51 <$12.96 <$10.76 <$8.00 <$7.50 <$5.98
58


ITEM Subject COMP NO. 7 COMP NO. 8 COMP NO. 9 COMP NO. 10 COMP NO. 11 COMP NO. 12 COMP NO.13
Address 6 Acres Hot
Springs Retail
Center 1-25 & Hubble 905 Nth Date
New Hot
Springs Retail
Center
1980 N Date
Street
New Hot
Springs Retail
Center
1502 Date
Street
1748 E 3rd
Street
Source 20131077 Grantee Grantor 20141169 Grantee Grantor 20118400
Proximity to Sub 1/4 mile Nth 3/4 mile NW 2 blocks north 1 block East 2 blocks north 3/4 mile south 3 miles SE
Sales Price NA $1,500,000 $264,023 $600,000 $950,000 $257,000 $179,000 $575,000
Adj Sale Price $1,500,000 $264,023 $600,000 $950,000 $257,000 $179,000 $575,000
Price per Ac NA $250,000 $229,585 $240,867 $174,312 $152,071 $141,838 $105,913
Price psf $5.74 $5.27 $5.53 $4.00 $3.49 $3.26 $2.43
Conditions ofSale Listing Normal Normal Listing Bank REO Normal Listing
Adjustment Negative No Adj No Adj Negative Positive No Adj Negative
Data Source Coldwell BankerGrantee-O'Riely'sColdwell BankerMLS 20104741 Ciodwell Banker Howell Asso Grantee/Anderson
DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION
Date of Sale/List 7/1/2014 6/1/2009 10/1/2011 7/1/2014 7/1/2012 2/1/2008 7/1/2014
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj No Adj
Size Acres 6 6.00 1.15 2.49 5.4500 1.69 1.26 5.43
Size SF 261,360 261,360 50,094 108,508 237,402 73,616 54,973 236,487
Adjustment similar sm/sup/neg sm/sup/neg similar Sm/sup/neg Sm/sup/neg similar
Location Good Inferior Superior Superior Inferior Inferior Inferior Inferior
Adjustment Positive Negative Negative positive positive positive positive
Site/View City similar similar similar similar similar similar similar
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj No Adj
Topo level inferior inferior inferior inferior inferior inferior inferior
Adjustment Positive Positive Positive positive positive positive positive
Utilities/water All on Site inferior similar similar similar similar similar similar
Adjustment Positive No Adj No Adj No Adj No Adj No Adj No Adj
Irrigated none similar similar similar similar similar similar similar
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj No Adj
Flood Zone FEMA Zone X similar similar similar similar similar similar similar
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj No Adj
Improvements Rds Utilities Inferior similar similar Inferior Inferior Inferior Inferior
Adjustment positive No Adj No Adj Positive Positive Positive Positive
Easements Normal similar similar similar Similar Similar Similar Similar
Adjustment No Adj No Adj No Adj No Adj No Adj No Adj No Adj
Access Good Inferior Similar Similar Inferior Inferior Inferior Inferior
Adjustment Positive No Adj No Adj positive positive positive positive
Utility of Use Good inferior Similar Similar inferior inferior inferior inferior
Adjustment positive No Adj No Adj positive positive positive positive
Net Rating Superior Superior Superior Inferior Inferior Inferior Inferior
Net Adj. Negative Negative Negative Positive Positive Positive Positive
Ind. Value of <$5.74 <$5.27 <$5.53 >$4.00 >$3.50 >$3.25 >$2.43
59

TABLE 6-2 RANKING ANALYSIS

Comparable Status Size Ac. $ psf Rating Overall Net Adj
1 Sold 1.187 $14.50 Superior Negative
2 Sold 0.170 $12.96 Superior Negative
3 Listing 0.960 $10.76 Superior Negative
4 Listing 1.690 $8.00 Superior Negative
5 Sold 1.690 $7.50 Superior Negative
6 Listing 0.960 $5.98 Superior Negative
7 Listing 6.000 $5.74 Superior Negative
8 Sold 1.150 $5.27 Superior Negative
9 Sold 2.491 $5.53 Superior Negative
Subject UC 6.000 $4.76 Equal Equal
10 Sold 5.450 $4.00 Inferior Positive
11 Sold 1.690 $3.50 Inferior Positive
12 Sold 1.262 $3.25 Inferior Positive
13 Listing 5.429 $2.43 Inferior Positive


The above analysis indicates that the subject market value should fall between comparable nine
of $5.53 sf and comparable 10 with a value of $4.00 psf the mean value of which is approximately $4.76
psf. Thus it is the appraisers opinion that the subjects market value on a psf basis is at or near $4.76
psf. The resultant market value is calculated to be ($4.76 X 261,360sf) = $1,244,073.
Round to $1,244,000.

4. MARKETING TIME
The marketing time for the subject property sale is estimated to be 18 to 24 months from the time
the subject is on the market. Absorption rates experienced by recent commercial sales and the current
new developments in the community would lead to a marketing time within 18-24 months. Therefore, it
could reasonably be expected that an investor/developer would purchase the site within a 18-24 month
period (assuming appropriate marketing and management) after it was put on the market in order to take
advantage of the future demand for commercial lots.

60





Section VI



Certification
61

SECTION VI CERTIFICATION
This is to certify that effective July 5, 2014 the estimated market value of the respective property, that is
the subject of this report, is: $1,244,000
1) To the best of our knowledge and belief, the statements of fact contained in this report are true
and correct.
2) The reported analysis, opinions, and conclusions are limited only by the reported assumptions
and limiting conditions, and are the personal, unbiased professional analysis, opinions and
conclusions of the undersigned appraisers.
3) The appraiser has no present or prospective interest in the property that is the subject of this
report and no personal interest with respect to the parties involved.
4) The undersigned appraiser has no present or prospective interest in the property that is the
subject of this report nor a personal interest or bias with respect to the parties involved with this
assignment.
5) Compensation is not contingent on any action or event resulting from the analyses, opinions, or
conclusions in, or the use of, this report.
6) The appraisers compensation for completing this assignment is not contingent upon the
development or reporting of a predetermined value or direction of value that favors the cause of
the client, the amount of the value opinion, the attainment of a stipulated result or the occurrance
of a subsequent event that is directly related to the intended use of this appraisal.
7) The appraisal assignment was not based on a requested minimum valuation, a specific valuation
or approval of a loan.
8) To the best of our knowledge and belief, the reported analyses, opinions, and conclusions were
developed, and this report has been prepared, in conformity with the requirements of the Code of
Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
9) The use of this report is subject to the requirement of the Appraisal Institute relating to review by
its duly authorized representatives.
10) As of the effective date of this report, Dr. G. Vincent Barrett, MAI, has completed the
requirements of the continuing education program of the Appraisal Institute.
11) The appraisers analysis, opinions, and conclusions are developed, and this report has been
prepared in conformity with the Uniform Standards of Professional Appraisal Practice.
12) Dr. G. Vincent Barrett has made personal inspections of the property that is the subject of this
report.
13) This appraisal was prepared by the undersigned appraiser with no other professional assistance.
14) The appraiser has not conducted an appraisal of the subject property nor any other appraisal
services regarding the subject property within the last three years.

Barrett Appraisal Services, LLC

Dr. G. Vincent Barrett, MAI
NM Certified Appraiser
No. 000506-G
62

Addenda

ITEM PAGE

A. Letter of Engagement ........................................................................................................... 63
B. Legal & Tax Documentation ................................................................................................ 65
E. Appraiser Qualifications ....................................................................................................... 74

63





Letter of Engagement

64




65




Legal
&
Tax Documentation
66

67




68




69


70







71


72


73


Owner Prop ID Map Code Legal Size Ac. Size sf Bk Pg
Assessor's
Full Value
Taxable
Value
AC Co. Inc 18179 3022077021202 Blk 1 Lot 2 0.45 19,602 NHSRC $63,939 $21,313
AC Co. Inc 18181 3022077120113 Blk 3 Lot 1-A 0.98 42,689 NHSRC $137,496 $45,832
AC Co. Inc 18182 3022077136101 Blk 3 Lot 2-A 0.83 36,155 NHSRC $116,751 $38,917
AC Co. Inc 18981 3022077160132 Blk 4 Lot 1 0.534 23,261 NHSRC $74,475 $24,825
AC Co. Inc 18987 3022077159119 Blk 4 Lot 2 0.534 23,261 94 2659 $74,619 $24,873
AC Co. Inc 18988 3022077159105 Blk 4 Lot 3 0.534 23,261 NHSRC $74,499 $24,833
AC Co. Inc 18989 3022077158092 Blk 4 Lot 4 0.534 23,261 94 2659 $74,400 $24,800
AC Co. Inc 18990 3022077147068 Blk 4 Lot 5 1.892 82,416 94 2659 $263,706 $87,902
AC Co. Inc 18991 3022077121069 Blk 4 Lot 6 2.491 108,508 94 2659 $347,241 $115,747
AC Co. Inc 18992 3022077085074 Blk 4 Lot 7 0.408 17,772 94 2659 $28,434 $9,478
AC Co. Inc 16585 3022077144172 S2,NE4,S28,T13S, R4W 8.81 383,764 102 1659 $654,555 $218,185
AC Co. Inc 18008 3022077100235 S28,T13S, R4W 26.93 1,173,071 106 130 $411,978 $137,326
44.927 1,957,020 $1,910,115 $636,705
74



Appraiser Qualifications


75

VITAE: G. Vincent Barrett, Ph.D., MAI
MAIN OFFICE ADDRESS: CITIZENSHIP: U.S.A.
505 HWY 195, P.O. BOX 1244. RESIDENT AUSTRALIA
ELEPHANT BUTTE, NM 87935
PHONE: GENERAL CERTIFICATION #:
OFFICE: (575) 644 2306 NEW MEXICO 00506-G
MOBILE: (575) 644-2306
FAX: (575) 993 5336 E MAIL GVINCENT4@HOTMAIL.COM
Military Service
United States Navy: U.S.Navy ,(Submarine Service), September 1957 to October 1961. Honorable Discharged.
Education
Ph.D. Texas A&M University, College Station, Texas. (Urban and Regional Planning), 1973. Emphasis Urban and Regional Economic
Development. Dissertation title: "A Planning Methodology for Large Scale Real Estate Projects--A Case Study of Industrial Park Development".
M.A. University of the Americas, Mexico City, Mexico. Economics, 1969. Emphasis Economic Development.
B.A. Florida Atlantic University, Boca Raton, Florida. Economics, 1966. Emphasis Economic Development.
M.A.I Member of the Appraisal Institute (MAI) Awarded October 20, 1989.
Recipient: Mortgage Bankers Association of America Faculty Fellowship. Class I Stanford University, Class II University of Florida,
RECENT SEMINARS and CLASSES ATTENDED

Advanced Regulatory Training-Public & and Private Water & Sewer Utilities 10/18/2013
Regression Analysis Methodology 4/10/2013
USPAP Update 2/01/2013
National Asso of Realtors Code of Ethics 12/28/2012
Report Writing UAD 7/29/2011
Conservation Easements-IRS/Appraisal Institute 6/18/2011
Appraisal of Nursing Facilities Appraisal Institute 7/ 2/2011
Valuing Commercial Green Buildings Appraisal Institute 2/2011
USPAP Update No 101 The Columbia Institute 12/17/2010
Practice of appraisal Review FHA Protocol #145 The Columbia Institute 12/16/2010
Eminent Domain and Condemnation-Appraisal Institute 1/2009
Appraising Convenience Stores and Gas Stations 2/2009
Site Valuation and Cost Approach 2/2009
National USPAP Update 1/02/2008
Advanced Real Estate Appraisal Methods 3/3/2008
Uniform Appraisal Standards for Federal Land Acquisitions 02/2008
Code of Professional Ethics and Standards of Professional Appraisal Practice 4/2008
Professional Designations and Organizations
MAI (Member of the Appraisal Institute: Asso. 1978-1989 Awarded MAI October 1989).
Appraiser, General Certification- State of New Mexico, State of Texas, State of Arizona
Licensed Real Estate Broker - State of New Mexico.
New Mexico State Certified Real Estate Instructor.
AIVLA (Member of the Australian Institute of Valuers and Land Administrators Since1989)
Commander, American Legion 2007-2011 Post 44, Elephant Butte NM
Member American Legion Riders 2007-2011
Member Veterans of Foreign Wars (VFW) Post 1349 Elephant Butte, NM
Chairman of the Board, Elephant Butte Chamber of Commerce 2006-2007
Board President /Member, Sierra County Board of Realtors 2000-2011
Board Member/President, Sierra County Economic Development Organization 2004-2010 (SCEDO)
Professional Activities 1974-PRESENT
1990-Current Barrett Appraisal Services, LLC : President/CEO, Las Cruces, New Mexico, December 1989 to present.
Specializing in subdivisions, land, motels and all other commercial income producing properties as well as market and feasibility studies
throughout New Mexico, West Texas, and Eastern Arizona. 1990-Current Barrett School of Real Estate & Appraisal: Owner/Instructor,
Las Cruces, New Mexico - December 1990 to 2009. A New Mexico State accredited school offering pre-licensing and continuing education
courses in appraisal and real estate sales. The school is fully accredited by the New Mexico Real Estate Commission as well as the New Mexico
Appraisal Board.
1981-91 New Mexico State University, Las Cruces, New Mexico (USA) - July 1981 to August 1991. Tenured, Full
Professor/Director,-Center for Real Estate and Land Resource Research, College of Business Administration and Economics.
1988-90 University of Technology, Sydney, Australia - Summer 1985 and December 1988 to January 1990. (Leave of absence-
NMSU). Professor/Head of Department of Land Economics..
1984-85 University of Western Sydney, Richmond, New South Wales, Australia. June 1984-January 1985. (Leave of absence-
NMSU). Professor/Head of Department, Land Studies Division.
1980-81 DePaul University, Department of Finance, College of Commerce, Chicago, Illinois (USA). Associate Professor, August
1980-June 1981.
1974-80 University of Wisconsin, Milwaukee, Wisconsin (USA) - School of Business Administration. March 1974-July 1980.
Assistant Professor, of Real Estate and Finance.
Publications Include numerous Books and Professional Journal Articles.