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EXHIBIT 7

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The City of Benton Harbor c/o Geoffrey A. Fields Dickinson Wright Inc. Suite 9 0 0 - 200 Ottawa Avenue N.W. Grand Rapids, Michigan 49503-2423 PROJECT Harbor Shores Project Jean Klock Park City of Benton Harbor PROPERTY OWNER City of Benton Harbor 175 W. Territorial Road Benton Harbor, Ml 4 9 0 2 2 PROPERTY ADDRESS Jean Kiock Boulevard and Jean Drive Benton Harbor, Michigan 4 9 0 2 2 INTEREST APPRAISED Fee Simple VALUATION DATE August 26, 2006 APPRAISED BY MATUREN & ASSOCIATES, INC. 1125 E. Milham Avenue Portage, Michigan 4 9 0 0 2 Phone (269) 342-4800 FAX (269) 3 4 2 - 5 4 4 8

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TA8LE OF CONTENTS

Section l-General Data A. Cover Page B. Table of Contents C. Summary of Salient Facts D. Legal Description of Ownership E. Assessed Valuation and Taxes F. Zoning G. Sales History of Property H. Ownership, Occupancy and Contact with the Owner I. Interest Appraised J. Purpose, Function & Scope of the Appraisal K. Report Format L. Intended Use and Users M. Discussion of Appraisal Problem N. Fixtures P. Hazardous Waste or Property Contamination Q. Reasonable Exposure Time

PAGES 1 2 3 5 5 5 5-6 6 6 6-8 8 9 9-10 10 10 10-11

Section ll-Valuation of Property A. Description of Property B. Present Use of Property C. Highest and Best Use of Property D. Description of Acquisition E. Estimated Value of Land Improvements in Acquisition F. Estimated Value via Cost Approach G. Estimated Value via Income Approach ! H. Estimated Value via Sales Comparison Approach I. Correlation and Conclusion of Value Section Ill-Certification Section IV-Addendum A. Maps and Sketches B. Subject Photographs C. Subject Project Site Plans C. Subject Surveys and Legal Descriptions E. General Area, City, and Neighborhood Information F. City of Benton Harbor Prior Zoning Map G. Consent Judgment H. Statement of Limiting Conditions I. Appraiser Qualifications J. Comparable Sales K. Appraisal Site Inspection Environmental Checklist 12 12-13 14 14 14-15 16 17 18-40 41 42

A A A A A A A A A ,. A A

1-3 3a-19 20-22 23-26 27-29 30 31-54 55-56 57-58 59-79 80

HARBOR SHRES JEAN KLOCK PARK

MATUREN a ASSOCIATES, INC. Real Estate Appraiser Consultant

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SUMMARY OF SALIENT FACTS The subject is portion of Jean Klock Park in the City of Benton Harbor. The park has roughly Vz mile (2,640 lineal feet) of frontage on Lake Michigan with a low dune bluff. It irregular in shape and contains approximately 73 acres (AC) per the plan in the Addendum to this report. The park is split by the north south two lane Jean Drive; with the westerly tract being the park per se with parking lot, dune bluff, service buildings and beach. The easterly tract is essentially a wetland with a shallow pond on the north portion of it and some "high and dry" land on the southerly portion. It has frontage on Jean Klock Boulevard leading from Upton Drive from the south by the Edgewater Dunes residential development immediately to the south and on Grand Boulevard leading to several single family residences located to the north along Lake Michigan. The subject's neighborhood is residential in nature with the city water treatment plant in the very southwest corner of the park property. The park has a restriction against development for anything except "public" use. This has a major impact on its value and restricts it from residential development which would have been its highest and best use absent this restriction. It is

essentially restricted to a recreational, non - buildable use. The park appears be sparsely used as evidenced over the past six months of visiting it by this appraiser. The proposed fee acquisition is two irregular shaped parcels totaling 21.67 AC on both sides of Jean Drive in the parking lot and back side of the dune on the west and in the wetland area on the east. This is the result of a proposed golf course development project. The object of this appraisal is to arrive at a value estimate for that part acquired. Area: Entire Parcel: 73 A C Vz mile frontage on Lake Michigan Frontage on Upton Drive, Grand Blvd. and Jean Drive

Land Improvements: Paved parking and access roads

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Building Improvements:

Gate house (not in use), pavilions {beach and back of dune). (If they are in the area of acquisition, the structures' utility will be mitigated) 21.67 AC (20.67 AC of "dry" site including the back of the dune, parking lots and land east of Jean Drive and 1 AC of wetland lying east of Jean Drive) Holes 16 and 17 @15.58 AC (1 AC east of Jean Drive in the wetland area) Hole 18 @ 6.09 AC (only a minute amount of land east of Jean Drive is in the wetland area)

Part Acquired:

Highest and Best Use: Recreational Valuation Indications: via Cost Approach via Income Approach via Sales Comparison Approach

Not Applicable Not Applicable $881,000

Correlated Conclusion of Value: 881,000 Valuation Date: August 26, 2006 Date of Valuation Conclusion: August 29, 2006

MATUREN & ASSOCIATES. INC. Real Estato Aporo'icr - Consultary

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LEGAL DESCRIPTION OF OWNERSHIP The legal description of the parcel can be found in the sketches and survey included in the addendum.

ASSESSED VALUATION In Michigan, the assessed and state equalized values (SEV) are supposed to represent one half of property's market value, known for assessing purposes as True Cash Value (TCV). Actual taxes are determined by application of a miilage rate (1 mill = $.001) to the taxable value (TV) which is generally less than the SEV, and addition of a collection fee, if imposed by the collecting jurisdiction. The taxable value, by constitutional amendment, limits the growth in the base amount, over the prior year, to the rate of inflation or 5%, whichever is less. As a municipal owned facility, it is exempt for ad valorem taxation. The subject is in the Benton Harbor School District.

ZONING The park property remains unzoned for any specified district.

SALES HISTORY OF PROPERTY there have been no sales of the subject in the last three years (2006 USPAP SR 1-5(b). A part of what was formerly part of the park is being developed per the Consent Agreement (included in the Addendum) but those

MATUREN & ASSOCIATES, INC. Rf al Estate Appraiser Consultant

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sites have not been sold as of yet and, in any case, differ markedly from the Park in that they are not encumbered with a development restriction.

OWNERSHIP, OCCUPANCY AND CONTACT WITH THE OWNER The City of Benton Harbor owns the subject property. It is the site of Jean Klock Park. My contact has been with Attorney Geoffrey Fields of the Dickinson Wright law firm who is representing the City in the Harbor Shores matter.

INTEREST APPRAISED The fee simple interest is being appraised. The site has a deed restriction on it prohibiting development. The following definition is from The Dictionary of Real Estate Appraisal, Fourth Edition, 2002, sponsored by the Appraisal Institute:

fee simple estate. Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

PURPOSE, FUNCTION, AND SCOPE OF THE APPRAISAL

The purpose of this appraisal is to estimate the market value of the acquisition as of the date of the appraisal. That value will be the basis for determining a lease rate for the site as well as the extent of the mitigation property which will be needed to offset the area of the three holes of the planned golf course on this site. This implies that the size of the acquisition is not the focus of a comparable data search, but instead the size of the larger parcel from which it came. It mimics the outcome of a traditional Before and After appraisal with the additional time and cost involved. For example, a one acre parcel being acquired by a condemning authority across the frontage of a 200 acre tract would not be valued of the one acre rate (the rate of which say
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one acre building sites are being sold) but at the rate per acre for a 200 AC tract. If the more formal Before and After appraisal was done it would recognize a 200 tract (at whatever rate per acre for which 200 AC tracts sell) in the Before state and a 199 AC tract in the After state. The difference would be the value of the one AC tract it relates to the entire 200 AC parcel. This appraisal is made under the following definition of market value. The Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) defines market value as:

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 consummation of a sale as of a specified date and passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised and each acting in what he considers his own best interest; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
The function of the appraisal is to arrive at a value estimate of the property to be acquired to assist the City of Benton Harbor in applying for a Michigan Natural Resources Grant for the subject property. Plans are to convert a portion of the park into a golf course. This appraisal is done to Michigan Department of Natural Resources (MDNR) report specifications. The scope of the appraisal consists of an extensive examination of the subject and an extensive search for sales and offerings in the City of Benton Harbor area as well as other markets deemed to be relatively similar to the subject. The subject was inspected on March 7, 2006 and the last time on August 26, 2006, which is the date of valuation of this report. Photos #1 to #33 depict the subject on March 7th and photo #34 on August 26 ,h . Because
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the subject's topography varies from lakefront, to dune, to wetlands, a comparable search included properties which best fit those descriptions. Sales of unencumbered and encumbered (developmentally restricted) Lake Michigan frontage sales and wetland sales were researched along the Lake Michigan coast as far north as Antrim County and throughout western Michigan. Real estate professionals, assessing officers, and local government officials, as well as public records were all consulted to ensure that the data search was extensive. All possible leads were researched to ascertain their validity or non-validity. Properties were found that are similar in many respects to the subject parcel. The appropriate approaches to value were examined and utilized when applicable to the appraisal problem at hand. When each or several are applicable, the cost, income, and sales comparison approaches to value will be utilized,, given sufficient data and market support from which to draw valid conclusions. Given the lack of comparable sales of Yi mile of Lake Michigan frontage in the vicinity, one may have been tempted to do a subdivision (development approach) analysis to determine the raw land value. This approach was not utilized for two reasons. The first is that the approach is highly speculative, with a seemingly minor change in inputs having a major impact on the value estimate. Secondly, since there was no "plan" in place, one could have hypothecated all day on many scenarios as to what a development would look like, with the individual outcomes markedly changing the final value estimate.

REPORT FORMAT The Uniform Standards of Professional Appraisal Practice (USPAP) formulated by the Appraisal Foundation cites three types of reporting formats for appraisal reports. This Appraisal is communicated by a Summary Appraisal Report.

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INTENDED USE AND USERS The sole intended use of the appraisal is to assist the client in the acquisition of an MDNR grant, set a basis for a lease for the golf course tracts, and set a basis for mitigation of the golf course sites via other parcels in the area. The sole intended user of the appraisal is the client, the City of Benton Harbor, its attorney Geoffrey Fields and the Michigan Department of Natural Resources. The appraisal is not intended to be relied upon for any other use, or by any other party.

DISCUSSION OF APPRAISAL PROBLEM The appraisal problem consists of estimating the market value of the part acquired (land for holes 16, 17 and 18 of the proposed Nicklaus golf course) as it relates to the value of the entire park property. The property is being valued as a vacant parcel as the acquisition of any of the structures on the park at present will be mitigated by the developer. Both the cost and income approaches to value are not relevant to this type of property. Thus the sales comparison approach is the only relevant approach. This is a relatively unique assignment in that the property has Vz mile of low bluff Lake Michigan frontage in an urban area. That alone makes this assignment a difficult one in that there are few large frontage, large acreage tracts still left along the shoreline. Added to that is the fact that the park has a consent judgment in place in perpetuity which thus narrows the number of possible comparables even more dramatically, as there are only a handful of sales involving conservation easements in the state, let alone "pure" easement sales (100% encumbered with no building envelopes attached to the encumbered tracts) of lakefront (Lake Michigan) property. Then the part acquired must be valued from the value of the entire park, which includes not only the Lake Michigan frontage and dune but the wetland area to the east of Jean Road as well. As such, urban wetland sales must also be located. An
9 MATURED 8. ASSOCIATES, INC. Real Estate Appraiser Consi/ltanr

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allocation of the various portions of the lake frontage tract must be made (lakefront being more valuable than "backland") and the part acquired split up between the wetland area on the east and the lakefront area on the west.

FIXTURES This appraisal does not encompass items of a fixture nature.

HAZARDOUS WASTE OR PROPERTY CONTAMINATION Neither the appraiser by inspection, nor individuals from the City, are aware of any hazardous waste or property contamination on the subject property. There may be contamination on adjacent properties from past uses. An environmental report was not made available to this appraiser at the time of this valuation conclusion, but one is said by city representatives to be forthcoming which notes no contamination on this site. I am basing my report on this assumption. As noted in the Appraisal Site Inspection Environmental Checklist in the Addendum, I did notice household refuse dumped in the wetland area east of Jean Drive. The subject is not listed on the State of Michigan Department of Environmental Quality Contaminated Site List, Updated 12/9/98 or Leaking Underground Storage Tank 1998 Upgrade Compliance / Non Compliance Lists dated 12/23/98 and 3/2/99. Please see the MDNR environmental checklist in the Addendum. Some dumping of household refuse (furniture mainly) has occurred in the wetland area.

REASONABLE EXPOSURE TIME USPAP [Comment on SR 1-2 (c)] requires an estimate of reasonable exposure time. Given the type of property with its restrictions in place, it is virtually impossible to state a reasonable exposure time as no sales of such property have occurred in this marketplace. Thus I am unable to do so. I do
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find that it is likely irrelevant anyway given that the assignment is not one involving a federally related transaction under Title XI. Additionally this requirement is ignored (from a jurisdictional exception standpoint) by the Uniform Appraisal Standards for Federal Land Acquisition 2000 edition wherein it states "Contrary to USPAP Standards Rule 1-2 (c), this definition of market value does not call for the estimate of value to be linked to a specific exposure time estimate, but merely that the property be exposed on the open market for a reasonable length of time, given the character of the property and its market. Therefore, the appraiser's estimate of market value shall not be linked to a specific exposure time when conducting appraisals for federal land acquisition purposes under these Standards". Granted that this acquisition is not done under the auspices of the UASFLA (aka Yellow Book), but some of the reasoning is applicable here.

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MATOflEN & ASSOCIATES. INC. Real Estate Appraiser * Consultant

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DESCRIPTION OF ENTIRE PROPERTY LAND Area: 73 AC 44 AC (60%of the site) west of Jean Drive 29 AC (40% of the site) east of Jean Drive Vz mile on Lake Michigan Frontage on Jean Klock Blvd., Jean Drive and Grand Blvd. Irregular. Level to rolling. Dunes. Wetlands. Paved on all thoroughfares. Electric, Water, Sewer, Gas. Refer to legal description. The Flood Insurance Rate Map for the City of Benton Harbor Community Panel 260032 0001 B, dated 5-15-78 indicates that this property is in Zone A3, area of 100-year flood, base flood elevations and flood hazards determined; Zone B, areas between limits of the 100-year and 500-year flood, or certain areas subject to 100-year flooding with average depths less than one foot or where the contributing drainage area is less than one square mile, or areas protected by levees from the base flood; and Zone "C", areas of minimal flooding. Benton Harbor Schools.

Frontage:

Shape: Topography: Road Surface: Utilities: Easements: Floodplain:

School District:

LAND IMPROVEMENTS Land improvements consist of paved parking areas and drives. BUILDING IMPROVEMENTS Building improvements consists of a gate house and pavilions to serve the public.

PRESENT USE OF PROPERTY The subject property is currently a City park. It is lightly used by my observations throughout the last six months of this year. Much of the land east of Jean Road is unused wetland (with the southerly 1/3 not being designated
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MATURSN & ASSOCIATES. INC. Re2l Estslo Aj-pr-*>cr - Consultant

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a wetland) and that west of Jean Drive is the parking lot, pavilion and beach area.

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MATUREN & ASSOCIATES. INC. Real Estate Appraiser* Consultant

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HIGHEST AND BEST USE The following definition is from The Dictionary of Real Estate Appraisal, Fourth Edition, 2002, sponsored by the Appraisal Institute: highest and best use.' The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported,financiallyfeasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility,financialfeasibility, and maximum profitability. As Though Vacant Given the physical characteristics of the site, use for lakefront development is physically possible. The subject was recently rezoned to the D3 Mixed Use District. A copy of the rezoning agreement is located in the Addendum. It had been previously unzoned. However it has a consent judgment (see Addendum) prohibiting development other than for a beach or park. Therefore, the use of the subject for recreational purposes (no residential or commercial development allowed) is legally permissible. The financial

feasibility and maximum profitability recreational use are established as that is the only practical use for this site. Thus recreational is the highest and best use as vacant. As Improved Recreational is also the highest and best use as improved.

DESCRIPTION OF ACQUISITION The part acquired in fee consists of t w o irregular shaped parcels in the wetland areas south of Jean Drive, The net area of the proposed acquisition is 21.67 AC.

ESTIMATED VALUE OF LAND IMPROVEMENTS IN ACQUISITION There are no land improvements in the area of the acquisition except for some of the parking lot. Additional parking is planted as part of the proposed
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overall development with handicap parking on the beach as part of it. It is unclear whether the pavilion on the backside of the dune will be impacted, but if it is, its use will be mitigated by the developer.

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MATUREN & ASSOCIATES, INC. Real Estaro Arr'tftpr * Consultant

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ESTIMATED VALUE VIA THE COST APPROACH The Dictionary of Real Estate Appraisal, Fourth Edition, 2002 sponsored by the Appraisal Institute defines the cost approach as:

cost approach. A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of (or replacement for) the existing structure; including an entrepreneurial incentive, deducting depreciation from the total cost, and adding the estimated land value. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised.
The cost approach is not applicable in this instance as the area in the acquisition is essentially vacant property and the cost approach is not applicable to the valuation of vacant land.

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MATUR6N & ASSOCIATES, INC. Real Estato Appraiser - Consultant

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ESTIMATED VALUE VIA INCOME APPROACH The Dictionary of Real Estate Appraisal, Fourth Edition, 2002 sponsored by the Appraisal Institute defines the Income Approach as:

income capitalization approach. A set of procedures through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market-derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.
This approach is not considered applicable in this instance, as the part acquired is vacant. There is a lack of market generated income, expense, and capitalization rate data for this type of property from which to formulate an opinion of value via this approach.

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MATUR6N & ASSOCIATES. INC. Real Estato Appraiser - Cons'ilmnr

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ESTIMATED VALUE VIA SALES COMPARISON APPROACH The Dictionary of Real Estate Appraisal, Fourth Edition, 2002, sponsored by the Appraisal Institute defines the sales comparison approach as: sales comparison approach. A set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison, and making adjustments to the sale prices of the comparables based on the elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales are available. A search was made, both in the vicinity of the subject and in like locations, for sales thought to be relatively similar to the subject property. Due to the marked difference in topography on the park parcel, and the legal restrictions in place, a search was conducted for developable Lake Michigan frontage land, developmentally encumbered lakefront land and wetlands. Contact with real estate brokers, assessing officers and individuals resulted in the discovery of several sales of relatively comparable properties, of which several sales were chosen for this analysis for the varying property types (and legal rights possessed) on the larger parcel. Each comparable was verified with the buyer/seller, listing/selling salesperson, or other party with knowledge of the transaction and the properties inspected to ascertain their condition at the time of purchase. A complete description of each comparable used in this appraisal follows in the Addendum. Adjustments for elements of significant dissimilarity between the comparable properties and the subject were made where indicated by the market. These adjustments were made in either dollar amounts or percentages with an adjusted sale price being derived for each comparable property as a value indicator for the subject property. Adjustments for dissimilarities are found in summary on the following comparable adjustment grid and are further explained in the narrative analysis. The following factors were considered in the
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adjustment process: property rights conveyed, conditions of sale, school district, financing terms, date of sale, site size, topography, location, proximity, thoroughfare type, utilities and easements. Where the market under consideration did not produce paired sales such that adjustments for the above valuation factors could be isolated, the appraiser's judgment and experience based on prior appraisal analysis was utilized.

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SITE SALES CO

ISON GRID
SUBJECT 5 Cottage Lane (Casco Twp.) Jean Klock Park

1 600 Blue Star Casco Twp.

2 162 74th St. Casco Twp.

COMPARABLE SALES 3 4 76868 13th Ave. 630 Waters Edge Casco Twp. South Haven Twp.

SALE DATE SALE PRICE, $ LAKE MICHIGAN FRONTAGE SITESIZE.AC.net PRICE PER FF OF LAKE FRONTAGE. $/FF

5/17/05 $2,278,000 600 30.00 $3,797

11/15/04 $5,000,000 810 16.14 $6,173

8/18/04 $3,400,000 640 9.40 $5,313 ADJUSTMENTS

5/19/04 $3,000,000 1.100 47.92 $2,727

3/27/02 $925,000 270 21.66 $3,426

DATE OF SALE TIME ADJUSTED SALE PRICE, $ / FF LK. MICHIGAN LOCATION SIZE FF to AC Ratio ZONING UTILITIES

7% $4,063 0% 0% 55% 0% 0% 0% 0% 55% $2,235 $6,298

11% $6,852 0% 0% 0% 0% 0% 0% 0% 0% $0 $6,852

12% $5,951 0% 0% 0% 0% 0% 0% 0% 0% $0 $5,951

14% $3,109 0% 0% 55% 0% 0% 0% 0% 55% $1,710 $4,819

27% $4,351 0% 0% 55% 0% 0% 0% 0% 55% $2,393 $6,744 City of Benton Harbor 73 AC tofal (44 AC W of Jean Dr.) 2,640 FF on Lk. Michigan Irregular Mixed Use Development Water, sewer, gas & electric Level to rolling dunes Benton Harbor Public Schools

5?

TOPOGRAPHY SCHOOL DISTRICT NETADJUSMENT, % NET ADJUSTMENT^ ADJUSTED SALE PRICE. $/FFLK. MICHIGAN
HARBOR SHORES LK MJCH FRONTAGE

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LAKE MICHIGAN LAKEFRONT Only one sale was found that had Lake Michigan frontage and was encumbered to the degree of non - development similar to the subject. I will first develop a value for the subject in an unencumbered state and then view the subject as encumbered using that one sale and other information derived from my knowledge of encumbered (via conservations easements) property as a guide to the value of the subject in its encumbered state. To determine the "unencumbered" value of the subject, five Lake Michigan frontage sales of somewhat similar frontage (none nearly as large though) and site size (some relatively close to the subject site size of roughly 44 AC west of Jean Drive) of were selected for consideration in this analysis. Other sales were available, but were further back in time and were not deemed relevant for this exercise. I went back to 2002 for site sales - a greater time period than "normal;" - but this is an atypical property type with few sales available. None of the size were found in Berrien County in the recent past. This is not unexpected as most of the lakefront has been subdivided for many years and sold to locals and the Chicago area market. Sales were found to the north in neighboring Van Buren and Allegan Counties, some of which were in close proximity to cities (South Haven and Holland). They ranged in size from 9 AC to 48 AC and in frontage 270 FF to 1,100 FF. All have since been subdivided into lots - some with and some without (but access to) Lake Michigan frontage. Many are "gated" communities with private roads, recreational amenities (swimming pools, etc) and privacy. Time There are an insufficient amount of sales of large acreage tracts to enable one to ascertain with any great certainty the impact of time on price. However, Lake Michigan frontage is a very finite entity and as such the demand for it continues irrespective of what is occurring in the general real estate market which for the most part is flat at the moment. An examination of the Lake
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Michigan frontage lots in the Boardwalk development in Casco Township near South Haven from 2005 to 2006 showed a rate of appreciation of 6%. Lot #1 sold on 7-25-05 for $855,000 and the same sized lot #4 sold roughly 6 months later on 1-5-06 for $880,000 for a 2.92% increase for the roughly 6 month period or an annual rate of a rounded 6%, or y2% per month. I believe that this trend can be applied to those larger tracts of land remaining along the lakeshore also. Lake frontage relative to size The subject has roughly 60% of its area west of Jean Drive which is considered a natural break in the total area of the subject both physically and topographically. This equates to approximately 4 4 AC. It has 2,640 FF on Lake Michigan. One factor noticeable from a view of the sales in the grid is the fact that the highest priced sales per FF are also those that have the greatest amount of FF compared to their total acreage. This factor equates to a potential for a greater number of lakefront lots and fewer non lakefront lots (of a much lower value) per sale. This may not be the only factor, but it is an obvious one. All things being equal, a higher ratio equates to a much more valuable property. Sale #2 (50 FF / AC) and #3 (68 FF / AC) have the highest time adjusted prices per FF respectively at $6,852 / FF and $5,951 / FF. The other three sales are shown in the table below and have substantially lower prices / FF as they have a much lower ratio. Sale 1 2 3 4 5 Subject FF/AC 20 50 68 23 12 60 AC 30 AC 16.14AC 9.4 AC 47.92 21.66 44 Lake Frontage 600 FF 810 FF 640 FF 1,100 FF 270 FF 2,640 FF Time Adj $/FF $4,063 $6,852 $5,951 $3,109 $4,351

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Comparing the average of the time adjusted sale prices of #2 and #3 at $6,402 / FF to the average of the other three sales at $3,841 indicates a 67%, rounded up to 7 0 % , differential going from the lower ratio to the higher ratio. Comparing the average of #2 and #3 @$6,402 to #1 and #5 @ $4,207 (leaving out #4 as it has a much lower $ / FF than the other two - though it is more similar to the subject with its frontage - the largest of the group at 1,100' - and its acreage - similar to the subject - we get a difference (going low to high) of 52%, rounded to up to 55%. That appears to be a more realistic adjustment factor. Comparable 1 is located north of the subject on Blue Star Highway in Casco Township, Allegan County. It was considered similar enough to the subject in all of the above mentioned respects to warrant adjustment for only the following: time and frontage. This sale occurred in May 2005. Given the above discussion regarding time (6% / year), an adjustment is warranted for this 15 month period of + 7 % , resulting in a time adjusted sale price of $4,063 per FF. This sale has a relatively low ratio of lake frontage to acreage at 20 while the subject has a ratio (west of Jean Drive) of 60. Given the above discussion on the impact of this ratio on price, an adjustment of 55% is indicated for the sale's inferior FF / AC ratio. There being no other adjustments, the net adjustment of + 5 5 % , or + $2,235, to this time adjusted sale price of $4,063 per FF, results in an indicated value for the subject site of $6,298 per FF. Comparable 2 is located north of the subject on 74 th Street in Casco Township, Allegan County. It was considered similar enough to the subject in all of the above mentioned respects to warrant adjustment for only the following: time. This sale occurred in November 2004. Given the above discussion regarding time (6% / year), an adjustment is warranted for this 21 month period of + 1 1 % , resulting in a time adjusted sale price of $6,852 per FF. There being no other adjustments, the net adjustment of + 0 % , or + $0, to this

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time adjusted sale price of $6,852 per FF, results in an indicated value for the subject site of $6,852 per FF. Comparable 3 is located north of the subject on 13 th Avenue in South Haven Township, Van Buren County. It was considered similar enough to the subject in all of the above mentioned respects to warrant adjustment for only the following: time. This sale occurred in August 2004. Given the above discussion regarding time (6% / year), an adjustment is warranted for this 2 year period of + 1 2 % , resulting in a time adjusted sale price of $5,951 per FF. There being no other adjustments, the net adjustment of + 0 % , or + $0, to this time adjusted sale price of $5,951 per FF, results in an indicated value for the subject site of $5,951 per FF. Comparable 4 is located north of the subject on Waters Edge, off Blue Star Highway, in Casco Township, Allegan County. It was considered similar enough to the subject in all of the above mentioned respects to warrant adjustment for only the following: time. This sale occurred in May 2004. Given the above discussion regarding time (6% / year), an adjustment is warranted for this 27 month period of + 1 4 % , resulting in a time adjusted sale price of $3,109 per FF. This sale has a relatively low ratio of lake frontage to acreage at 23 while the subject has a ratio (west of Jean Drive) of 60. Given the above discussion on the impact of this ratio on price, an adjustment of 55% is indicated for the sale's inferior FF / AC ratio. There being no other adjustments, the net adjustment of + 5 5 % , or + $ 1 , 7 1 0 , to this time adjusted sale price of $3,109 per FF, results in an indicated value for the subject site of $4,819 per FF. Comparable 5 is located north of the subject on Cottage Lane, off Blue Star Highway, in Casco Township, Allegan County. It was considered similar enough to the subject in all of the above mentioned respects to warrant adjustment for only the following: time. This sale occurred in March 2002. Given the above discussion regarding time (6% / year), an adjustment is
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warranted for this 41 month period of + 2 7 % , resulting in a time adjusted sale price of $4,145 per FF. This sale has a relatively low ratio of lake frontage to acreage at 12 while the subject has a ratio (west of Jean Drive) of 60. Given - the above discussion on the impact of this ratio on price, and adjustment of 55% is indicated for the sale's inferior FF / AC ratio. There being no other adjustments, the net adjustment of + 5 5 % , or + $2,280, to this time adjusted sale price of $4,351 per FF, results in an indicated value for the subject site of $6,744 per FF. The comparables and their adjusted sale prices are as follows: Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 $6,298 per FF $6,852 per FF $5,951 per FF $4,819 per FF $6,744 per FF

The range is $4,819 per FF to $6,852 per FF for a difference of $2,033 / FF. The mean sale price is $6,133 / AC. Given the definition of market value inherent in this report, the subject's location in an urban area, its relatively low dune bluff and the above range of values - which includes the lowest indicator in Sale #4 which has a site size (48 AC ) similar to that of the subject (44-AC west of Jean Drive) and has the largest amount of lakefront at 1,100 FF, greater than any of the other sales, making again the most similar to the subject - the estimated value for the subject is $6,000 / FF. Relative to the subject's 2,640 FF, this equates to a value for the subject site unencumbered of $15,840,000 via the Sales Comparison Approach. However, the subject is encumbered with a deed restriction prohibiting development which markedly impacts its value. This part of the appraisal problem will be approached from two viewpoints. One is to compare this property as encumbered to properties encumbered with a conservation easement which also prohibits development. I feel that this is a very similar
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situation and should give good guidance as to the effect of the lack of development on value. Another approach is to compare what sale data is available regarding encumbered properties along the Lake Michigan shoreline. The latter will be discussed first and then a discussion of the rate of diminution found in properties encumbered by conservation easements after that. As noted above, sales of developmentally restricted Lake Michigan frontage are virtually nil. One was found in Antrim County north of Traverse City. It may be the only one of its kind in the recent past. It is included in the Addendum as comparable #6. It is not a sale of a property 100% encumbered, as the subject is, but is the closest thing to it. The entire 1,220 FF tract sold for $1,300,000 with two - 200' building sites retained. A value for the building sites of $2,500 / FF, or $1,000,000 was estimated leaving a value for the remaining encumbered 820 FF of $300,000 or a rate of $366 / FF. Compared to the unencumbered rate of $2,500 / FF (which may a little high considering the amount of frontage - 820 FF as compared to 200 FF) this evidences a rate of diminution for the encumbrance of 8 5 % . Another approach is to examine properties that were encumbered with conservations easements (CE) and gauge the percentages of diminution experienced in the market place due to that encumbrance. A typical CE has a restriction against development similar to that of the subject's deed restriction. My office has done numerous appraisals for conservation easement donations to land conservancies, MDNR, etc. in southwest Michigan in the recent past. I have also done an extensive literature search regarding this issue also and have attended and moderated sessions on this topic at International Right of Way Education conferences. Easement Encumbered Sales I am aware of properties encumbered by easements, either purchased or donated, as by evidenced two sales in Barry County - not exceptionally far from Berrien County in southwest Michigan. My office was involved in the CE
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process for both of them. One is the sale of the former Hazel Rood property located north of the subject in Orangeville Township in Barry County. It appears that this sale is the first of its kind in the area, wherein a property with a Conservation Easement in place has been sold. The sale on 11-1-01 represented the value of that property in the after state. The property sold for $215,000 and had been appraised in the before state at $376,000. This represents a 42.8% rate of diminution for the encumbrance of the Conservation Easement. This sale did have a 1,280 SF house and guesthouse on it at the time of sale. The subject is vacant and this sale had buildings on it in the before state and the same buildings and uses for those buildings in the after state. The buildings also had substantial value. As will be noted later in this report in the discussion under the Donald Fisher data, conservation easement impacted property with building sites on it tends to have a lower percentage of the total property value in the conservation easement. This sale is an indicator that the rate of diminution for the subject should be higher than this sale's 42.8% rate of diminution. Another sale of property with conservation easement encumbrance, but also of an improved property, was the Tenho Connable Trust sale to Michael and Carol Klug. This sale, a property with two dwellings on it in a 6.5 AC (400' x 700') building envelope, and screened building with a 60' x 52' building envelope, showed a diminution of 23.7%, when comparing the $320,000 sale price on January 2 1 , 2004 to the time adjusted appraised value of $419,210 (appraised value of the property by this appraiser of $407,000 on July 22, 2003 plus Yz year at 6% / year time adjustment). Again, one can anticipate a higher rate of diminution with a vacant tract of land such as the subject than one that includes structures - especially dwellings - as evidenced by this analysis at 23.7%. Literature Search and Personal Contacts

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In the data collection process embodied in this appraisal and prior assignments, many sources were contacted. They range from local, to regional to national in scope. They include policy makers, administrators and appraisers. The following is a summary of the individuals and groups contacted in the data collection effort, which has spanned several years. Data was researched from publications available to the appraisers. Appraisers and individuals involved in the conservation easement field were also interviewed. The following publications provided support for the methods used in' this appraisal and analysis, especially the After state. They are on file in the appraisal office of MATUREN & ASSOCIATES, INC.

Appraising Easements, Guidelines for Valuation of Historic Preservation and Land Conservation Easements, 1999, Land Trust Alliance, Washington, D.C.

Valuing Land Affected by Conservation Easements, Lincoln Institute of Land Policy, Resource Manual, 1997. John Ross of this office attended a seminar by the same name in Atlanta, Georgia in February 1997.

Conservation Easements - Just Another Partial Interest, 1997 Leland T. Bookhout, MAI

Valuing Agricultural Conservation Easements, April 1998, The Appraisal Journal, Janis A. Lassner, SRA

Transfer Methods and Valuation Procedures for Conservation Easements, January 1998, International Right of Way Association, James H. Boykin, PhD, MAI, CRE.

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Journal of Property Economics: Conservation Easements: A Review of Alternative Valuation' Methods Donald Fisher, MAI, ARA, authored an article in the 2004 issue of the Journal of Property Economics. In it, he shows the rate of diminution for various easements in several areas of New York State. His conclusion is that properties with building envelopes on them tend to have a much lower rate of diminution (the value of the easement is a lesser percentage of the total, unencumbered value) due to conservation easement encumbrances than purely vacant tracts, like the subject. (Note: Our experience shows the same trend). In the rural - suburban areas, the vacant tracts have rates (easement value as a % of total value) ranging from 55% to 85% with an average of 7 0 % . (See table 12, page 81 for this example). That table also notes that for suburban urban areas, the range is 6 0 % to 95% with an average value for the easement of 80% of fee. Those ranges are in line with other indications as reviewed above. He also states: "The Agricultural Conservation Easements (ACE) acquired throughout the state (NY) also support the general concept that the percentage of fee simple value attributable to development rights increases as the fee simple value increases and as the distance to development decreases." Those percentages were also confirmed with Mr. Fisher at the 2005 International Right of Way Education Seminar in Toronto, Ontario, Canada when Mr. Fisher was a presenter at the Valuation Committee's Conservation Easement session. I moderated that session for the IRWA.

Planning & Zoning News, October 1998, Planning & Zoning Center, Inc. Use Value Assessment: Old Mission Peninsula, Peninsula Township, Grand Traverse County In the above PZN article and in other literature on the Purchase of Development Rights issue is mentioned Peninsula Township on Grand Traverse Bay near Traverse City. They fund a millage for PDR purposes and, in
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conjunction with other funds, have purchased many acres of land. The Township contracts out the appraisals to a local fee appraiser, Steve Nichols. Dave Maturen toured the Old Mission Peninsula with Steve Nichols in October 1998 and viewed several PDR parcels. Very important to the tour was the fact that he had knowledge of resales of several PDR properties. Unfortunately, no one sale was of 100% restricted property. (A follow up conversation with him indicated that there have been no sales of "pure" easements since then either). They all had a mix of restricted and unrestricted acreages. Two somewhat recent, for this type of property, sales were selected for analysis and as indicators of the market's reaction to the easement encumbrance. As with many comparables, they were not perfectly "comparable", but were able to be adjusted appropriately for measurement of the impact on or diminution in value due to their encumbrance of the development rights easement. The encumbered tracts sold in combination with' unencumbered tracts. However, there exist sufficient sales of similar unencumbered tracts to accurately extract their values from the total sale price to arrive at a residual for the encumbered tract. This residual was then compared to the values of similar unencumbered tracts to arrive at a diminution percentage. The following transactions are good indicators of the impact of the encumbrance on value. Tax ID #28-011-030-006-10 sold on 10-7-97. The seller was Underwood Orchards Limited Partnership and the buyer was Robert & Kimberly Mampe. The 52 AC tract (which contained 42 encumbered AC) sold for $296,000. It contained two development rights for building sites valued at an estimated $70,000 and $90,000. These retained sites have good water views of East Grand Traverse Bay. This left a residual of $136,000 for the 42 AC, or $3,238 per AC. There was a 10 AC cherry orchard on the tract at the time of sale, but this was removed shortly after the transaction, and thus likely had no contributory value in the transaction. Tax ID #28-011-103-017-00 sold on 11-6-96. The Seller was Cheryl Kroupa and the buyer was Valerie
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Contanche. The 45.5 AC tract (which contained 35.5 encumbered AC) sold for $141,050. It contained two development rights for building sites values at an estimated total of $95,000. These building sites had minimal water views of East Grand Traverse Bay, but good "countryside" views, and had very long access drives to reach them. This left a residual of $46,050 for the 35.5 AC, or $1,297 per AC. Other relative similar sized tracts in the area were selling for roughly $4,000 to $4,300 per AC in that same time period. The average unencumbered sale at $4,150 compared to the encumbered sales above indicates a range of diminution respectively of -22% to -69%. Admittedly, the allocation of values to the building sites at a different rate would alter the end analysis of the value for the encumbered tracts. This example is reflective of the values in the Traverse City, Peninsula Township area, which is different from that of the subject though they do involve waterfront views. They are highly motivated by direct views of Grand Traverse Bay and Lake Michigan as well as the orchards. Other Northern Michigan Appraisers The office of Michigan Appraisal Company in Charlevoix has been performing conservation easement appraisals in Northern Michigan for many years. They have files showing the sale of eight tracts of land encumbered by a conservation easement. Six of the eight had building envelopes (BE) included in this sale, thus making them less than accurate indicators of the rate of diminution for the subject which has no residential building envelopes. The two without any building envelopes showed rates of diminution of 56% and 89.4%. That office was the source of the information for Sale #6 which evidenced the 85% diminution for the Lake Michigan frontage due to the CE encumbrance. Conservation Easement Appraisals This office has appraised several properties for this purpose for individuals in Southwest Michigan. They were done for donation purposes to the Southwest Michigan Land Conservancy, and entailed a granting of the
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development rights to that organization. Our experience has seen a range in diminution from the mid 20% range to the upper 70% range for such donations, again with the lower numbers being for properties that have existing buildings or reserved building sites on them. Viewing the above CE analysis, and the one bit of market evidence out there in Antrim County (albeit not a 100% encumbered sale) at an 85% diminution from the fee value (and with the caveat that the rates per unit used for the diminution figure may have resulted in this relatively low rate of diminution as the encumbered frontage was quite a bit larger than the frontage of the property used for the basis of the unencumbered rate thus leading to a higher rate than if a lesser rate - larger tracts sell for a lower rate than smaller ones - for the unencumbered property type was used), I would estimate that subject west of Jean Drive with its 34 mile of Lake Michigan frontage has a value of 2 0 % of the fee rate, previously determined at $6,000 / FF, or $1,200 FF or $3,168,000 for that tract with the restriction against development in place via the Sales comp[arson Approach. Now, we still have to determine a value for the portion of the site to be utilized for the golf course. That analysis follows. As noted before and depicted in the Addendum, the three holes placed on this part of the Park do not take up any lake frontage. They rise to the top of the dune for the views of the lake, but leave all the beach area unaffected and 100% useable for beach activities. The beach front is the major portion of the value of this tract of land, with the "backland" taken up by the potential of holes 16, 17 and 18 being of a lesser value on a per unit basis in my opinion. To determine the value of the backland and dune area of the subject, sales of lots in two of the large tract comparables used previously in this report will be utilized. I can compare the lakefront lot prices to the non lakefront lot prices in the same subdivision to gauge the market's view of what percentage difference there is between the two. This percentage will then be applied to the value of
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the site to remaining to be valued (holes 16, 17 and 18 lying to the west of Jean Drive and the small portion of hole #18 lying to the east of Jean Drive that is "high and dry". The latter area is included for simplicity's sake in the valuation process. Lake Michigan front Lot 2 in Comparable #3 {now known as The Preserve) sold for $450,000 in October 2002. Lot #3, a non lakefront lot immediately to the east of Lot #2) sold in October 2002 for $250,000. Going from lakefront to non lakefront shows a reduction in value of 4 5 % . At that ratio and all things being equal the lakefront represents roughly 6 5 % of the total value of the site and the non lakefront 35% ($450,000 + $250,000 = $700,000. $250,000 / $700,000 = 35.7%). Lake Michigan front Lot 7 in Comparable #4 (now known as The Boardwalk) sold for $860,000 in November 2005. Lot # 2 1 , a non lakefront lot but with an expansive view of Lake Michigan from an artificially created hill in the same subdivision) sold in November 2005 for $700,000. Going from lakefront to non lakefront shows a reduction in value of a rounded 20%. At that ratio and all things being equal the lakefront represents roughly 55% of the total value of the site and the non lakefront 45%. Lake Michigan front Lot 27 in Comparable #1 (now known as The Highfield Beach Club) sold for $1,100,000 in July of 2006. Lot #17, a non lakefront lot just across the street to the east in the same subdivision) sold in November 2005 for $409,500, or a time adjusted price (to July 2006) of $425,880. Going from lakefront to non lakefront shows a reduction in value of a rounded 60%. At that ratio and all things being equal the lakefront represents roughly 70% of the total value of the site and the non lakefront a rounded 30%.

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The three examples are synopsized below. Development Preserve Boardwalk Highfield Beach Club Lakefront % 65% 55% 70% Non Lakefront % 35% 45% 30% Comments No lake view Great lake view No lake view

From the above table, it appears that non lake front parcels that have a view have a greater value than those that do not - as stands to reason. The subject's 3 holes have a combination of lake view and non lake view, I would estimate from the plans in the Addendum, in a roughly 50 / 50 proportion. Given the above spread in percentages, I would estimate that a rounded 35% of the value is attributable to the non lakefront property of the subject and 65% to the lakefront portion. Additionally, I estimate that roughly 4 0 % of the site is in the area of the beach to the top of the dune and the remaining 6 0 % to the east of that to Jean Drive and to include the small tract east of Jean Drive lying north of the wetland area. Thus the above value as encumbered of $3,168,000 x 65% (lakefront portion of value) = $2,059,200 for the 4 0 % of the 44 AC or a rounded 18 AC. That leaves $1,108,800 for the remaining 26 AC, or a rate for that property of $42,646 / AC, or a rounded $42,500 / AC. Relative to the 20.67 AC of "dry" land, that equates to a value for the proposed golf course holes (except for the 1 AC wetland piece) of $878,475.

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SITE SALES COJ

USON GRID SUBJECT

10 4409 Hall Kent County

COMPARABLE SALES
7 148th Avenue Ottawa Co. 8 8503 Oakland Kalamazoo Co. 9 142nd Allegan Co.

Jean Klock Park

SALE DATE SALE PRICE, $ SITE SIZE, AC, net PRICE PER AC

5/16/05 $7,500 4.88 $1,538

8/27/04 $22,000 9.75 $2,256

11/27/02 $17,900 16.54 $1,082

5/22/02 $10,000 4.88 $2,049

ADJUSTMENTS
CO

llllllllllllllll

en

DATE OF SALE TIME ADJUSTED SALE PRICE/AC LOCATION SIZE SHAPE ZONING UTILITIES TOPOGRAPHY SCHOOL DISTRICT NETADJUSMENT, % NET ADJUSTMENTS ADJUSTED SALE PRICE. S/AC
HARBOR SHORES WETLANDS

0% $1,538 40% 0% 0% 0% 0% 0% 0% 40% $615 $2,153

8% $2,436 0% 0% 0% 0% 0% 0% 0% 0% $0 $2,436

15% $1,244 100% 0% 0% 0% 0% 0% 0% 100% $1,244 $2,488

17% $2,397 0% 0% 0% 0% 0% 0% 0% 0% $0 $2,397 City of Benton Harbor

107.97 AC, net Vi mile FF on Lk. Michigan

Irregular Mixed Use Development Water, sewer, gas & electric Wetland and shallow pond. Benton Harbor Public Schools

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WETLAND The remaining acreage to be taken up by the three holes lies east of Jean Drive in the northerly portion of that tract. The property type is markedly different from west side of Jean Drive (and the small portion on the east of Jean Drive that is "high and dry" and not a wetland). The subject area of hole #16 east of Jean Drive is comprised of wetland soils and a shallow pond. That area is approximately 1 AC in size. The sales below have attributes that mimic that description. The four sales from southwest and west Michigan analyzed below were considered to be the most similar properties to the subject that could be found in the area. Two of the sales are zoned Agricultural and two are zoned Residential. Since all the sales are non-buildable, zoning has little, if any, impact on value. There are one each in Kalamazoo, Allegan, Ottawa and Kent Counties. The comparables range in date of sale from 1-14-02 to 6-16-06 and a time adjustment is warranted. The rate of growth in recreational real estate values in this area is steady and is estimated to be 4 % per annum. The size of the comparables range from 4.88 AC to 16.54 AC and the wetland area west of Jean Drive is roughly 25 AC in size. The portion of the park in the golf course , area in the wetland is roughly 1 AC. For this type of property, site size appears to be no reliable indicator of value. In other words, the rate per acre does not go up or down with the site size. This is apparent from the view of the sales in this grid. The subject is in an urban environment, though the neighborhood is sparsely populated. In general the sales in the more "urban" settings command the higher prices in this group. An adjustment for location (rural vs. urban) is

warranted based upon this comparison. The normal adjustments relative to land, such as frontage, corner, zoning, view, utilities, etc. do not apply to this property type. Therefore, few adjustments are warranted. Comparable 7 is located northerly of the subject on 148 th Avenue in Spring Lake Township in Ottawa County. It was considered similar to the subject in all the above mentioned aspects to warrant adjustment for only the
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following: location. This sale occurred very recently on 5-16-06 and needs no adjustment for time. This sale is located in a suburban neighborhood while the subject is in an urban one. Viewing this sale relative to the raw sales prices per unit of the two urban sales in Portage and Walker, one sees a rounded 4 0 % differential going from a location in a suburban setting to a more urban one. Thus a + 4 0 % adjustment for the sale's inferior location is indicated. There being no more adjustments warranted, the net adjustment to this time adjusted sale price of $1,538 / AC is + 4 0 % , or +$615 / AC, and results in an indicated value for the subject of $2,153 per AC. Comparable 8 is located northeasterly of the subject on Oakland Drive in Portage in Kalamazoo County. It is in a relatively urban environment like the subject. It was considered similar to the subject in all the above mentioned aspects to warrant adjustment for only the following: time. This sale occurred 8-27-04, approximately 24 months ago. Given the lack of sales of this type of property from which to gauge a rate of price appreciation, an annual rate of 4 % is estimated given trends in this market. Given the above discussion regarding time, an adjustment of + 8 % , or + $ 1 8 0 / AC, results in a time adjusted sale price of $2,346 per AC. There being no more adjustments warranted, the net adjustment to this time adjusted sale price of $2,346 is 0%, or $0 / AC, and results in an indicated value for the subject of $2,346 per AC. Comparable 9 is located northerly of the subject on 142 nd Avenue in Salem Township in Allegan County. It was considered similar to the subject in all the above mentioned aspects to warrant adjustment for only the following: time and location. This sale occurred 11-7-02, approximately 45 months ago. Given the above discussion regarding time, an adjustment of + 1 5 % , or + $162 / AC, results in a time adjusted sale price of $1,244 per AC. This sale is located in a rural neighborhood while the subject is in an urban one. Viewing this sale relative to the raw sales prices per unit of the two urban sales in Portage and Walker, one sees a rounded 100% differential going from a location in a rural
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setting to a more urban one. Thus a 100% adjustment for the sale's inferior location is indicated. There being no more adjustments warranted, the net adjustment to this time adjusted sale price of $1,244 is 100%, or $1,244 / AC, and results in an indicated value for the subject of $2,488 per AC. Comparable 10 is located northeasterly of the subject on Hall Street just off Wilson (M-11) in the City of Walker in Kent County. It is in a relatively urban environment like the subject, it was considered similar to the subject in all the above mentioned aspects to warrant adjustment for only the following: time. This sale occurred 5-22-02, approximately 51 months ago. Given the above discussion regarding time, an adjustment of + 1 7 % , or + $ 3 4 8 / AC, results in a time adjusted sale price of $2,397 / AC. There being no more adjustments warranted, the net adjustment to this time adjusted sale price of $2,397 / AC'is 0%, or $0 / AC, and results in an indicated value for the subject of $2,397 / AC. The comparables and their adjusted sale prices per AC are as follows: Sale 7 Sale 8 Sale 9 Sale 10 $2,153/AC $2,346 / AC $2,488 / AC $2,397/AC

The range is from $2,153 to $2,488, for a difference of $335 per AC. The mean adjusted price of the above sales is $2,347 per AC. Given this tight range in adjusted prices, and in keeping with the definition of market value inherent in this report, a value for the subject fee simple interest is estimated to be $2,400 / AC. Applied to the area of 1 AC, this equates to $2,400 for the wetland portion of the golf course site via the Sales Comparison Approach. To this must be added the value of the rest of the proposed golf course site of $878,475, for a final total of $880,875, or $881,000 rounded.

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CORRELATION AND CONCLUSION OF VALUE COST APPROACH - This approach was not considered to lead to a valid indicator of value for the subject property for the reasons previously given. INCOME APPROACH - This approach was not considered to lead to a valid indicator of value for the subject property for the reasons previously given. SALES COMPARISON APPROACH - This approach was considered to lead to a reliable indicator of value for the subject since relatively comparable sales were found in the market place which lead to reliable indicators of value.

SUMMARY OF VALUE CONCLUSIONS Cost Approach Income Approach Sales Comparison Approach Not Applicable Not Applicable $881,000

ESTIMATED MARKET VALUE Eight Hundred Eighty and Eight Hundred Seventy Five Dollars $881,000

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MATUREN ft ASSOCIATES. INC. Real Estate ,Vp'3iser Consultant

Case 1:08-cv-01400-EGS

Document 19-8

Filed 09/30/2008

Page 41 of 41

CERTIFICATE OF APPRAISER I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. That I offered the owner or his designated representative an opportunity to accompany me during the inspection of die property herein appraised. The reported analyses, opinions, and conclusions are limited by only the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is die subject of this report and no personal interest with respect to the parties involved. I have no bias with respect to the property diat is die subject of this report or to the parties involved wfth this assignment. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors die cause of die client, the amount of value opinion, die attainment of a stipulated result, or die occurrence of a subsequent event directly related to die intended use of this appraisal. My analyses, opinions, and conclusions were developed, and this report has been prepared in conformity widi die Uniform Standards of Professional Appraisal Practice and die Code of Professional Ernies of die International Right of Way Association. I have made a personal inspection of die property diat is me subject of this report. That based on my independent appraisal and die exercise of my professional judgment, widiout significant real property appraisal assistance of any non - signatories, my opinion of me fair market value of the 21.67 AC property belonging to the City of Benton Harbor as of die 26"1 day of August, 2006, is: Estimated Market Value: $881,000

Certified General Real Estate Appraiser, License 1201000205

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MATUREN & ASSOCIATES, INC. Real Estate Appraisor - Consultant