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Downtown Study MARKET STUDY DOWNTOWN SALINA H.D. LEE COMPLEX SANTA FE AND ELM SALINA, KANSAS 67401 Effective Date of Valuation June 8, 2007 Date of the Report July 31, 2007 Prepared for Ms. Phyl! Klima Salina Downtown Prepared by SHANER APPRAISALS, INC. Downtown Salina H.D. Lee Complex July 31, 2007 Ms. Phyll Klima Executive Director Salina Downtown 205 West Ash Street Salina, KS 67401 Re: Market Study for a mixed-use urban center utilizing the H.D. Lee Complex, located on the city block bordered by Elm on the north, Ash on the south, Santa Fe on the west and 5th Street on the east, in Salina, Saline County, Kansas 67401. Dear Ms. Klima: In accordance with your authorization, we have conducted a detailed study of the Salina, Saline County, Kansas market for a mixed-use urban center. Our study has focused on market supply and demand for retail, office and multifamily development in the area. The report that follows sets forth a brief identification of the property, the assumptions and limiting conditions, pertinent facts and detailed demographics for the area, comparable market data and statistics, the results of the investigation, and the reasoning leading to the conclusions set forth. Please pay particular attention to the Special Assumptions and Limiting Conditions regarding the feasibility of the project. The market study was prepared in accordance with the Code of Professional Ethics of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice. The report was prepared by Allen Skeens under the supervision of Bernie Shaner, MAI, SRA. Our recommendations for the proposed subject property are summarized in the following Executive Summary and detailed in the attached report. Sincerely, Shaner Appraisals, Inc. Allen Skeens Bernie Shaner, MAI, SRA State Licensed Appraiser, Kansas No. L-1193 State Certified General Appraiser, Kansas No.G-431 Downtown Salina H.D. Lee Complex • TABLE OF CONTENTS CERTIFICATION 1 EXECUTIVE SUMMARY 2 ASSUMPTIONS AND LIMITING CONDITIONS 32 INTRODUCTION 36 SUBJECT PHOTOGRAPHS 38 IDENTIFICATION OF SUBJECT PROPERTY 52 AREA AND NEIGHBORHOOD 75 DEMOGRAPHIC REPORTS 87 MIXED-USE DEVELOPMENT 160 MARKET ANALYSIS— RETAIL 166 • MARKET ANALYSIS - OFFICE 202 MARKET RECOMMENDATIONS - RETAIL/OFFICE 211 MARKET ANALYSIS - MULTIFAMILY 215 COMPETITIVE INVENTORY- SUPPLY 230 DEMAND ESTIMATE AND ANALYSIS 248 DATA, ESTIMATES AND FORECASTS 256 MARKET RECOMMENDATIONS - MULTIFAMILY 260 ADDENDA 266 APPRAISER QUALIFICATIONS 267 GLOSSARY 275 ADDITIONAL INFORMATION 279 i Downtown Salina H.D. Lee Complex 410 CERTIFICATION I certify that, to the best of my knowledge and belief: • I have no present or contemplated future interest in the real estate that is the subject of this market study. • I have no personal interest or bias with respect to the subject matter of this market study or the parties involved. The employment of the consultant was not conditioned upon the market study producing a specific conclusion or opinion. • To the best of my knowledge and belief, the statements of fact contained in this market study, upon which the analyses, opinions, and conclusions expressed herein are based, are true and correct. • This market study sets forth all of the Limiting Conditions (imposed by the terms of my assignment or by the undersigned) affecting the analyses, opinions and conclusions contained in this report. • This market study has been made in conformity with and is subject to the requirements of the Code of Professional Practice and Standards of Professional Conduct of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice. 41/ • No one other than the undersigned prepared the analyses, conclusions, and opinions concerning real estate that are set forth in this market study, and the undersigned have extensive experience in analyzing properties of this type. • The employment of the consultant was not conditioned upon the market study opinion or conclusion or the approval of a loan. • The amount of compensation to be received for making this market study or the employment to make the market study was not contingent upon the final opinion or conclusion. • Allen Skeens and Bernie Shaner, MAI, SRA both made a personal inspection of the subject property on April 27, 2007. • As of the date of this report, Bernie Shaner, MAI, SRA has completed the requirements of the continuing education program of the Appraisal Institute. Allen Skeens Bernie Shaner, MAI, SRA State Licensed) Appraiser, Kansas No. L-1193 State Certified General Appraiser, Kansas No.G-431 • SHANER APPRAISALS, INC. Certification • 1 Downtown Salina H.D. Lee Complex II EXECUTIVE SUMMARY y� WMOt.f1Atf M•AOw••t-•Amf.AL10M01,a1 1Y•.•tot1.[t[. !L 1, -"Y . II I i "A" aws la * t t! Li , -y er•,. u � • tut lft,AAOw&tf/CO.. SAIMNA.MAn1A1. f\OOt/.AC[Tnitl ACA11 Property Identification • NAME McCune Bird/Lee Buildings LOCATION 248 & 254 N. Santa Fe Salina, Kansas 67401 TYPE OF PROPERTY Mixed-use urban center EFFECTIVE DATE OF STUDY June 8, 2007 LAND AREA ACRES 4.31 OWNER OF RECORD Lee Development, LLC YEAR CONSTRUCTED 1905, 1928 TYPE OF CONSTRUCTION Brick NUMBER OF STORIES Five GROSS BUILDING AREA 158,500 square feet ZONING C-4 Commercial The market study is of a mixed-use urban center with retail, office and multifamily development. The concept is for development of a full city block. This will include rehabilitation of existing structures along with new construction on vacant land. The project has not yet developed specific proposed plans and specifications. • SHANER APPRAISALS, INC. Executive Summary • 2 Downtown Salina H.D. Lee Complex Property Assessment • Assessment and real estate tax information were provided by the Saline County administrative offices. In the state of Kansas, residential properties are assessed at 11.5% of the actual market value, as estimated by the county assessor. The property is identified by the county as parcel numbers 085-081-12-0-30-08-001-00-0-01, 085-081-12-0-30-08-001-00-0-01, 085-081-12-0-30-08-002-00-0-02, 085-081-12-0- 30-08-002-00-0-03 and 085-081-12-0-30-08-002-00-0-04 . Following is a summary of the current property assessment, as well as the previous year. The 2006 appraised value of the property is $593,240 ($89,250 for the land and $503,990 for the improvements). The 2005 appraised value of the property was $546,100 ($89,250 for the land and $456,850 for the improvements). The appraised value of the land did not change. The value of the improvements increased 10.32% over the past year and the overall value of the subject property increased 8.63%. In Kansas, sales prices are reported to the County Assessor subsequent to a real estate transaction. County assessors typically attempt to adjust valuations to reflect actual sales activity. The recent transaction involving the purchase of the subject property is likely to lead to a reduction in taxes as the sales price was reported to be $140,000, $453,240 lower than the current appraised value. Commercial Info.for 085-081-12-O-30-08-002-00-0-01-Click here for other Cards • Owner Information Legal Description i lees Apr Val Apr Val 'Apt Val Vaar I 3 Land auitri Tetat 085•081•12-0•30•08•002•00.0•01 1SEC 12 1WP 14 ANG 3 CU $61500 $240610 $302110 Current N:CUNE PAPER CO INC Cu $61500 $218010 1219510�Prevrous: Property Address: fsuboiv:ORIGINAL •48 N SANTA FE AVE 67401 TOWN OF SAUNA TACT OESC:S 30 LT St&LIS53IL S56N 3 0 LT 57 SANTA FE AVE A S 30 LT 52A05546561.N 30 LT 58 STH ST B - Commercial Info.for 085-08i-12-0-30.08-001-00-0-01-Click here for other Cards f_ Ow ner Information AAA I Legal Description lllr C ass/ALend build Aor tV Year • 085 081.12.0 30.011•001.00.0.01 SEC 12 TWP 14 RNG 3 CU $77150 $263380 52911301 Current MCCUNE PAPER CO INC CU $27?SO $238840 $266590 Previous Property Address: Lot:496506PSI&52 ;E4 N SANTA FE AVE 67401 SubOiv:ORIGINAL TOWN OF SALINA TROT OESC•LT 49&N J20 LT 51 SANTA FE AV 52511151 LT • SHANER APPRAISALS, INC. Executive Summary • 3 Downtown Salina H.D. Lee Complex IIIExecutive Summary The subject study is of a mixed-use urban center. Based on the supply and demand projections contained in the attached report, we developed the following basic conclusions. Demographics • The primary market area (PMA) is identified as the City of Salina. The secondary market area (SMA) is the Salina, Kansas Micropolitan Statistical Area (also referred to as the CBSA). The secondary market contains all of Saline County as well as portions of the following adjoining counties: Ellsworth, Lincoln, Mitchell, Cloud, Clay, Ottawa, Dickinson and Marion. COMMUNITY SUMMARY PRIMARY MARKET AREA Summary 2000 2007 2012 Population 45.679 46.458 47,090 Households 18.523 18.953 19.248 Families 11.878 11.980 11.986 Average Household Size 2.39 2.38 2.38 Owner Occupied HUs 12.244 12.855 12.999 Renter Occupied HUs 6.279 6.098 6.249 Median Age 35.3 36.4 36.7 Total Housing Units 19.599 20.269 20.706 Vacant Housing Units 1.076 1,316 1,458 1111 Average Home Value 594,526 3130,967 S152.020 Total Businesses - 1.771 - Total Employees - 14,778 - COMMUNITY SUMMARY SECONDARY MARKET AREA Summary 2000 2007 2012 Population 59.760 61,339 62.465 Households 23.866 24.623 25.111 Families 15,928 16.209 16.313 Average Household Size 2.44 2.42 742 Owner Occupied HUs 16.793 17.692 17.997 Renter Occupied HUs 7.073 6,931 7,114 Median Age 36.5 37.9 38.6 Total Housing Units 25.450 26.541 27,222 Vacant Housing Units 1,584 1.918 2.111 Average Home Value 396,767 5133.362 5154.778 Total Businesses - 2.317 - Total Employees - 18.851 S SHANER APPRAISALS, INC. Executive Summary • 4 Downtown Salina H.D. Lee Complex • • The population of the primary market area experienced moderate growth for each of the past two decades. The population was approximately 45,679 in 2000, up from 42,568 in 1990. The 2007 population is forecasted at 46,458 and 47,090 in 2012. ' 1990 Total Population 42,568 141 2000 Total PapuleGon 45,679 2000 Group Quarters 1367 2000 Population Density 2,009.6 2007 Total Population 46,458 2007 Population Density 2,043.9 2012 Total Population 47,090 2007-2012 Annual Rate 0,27% 2007 Population by Age 55-84(10.0%) 65+(14.0%) 45-54 Alk <5(7.2%) 35-44(13.3%) 4''y '',:-.,,M-' ., ' . ". • ,3C Z S`qs`• tlo- C 5.19(20.2% 25-34(13.0%) IMO. 20-24(7.9%) • The compound annual population rate is projected to increase by .27 percent within the primary trade area between 2007 and 2012 and by .36 percent within the secondary trade area during the same timeframe. • The City of Salina from the year 1990 to 2000 added population at the rate of 4.3% due to migration. • The population of the secondary market area has likewise experienced stable • growth for each of the past two decades. The population was approximately SHANER APPRAISALS, INC. Executive Summary • 5 Downtown Salina H.D. Lee Complex • 59,760 in 2000, up from 54,935 in 1990. The 2007 population is forecasted at 61,339 and 62,465 in 2012. 1990 Total Population 54.935 III 2000 Total Population 59.760 T 2000 Group Quarters 1.634 2000 Population Density 41.5 2007 Total Population 61,339 2007 Population Density 42.6 2012 Total Population 62.465 2007.2012 Annual Rate 0.36% 2007 Population by Age 55-64(10.7%) 65+(14.1%) Allk 45-54(15.4%) <5(6.9%) 35-44(13.4%) r: `;,,i. ` bp1,, 5-19(20.0% i25-34(11.9%) 20-24(7.6%) Trends:2007.2012 Annual Rate Area National Population 0.27% 1.30% Households 0.31% 1.33% Families 0.01% 1.08% Owner HHs 0.22% 1.41% Median Household Income 3.25% 3.32% Places:Salina city.K5 Trends 2007.2012 3S G 3 tv. 2.5 0, CI. G 2 - Area in 1.6 1-1 U.S. 1 Q O.S 111111111[1] II I0 Population Households F�ikss ......_ 0.na Mks M,Msn MM Ineoms—. ...._.. • SHANER APPRAISALS, INC. Executive Summary • 6 Downtown Salina H.D. Lee Complex Trends:2007-2012 Annual Rate Area National III Population 0.36% 1.30% Households 0.39% 1.33% Families 0.13% 1 08% Owner HHs 0.34% 1.41% Median Household Income 3% 3.32% CBSAs:Salina,KS Mlcropolitan Statistical Area Trends 20072012 3.S1 _ c 3- m 2.s- c 2- d am Are II to- E-_A U.S. 1 1-1 o.s o Populabon Ha m. olds FemiLes O:.nar HHs M.dun HH Income • Household growth is forecasted at an annual rate of growth of .31% in the primary market area and .39% in the secondary market area during 2007-2012. 1990 Households 17,349 2000 Households 18,523 2000 Average Household Size 2 39 • 2007 Households 18.953 2007 Average Household Size 2.38 2012 Households 19.248 2012 Average Household Size 2.38 2007-2012 Annual Rate 0,31% Households •0000---_ ------------- _ - • -------- 8000 6000 4000 2000 0000 19248 8000 6000 • 4000 2000 0 2000 2007 2012 • SHANER APPRAISALS, INC. Executive Summary • 7 Downtown Salina H.D. Lee Complex • l 1990 Households 22,092 1 2000 Households 23,866 2000 Average Household Size 2.44 2007 Households 24,623 2007 Average Household Size 2.42 2012 Households 25,111 2012 Average Household Size 2.42 2007-2012 Annual Rate 0.39% Households 0000 25000 20000 15000' — 25111 10000 5000 2000 2007 _._..._._. 2012- • • The civilian employed population for 16+ showed a rate of growth of 1.13% during 2000-2007 in the primary market area and is forecasted for 0.62% during 2007-2012. Civilian Population 16+In Labor Force Civilian Employed 21.099 95 1% 23.377 98.4% 25.076 94.7% 25.867 946% 108% 3.2'. Civilian Unemployed 1.094 4 9% 865 3 6% 1.395 5.3% 1.473 5.4% -201% 5.5% 2007 Employed Population 16+by Industry Total 25,078 Agriculture/Mining 1.0% Construction a 5% Manufacturing 17.1% Wholesale Trade 3.6% Retail Trade 12.1% Transportation/Utilities 3.6% Information 1.9% Finance/Insurance/Real Estate 5.5% Services 43.3% Public Administration 3.4% 2007 Employed Population 16+by Occupation Total 25,075 White Collar 53 2% Management/Business/Financial 8.8% Professronai 17.6% Sales 13.2% Administrative Support 13.7% Services 16.2% Blue Collar 30.6% Farming/Forestry/Fishing 0.3% Construction/Extraction 7.6% Installation/Maintenance/Repair 4.1% • Production 10.4% Transportation/Matenal Moving 8.2% SHANER APPRAISALS, INC. Executive Summary • 8 Downtown Salina H.D. Lee Complex 2007 Employed 16+ by Occupation • Production (10.4%) Maintenance/Repair(4.1%) Construction (7.6%) Farm/Fish (0.3%) Transportation (8.2%) t ' 1 dmin Support(13.7°l°) � Mgmt/Business.(8.8%) Sales (13.2%) Professional (17.6%) Services (16.2%) • The civilian employed population for 16+ showed a rate of growth of 1.3% • during 2000-2007 in the secondary market area and is forecasted for 0.7% during 2007-2012. Civilian Population 164 in Labor Force Crv,:ran Emp+o ed 27.131 95.2% 30.768 96.5% 33.351 94.9% 34,529 94.8% 13.4% 3.5% C.,!tan.Jnenplc,ec 1.372 4.8% 1.111 3.5% 1,785 5.1% 1,891 5.2% -19.0% 5.9% it2007 Employed Population 16+by Industry Total 33,351 Agriculture/Mining 2.4% Construction 8.8% Manufacturing 16.8% Wholesale Trade 3.6% Retail Trade 11.5% Transportation/Utilities 4.3% Information 1.7% Finaltce/Insurance+Real Estate 5.3% Services 41.9% Public Administration 3.6% 2007 Employed Population 16+by Occupation Total 33,351 White Collar 53.1% Management/Business!Financ ai 10.2% Professional 16.7% Sates 12.5% Administrative Support 13.6% Services 16.0% Blue Collar 30.8% Farming1Forestry/Fishing 0.7% Construction/Extraction 7.7% Installation!Maintenance/Repair 4.5% Production 9.9% Transportation/Material Moving 8.1% SHANER APPRAISALS, INC. Executive Summary • 9 Downtown Salina H.D. Lee Complex • 2007 Employed 16+by Occupation Production(9.9%) Maintenance/Repair(4.5%) Construction(7.7%) Transportation(8.1%) •dmin Support(13.6%) Mgmt/Business.(10.2% Sales(12.5%) Professional(16.7%) �sstr•� Services(16.0%) • ESRI estimates the 2007 average household income for the primary market area at $57,317. 2000 2007 2012 Households by Income Number Percent Number Percent Number Percent <$15,000 2,951 15.9% 2,212 11.7% 1,842 9.6% • $15,000-524,999 2,859 15.4% 2.098 11.1% 1,710 8.9% $25,000-$34,999 3,113 16.8% 2,256 11.9% 1,931 10.0% $35,000-$49,999 3,754 20.3% 3,745 19.8% 3,124 16.2% $50,000-$74,999 3,647 19.7% 4,253 22.4% 4,569 23.7% $75.000-$99.999 1.180 6.4% 2,392 12.6% 2,726 14.2% $100,000-$149,999 683 3.7% 1,312 6.9% 2,271 11.8% 5150,000-$199,000 158 0.9% 363 1.9% 560 2.9% $200,000+ 192 1.0% 323 1.7% 514 2.7% Median Household Income $36.084 $46,256 $54,277 Average Household Income $44,888 $57,317 $68,556 Per Capita Income $18.593 $23,811 $28,496 2007 Household Income !� I $75K-99K(12.6%) $100K-$149K(6.9%) $150-199K+ 1.9%) { $200K+(1.7%) $60K-74K(22.496) -<$15K(11.7%) $15K-$24K(11.1%) $35K-$49K(19.8%) K(11.9%) • - - __ SHANER APPRAISALS, INC. Executive Summary • 10 Downtown Salina H.D. Lee Complex • ESRI estimates the 2007 average household income for the secondary market III area at $58,263. 2000 2007 2012 Households by Income Number Percent Number Percent Number Percent <$15,000 3,594 15.0% 2,751 11.2% 2,317 9.2% $15,000-$24,999 3,536 14.8% 2,626 10.7% 2,181 8.7% $25,000-$34,999 3,871 16.2% 2,908 11.8% 2,530 10.1% $35,000-$49,999 4,845 20.2% 4.842 19.7% 4,131 16.5% $50,000-$74,999 4,999 20.9% 5,620 22.8% 5,969 23.8% $75,000-$99,999 1,705 7.1% 3,177 12.9% 3,590 14.3% $100,000-$149,999 903 3.8% 1,791 7.3% 3,009 12.0% $150,000-$199,000 218 0.9% 483 2.0% 717 2.9% $200.000+ 260 1.1% 425 1.7% 667 2.7% Median Household Income $37,443 $47,093 $54,606 Average Household Income $46,508 $58,263 $68,852 Per Capita Income $18,928 $23,782 $28,116 2007 Household Income $75K-99K(12.9%) $100K-$149K(7.3%) $150-199K+(2.0%) 'ay' $200K+(1.7%) •50K-74K(22.8%) - t <$15K(11.2%) III $15K-$24K(10.7%) $35K-$49K(19.7%) ' rK(11.8%) i I I • Median household income is forecasted at an annual rate of growth of 3.25% in the primary market area and 3.0% in the secondary market area during 2007- 2012. • SHANER APPRAISALS, INC. Executive Summary • 11 Downtown Salina H.D. Lee Complex • • It is estimated that there will be 295 additional households in the primary market area and 488 households in the secondary market area over the next five years. PRIMARY MARKET AREA 2000 Housing Units 19.599 niinf Owner Occupied Housing Units 62.5% Renter Occupied Housing Units 32.0% Vacant Housing Units 5.5% 2007 Housing Units 20.269 Owner Occupied Housing Units 63 4% Renter Occupied Housing Units 30.1% Vacant Housing Units 6.5% 2012 Housing Units 20.706 Owner Occupied Housing Units 62.8% Renter Occupied Housing Units 30.2% Vacant Housing Units 7.0% 2007 Owner Occupied HUs by Value $200-2 S300t 3�9Ko{)2.07X°0} $400-499 (. ) /$500K+(0.7°.x) $100-199K(47.1%)- • <$100K(39.4°0l SECONDARY MARKET AREA 2000 Housing Units 25,450 rr1 m Owner Occupied Housing Units 66.0% Renter Occupied Housing Units 27.8% Vacant Housing Units 6.2% 2007 Housing Units 26,541 Owner Occupied Housing Units 66.7% Renter Occupied Housing Units 26.1% Vacant Housing Units 7.2% 2012 Housing Units 27,222 Owner Occupied Housing Units 66.1% Renter Occupied Housing Units 26.1% Vacant Housing Units 7.8% • SHANERAPPRAISALS, INC. Executive Summary • 12 Downtown Salina H.D. Lee Complex 2007 Owner Occupied HUs by Value • 5200-299K(10.8%) $38°40e4991<91(<2(9%) 0.996 „$500K+(0.9%) $100.199K(44.1%) <8100K(40.5%) • Average household size is estimated to remain constant in both market areas in the foreseeable future. • The median age in the primary market area was 35.3 in 2000, 36.4 in 2007 and is forecasted to increase to 36.7 in 2012, which represents an annual rate increase of 0.16% during 2007-2012. Median Age • 1990 33.1 2000 35.3 2007 36.4 2012 36.7 • The median age in the secondary market area was 36.5 in 2000, 37.9 in 2007 and is forecasted to increase to 38.6 in 2012, which represents an annual rate increase of 0.37% during 2007-2012. Median Age 1990 34.0 2000 36.5 2007 37.9 2012 38.6 • SHANERAPPRAISALS, INC. Executive Summary • 13 Downtown Salina H.D. Lee Complex • Office/Retail • The recommended mix of retail and office and projected market rents are as follows: Allocation Retail 75%-100% of first floor area Office 0%-25% of first floor; 100% of second floor Rents Retail $8.00- $10.00 triple net Office $10.00- $12.00 gross $14.00- $16.00 for executive suites • There is adequate demand for retail development in the area. There is neighborhood retail development approximately one-half mile south of the subject site in the heart of downtown. It is our opinion that a regional development in this part of town such as the one envisioned for the subject site • would be a complement to the larger community retail development. • The regional retail development currently found within the City of Salina is located approximately three miles to the south of the downtown area. • The primary market area for the regional retail center is the Salina, Kansas Micropolitan Statistical Area (CBSA). • The retail spaces typically consist of local retail and specialty tenants. The majority of the local retailers, including big-box tenants, newer strip-shops and the local mall are located in the area to the south of downtown, which provides closer proximity to the interstate. These tenant spaces are generally from 1,500 square feet to 5,000 square feet in size. • Within the downtown area the majority of the tenants are specialty type start-up shops and niche businesses. Many of the businesses support the strong art and humanities presence found downtown. Several of the larger spaces have been sub-divided into smaller incubator type storefronts to support a market based economy. These tenant spaces are generally from 600 square feet to 3,000 square feet in size. • The downtown retail and business district is strongly affected by the presence of the Salina Regional Health Center and the City office complex, two of the largest employers in the City of Salina. • SHANER APPRAISALS, INC. Executive Summary • 14 Downtown Salina H.D. Lee Complex • As a sub-market, the downtown area, which contains approximately 548,600 II square feet of retail area, represents a 20.8% market share of the entire concentration of retail space available within the City of Salina. • No data is formally collected within the primary or secondary market areas that reflect the overall vacancy rates. • The vast majority of all retail construction work during the past five years involved interior alteration, tenant finish and small additions to existing properties. • According to the Director of Planning for the City of Salina the only major commercial construction project in consideration is Hawthorn Plaza, which will house office space in a converted school building. • The City of Salina's Trade Pull Factor is the fourth highest of all cities in the State of Kansas. Saline County also has the fourth highest TPF of all the 105 counties within the State of Kansas. • The Trade Pull Factor accounted for over $290,000,000 of the $950,000,000 in annual retail sales revenues in 2006. • Currently the downtown area has approximately 154 existing retail businesses. • • The leakage analysis performed in this report indicates that the City of Salina has a surplus of retail sales and is representative of a market where customers are drawn in from outside the trade area. • We would expect market rent would be from $8.00 to $10.00 per square foot on a net basis for the retail space. • The strongest demand for space is in the range of 800 square feet to 2,500 square feet. • It is our opinion that all of the office usage for the project should be within the existing buildings. In the retail/office portion of the development, the first floor area should be mostly retail with few office users and the second floor should be utilized exclusively for offices. • Some of the office space could be incorporated into "office suite/condominium" usage with a shared common area that includes a central receptionist, fax, copier and conference room. Individual office spaces should be from 350 to 500 square feet in size. • Most rental properties within this market area for both office and retail space are leased on a gross basis. • SHANER APPRAISALS, INC. Executive Summary • 15 Downtown Salina H.D. Lee Complex • • Based on conversations with area commercial brokers, absorption of the subject's retail/office space could take approximately 12 to 18 months with adequate pre-leasing. The first floor space should have the strongest demand. The upper floor space will be more difficult to lease and could require a somewhat discounted rental rate. • The northern portion of the site is planned for renovation of three existing 5- story buildings. Of the areas designated for retail/office development, the approximate floor area is 31,700 square feet per floor. • Our recommended breakdown for office and retail in these buildings is for 75% retail and 25% office on the first floor and 100% office usage on the second floor. • As of 2002, the size of the subject's market area (City of Salina) was estimated to be 2,641,603 square feet, according to Progressive Urban Management Associates. Over the past several years, the market growth has been minimal. The estimated size of the subject's current trade area is estimated by the analyst to be approximately 3,000,000 square feet. As a submarket, the downtown retail area is estimated to contain approximately 550,000 square feet. • The subject market's overall retail occupancy rate was estimated to be 94.13%, according to PUMA. Although we did not conduct a market survey, there does not appear to be excessive vacancy at this time. • The lease rate ranges for retail space in the area range from $2 per square foot to $12 per square foot with an average of approximately $7 per square foot. • The lease rate ranges for office space in the area range from $5 per square foot to $18 per square foot with an average of$8.75 per square foot. • The population is projected to increase by 1,126 people within the trade area between 2007 and 2012. It is also estimated that there will be 488 additional households in the primary trade area over the next five years. • The demand analysis indicates that there is demand for an additional 300,000 to 750,000+ square feet of retail space in the subject's primary market area, although the subject's immediate market contains a somewhat limited amount of properly zoned land available for development. • It is our suggestion that there be some type of walkway, possibly cobblestone or brick paver, throughout the property to encourage pedestrian traffic between the north and south commercial areas. • Overall, the outlook for the Salina retail market is strong which would reflect projected growth in rental rates and stabilization of occupancy rates. • There is minimal demand for Class A office space in the City of Salina. • • The City of Salina has approximately 1,000,000 square fee of existing office space. SHANER APPRAISALS, INC. Executive Summary • 16 Downtown Salina H.D. Lee Complex • The subject office space would be unlike conventional office buildings and • would not compete directly with typical office buildings. • It is our recommendation that at least a portion of the office space be utilized as an office executive suite design. • Currently the downtown area has approximately 174 existing office businesses. • Some type of parking component must be added to support the retail/commercial development outside of the on-street parking currently available. • • SHANER APPRAISALS, INC. Executive Summary • 17 Downtown Salina H.D. Lee Complex • Multifamily Lofts • Based on the supply and demand projections contained in the attached report, we have developed the following basic conclusions: ESTIMATED UNIT SIZE 1 bdrm/1 bath Units: 600-800 square feet 2 bdrm/1 bath Units: 800-900 square feet 2 bdrm/2 bath Units: 900-1,000 square feet 3 bdrm/2 bath Units: 1,000-1,200 square feet ESTIMATED UNIT MIX 1 bdrm/1 bath Units: 40-60% 2 bdrm/1 bath Units: 0-20% 2 bdrm/2 bath Units: 40-60% 3 bdrm/2 bath Units: 0-10% ESTIMATED MARKET RENTS 1 bdrm/1 bath Units: $500-600 per month or $0.63-1.0/SF 2 bdrm/1 bath Units: $600-700 per month or $0.67-0.88/SF • 2 bdrm/2 bath Units: $700-800 per month or $0.70-0.89/SF 3 bdrm/2 bath Units: $800-900 per month or $0.67-0.90/SF DEMAND FROM HOUSEHOLD GROWTH Multifamily Demand from PMA(295 x 30.0%) 89 units Proportion of Income Qualified Households in PMA($26,000) 68.7% Estimated Income Qualified New Renter Households in PMA 61 units Capture Rate for New Households in PMA 50% Subject's Capture of New Households in PMA 31 units One-Bedroom Units (40%) 12 units Two-Bedroom Units(50%) 16 units Three-Bedroom Units (10%) 3 units Multifamily Demand from SMA(193 x 26.0%) 50 units Proportion of Income Qualified Households in SMA($33,080) 70.2% Estimated Income Qualified New Renter Households in SMA 35 units Capture Rate for New Households in SMA 50% Subject's Capture of New Households in SMA 18 units One-Bedroom Units(40%) 7 units Two-Bedroom Units (50%) 9 units Three-Bedroom Units(10%) 2 units S SHANERAPPRAISALS, INC. Executive Summary • 18 Downtown Salina H.D. Lee Complex • DEMAND FROM TURNOVER Turnover in the PMA(6,098 x 60%) 3,659 units Proportion of Income Qualified Households in PMA($26,000) 68.7% Estimated Income Qualified Households from Turnover 2,513 units Capture Rate for Turnover in PMA 15% Subject's Capture of Turnover in PMA 377 units Turnover in the SMA(6,931-6,098 x 60%) 500 units Proportion of Income Qualified Households In SMA($26,000) 70.2% Estimated Income Qualified households from turnover 351 units Capture Rate for Turnover in SMA 10% Subject's Capture of Turnover in SMA 35 units • Initial space studies indicate that the subject property, McCune Bird/Lee Buildings, could accommodate 100 loft apartment units on the upper floors of the existing retail/office buildings. • A portion of the market for the loft apartments is likely to come from office and retail tenants. • The subject loft unit's preliminary concepts include two-bedroom units containing 900-1,100 square feet and three-bedroom units containing 1,800 square feet. • • It appears that there is strong demand for two-bedrooms but little demand for three-bedroom units in the market. However, there also appears to be a demand for smaller studio/one-bedroom units. Traditionally there is strong market acceptance of smaller studio/one-bedroom units in downtown loft-type developments. Therefore, the amount of three-bedroom units should be minimal and smaller studio and one bedroom units should be included in the mix. • The parking situation creates some difficulty for planning. Conceptual thoughts are to build a parking structure that would attach to the existing buildings to the southeast. Although this location would be a good alternative from a physical standpoint, the negative impact is that all of the lofts that would face south towards the downtown area would have their views obstructed. Adequate parking is a requirement for the residential component to be viable. • We would recommend that the lofts in the renovated Lee structures be rental units rather than owner-occupied as the rental market for this size/design units is stronger than the owner-occupied market. There may be potential for a few larger, higher priced units for owners in the new construction phase of the development. • The subject would have a good location being a part of a developing mixed-use commercial/retail and residential project just north of the central business district. SHANER APPRAISALS, INC. Executive Summary • 19 Downtown Salina H.D. Lee Complex • • The subject is a conceptual plan and would be in new condition when completed. The subject should consist of primarily one and two bedroom units. Common area amenities should include a fitness center, media room and hi-fi wireless internet access throughout the complex. • The primary market area is identified as the city of Salina. The secondary market area is all of Saline County and portions of bordering counties that make up the Micropolitan Statistical Area. • An estimated 488 new households are forecasted within the next five years within the entire market area. • Demand for rental housing such as that visualized for the subject is evident in the market due to a lack of new market rent properties in the market area. • Rental rate growth has remained fairly constant over the past few years for both the primary market and secondary markets.. • Population growth is expected to remain moderate and steady. Economic growth is also anticipated to occur. Interest rates are expected to slightly increase in the coming year. The result should impact occupancy and absorption positively. • The downtown loft units should have higher rental rates per square foot than the • nearby garden apartments due primarily to their superior age, condition, quality and trendiness of being located in a mixed-use project. In our opinion, the market rent for the proposed subject loft units should be $0.75-0.80 per square foot. This is an effective rent without any concessions. • We estimate absorption of the loft units at an average rate of 6 — 10 units per month with adequate pre-leasing and marketing based on the lack of competing projects in the area and general absorption principles. • The quality of these units should be superior to other apartments that exist in Salina and should represent a Class A-/B+ rating. Unit features should include walk-in closets, open span ceilings with exposed joists, exterior brick walls fully equipped kitchens with microwave and washer/dryer units and extra storage area. • The majority of the two-bedroom units should contain two baths. • The primary source of demand for new multifamily housing is the formation of new households from population growth. • Based on the affordability analysis, a minimum annual household income of $28,200 will be required for a two-bedroom apartment. In 2007, an estimated 68.7% of the population in the primary market and 70.2% of the secondary market earn in excess of this amount. This bodes well for the subject. • • It appears that the middle-income households have the financial ability for upward mobility but do not have any alternatives currently available in the SHANER APPRAISALS, INC. Executive Summary • 20 Downtown Salina H.D. Lee Complex market. As such, it appears that the City of Salina is ripe for market-rate units to • be constructed. • Most of the apartments in town are older with below average levels of maintenance. • There have been few new properties built in the town within recent years. All of the latest construction involved senior housing or low-income tax credit properties. Multi-family growth has historically come in spurts, with a timeframe elapsing between large complex developments to allow for the market to absorb the new units. • Overall, rental rates in the City of Salina are considered to be low. • Since 1990 only 705 multi-family units have been added to the market within the City of Salina. This accounts for just over 39 units per calendar year and represents 26.9% of the total housing stock increase during this timeframe. Of the 705 units, Chapel Ridge and the Reserves at Prairie Glen accounted for 392 LIHTC units while those developed for the senior population numbered 235. Therefore, only 78, or 11% are considered to potentially be representative of market rate units. • No market-rate large apartment complexes have been introduced into the City of Salina community for over 25 years. •• There are currently no plans filed with the Planning Department in the City of Salina for any type of future apartment complex development. • Total vacancies in 1990 were 1,119, or 6.1% of all the housing units within the market area. However, there were 615 vacancies of 6,168 renter occupied housing units, which creates a rental vacancy of 10%. In 2000 there were only 494 vacancies of 6,279 renter occupied housing units, which created a rental vacancy of 7.9%. Our survey of apartments included almost 500 units and of those reporting vacancy rates the range was 2% to 15% with an average of 8%. • The projections for the five year period from 2007-2012 indicates that 183 rental units will need to be added to accomodate the population growth. That creates an annual demand of 37 units. • Very little empirical market data is available with respect to absorption rates. • Based on population forecasts the amount of multi-family development that has taken place appears to have been adequate to meet the demand. However, when the migration rates are applied based on actual historical population trends there is a deficit in the amount of multi-family properties that are being added each year. The supply and demand appear to have been relatively in equilibrium over the past decade. However, the low vacancy rates, along with the lack of new market-rate competition does suggest that not only can the market adequately absorb some new inventory, it actually needs it. • SHANER APPRAISALS, INC. Executive Summary • 21 Downtown Salina H.D. Lee Complex 0 • The average rental rate for the area is low when compared to similar communities statewide although rents have increased at steady levels. In 1990 the average monthly rental rate was $329. According to 2000 Census data, monthly rental rates for the city of Salina averages $379, and 69% of renters paid between $250 and $500 per month. • There are few loft units in downtown and the vast majority of these are owner occupied units that have been custom builds. • Based on current quoted rental rates for competing properties in the immediate area, and our opinion of how the subject compares to each of these properties, the market rent for the one bedroom/one bath unit type is reconciled at $580 per month, or $0.83 per square foot for a 700 square foot unit. • Based on current quoted rental rates for competing properties in the immediate area, and our opinion of how the subject compares to each of these properties, the market rent for the two bedroom/one bath unit type is reconciled at $655 per month, or $0.73 per square foot for a 900 square foot unit. • There are very few two bath units in the market place. Based on the comparable properties surveyed it is our opinion that the second bath will demand a premium of an extra $50 in rent per month. The market rent for the two bedroom/two bath unit type is recommended to be $705 per month, or • $0.78 per square foot. • The market rents, although competitive, should be higher than other market rate projects within the City of Salina. • Demand from household growth analysis for multi-family indicates a need for 44 to 53 units per year for both the PMA and SMA. • The largest demand field available is that from turnover which could create up to 412 units per year from the PMA and SMA combined. • SHANER APPRAISALS, INC. Executive Summary • 22 1 Downtown Salina H.D. Lee Complex • General Conclusions • The primary market area for the regional retail center is the Salina, Kansas Micropolitan Statistical Area (CBSA). • The current C-4 zoning of the subject property appears to allow for a mixed-use property with multi-family usage above office and/or retail. • The interior of the Lee buildings has columns throughout each of the floors that will have to be taken into consideration from a functionality standpoint when the design plans are formalized. • The property currently has no on-site covered parking. It will be necessary to find a solution to the current lack of parking. • The subject property is located in a specified area within the City of Salina that makes it eligible for several incentives for development. • In terms of the City of Salina as a whole most of the higher traffic counts are located in the southern portion of town. Traffic count numbers typically decreased as they were monitored going north. • Established industries exist within the immediate area, and the local medical • center serves much of the surrounding region. The existing industries provide a stable source of employment, and convenient regional transportation routes should provide Salina with stability and moderate growth in the foreseeable future. • The subject property would have approximately 85,590 square feet of net rentable area within the existing Lee buildings. S SHANER APPRAISALS, INC. Executive Summary • 23 Downtown Salina H.D. Lee Complex S Project Recommendations • The proposed subject, McCune Bird/Lee Buildings, should be a regional center. Most of the retail development approximately one-half mile south in the core of the downtown area is considered neighborhood or community in nature. Regional centers can be a good complement to nearby community and neighborhood centers. • The envisioned site plan for the entire project would contain several free- standing buildings including an anchor tenant, a financial institution and restaurant as well as multi-story properties with commercial store-fronts on the first floor and multi-family residential usage above. The area would be very open with pedestrian walkways throughout. • The entire city block that is the subject of this report should be acquired and all of the improvements other than the Lee buildings should be razed. • The chart below reflects our estimated square footage for mixture of use for the approximately 158,500 square feet of area that would be renovated within the existing buildings. • Retail 23,775 square feet Office 39,625 square feet Residential 95,100 square feet • The new development should maintain strong consistency from an aesthetic point of view with the historical architecture and qualities of the original buildings. It is recommended that they incorporate the brick and stone facade that is represented by the existing structures. • Retail usage should be the first type of use to be considered when final plans are made for the project. • The developer should seek assistance from the municipality in regards to project development. • At least a portion of the office space should be utilized as an office condominium/suite design. • The multi-family units should be constructed of Class A-/B+ quality. • Although concessions are typical during the lease-up phase of many larger apartment properties, no concessions are recommended to be offered, particularly if there is no competitive new construction. • SHANER APPRAISALS, INC. Executive Summary • 24 Downtown Salina H.D. Lee Complex ID Following are Executive Summary Reports of both the primary market area (City of Salina and the secondary market area (Salina, KS Micropolitan Statistical Area — CBSA). CBSA stands for a Core Based Statistical Area and is defined by Wikpedia as follows: A Core Based Statistical Area is the official term for a functional region based around an urban center of at least 10,000 people, based on standards published by the Office of Management and Budget (OMB) in 2000. Areas defined on the basis of these standards applied with Census 2000 data were announced by OMB in June 2003. These standards are used to replace the definitions of metropolitan areas that were defined in 1990. The term "CBSA" refers to both metropolitan statistical areas and newly-created micropolitan areas collectively. Micro areas are based around Census Bureau- defined urban cluster of at least 10,000 and fewer than 50,000 people. • • SHANER APPRAISALS, INC. Executive Summary • 25 Downtown Salina H.D. Lee Complex Executive Summary with Chart- Prepared by Shaner Appraisal Places:Salina city,KS Population and Households The size of the market area measured by population and households.has changed from 2000 through the forecast year as folios Year Population Households 2000 45.679 18.523 2007 46.458 18.953 2012 47.090 19.248 The difference between change in population and change in households is a result of t:ro factors—the presence of group quarters(non-household) population in the market area and the average number of persons per household.The group quarters population in the market area.".as 1.367 in 2000.or 30 percent of the total population.Average household size is 2.38 in 2007.compared to 2 39 in the year 2000. 104 n 7 035 1 10. 027 027 0 0.2 IN 2000-2007 015 IIII 2007-2012 0 Populationta,us�.rn,kt: Population by Age • The median age for the United States was 35.3 in 2000 and 36.5 in the current year in the market area,the median age of the population was 35.3. compared to 36.4 years currently.By age group.the changes in the percent distribution of the market area population sho,the following: 16 14 12 10 8 8 Mk 2007 2007 2 04 _ 10 14 1519 2024 25 34 5544 4554 55-61 6574 7I :Jri 8 Population by Education In 2000.the educational attainment of the population aged 25 years or older in the market area can be summarized it .J—.S4_ 10 4U `A CA T4 80 L(1 High School Grad _J Market Area MN U.S. °e Bachelor's Degree•- • SHANERAPPRAISALS, INC. Executive Summary • 26 Downtown Salina H.D. Lee Complex a'shennr • apn 5 "°'°als.° Executive Summary with Chart- Prepared by Shaner Appraisal Places:Salina city.KS Population by Race/Ethnicity Currently,the racial composition of the population in the market area breaks down as follows: 10 20 30 Pe 6etnt50 80 70 SO rIO Wrote 85 2 blacl 3 8 120 Am Intl 0 d 09 2.7 Market Area Asian 11111 4.3 U.S. Relic 01 01 ranee 51 b5 Two. 2 u 2.8 Persons of Hispanic origin represent 9.0 percent of the population in the identified market area compared to 14.8 percent of the U.S.population. Persons of Hispanic Origin may be of any race.In sum,the Diversity Index,which measures the probability that t,o people from the same area will be from different racatethnic groups.was 39.0 in the identified market area.compared to 58,9 in the U.S.population. Population by Employment In 2000,89.0 percent of the population aged 16 years or older in the market area participated in the labor force:0.1 percent were in the Armed Forces.Tracking the change in the labor force by unemployment status: Year ,Employed %Unemployed 2007 94.7 5.3 2012 94.6 5.4 III • 13. I - Markel Area b U$. 30 20 L 0 2007 And by occupational status: e0 2 5U Ses 37s 45 40. 35 30 g 1111 Market Nea 10. 25 23 3 U.S. i5 16.2 16.5 IQ S Oka Uwe Slue ow In 2000.84.8 percent of the market area population drove alone to work.and 3.3 percent worked at home.The average travel time to work in 2000 was 13.9 minutes in the market area,compared to the U.S.average of 25.5 minutes, • SHANER APPRAISALS, INC. Executive Summary • 27 Downtown Salina H.D. Lee Complex • 16A'%ahener I.70appretaels.. Executive Summary with Charts Prepared by Shaner Appraisals Places:Salina city.KS Income The change in three summary measures of income—median and average household income and per capita income—are shown below from 1990 through 2012. 70�rr _ 6 60000 56000 — 500 /5000 40000 _ 1590 35000 - 2000 3rrrs LA 2007 A 2012 2.1r 20000 I lit I 14 hied HH$ Avg HH$ Per Cap$ • Housing Currently.63.4 percent of the 20.269 housing units in the market area are owner occupied;30.1 percent,renter occupied:and 8.5 percent are vacant. In 2000,there were 19,599 housing units—62.5 percent owner occupied.32.0 percent renter occupied and 5.5 percent vacant.The annual rate of change in housing units since 2000 is 0.54 percent.Median home value in the market area is$114.251.compared to a median home value of $181,127 for the U.S.In five years.median home value is projected to change by 2.58 percent annually to$129,792.From 2000 to the current year. median home value changed by 5.61 percent annually. • SHANER APPRAISALS, INC. Executive Summary • 28 Downtown Salina H.D. Lee Complex Executive Summary with Charts • Prepared by Shaner Appraisals CBSAs:Salina,KS Micropotitan Statistical Area Population and Households The size of the market area,measured by population and households,has changed from 2000 through the forecast year as follows: Year Population Households 2000 59.760 23,886 2007 61.339 24,823 2012 62.465 25,111 The difference between change in population and change in households is a result of two factors—the presence of group quarters(non-houseloldl population in the market area and the average number of persons per household.The group quarters population in the market area was 1,634 in 2000,or 2.7 percent of the total population.Average household size is 2.42 in 2007,compared to 2.44 in the year 2000. - 4 042 030 04 U3S I 35 0.3 MI 2000-2007 1.25 0.2 ME 2007-2012 115 0.1 1.05 0 Nation Population by Age The median age for the United States was 35.3 in 2000 and 36.5 in the current year.In the market area,the median age of the population was 36.5, compared to 37.9 years currently.By age group,the changes in the percent distribution of the market area population show the following: • —t8_ .....__.__.._ _. - __.._.. _ _ ____ __ ..__----- ._- 14- • 12- 10- 8- f —1 2000 rftirlUN 2007 0.4 5.11 10-14 15-19 2024 25-34 35-44 45-54 55-64 65-74 75-84 Population by Education In 2000,the educational attainment of the population aged 25 years or older in the market area can be summarized: r 6 °5 High School Grad Market Area I. U.S 41,Bachelor's Degree -- • SHANER APPRAISALS, INC. Executive Summary • 29 Downtown Salina H.D. Lee Complex • ghoner s�npprereals... Executive Summary with Chart Prepared by Shaner Appraisal CBSAS:Salina,KS Micropolitan Statistical Area Population by Race/Ethnicity Currently,the racial composition of the population in the market area breaks down as follows: to z0 30 Pej5ent50 0a 7D a0 �v White 68 Black 126 Am Ind- 0 09 EN Market Area Asian 2,13 - U.S. Pacific 0t 0 Other 4 r<. two. ?3 re Persons of Hispanic origin represent 7.4 percent of the population in the identified market area compared to 14.8 percent of the U.S.population. Persons of Hispanic Origin may be of any race In sum,the Diversity Index,which measures the probability that two people from the same area will be from different racetethnic groups.was 33.1 in the identified market area.compared to 58.9 in the U.S population. • Population by Employment In 2000.89.4 percent of the population aged 18 years or older in the market area participated in the labor force:0 I percent were in the Armed Forces.Tracking the change in the labor force by unemployment status: Year %Employed %Unemployed 2007 94.9 5.1 2012 94.8 5.2 100 90^ so- 80. 50' IIII Market Area 40. - U.S. 30' 20. to 0 And by occupational status: fie 55, 53.1 50. 5� 4a S 308 NM Market Area 3a 25^ 23 3 MI U.S. 2o. 16 16.5 s' to 5i WtiitI for Service Blue Cosnr In 2000.83.8 percent of the market area population drove alone to work,and 4.1 percent worked at home.The average travel time to work in 2000 was 15.7 minutes in the market area.compared to the U.S.average of 25.5 minutes. • SHANER APPRAISALS, INC. Executive Summary • 30 Downtown Salina H.D. Lee Complex 5ra'apnne Wit•.. • Executive Summary with Charts Prepared by Shaner Appraisals CBSAs:Salina,KS Micropolitan StatistIcal Area Income The change in three summary measures of income—median and average household income and per capita income—are shown below from 1990 through 2012. 7.1 r 65000 60000 5:000 1 `x0000 i 4500( a r 1990 36000 2000 10000 1 r�_ 2007 (..__l 2012 25000 __._.J n 15(11 10000 rrrr Med lei S Avii tits S Per Cap Housing • Currently 68 7 percent of the 20.541 housing units in the market area are owner occupied;26 1 percent renter ri oter occup�e and 7.2 percent are va[anl. In 2000.there.:ere 25.450 housing units—66.0 percent owner occupied.27.6 percent renter occupied and 6.2 percent vacant.The annual rate of change in housing units since 2000 is 0.67 percent.median home value in the market area is 31 13.612.compared to a median home value of 5181.127 for the U S.In five years.median home value is projected to change by 2 58 percent annually to 5129.061 From 2000 lc the current year. median home value changed by 5 5 percent annually. • SHANER APPRAISALS, INC. Executive Summary • 31 Downtown Salina H.D. Lee Complex • SPECIAL ASSUMPTIONS AND LIMITING CONDITIONS This market study is subject to the following special assumptions and limiting conditions. 1. We have completed a study of the Salina, Saline County, Kansas market for retail, office and multifamily development in order to estimate potential demand for a mixed use urban center and to provide recommendations regarding rental rate structure. We have not evaluated the feasibility of this project, and a determination of feasibility is beyond the scope of this assignment. Furthermore, the apparent market support for a project, in terms of supply and demand, does not assure financial feasibility for the project. 2. Every effort has been made to insure the accuracy of the data contained within this analysis. Demographic and economic estimates and projections have been obtained from government agencies at the national, state, county and city levels. Market information has been obtained from sources presumed to be reliable, including developers, owners and sales representatives. However, this information cannot be warranted by Shaner Appraisals. While the methodology employed in this analysis allows for a margin of error in base data, it is assumed that the market data and government estimates and projections are substantially accurate. 3. Absorption scenarios are based upon the assumption that a normal economic environment will • prevail in a relatively steady state during development of the subject property. Absorption paces are likely to be slower during recessionary periods and faster during periods of recovery and high growth. Absorption scenarios are also predicated on the assumption that the product recommendations will be implemented generally as outlined in this report and that the developer will apply high-caliber design, construction, marketing and management techniques to the development of the property. 4. Recommendations are subject to compliance with all applicable regulations. Relevant accounting, tax and legal matters should be substantiated by appropriate counsel. • SHANER APPRAISALS, INC. Special Assumptions and Limiting Conditions • 32 Downtown Salina H.D. Lee Complex • GENERAL ASSUMPTIONS AND LIMITING CONDITIONS This market study is also subject to the following general assumptions and limiting conditions. 1. Title to the property is assumed to be good and marketable and the legal description correct. 5. No responsibility for legal matters is assumed. All existing liens, mortgages, or other encumbrances have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management. 6. All sketches in this report are intended to be visual aids and should not be construed as surveys of engineering reports. 7. All information in this report has been obtained from reliable sources. We cannot, however, guarantee or be responsible for the accuracy of information furnished by others. 8. This opinion of value applies to land and improvements only. The value of trade fixtures, furnishings and other equipment has not been included with the value of the real estate. 9. Possession of this report or a copy thereof does not imply the right of publication or use for any • purpose by any other than the addressee, without the written consent of the consultant. 10. The consultant is not required to give testimony or attendance in court by reason of this market study, unless prior agreements have been made in writing. 11. The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other market study and are invalid if so used. 12. The land, and particularly the soil, of the area under analysis appears firm and solid. Subsidence in the area is unknown or uncommon, but we do not warrant against this condition or occurrence. 13. Subsurface rights (minerals and oil) were not considered in making this market study. 14. We inspected the buildings involved, if any, in this market study and damage, if any, by termites, dry rot, wet rot, or other infestations was reported as a matter of information, and no guarantee of the amount or degree of damage, if any, is implied. 15. The comparable sales data relied upon in this market study is believed to be from reliable sources; however, it was not possible to inspect the comparables completely, and it was necessary to rely upon information furnished by others as to said data, therefore, the value • conclusions are subject to the correctness and verification of said data. SHANER APPRAISALS, INC. General Assumptions and Limiting Conditions • 33 Downtown Salina H.D. Lee Complex • 16. We inspected, as far as possible, by observation the land and the improvements thereon; however, it was not possible to personally observe conditions beneath the soil or hidden structural components within the improvements. Therefore, no representations are made herein as to these matters and unless specifically considered in the report, the value estimate is subject to any such conditions that could cause a loss in value. Condition of heating, cooling, ventilating electrical and plumbing equipment is considered to be commensurate with the condition of the balance of the improvements unless otherwise stated. 17. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to our attention nor did we become aware of such during our inspection. We have no knowledge of the existence of such materials on or in the property unless otherwise stated. However, we are not qualified to test such substances or conditions. If the presence of substances such as asbestos, urea formaldehyde foam insulation, radon gas or other hazardous substances or environmental conditions may affect the value of the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto 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 the field or environmental impacts upon real estate if so desired. 18. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. Unless • otherwise noted within the market study, we have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of the ADA in estimating the value of the property. 19. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media, without the written consent and approval of the author, particularly as to the valuation conclusions, the identity of the consultant or firm with which he is connected, or any reference to the Appraisal Institute. • SHANER APPRAISALS, INC. General Assumptions and Limiting Conditions • 34 Downtown Salina H.D. Lee Complex • INTRODUCTION Identification of the Problem Purpose of the Study The purpose of the market study is to evaluate the supply and demand for the proposed mixed-use urban center and to estimate market rents. Effective Date The effective date of this market study is June 8, 2007, which coincides with the last inspection of the property. Date of Report The date of this report is July 31 , 2007. A comparison of the date of the report to the effective date of the market study indicates our study is reflective of current market conditions. Use or Function • This market study was prepared for use by Salina Downtown, 205 W. Ash, Salina, Kansas 67401 to aid in planning for redevelopment of the subject site. Definitions Pertinent definitions are included in the Glossary, located in the Addenda to this report. Consultant Competency No steps were necessary to meet the competency provisions established under USPAP. We have analyzed retail and office developments as well as multifamily housing properties in the past several years, and have adequate experience and qualifications to prepare this market study. Please refer to the Consultant Qualifications at the end of our report. • SHANER APPRAISALS, INC. Introduction • 35 Downtown Salina H.D. Lee Complex IDScope of the Investigation As part of this market study, we completed a thorough investigation and analysis of the data considered pertinent to evaluating the Salina retail, office and multi-family housing markets. This report was prepared to conform to the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP). The investigation included, but was not limited to: • inspection of the site, including the existing structures; • gathering of information on local market conditions and trends, area demographics, construction trends, comparable rents; and • confirmation and analysis of the data. In preparation of this study, we analyzed rental data, and considered the input of buyers, sellers, brokers, property developers and public officials. Additionally, we investigated the general regional economy as well as the specifics of the local area of the subject. The scope of this study required collecting primary and secondary data relative to the subject property. The depth of the analysis is intended to be appropriate in relation to the significance of the issues as presented herein. The data have been analyzed and confirmed with sources believed to be reliable, whenever possible, 0 leading to the conclusions set forth in this report. In the context of completing this report, we have made a physical inspection of the subject property and rental comparables. • SHANER APPRAISALS, INC. Introduction • 36 Downtown Salina H.D. Lee Complex • SUBJECT PHOTOGRAPHS East and North side of subject property • 41U. North side of subject property SHANER APPRAISALS, INC. Subject Photographs • 37 Downtown Salina H.D. Lee Complex • SUBJECT PHOTOGRAPHS .b.' `:. ..... 2 T i , II,., i7.:_, Ci1 • .' North and West side of subject property a l ` • --- 1 1 1` - ,•111L'. -1. I 11111111. i k 4 _ . � .,� . ,., i•. 111, - „...„ West side of subject property SHANER APPRAISALS, INC. Subject Photographs • 38 Downtown Salina H.D. Lee Complex SUBJECT PHOTOGRAPHS • I--4•N'A,.,'"'""..„,:..1 ,— — _ .. . • • • • • • I I :77MalPIC ■ .:_ . - 1 i tliT11.1 N .4414 74;'.74. 06/0007 to---1 ietwIcsi :51 A onq ' - '- men town 14.4A- , _ .4 * i -:;•... ?NI _ pa mil .-,,..., - .- West side of subject property 11110 ..., . , . . . . 4meg ,,,.., Is; - .....,zappi. oilf:PS$ :ft Aiosixt '2,50014 'a :.-NIkriii Mee _ --1 -'1."‘...' , 470111,. asmiarNMA. View of cooling area between buildings III SHANER APPRAISALS, INC. Subject Photographs • 39 Downtown Salina H.D. Lee Complex IP/ SUBJECT PHOTOGRAPHS • 6/08/2007 • View of west side of newer building frontage on Santa Fe i / / .''.,,i i . 1 - 06/08;'2001 View of East side of dock area between two buildings s SHANER APPRAISALS, INC. Subject Photographs • 40 Downtown Salina H.D. Lee Complex SUBJECT PHOTOGRAPHS . r, a , a ar .,- . 04. .•firL s iL 64%.* View of east side of newer building wok A +lip•►, _ ... • � .M 111 View taken to northwest of potential location of parking structure SHANER APPRAISALS, INC. Subject Photographs • 41 Downtown Salina H.D. Lee Complex • SUBJECT PHOTOGRAPHS 1 0, ' awl • 4 , i- 11111 View of south and east sides of newer building ilitillik undaLammaiimm...- ......, . (ii '1, 4,10r View of south and east sides of existing structures that will need to be removed at 225 N. 5th Street ID SHANER APPRAISALS, INC. Subject Photographs • 42 Downtown Salina H.D. Lee Complex • SUBJECT PHOTOGRAPHS sr.Or • r, • I, . .t z s zru t, , i.• • ••• y.y<:� ''AID b'r Y Y cm�yo� y. _.:^'€w1' �... �,...., 06/08/2007 41/View of east side of building that will need to be removed at 232 N. Santa Fe tzm { 06/08/2007 View of west side of building that will need to be removed at 232 N. Santa Fe SHANER APPRAISALS, INC. Subject Photographs • 43 Downtown Salina H.D. Lee Complex • SUBJECT PHOTOGRAPHS _ _ 06 08/2007 • View of 5th Street looking north • 06/08/2007 View of Ash Street looking west SNANER APPRAISALS, INC. Subject Photographs • 44 Downtown Salina H.D. Lee Complex • SUBJECT PHOTOGRAPHS bi ,. 06/08/2007 View of Elm Street looking west • • • 06/08/2007 View of Santa Fe looking south • SHANER APPRAISALS, INC. Subject Photographs • 45 Downtown Salina H.D. Lee Complex • SUBJECT PHOTOGRAPHS N 4_ _ - - ita.:3, L_ yr k^' r 06/08/2007 • View of Santa Fe looking north tt a View of Elm Street looking east SHANER APPRAISALS, INC. Subject Photographs • 46 Downtown Salina H.D. Lee Complex • SUBJECT PHOTOGRAPHS • R4 .� ,z ,,,,.�;, �-__•- ems..--+ T., _.> _ View of subject property to the north from Ash Street • --- ) + `. i Q6/08/2307 View of vacant land at south end of property • SHANER APPRAISALS, INC. Subject Photographs • 47 Downtown Salina H.D. Lee Complex SUBJECT PHOTOGRAPHS fer 06/08120 Parking lot at NWC of Ash and Santa Fe yw _...._._w,,_ . �,._,_,. 06/08/2001 • Parking lot south of Ash Street between Santa Fe and Seventh Street SHANER APPRAISALS, INC. Subject Photographs • 48 Downtown Salina H.D. Lee Complex SUBJECT PHOTOGRAPHS •Typical Interior Office Finish 1 fI Typical Interior original buildings, note column spacing • SHANER APPRAISALS, INC. Subject Photographs • 49 Downtown Salina H.D. Lee Complex • SUBJECT PHOTOGRAPHS i ,, 10 k\k ' .- • Typical ceiling view original buildings P-4 µ II a' — 001 Typical interior view, newer building • SHANER APPRAISALS, INC. Subject Photographs • 50 Downtown Salina H.D. Lee Complex III Identification of the Subject Property Legal Description The subject property is a conceptual mixed-use urban center referred to for purposes of this report as the McCune Bird/Lee Buildings, which are located at 248 & 254 N. Santa Fe, Salina, Saline County, Kansas. The legal description of the properties which contain these improvements is: Lots 49, 51, 53, 55 and North 30 feet of Lot 57 on Santa Fe Avenue and Lots 50,52,54, 56 & north 30 feet of Lot 58 on Fifth Street in the Original Town of Salina, Saline county, Kansas. - t,,q ...... 4!• I 4C I .1. 46 , 4 e , 0 14 4 t. 4.8 • i *...... • • . i . • '171 1 .,,-.7r. !op . /00 I rv) zoo S----. 247 fro—–bi-) ri. '",'a-- T ., tg4" --.71i..." --a.' 't 51 I: '''- - ---4-3 " .I 5 . • ,.....5.3 , I 54 151 j .150 " 4 !I F. ,6 5:p- 156 49 1 45 .70 57 11 ! ..--. .- .., 54 I ig: 43 136 so 6;% -. s.,.. 59 4 1; 39 134 i til 6, —6 -*— 37- k\fli r.': ---- -- ---- 1 3 1 64 74 ---— • !-•-—. 35. 130 63. 64 27 I 63 e . ... . .._ ... I 63 .66 31 ■?4 ns IA 25 65 6 — ---— '— le?-- *— ' '-- -p3 RT.. ..._.... L.. 67 an 27 L20 45' Se 21 0 7 , 6 ---- --....—... ; 0 q 70 gl: ilio ' iir: r-„:,-.- j"7- . -—. _______ , — . ..... ....... .... 7 i 72 i 7. , )2 T. ri t s r t i .—— • — --„ '-:"-if }P.3 14 1 1 • 7/ r, 6 ---- /5 . 76 I /5 1.6 —"'..4-1 . • .-r-----— - '—‘ ---2 ,1 1 .4 t 4,4..• , 0 '7 I(6 1 0) . 7 7 ——......— 2o. k., 100 II It zoo • • SHANER APPRAISALS, INC. Identification of Subject Property • 51 Downtown Salina H.D. Lee Complex II/ improvement Description The improvements that will be renovated are located on the north portion of the site. They consist of two five-story all-brick buildings with limestone block foundations that are approximately 50 feet by 250 feet, providing a footprint of 12,500 square feet each. These structures were constructed in approximately 1905 and are connected by a one-story cooling area and dock that is forty feet wide. A third building was attached in 1928 at the southwest corner of the original buildings. It is also a five-story all brick building with a similar exterior appeal. It contains a footprint of approximately 6,700 square feet. This creates 31,700 square feet of area on each floor, with a total gross building area of 158,500 square feet. The original buildings have wood timber frame and floors while the newer building was constructed with a concrete frame and flooring system. Improvement Summary Property Type: Mixed use Year Built/Renovated: 1905/1928 Number of Buildings: 3 Gross Building Area: 158,500 square feet Foundation: Full basement with limestone foundation Exterior: Brick Roof Cover: To be replaced III Windows: Framing: To be replaced Wood timber, concrete Building Height: 5 stories Interior Walls: Brick, drywall, paneling Ceilings: Textured drywall, acoustical, open span Floor Covering: Wood, concrete, carpeting Interior Doors: Wood Interior access Stairways and elevators Heating/Cooling: To be determined Fire Protection: Sprinkler system Parking: Off-site Site Improvements: None of significance Site Description The overall project will be situated on a 4.31 acre site. The site is basically rectangular in shape and consists of a full city block in the mill/warehouse district just north of downtown. The street boundaries outlining the site are Elm Street on the north, Ash Street on the south, 5th Street on the east and Santa Fe Street on the west. The legal description of the entire tract would include not only the lots stated above but also all of the remaining lots to the south numbered 59 to 78. The total • site size is approximately 250 feet from east to west and 750 feet from north to south. The topography is basically level. The current zoning is C-4, Commercial, which would allow for a mixed-use such as the one contemplated in this report. SHANER APPRAISALS, INC. Identification of Subject Property • 52 Downtown Salina H.D. Lee Complex Other than the improvements discussed above, the majority of the remainder of the • site to the south consists of vacant land. There are a few other small buildings on the site that would need to be removed. Once they are removed this would open up an area of vacant land that is approximately 250 feet wide and 520 feet deep for a total land area of 130,000 square feet for additional development. A portion of the vacant land on the site is under an option contract for purchase by the developer. The other business owners currently located on the block would have to be relocated and compensated to secure the entire block for the conceptual site plan. To develop the entire project as envisioned it would be extremely important to acquire it as a "whole" as opposed to having some "parts" remaining with their current use. Although the Lee building could potentially be renovated without the development of the remainder of the property it would not provide nearly as significant of a market presence. It would merely represent a converted building to mixed-use as opposed to a true mixed-use "project". As a private developer has no condemnation rights under existing eminent domain laws, it would be necessary to successfully negotiate the purchase of the remaining properties from the various land owners. The other option would be to approach the City of Salina and discuss the possibility of the City utilizing their eminent domain authority to assist the developer if they were not able to acquire the necessary properties through market transactions. Ili • SHANER APPRAISALS, INC. Identification of Subject Property • 53 Downtown Salina H.D. Lee Complex III Site Summary Location: 248-254 N. Santa Fe Avenue Salina, Kansas 67401 The property is located on the south side of Elm Street between 5''' Street and Santa Fe Avenue in the northern portion of Salina, Kansas. Land Area: 187,500 square feet (4.31 acres) Configuration: Rectangular Topography: Essentially level at street grade Drainage: Adequate Floodplain: According to National Flood Insurance Rate Map Community Panel No. 200319 0005B (February 5, 1986), the subject property lies within FEMA Zone C: Areas outside of a 100-year flood hazard. Frontage, Access, Visibility: The property has approximately 250 feet of frontage on the south side of Elm Street and on the north side of Ash Street (both 2-lane east/west roadways). It has approximately 750 feet of frontage on the east side of Santa Fe Avenue and the west side of 5`h Street (both 2-lane north/south roadways). Utilities: Adequate utilities are available and in place at the site for most uses, including water, sewer, electricity, telephone, and natural • gas. Zoning: C-4 Central Business District This district is designed to allow for a wide range of retail shopping facilities. However, we are not experts in the interpretation of complex zoning ordinances, and the determination of potential compliance is beyond the scope of this market study. Land Use Restrictions: We were not given a title report to review. We do not know of any easements, encroachments, or restrictions that would adversely affect the site's use. However, we recommend a title search to determine whether any adverse conditions exist. Environmental: We observed no evidence of toxic or hazardous substances during our inspection of the site. However, we are not trained to perform technical environmental inspections and recommend the services of a professional engineer for this purpose. Ownership and Sales History The improvements were recently purchased at sheriff's sale after going through a bankruptcy proceeding. The new owner of the property is Lee Development, LLC IP and the reported sales price was $140,000. This is considerably below the appraised value as indicated by the Saline County public records. These buildings are of significant historical importance in this area. They were originally home to SHANER APPRAISALS, INC. Identification of Subject Property • 54 Downtown Salina H.D. Lee Complex the H.D. Lee Mercantile Company and the Lee Hardware Company. It was later • home to the McCune Paper Company. Zoning The current zoning of the subject property is C-4, Commercial. This will allow for a mixed usage of retail, office and multi-family as envisioned by the property owner. The property as currently zoned would not allow for conversion of the existing buildings into 100% multi-family usage. That would require conditional use approval by the Planning Commission and City Council. However, the current zoning does specifically allow the usage as conceived by the developer, with retail and or office on lower levels and multi-family above as a secondary use. In terms of the overall development plans for the City of Salina, a mixed-use for the subject site does coincide with their master plan for the area. However, the City planner did indicate that the multi-family portion of the contemplated usage was certainly in regards to location at the north end of where they had anticipated housing stock to be added. To allow for any type of bar, restaurant, brewery on the site would also require a conditional use approval by the appropriate city departments. However, that specific type of use is directly in line with the recommendations of the PUMA group. This area was also designated as the "mill district" from the PUMA group when they • completed their study and they suggested usage to include artist studios and lofts, live/work environments and entertainment uses. According the City Planner, although the recommendations of the PUMA group were never formalized into specific alterations of the City Master Plan, the City has attempted to incorporate their direction into future development. • SHANER APPRAISALS, INC. Identification of Subject Property • 55 Downtown Salina H.D. Lee Complex • Following is the analysis taken from the PUMA study in regards to the Mill District area where the subject property is located. den ation:"I he he.t.>nc mall and«atthousc arra In t t d In the northern Iv art+,i the ccntt.t Iwstncs'dittnet,hounded narghlt ht North Street no the north.rmtll Mtc v and Sane:t c Avenue ii.the cnst,Ash Sttect to the sough and Thud and fifth Street/to the east. Hole and Relation to the Niche Strategy: tht':Mill Monet emir.alics pan of tit•ich Mtror.'••e'Salina,nick the da+:that the<Itt w'1.a..oftattkie ad;nruhttal p.w'rth.,v.s. 1Tt.aria t%a.cane.' ibc Sell 0+,91(2'in the late nlretrenrh and ear+.twentlrth cement:. 1'ht ahanct't c nikttn.n a,t milk and,trah:n.w'.t,Ina+<I. a w:4( di,,i 'n.hlttfll:latiarilarks.am, luttp b•r tM witot<n. It is a dtfierettt ra 1 ofthe akntan.t n es.ct'ienet,mote atierrntt.nls anal"clip—than the t"*ni ttxc t.'ntral hu•ul.'o di tts.t. Sense or Place:The Mill nistntl pt tide••a<tom,:•twat hitkdntp arra I.t.>nc.tl 1..r ait.arnv.aii 1ahNta. While nwPs and warehene.e<may he common:n commonit•:.. thrvlught•ul l�ama.,ii r•r.m:t<,find sigh it large a<scml,latr.it tli se ilk iurr<, 11;-l,•:.•I That this area rruu►.tw(h of 11rc"gr°ittuit,.'"dial maktt It z alrlttlut arra—inetudtnt;r.uln•.id traeks,and tnal Itnrk+1recio.,to uih or nnn NNKINnt ai.kuvlks a tit.ii museum,Ira suet. Now M}iNc and 4ntintntncntal imltrta,'cnx ntc thr.tlkl be suhtk•and not m'enhaat,ct the .utthrnnttts of the:tnra. Suggested(.RCN and Activities:It e recon tuend that the dill I)tstrtct htiu.amr u.t«nt.•a'n s atca le:4 inn,ovAnr.n end trcatn'nt We Ike a mrnad me.n'pc,.meltNhn_oh. n'tt•I1 6.11 ai/•.1.110 a;varchnt.sintt and nlar,utit ninny!,hart d.rr.,13111,rn.anv uss.rn"all;. is k.i alatudinr: • Aft/St.iuch• •and Litt%: • • Itnh7tanlnlcnt,mrIudi i:altajio1 mulled dart+c,ttl ft:gbh:l eln din eoflt(rnelI..n.rit!i a"t:oho,/Nesghl..r P+diet"that c=t,tl4lsllcs tundanh m l rrpctat&ant and i.a har*or;. • I;vele/otk env tr•ti nent,. 'lhr Mill I)nintt,with M.acr teal....LIEN cn.ts.coals bee.nn,.an"Smut./"tot+chit alt 1 l,urinr.l eofttepl•that later cxpartJ and;r.r imn'c a.The more matntttcam Santa Fe:tvi:noa I)atnu. Development Chakngete and Opportunity Sites; 1'.,prescrrc mane ui mix std nitil:n: mill and w•ar<•halure ttrattnres In Oh.'Mtlt Ditintt,ter tc unnnc:rd that tht em't.inricicl .:ream}:a local Mswne dtttrwt that includes warehouse I.uthhncs m t►t t K'tnttr ut Iatt. *Snort tilmt Sattla 4=r:%titntt an I"iith Sttcct,atul the hinouealh•stgniticant Ito Mill sr Pin. ,reset., luceltu■'ct ah..nu I lac arretnitud tr.enCnur:n,•a•rn gw•tiv.nand.n..r,ltifi,e:md mtpnnc Invonc pe.rcaims',IurhNlmt the rtt.taaran..n..i urit ir>d(ac ask%and hustne<. /Among In list',tea tl:•auk,br amtnak-d to/lime;nttltinala..I trot,.ranging:toMtec 3snry, nt tntlt,tltlrtnI;n.Vt,t4lenitat k.cMlcitamttlent. • SHANER APPRAISALS, INC. Identification of Subject Property • 56 Downtown Salina H.D. Lee Complex • Following is a copy of the City of Salina Municipal Code Section in regards to a C-4, Central Business District zoning. DIVISION 14. C-4 CENTRAL BUSINESS DISTRICT Sec.42-301. Design. The C-4 district is designed to provide a district for a broad range of retail shopping facilities. (Code 1966,n`36-611) Section 42-302. Permitted uses. Permitted uses in the C-4 district are as follows: (1) Antique shops; (2) Apparel stores; (3) Appliance stores; (4) Art galleries,libraries and museums; (5) Auditoriums and community theaters; (6) Automobile sales,rental and service,provided all displays of vehicles are within a completely • SHANER APPRAISALS, INC. Identification of Subject Property • 57 Downtown Salina H.D. Lee Complex • enclosed building: provided however, that any such use with an outdoor display area in existence on January 8,2000 shall be deemed to be a lawful nonconforming use; (7) Auto parts stores: (8) Banks and financial institutions; (9) Barbershops; (10) Beauty shops; (11) Bicycle shops; (12) Blueprinting and photostating establishments; (13) Bookstores; (14) Bus stations: (15) Business and professional offices; (16) Camera and photographic supply stores; (17) Carpet and rug stores; (18) China and glassware stores; (19) Contractor's offices; (20) Department stores; (21) Dog kennels,providing that such facilities are completely enclosed and that no odor or noise is • discernible outside the structure. (22) Dry cleaning establishments; (23) Drygoods stores; (24) Electrical contractors; (25) Electronic parts and supplies; (26) Florist shops; (27) Food stores.including grocery stores,meat markets,bakeries,and delicatessens; (28) Fraternal and service clubs; (29) Furniture stores; (30) Furrier shops,including the incidental storage and conditioning of furs; (31) Gasoline service stations; (32) Gift shops; (33) Government buildings; (34) Group day care centers provided that such use shall be separated from any commercial or industrial use in accordance with the requirements of the city's adopted building code; • SHANER APPRAISALS, INC. Identification of Subject Property • 58 Downtown Salina H.D. Lee Complex (35) Hardware stores: (36) Hobby shops: (37) Hospitals. sanitarnuns. rest homes. and nursing homes. provided that parking is provided in accordance with Section 42-553: (38) Hotels and motels,providing that parking is provided in accordance with Section 42-553: (39) Interior decorating shops. uncludung upholstering. making of draperies. slipcovers and other similar articles which are conducted as a part of.and secondary to. a retail operation: (40) Jewelry stores: (41) Leather goods and luggage stores: (4 2) Mail-order houses: (43) Mechanical contractors: (44) Medical and dental clinics. and guidance centers: (45) Mini-warehouses: (46) Mortuaries and funeral homes: including crematories. provided that such facility is completely enclosed and that no odor or noise is discernible outside the structure: (47) Music stores and musical instrument sales: (48) Newspaper offices and printing: (49) Newsstands: (50) Office equipment and supply: (51) Optical sales: (52) Package liquor stores: (53) Paint and wallpaper stores: (54) Parking garages and lots: (55) Pawnshops: (56) Pest control and exterminators: (57) Pet grooming shops: (58) Pet stores: (59) Pharmacies: (60) Physical and health services such as private gyn masnuns and reducing salons: (61) Printing plant: (62) Public utility uses including substations and ambulance services: (63) Radio and television broadcasting stations: • SHANER APPRAISALS, INC. Identification of Subject Property • 59 Downtown Salina H.D. Lee Complex • (64) Radio and television repair shops; (65) Recording studios: (66) Residential dwellings, accessory to and located above or below the ground floor of another principal use. (67) Restaurants which do not serve or sell alcoholic beverages.but no drive-in establishments: (68) Restricted production and repair limited to the following: alteration and custom tailoring of clothing for retail sale only:jewelry from precious metal: watches:dentures:optical lenses: and other similar activities: (69) Schools: music.dance or business: (70) Self-service laundry and dry cleaning establishments; (71) Shoe repair shops: (72) Small animal hospitals, providing that such facility is completely enclosed and that no odor or noise is discernible outside the structure; (73) Sporting goods stores: (74) Tailor shops: (75) Telephone exchanges and telephone transmission equipment structures: (76) Theaters.indoor only: (77) Travel bureaus and transportation ticket offices: (78) Variety stores: (79) YMCA.YWCA.and other similar organizations: (80) Any other similar retail business not specifically listed is permitted if it complies with the conditions and restrictions contained in Section 42-306: (81) Accessory and temporary uses.as permitted by Article VI of this chapter. (82) Signs.as permitted by Article X of this Chapter: (83) Off-street parking and loading.as required by Article XI of this chapter." (Code 1966.§36-611(1):Ord No.81-8863.§9.8.3-81:Ord.No.82.8918. 3.8.9-82.Ord.No.83.8954,§3. 1-24.83:Ord.No.84. 9020.;7,5.7.84:Ord.No.88-9241.§4.4.11-88:Ord No.92-9536.§1.10-12.96:Ord No.99-9961.§1.1-3-00:Ord No.01-10056.S 1.9-24-01;Ord No. §1.6-20-05) Section 42-303. Conditional uses. Conditional uses in the C-4 district are as follows: (1) Amusement arcades.indoor only: (2) Amusement and vending devices, sales and service: (3) Appliance stores.sales and service: (4) Automobile repair: • SHANER APPRAISALS, INC. Identification of Subject Property • 60 Downtown Salina H.D. Lee Complex (5) Car washes: • (6) Church.chapel temple. synagogue and shine: (7) Custom cabinet and woodworking shop: (8) Drinking establishments. including restaurants that serve alcoholic beverages: (9) Equipment sales. rental and service. except constnrction-r pe equipment: (10) Food and'or beverage service on an outdoor patio which is accessory to a restaurant or bar. provided that the patio area may not exceed the size or occupant load of the indoor serving space: (11) Furniture repair and restoration shop: (12) Glass and mirror sales and service: (13) Group care facility: (14) Group day-care centers: (15) Handcrafts. ceramics and similar art work: (16) Home Improvement center: (17) Motorcycle sales.rental and service: (18) Residential dwellings located on the ground tloor or within buildings used principally for residential purposes. provided that parking is provided at one half the ratio set forth in Section 42-553 and provided that such development shall comply with the R-3 Multiple-Family District requirements for density and lot size(Section 42-204)in addition to the C-4 bulk regulations: (19) Residential dwellings for elderly and or handicapped persons. located on the ground floor or • within buildings used principally for residential purposes. provided that parking is provided at one half the ratio set in Section 42-553 and provided that such development shall have a muumum lot area of five hundred(500) square feet per dwelling unit in addition to complying with the C-4 bulk regulations: (20) Teen Centers: (21) Testing and research laboratories: (22) Warehouse and wholesale houses. (Code 1966.§36-611(2):Ord.No.9:.94-1C. 1...13.91.Ord.No.92.9536.§`.IQ-12.92:Ord.No.99.9961.:2. 1.3-00:Ord.No.01- 1002_1.$:.2-12.0::Ord.No.01-I0056.;2.9.2d-01:Ord.No.05-10221.§2.6.20-05:Ord No.06-S10339.1 1.7-17-06) Sec.42-304. Lot size requirements. Lot size requirements in the C-4 district are as follows: no minimum requirements ,Cede 1966. ;36-611,3ui • SHANER APPRAISALS, INC. Identification of Subject Property • 61 Downtown Salina H.D. Lee Complex • Sec.42-305. Bulk regulations. Bulk regulations in the C-4 district are as follows: (1) Maximum structure height:no limitations. (2) Yard requirements: a. Front yard:none. b. Side yard: none required.except as provided below. c. Rear yard: none required. except as provided below. d. Where any andor rear yard abuts a residential district. a landscaped side anchor rear yard shall be provided along such side andor rear yard that is ten(10)feet in width. (3) Maximum lot coverage: one hundred(100)percent. .(cde 1966.;36-611.4), Sec.42-306. Use limitations. Use limitations in the C--1 district are as follows: (1) All business establislunents shall be retail or service establishments dealing directly with consumers. All goods produced on the premises shall be sold at retail on the premises where produced. No products produced in tins district shall be of a nature that they would be classified as a permitted use in the I-2 or I-3 districts if produced separately from a use permitted in tins district. (2) All business. service. storage and display of goods shall be conducted within a completely enclosed building. (3) No business establisluneit shall offer or sell food or beverages for consumption on the premises in parked motor vehicles_ (4) Exterior lighturg fixtures shall be shaded so that no direct light is cast upon any property located in a residential district and so that no glare is visible to any traffic on any public street. ;Code 1966. 36-611(5).Ord.No.95.9694.§1,7-10-95.Ord.No.99-9961, 3.1-3-00.Ord.No.01.10056.;3.9.23.01) Secs.42-307-42-315. Reserved. S SHANER APPRAISALS, INC. Identification of Subject Property • 62 Downtown Salina H.D. Lee Complex • Site Plan . ,,A1 - ‘IP 1''''''4,,,,:', ,,,,,,t4 ... . ,-, . Nft,-... ' 4 IS g " ; DIG'iTALGLOBE " i" -"''''' M a{si 8 Y :i L °'F �t§ ,' d� 5,r �� a ,' ¢ '' a a a y,kt a �ar 1• t IPI * G3 III • SHANER APPRAISALS, INC. Identification of Subject Property • 63 Downtown Salina H.D. Lee Complex Improvement Plans The project has not yet developed specific proposed plans and specifications. However, an architect has provided preliminary estimates for usage of the space within the renovated buildings only. —4-- 1 ! I I I I I • •••••■ AMMIE••■•••■• • 4- 1 _ . AMR. MI • ••• *iv MOM. OnaireX • • ■ T 1 ' j "— msmi- * 7 7 a 1' 7 r-- i • i sArrA tt Sis/HEN/A—IC EXISTING Fl OOR PLAN VcCUNI PAPER — LEE HARDWARE BUILD 248 AND 25L R. SANTA FE. SALINA, K S :new s 4monoin es■ • SHANER APPRAISALS, INC. Identification of Subject Property • 64 Downtown Salina H.D. Lee Complex Michael T.Wilson,A.LA. 1110 Architect One P.A. 3500 SW.Fai rlawn Rd.01041 Topeka,Kansas 66614 1785)271-7010 ►►e4titi.architeet one pa.cinit 1 have executed some initial space studies of the McCune Buildings in Salina and have the following data. Units passible: Exactly 100 in initial scheme 44-2 bedroom units of approx.900 s.f. 44-2 bedroom units of approx. 1,150 s.f. 12-2 or 3 bedroom units of approx. 1,800 s.f. Total s.f.of apartment units 127,488 c.f. Retail 32,000 c.f.—all on ground floor The envisioned use of this portion of the subject property and projected density for each use are as follows: Retail 32,000 square feet Office 0 square feet Residential 127,488 square feet 11. Although the architect has made no provisions for inclusion of any office space, a mixed use project such as the one envisioned for this project would benefit from the diversity of usage, which would then not create such a large demand for any one specific type of use. As will be discussed later in this report, it is our opinion that in the retail/office portion of the development, the first floor area should be mostly retail space with some office space and the second floor should be strictly office space. Obviously, there may be some slight deviation when tenants lease space, as a retail user may desire a second floor space, but this would not be considered typical. The chart below reflects our estimated square footage for mixture of use for the approximately 158,500 square feet of area that would be renovated within the existing buildings. Retail 23,775 square feet Office 39,625 square feet Residential 95,100 square feet • SHANER APPRAISALS, INC. Identification of Subject Property • 65 Downtown Salina H.D. Lee Complex SIThese estimates portray a 75% retail use on the first floor, a 25% office use on the first floor, a 100% office use on the second floor and a 100% residential use on the top three floors. The smaller portion of allocation to retail is primarily due to the high concentration of retail usage for the vacant land that will comprise the rest of the subject site. The above square footage figures will be used in our market demand analysis for retail and office space for the area. • • SHANER APPRAISALS, INC. Identification of Subject Property • 66 Downtown Salina H.D. Lee Complex • Property Summary Condition: Fair The buildings appear to have been fairly well maintained and provide an above average appearance relative to competing properties within its market. However, they have remained vacant for quite some time. The all brick exterior and limestone foundation are in above average condition. The interior is rated overall to be in only fair condition. The office finish in the interior is dated and of low quality. The vast majority of the interior of the buildings is an empty shell. Much of the interior is covered with pigeon feces. We did not make a detailed inspection of the mechanical systems or the roof and are not qualified to render an opinion as to the adequacy or condition of these components. However, it is our understanding that with any future renovations all new mechanical systems will be required and replacement of the roof will likely be necessary. Quality: Good Design and The property consists of three five-story buildings. The buildings Functionality: are connected and have interior access from building to building. • The interior columns throughout each of the floors (see subject photographs) will have to be taken into consideration from a functionality standpoint when the design plans are formalized. The property has no on-site covered parking. Actual Age: 102/79 years Effective Age: 50 years Expected 80 years Economic Life: Remaining 30 years Economic Life "As-is": Financing and Development Incentives The subject property is located in a specified area within the City of Salina that makes it eligible for several incentives for development. It is within the Neighborhood Revitalization Area, which provides property owners the opportunity to receive a 10-year property tax rebate on additional taxes levied as a result of property improvements. It is also located within the Special Redevelopment Area. This district provides waiver of building permit fees. Lastly, it is located within the III Business Improvement District which allows for exterior improvement grants and allows properties to earn special assessments. SHANER APPRAISALS, INC. Identification of Subject Property • 67 Downtown Salina H.D. Lee Complex 0 - In order to be R000 coWTROL Lt-NEE eligible, the �+.0 111111111 property must 'M I be located P. IE �;I :I■ within the area us '� NEIGHBORHOOD s�o a- Mir- shown on this �R`® it.Er, !l ?fil■tar• iil:. REVITALIZATION AREA it s- m a ri r E^ -� 1 map. �' E; Downtown Salina H.D. Lee Complex 40 ..2�lc-i— i I ''H— i � Er 1 Business Improvement District ___• -. 1'-r- SANTA FE 1 0 j EMPLOYMENT' - ( I HOSPITAL 1 MILL ,czes r--: I' a.R Aila . i:� I lib — — _ #! EEL. !, fr aansr_ ___ �. , ® l ,.......__, ....i, , ,____ r_t!„,:,, :• riSTbYY AV .. $TR S. r ° : i .,�Y __....�...:ii.±41H � 1.".; 1 1.;-7.4'I/ r.. I T wK tiV�, r--- ex!1I1....; A 7: 7. -=g I'L_ 1�� 3); �. INS , =- -,' I • I �- -� -- r' 1 f / I! MDR ... I T i '~5A4(w y st f f EiliA r..4444.-10*4%;.,...: 4.1* MgEBRIRIF* ,,,,r2_\___".., .....„,,_ "•; r 1WL)4 . ,.......,,..,,...masilie -,-....1...„-;FT 1 i ..... pt.L.,..g ,,,...,-.:„... •' > . . "^ > tixS»rM:TOY S. .�- .511 11.1 r� • . Le: T T l E g 1 f S1._ .L .. � � • r - x r I Y �"' � , i �1 T 1 L v - D..,0�ri a I \ �� 4M+�0'�a .77� . V -.. 1 : S z 44 1— _.'; _ f _ r — ro ies.rr � , .:.t i ' :irTwn.i . ...•-,.. S:.} •■0* %••. 4 ., r• • SHANER APPRAISALS, INC. Identification of Subject Property • 69 Downtown Salina H.D. Lee Complex • The property is designated as a Conservation District Property by the local Salina Heritage Commission. This designation protects it from demolition without prior board review and approval. The City of Salina Department of Planning and Community Development submitted a Preliminary Site Information Questionnaire (PSIQ) to the Cultural Resources Division of the Kansas State Historical Society. The questionnaire assists the Society in evaluation of whether or not a property may be eligible for the National Register of Historic Places and/or the Register of Historic Kansas Places. The property may be eligible for state and federal tax credits based on its historical past association with H. D. Lee. The City of Salina recently received notice from the Kansas State Historical Society that after their review of the PSIQ they have determined that the subject property is potentially eligible for inclusion in the National Register of Historic Places under Criterion A for its associations with local commerce, Criterion B for its association with Henry David Lee, and Criterion C in the area of architecture. The subject property also has potential to be rehabilitated utilizing Federal Rehabilitation Tax Credits. This program allows a property to begin a certified rehabilitation even before it is listed on the National Register. The City of Salina has engaged a preservation consultant to compile the necessary research and prepare the nomination for submission to the Historical Society. • If the subject property receives a designation as being on the Register of Historic Places it will be eligible for several incentive programs for historic properties. The Heritage Trust Fund provides matching grants for the preservation of National and/or State Register-listed properties. A twenty-five percent state income tax credit on certified rehabilitations is available for National and/or State Register-listed properties. A twenty-percent federal Investment Tax Credit is available for the certified rehabilitation of income-producing properties that are listed on the National Register. Other types of incentives that the owners of the subject property may want to explore include Tax Increment Financing and a Property Improvement Revolving Loan Fund (RLF). TIF is typically utilized for revitalization of an area or property that falls within a district that has been designated as "blighted". It contemplates that property owners receive partial payment for future tax revenues that are created due to the overall increase in the tax base that an improved property will represent. An RLF is a fund that is set up to assist developers in improving infrastructure and properties. It is most typically used for restoration of facades of buildings with historical significance. • SHANER APPRAISALS, INC. Identification of Subject Property • 70 Downtown Salina H.D. Lee Complex Another form of tax credit worth exploration is the New Markets Tax Credit • (NMTC) program. The Department of Treasury authorized grants to taxpayers who are willing to make investments in or loans to qualified businesses or organizations located in low to moderate income communities. The tax credits equal 39 percent of the amount invested and the investors can claim the credits over a seven year period. Many real estate developers are also combining historic tax credits with NMTC's to enhance the equity contribution that the tax credit investor is willing to make to the project. Conclusions The new development should maintain strong consistency from an aesthetic point of view with the historical architecture and qualities of the original buildings. It is recommended that they incorporate the brick and stone facade that is represented by the existing structures. The developers would like to create an open-air feeling throughout the site similar to the Legends development in Kansas City, Kansas. They envision walkways for pedestrian traffic between the retail buildings. It is our suggestion that the walkway possibly be cobblestone or brick pavers to tie in with the era of the original buildings and encourage pedestrian traffic between the north and south commercial areas. However, the amount of walkway needs to be somewhat limited due to the relatively small footprint of area available for additional commercial development on the subject site. In regards to the additional retail shops we suggest some type of open plan that would incorporate not only store frontage on Santa Fe and 5`h but also contain some properties that front on the interior of the site. This would be conducive to pedestrian traffic. Further, in keeping with the tradition of mixed-use properties, some or all of the new store-front retail type properties should contain a mixture of office and residential loft style apartments above. This would complement the adaptation of the Lee warehouse buildings and create additional rental opportunities by building up due to the somewhat restricted footprint available on the remainder of the subject property site for new construction. The "streetscape" should complement the mill district from yesteryear in regards to sidewalks, street lanterns, trash receptacles, etc. Further, it would be a good idea to have some small water retention areas with fountains, possibly at pedestrian entrances, that serve as water features for the development. Due to the fact that the architecture of the current buildings would not allow for any type of exterior walkway design and entrance that would provide visibility to second floor space it is our recommendation that the entire second floor be utilized as office space, with access via a central interior hallway i SHANER APPRAISALS, INC. Identification of Subject Property • 71 Downtown Salina H.D. Lee Complex • The loft apartments that were part of the initial space study completed by the architect for the upper floors of the development would include two and three bedroom units that contain approximately 900-1,800 square feet. It is our opinion that there is minimal demand for large three-bedroom loft type units in this market area. Instead, we believe that the unit mix should also include a significant number of studio/one-bedroom units. In discussions with loft developers, it appears that there is strong demand for partitioning a bedroom even if the walls are shorter than ceiling height. It is our recommendation that there be partitioning for a bedroom, and that these units be identified and marketed as one-bedroom loft apartments. We also believe that the majority of the two-bedroom units should contain two baths. Each unit should have a spacious living area, cooking facilities, bathroom, and closets. Access to the units should be via elevators, stairways and interior hallways. The quality of these units should be similar to superior to other newer apartments in the Salina area but should incorporate the nuances of loft-style living with open- span ceilings revealing the trusses, minimal interior walls and the original brick exterior walls. The close proximity of floor to ceiling beams throughout the building will also need to be carefully examined and incorporated in any design plans. We would recommend that the lofts be apartment rental units rather than owner- • occupied condominiums as the rental market for this size and design units is stronger than the owner-occupied market. Buyers for the more custom build design plans have available space in the heart of the downtown area where this type of construction has historically taken place and which will allow greater flexibility in regards to overall unit size to meet specific user demand. • SHANER APPRAISALS, INC. Identification of Subject Property • 72 Downtown Salina H.D. Lee Complex Flood Map • PROPERTY ADDRESS: STDBU N L.!N E.com 248 N Santa Fe Ave,Salina,KS 67401.2318 cie FLOODSOURCE FLOODSCAPE1". c.,. ; gaj1 1,41,,,,, ,-..,., ......x�. 0.-' k North �, e:gn ' , • ,I tom. ii ii , , t lil f —,..:,..1",.,'"", I I ras `` t §! 1 � L 4-__ mL .- _ l , r ' l - ? -I/ PM12 . ''' iI s ZONE EZ `` / __....,,____ ..„,„,__,.. , f * , II 'ZONE B P= . i, 1 FLOODSCAPE Rood Hazards Map i rMap Number 7 . « 2003190005(3 X I {} ' �F : 3 z { Effective Date .rl� i '5 It l r; 1.. Fobruary 5,1986 1 -.a..}� I.. f ,rot s_r,r f, x•.nii.iwr "V Srrtli gS ,i1 Flood Legend ,it High Ilood risk S .I' Moderate rood ask it @.' ° _. 0 LOW flood risk !I ll - It, ZONE AH �� .,; Tad apart makes no ,bpa>aMawna a wararoer 4 y Bona rev m COMBO..pan.cy t w cWILglM+004 .1j STDBonllna.corn 469.574 1234 0' 603 112�t8( 24= i Powuad by flaob$aurcn i 1; 8:7 77 FLOOD *Iwo Koc.001.n4 ilin I / \ 01999-2007 SourcePr0Se Cerporaron,AS rgh13 reservee.Protected by U S Patent Numbers 6631326.6678615.6842098,and 7038681. 0 SHANER APPRAISALS, INC. Identification of Subject Property • 73 Downtown Salina H.D. Lee Complex • AREA AND NEIGHBORHOOD Area Overview The subject is located in the mid-sized community of Salina, Kansas. Salina is centrally located near the geographic center of the United States. It is the county seat for Saline County and is regionally located in north central Kansas. It is approximately 170 miles west of the Kansas City metropolitan area and approximately 80 miles north of Wichita, Kansas. Following is a discussion of the primary area characteristics and trends impacting the subject property. Much of Saline County and the communities located within its bounds rely primarily on agrarian businesses. Despite farming having setbacks over the years, the population of the area has experienced small increases, likely a result of attracting private industry to the area once known as the Schilling Air force Base. Saline County, as well as the city of Salina, have been slightly increasing in population from 1990 to 2007 and are projected to remain relatively stable in the next five years. The population of the primary market area experienced moderate growth for each of • the past two decades. The population was approximately 45,679 in 2000, up from 42,568 in 1990. The 2007 population is forecasted at 46,458 and 47,090 in 2012. The subject property is situated in northern Salina. The Central Business District of Salina lies just to the south of the subject and is conveniently accessed by an interior network of streets. The western border of the subject site is Santa Fe Street, which is the main north/south corridor through downtown. Although historically downtown Salina was the heart of the business community, the majority of the retail base is now located in southern Salina, with the location of a regional mall, traditional strip-shop centers and big-box tenants. Downtown continues to provide employment for local government, financial and professional service firms and is home to the Salina Regional Health Center. The other emphasis downtown is its historical relationship with the arts and humanities as evidenced by the many small specialty shop businesses. Several new restaurants have also opened downtown within the past few years. Other growth downtown has included conversion of second floor loft areas to residential use for owner occupants. Access Regional access to and from the local market area is good due primarily to the presence of Interstate 70, which borders the local area to the north. Additionally, Interstate Highway 135 serves as a primary north-south artery in the western portion of the area. Interstate 135 connects Salina with cities such as Wichita, Oklahoma SHANER APPRAISALS, INC. Area and Neighborhood • 74 Downtown Salina H.D. Lee Complex City, and Dallas. Interstate 70 provides direct access to Denver and Kansas City. • Other highways extending through Salina include U.S. 81 and U.S. 40 Highways. There are adequate primary and secondary streets providing access throughout the neighborhood. Primary east-west collector streets in the area include North Street, Iron Street, State Street, Crawford Street, Republic Street, Cloud Street, Magnolia Street and Schilling Street. North-south collector streets include Marymount Road, Ohio Street, Santa Fe, Ninth Street, Broadway Boulevard and Centennial. The area is also served well by an ample network of secondary streets. Employment According to the Salina Chamber of Commerce there are approximately 100 manufacturing companies that employ over 6,700 people. Some of the largest manufacturers include: Schwan's Global Supply Chain Great Plains Manufacturing Exide Technologies Raytheon Aircraft Company Philips Lighting Company Eldorado National, Inc. KASA Industrial Controls ADM Milling Salina Journal Crestwood, Inc. Premier Pneumatics, Inc. Turbine Specialties PKM Steel Service, Inc. APAC-Kansas Inc.-Salina Branch Exline, Inc. Pepsi Cola Bottling OCCK Salina Vortex . Salina Steel Company Love Box company Geoprobe Systems Triad Manufacturing Metal Cast McShares Consolidated Printing Berkamp Fabricators, Inc. Other large employers within the market area include: Salina Regional Health Center City of Salina/Saline County Sunflower Bank Advance Auto Parts America Wal-Mart Wilson and Company Lock\line Blue Beacon International Dillon Stores Kansas State University-Salina Western Resources/KP&L School Specialty Supply UMB-NBA Kansas Cellular SBC/Southwestern Bell Union Pacific Kansas Wesleyan University ALLTEL Lowe's Home Improvemement Salina serves as an economic hub for much of the surrounding communities. This is evidenced by the fact that one of the largest employers in the area is the regional health center, as shown in the following table of major employers. 0 SHANER APPRAISALS, INC. Area and Neighborhood • 75 Downtown Salina H.D. Lee Complex • MAJOR EMPLOYERS Number of Name of Employer Industry Employees Schwan's Food Management Food Processing 2,000 Salina Regional Health Center Healthcare 1,082 Exide Battery Manufacturing 800 Great Plains Mfg Manufacturing 650 Phillips Lighting Manufacturing 600 Raytheon Aircraft Aircraft Manufacturing 300 Solomon Corporation Manufacturing 300 Lock/line Services 300 Eldorado National, Inc. Vehicle Manufacturing 255 Walmart Retail 183 Source:Salina Chamber of Commerce Another significant employer is the Salina public school district, USD #305, employing 935 faculty and staff members. Employment in Saline County is relatively diverse with trade, service and manufacturing sectors making up 76% of jobs, while another 13% are government positions. As reported by the Kansas Department of Labor, Saline County • employment is reflected in the following table: ANNUAL AVERAGE 2000 2001 2002 2003 2004 2005 Civilian Labor Force 29,043 30,051 30,311 30,823 29,703 31,293 Employed 28,116 28,933 29,077 29,413 28,190 29,925 Unemployed 927 1,118 1,234 1,410 1,513 1,368 Unemployment Rate 3.2% 3.7% 4.1% 4.6% 5.1% 4.4% Kansas Unemployment 3.8% 4.3% 5.1% 5.6% 5.6% 5.1% The unemployment rate has steadily increased since 2000, but declined to 4.4% in 2005. Saline County's unemployment rate has remained below the state averages throughout the last five years, indicating more favorable conditions in this county of the state. Lower than typical unemployment rates will traditionally stimulate employment growth. Increased employment growth is generally an indicator of need for additional housing stock. Following is a breakdown from 2005 of the Saline County Civilian Labor Force broken down in terms of job type. As you will see the areas with the highest percentages of labor in this region include manufacturing, health care, government and the trade industry. • SHANER APPRAISALS, INC. Area and Neighborhood • 76 Downtown Salina H.D. Lee Complex Salina County Civilian Labor Force 2005 Year End Totals • 'rarer S.vca• vi��,acr,.rnq ail IS% Ontiamtons11 tKlM467/ S+n cet co.tafma Swot Varaq•w oal C Spinra t 1K .. Cwerawwa 1% A.:caaanmaten i appt _.,_1131111111111111111111111. Aamr>•+xaaw t wean 134.iwa Se..r:,aa ]N. 341 :.*w.11,7raM aLneN"ia aMt S / 4% eaiaa Iti Noon tea*1 tops Asitti ■ Rehr Snae It% 141 Neal Sane l q,4 ra..�yn1 innli.watcn awar•nawrq 14! 1% at Y4 Total Saline County Civilian Labor Force- 34,148 2005 Annual Averages Utilities 50 • Construction 1,502 Manufacturing 5,941 Wholesale Trade 1,206 Retail Trade 4,360 Transportation & Warehousing 1,150 Information 672 Finance & Insurance 1,166 Real Estate & Rental & Leasing 236 Professional & Technical Services 968 Management of Companies & Enterprises 200 Administrative & Waste Services 863 Educational Services 441 Health Care & Social Assistance 3,510 Arts, Entertainment & Recreation 256 Accommodation & Food Services 2,440 Other Services, Exc. Punic Administration 1,358 Government 3,981 Farm Employment 485 1,1r7 We' S SHANER APPRAISALS, INC. Area and Neighborhood • 77 Downtown Salina H.D. Lee Complex • Travel time to and from work for the entire market area is very reasonable due to the grid-like street infrastructure and the interstate highway system that borders the community. 2000 Workers 18.by Travel Time to Work Total 30,519 Did Not Work at Home 95.9% Less than 5 minutes 5.2% 5 to 9 minutes 23.1% 10 to 19 minutes 46.5% 20 to 24 minutes 8.4% 25 to 34 minutes 7.3% 35 to 44 minutes 1.0% 45 to 59 minutes 1.4% 60 to 89 minutes 1.4% 90 or more minutes 1.6% Worked at Home 4.1% Average Travel Time to Work(in min) 15.7 Housing Residential development within the community of Salina is generally of older vintage. According to demographic information provided by ESRI, Inc., over 67°/0 of the housing stock was built prior to 1970. The median year of construction for residences in the area is 1959. • Per ESRI statistics, nearly 71.2% of residential dwellings in the community consist of single-family homes. The median home value in the city is cited by ESRI to be $114,251. Due to the relatively low cost of homes in the area, only a small portion of apartment properties exist—most of which consist of less than 20 units. Furthermore, a significant portion of the multifamily properties cater to senior citizens and/or low-income families. Utilities All utilities are available to the area. The following companies provide service: Electric Western Resources Water/Sewer City of Salina Gas Western Resources Telephone SBC/Southwestern Bell Recreation The City of Salina has 18 parks which encompass over 700 acres of land. Located within the city limits are 19 gyms, 19 tennis courts, 18 baseball/softball fields, seven swimming pools (two public and five private), three 18-hole golf courses (one public and two private), one 9-hold par three golf course, five football fields, a • bowling center, ice skating rink, roller skating rink, three rodeo areas, four running tracks and a YMCA. SHANER APPRAISALS, INC. Area and Neighborhood • 78 Downtown Salina H.D. Lee Complex • Education The district consists of eight elementary schools, two middle schools, and two senior high schools with a total enrollment of 7,100 students. In addition to the public sector of schools, private schools consist of five elementary, two junior high, and two high schools. St. John's Military School, an all-boy school affiliated with the Episcopal Church, serves boarding students grades kindergarten through senior year from 35 state and foreign countries. The community also benefits from the presence of higher learning institutions such as Kansas Wesleyan University, Kansas State University-Salina, and Brown Mackie Community College. Kansas Wesleyan University employs over 170 faculty members and staff, and has enrollment of approximately 800 students. Kansas State University at Salina is home to the College of Technology and Aviation which offers associate and bachelor's degrees in the areas of engineering technology and aviation, as well as business. Current enrollment is approximately 1,000 students, and over 125 faculty and staff members work on the Salina campus. There is one public library with approximately 220,000 items for circulation, two college libraries, a medical library and a law library. The city also has eight museums and galleries. Traffic Counts The latest traffic count map prepared for the City of Salina was September of 2005 • and was compiled by the Kansas Department of Transportation. The two maps that follow are for the northern portion of town, which would include the subject site and all of the downtown area and a map containing the majority of the City of Salina. • SHANER APPRAISALS, INC. Area and Neighborhood • 79 Downtown Salina H.D. Lee Complex• 4110 . 7160 5525 •. dral C.I.I IT:X 7630 x; r 8870 2735 t * III �� .. 3570 30 �hR_F 30 0 iiiri so ,��tlti o 130 ' do gartillliirlillilleim 4,7�i�� ® 2300 01,11,.., „INN .135 _, 11005 ins 3500 „®®9400 6800 0£�in. 3920 2145 950 3005 . 7440 -■ i� ■ 8340 10325 vARI NU A Ill ,y �Ret: :�E. 13075 in 4475 'MINI 10730 – 1 ® � 1658' Ell 1,„2110 PR , 3705 Ipj � 11 EPP - Ell II 3200 2745 ■ a >< m a :EPR 5� r`t Pr:-, -- i immi ,..., WE AYE 2450 - 546 3570 1275 — 1210,AIWA ,�1{., DARK , 1 . ? 10050 Y ^ "TA r a aEP pi, 1869 0 CP 18655 10725 600 17700 t 3505 ..n�imisti 3455 t" tV'7 AYE b I ' r"h:'.a�M1 (� _ ffi 17760 111 r a mili 17220 13°65 16970 /340 758+ k, RAAFC.10 " ®—�1630 { 11YI.BRE ��,® 16515 6975 II . a 3410 14040 5 12535 1' 15635 ,,t, n . 22430 `r�� N. as .r I cr 1 _ °o " .AIINA MTFAI ,, 9 g The closest area to the subject site tracked were Ash Street (southern border of site) just to the east of the site at approximately 4'h Street, which monitored 6,136 vehicles per day traveling east and west. Elm Street (northern border of site) at approximately 4'h Street carried 4,170 vehicles per day of east/west traffic. Ash Street just to the west of the subject site at approximately 9th Street had a count of 6,800 vehicles per day. The closest traffic counts of north/south traffic were Santa Fe Street at Iron which carried 6,865 cars per day and 9'h Street at Ash which totaled 9,400 vehicles per day in a north/south direction. • SHANER APPRAISALS, INC. Area and Neighborhood • 80 Downtown Salina H.D. Lee Complex •_ llili �®�7,.1_isd'9 130 7109 • ._260 :'!�W.I.' giI� 104:6 r Id14r1E�®N®MI lll I 1 AI lik il 1 1 11®.2321111101111�j�;s6��''""1 Ei•ti ., -11 11® 10u 6100 'i-i��-u.a 142'\ IN :.4E06 MI.'S 7140 IR�FfFZ�1�.. 12975 No '76 I U 10730 1I ®IIR.1 11 .. ■n'i•k��, llmil ,■ ■� J U � � 1W��000II�t MEM A Mill".iiimilic . ,...,,,11666 !Ill: 1 I4 N700 -111111111111111 ]604 *M 17766 117 0 1a ""4 ® �®® ,1470 1764'I �t._� .. tae ralir f'lt6 tf7! II ±. 11030 * 12 636 U 111®' 6Ywt cUmut i;. f 6� I ■■■� 1 a _ ,r t owe_ _ 1 ®,III .�...z ® iiiI2,1 II®ii®®M!lLI t �.1.11,' � II �� 22330 iii �FrIrullill ®Hlignit .= � alga �® , 7�1j ®1 iI- • ® IIIII� 11 �117� 12210�, AJ6 •®-.--�2�J� �-I-�IIllMllllllll, .J . ow ,I 3660 Sim/ lllllll,l E PM ill .tl� . ®�ql��l= 22416 !Rim'® ■ 16936 iat17' a1— 750 gm 640 1120 m 1,26 /A���. r • ial In / ', 1,71rr'eltt, A 1,.. of — iiiiiii... Li...„,„ , ,,,a,..,41..,,,, , , —gift=maim l kji1pI .11® 69. m06���■ ipirrAp...1 ►, 1.6 � �� • '3610 , 10210 ,I.3.60 , 1 6160••:,•'i.. .. In terms of the City of Salina as a whole most of the higher traffic counts are located in the southern portion of town. The highest daily number of vehicles reported was at the area of 9'h Street and Magnolia with 24,140. This is the area surrounding all of the big-box retail locations. Traffic count numbers typically decreased as they • were monitored going north. SHANER APPRAISALS, INC. Area and Neighborhood • 81 Downtown Salina H.D. Lee Complex • The streets with the higher activity in town make sense from a geographical standpoint. The most traveled north/south roadways were Broadway, 91h Street and Ohio. Broadway is located on the west side of town, 9'h Street in the middle of town and Ohio on the east side of town. Likewise, the most traveled east/west roadway was Crawford, which is the main thoroughfare located in the middle of Salina. Some of the busiest intersections included Iron and Ohio, 9'h and Magnolia and all of the main intersections located along Crawford. Much of the reason for the high traffic counts along Crawford, other than its central location, is the fact that there is an interchange off of Highway 135. The other interchange off of the highway feeds into Magnolia, which also explains its high traffic counts. Health Care The City of Salina has one hospital, Salina Regional Health Center which provides regional service. It has 330 licensed beds and various facilities that provide mental health services and counseling, including an alcoholism and drug dependence treatment center. The Salina Surgical Hospital was created in November of 1999 and is located at the corner of Santa Fe and South Streets. An expansion was completed in 2005. The Tammy Walker Cancer Center was opened in November of 2004 and is located at 511 S. Santa Fe. The Salina Medical Arts Building and a five-level parking garage were also added as part of the recent expansion and • remodeling of Salina Regional Health Center. Within the community there are also 22 medical clinics, 12 private practice offices, 20 chiropractic clinics and approximately 150 doctors, surgeons and dentists. There are five retirement/life care facilities and six nursing home/intermediate care faci I ities. Tourism Over 500,000 people visit the City of Salina each year for conventions, trade shows and meetings. Salina has about 30 hotels/motels which provide over 1,900 rooms and 80 restaurants. The Bicentennial Center is a 7,600 seat arena with over 40,000 square feet of exhibition space. It is located just east of the downtown area in Kenwood Park and hosts concerts, conventions, trade shows, sporting events, rodeos, circuses and special events. Annual events that draw tourists include the Bygone Days, Prairie Festival, Santa Fe Day, Smoky Hill River Festival, the Tri-Rivers Fair, NJCAA Women's National Basketball Championship Tournament and the Mid-America Farm Exposition.. Other local attractions include the Rolling Hills Wildlife Adventure & Museum, Smoky Hill Vineyards & Winery, Yesteryears Museum, Stiefel Center for the Performing Arts, Smoky Hill Museum, Yesteryears Museum, Lakewood Discovery Center and Nature Area and Jumpin'Joe's Family Fun Center. • SHANER APPRAISALS, INC. Area and Neighborhood • 82 Downtown Salina H.D. Lee Complex Land Use • The community of Salina is composed primarily of single-family residential construction complemented with a multifamily segment that comprises approximately 20% of the housing stock. Most multifamily development is of similar vintage to the single-family homes, but is generally in only fair to average condition. Vacant developable land is relatively scarce within the primary core of the city, but ample land exists on the periphery. The Salina Municipal Airport and Salina Airport Industrial Center, located in the southwest portion of the city, replaced the Schilling Air Force Base after it closed in April of 1965. The development covers nearly 3,000 acres—over 750 of which are designated for industrial and commercial use—and is home to most of Salina's heavy industrial users and larger manufacturing employers. More industrial development exists along the highway and to the northeast. Commercial retail and office development comprise the smallest segments of development—generally limited to primary intersections and scattered along major thoroughfares. The Central Business District (CBD) of Salina, Kansas is situated near the northern boundary of the city, which consists primarily of institutional and governmental agencies. Cultural Arts Much of the downtown area is dedicated to the preservation of the importance of the arts and humanities to this community. There are a multitude of cultural events available in the City of Salina, particularly within the downtown area. The Salina • Arts & Humanities Commission has a strong presence and influence in this area. Salina has an active community theatre, symphony, chorus and band. You will find the Salina Art Center, The Art Center Cinema, Blue Stem Art Gallery, Smoky Hill Museum, Great Plains Theatre Festival and the Stiefel Theatre for the Performing Arts. Major cultural events held annually include the Smoky Hill River Festival, Five State Annual Jurored Art Exhibition, Spring Poetry Series, Christmas Candlelight Service, Traveling Art Series, Salina Jazz Series, Santa Fe Day and the Prairie Festival. 0 SHANER APPRAISALS, INC. Area and Neighborhood • 83 Downtown Salina H.D. Lee Complex • Conclusion The community of Salina, as well as Saline County, has been experiencing a small consistent increase in population over the last several years. Established industries exist within the immediate area, and the local medical center serves much of the surrounding region. The existing industries provide a stable source of employment, and convenient regional transportation routes should provide Salina with stability and moderate growth in the foreseeable future. • • SHANER APPRAISALS, INC. Area and Neighborhood • 84 Downtown Salina H.D. Lee Complex • Neighborhood Overview For purposes of this report, the submarket neighborhood boundaries are best described as follows: North E I m Street South Prescott Avenue East 4th Street West 9th Street The neighborhood boundaries outlined above in this 31-square block area basically represent what is considered to be "downtown" Salina. The original center of downtown historically was Santa Fe and Iron Street, which is now considered to be in north-central downtown as expansion has taken place to the south. Neighborhood land use within the downtown corridor is predominantly commercial retail usage. The neighborhood was largely constructed around the • turn of the century and was typical of a Main Street community. The structures are typically older store-front properties, some of which have been renovated and updated. There are few residents within the downtown location but there are some second floor loft apartments above the retail establishments. Further, some of the second floor space has been purchased by owner occupants who have custom built out the space for use as a personal residence. The downtown retail and business district is strongly affected by the presence of the Salina Regional Health Center and the City office complex, two of the largest employers in the City of Salina. These employment centers basically act as "anchor" tenants to the downtown area and support the various restaurant and retail options found in the commercial area of the central business district. There is a single grocery store located within the downtown parameters and that is one of the original Dillon's Stores located at 511 E. Iron Street. The downtown area contains one national retail chain (The Dollar Store) and two chain restaurants (Sonic and Taco Johns). There are also four newer restaurants that have opened within the past several years (Martinis, Little Italy, Nacho Mamas and Santa Fe Philly and Subs). SHANER APPRAISALS, INC. Area and Neighborhood • 85 Downtown Salina H.D. Lee Complex • DEMOGRAPHIC REPORTS Overview This section of the report contains all of the pertinent demographic information that have been prepared and which provides the basis for the support of the conclusions derived in this market study analysis. The data sources utilized for collection of this information is primarily the U.S. Bureau of the Census, Bureau of Labor Statistics as well as the Salina Chamber of Commerce. ESRI, Inc. was the primary source of the future projections. For purposes of this study the most pertinent demographics were the age and income of the population, household growth, housing profiles including number of housing units and a market profile of the retail marketplace. The accompanying charts and graphs are provided for both the primary and secondary market areas. • • SHANER APPRAISALS, INC. Demographic Reports • 86 Downtown Salina H.D. Lee Complex Standard Map • Prepared by Shaner Appraisals June 20,2007 to z E 5chq�N R •143 6 A w a PAta,,4 Het Rd o 4 '8 Pleatant H14 met N Saone z fl 143 .....135-70'.70 t'v;timm,i Rd r a $::..+.. 41 E 91:tnnv,i RA „�"r f_& a4 y iS z ` $A a e pivot w A ssttel fl Rd z ,1n 51 t+ 441 .E 41onn suaY Re G s o •'ter' Z II l aJ S4A10 Sl �,�ySN CZ a ' 4\ `0e� J^° 8l r�✓.takY llh'�,rsrwn �' 9". 1 $;y�n5 BK.6nICr?rugt Cerrito. t � � � Salina w� C:sr:Katy Rd ..i%�. :Per Ave ytf '- A 140 Y`N .1 SALINA CITY 1 fA Eisen •enter Sx ins bllrnit.t.Get.-..xasn W G::,vGyrd 1 W Cnlwkxd St r N �, , N!F a I" i': 3 r y V:Chra 4t 135 'O10ud St E 31 1n 5 • ,'Cy"c p d E Clan,•9S ¢t Ailn if A_u ��.% ELI ill- `nr Ava E S, xr A ve x N co c, , ((((( F M.a:vr1 A RA S . ► Rd e E ..Rd�i E!•a ,xu Rd .. p ,..- i . .1: .irs:,ng Rd tR Satiety Rd s� E .. E Scn lyf Rd '& Wattle,Rd rt lake ° IE �« Y' tr. ar I J X t•a, t {I PDlld C 7 :Y i 4 ' E ram t R *1 1 ....—. We:,Re T ' •Ater WM.IJ Men,WO4 Rif y.T a N g yyC. F IT^ .r •' • 'Fanelly Rd ., welly Rd t i ivMy Re m 2007 ESRI.7ete Atlas �, Places:Salina city.KS .. I' 1 142, ,al, o� e' } x sa- .-tl iztaxma..ts,. _ a'l"as% •:,,I:.: CD 1 JZSaliia b A ... 104} • SHANER APPRAISALS, INC. Demographic Reports • 87 Downtown Salina H.D. Lee Complex 4110 sa app iree1.._ Community Summary Prepared by Shaner Appraisals Places:Salina city.KS Summary 2000 2007 2012 Population 45,679 46.458 47.090 Households 18.523 18.953 19.248 Families 11,878 11,980 11.986 Average Household Size 2.39 2.35 2.38 Owner Occupied HUs 12.244 12.855 12.999 Renter Occupied HUs 6,279 6.098 8.249 Median Age 35.3 36.4 36,7 Total Housing Units 19.599 20.269 20.708 Vaunt Housing Units 1,076 1.316 1.458 Average Home Value 594,526 $130,967 5152.020 Total Businesses 1.771 Total Employees - 14.778 2000 2007 2012 Households by Income Number Percent Number Percent Number Percent <515.000 2.951 15.9% 2,212 11,7% 1,842 9.6% 515.000-524,999 2.859 15.4% 2.098 11.1% 1,710 8.9% 525.000-534,999 3.113 16.8% 2,256 11.9% 1,931 10.0% $35.000-549,999 3.754 20.3% 3.745 19.8% 3.124 16.2% 550,000.574,999 3.647 19.7% 4,253 22.4% 4,589 23.7% 575.000.$99,999 1.180 6.4% 2.392 12.6% 2.728 14.2% 5100.000-$149,999 683 3.7% 1,312 6.9% 2.271 11.8% • 5150-000.$189.000 158 0.9% 363 1.9°6 560 2.9% 5200.000+ 192 1.0% 323 1.7°,b 514 2.7% Median Household income 538.084 546,256 554.277 Average Household Income 544 888 557,317 588.556 Per Capita Income 518.593 523.811 528.496 2000 2007 2012 PopulatIon by Age Number Percent Number Percent Number Percent 0-4 3.264 7.1% 3,334 7.2% 3.379 7.2% 5-14 6.571 14.4% 6,115 13.2% 5.958 12.7% 15-19 3.470 7.8% 3,265 7.0% 3.307 7.0% 20-24 3.110 8.8% 3.671 7.9%% 3.456 7.3% 25•34 6,196 13.8% 6,031 13.0% 6.564 13.9% 35-44 6.899 15.1% 6,187 13.3% 5.594 11.9% 45-54 5.859 12.8% 6,693 14,4% 6.492 13.8% 55-64 3,794 8.3% 4,649 10.0% 5,765 12.2% 65-74 3.253 7.1% 2,950 6.3% 3.090 6.6% 75-84 2,365 5.2% 2,480 5.3% 2.278 4.8% 85. 898 2.0% 1,083 2.3% 1,204 2.6% 2000 2007 2012 Race and Ethnicity Number Percent Number Percent Number Percent white Alone 40.090 87.8% 39.597 85.2% 39,154 83.1% Black Alone 1,630 3.6% 1,749 3.8% 1.837 3.9% American Indian Alone 256 0.8% 267 0.6% 274 0.6% Asian Alone 896 2.0% 1,244 2.7% 1,553 3.3% Psci5c Islander Alone 21 0.0% 29 0.1% 36 0.1% Some Other Race Alone 1,728 3.8% 2,353 5.1% 2,894 6.1% Two or More Races 1,058 2.3% 1,218 2.6% 1.342 2.8% Hispanic Origin(Any Race) 3.067 8.7% 4,167 9.0% 5.117 10.9% Data Note:Income is expressed in current collars. Source:U.S.Bureau of the Census.2000 Census of Population and Flousing ESRI forecasts`or 2007 and 2012 were eaective as of July I.2007.Busness dots provided by ACxrom Copyright 2007,at noels taloned • SHANER APPRAISALS, INC. Demographic Reports • 88 Downtown Salina H.D. Lee tilift:Dparrtee&al•... Population Growth Chart • Prepared by Shaner Appraisals Area 1 Places:Salina city,KS 2000-2007 Population Annual Rate 0.27% 2007-2012 Population Annual Rate 0.27% Total Population Area 1 rnp- 45079 48458 47090 5000 42589 •0000- 45000 0000— 0000 15000 0000- 5000- 0 5to 2000 2007 2012 Source:U.S.Bureau of the Census,2000 Census of Population and Housing.ESRI converted 1990 Census data into 2000 geography.ESRI forecasts tot 2007 end 2012. • • SHANER APPRAISALS, INC. Demographic Reports • 89 Downtown Salina H.D. Lee Complex • Sa;APPT.er.,,lsw Detailed Age Profile Prepared by Shaner Appraisals Places:Salina city,KS Census 2000 2007 2012 2007-2012 2007-2012 Change Annual Rate Population 45,679 46,458 47.090 632 0.27% Households 18,523 18,953 19.248 295 0.31% Average Household Size 2.39 2.38 2.38 0 0% Total Population by Detailed Age Census 2000 2007 2012 Number Percent Number Percent Number Percent Total 45.679 100.0% 46.459 100.0% 47,086 100.0% <1 635 1.4% 674 1.5% 688 1.5% 1 706 1.5% 707 1.5% 720 1.5% 2 686 1.5% 668 1.4% 672 1.4% 3 608 1.3% 640 1.4% 650 1.4% 4 629 1.4% 646 1.4°% 647 1 4% 5 671 1.5% 605 1.3% 607 1.3% 6 682 1.5% 604 1.3% 610 1.3% 7 639 1.4% 577 1.2% 581 1.2% 8 704 1.5% 604 1.3% 609 1.3% 9 637 1.4% 587 1.3% 572 1.2% 10 665 1.5% 653 1.4% 613 1.3% • 11 697 1.5% 640 1.4% 599 1.3% 12 608 1.3%% 623 1.3% 589 1.3% 13 613 1.3% 626 1.3% 595 1.3% 14 655 1.4% 596 1.3% 583 1.2% 15 694 1.5% 651 1.4% 651 1.4% 16 646 1.4% 602 1.3% 623 1.3% 17 672 1.5% 596 1.3% 630 1.3% 18 728 1.6% 684 1.5% 691 1.5% 19 730 1.6% 732 1.6% 713 1.5% 20-24 3,110 6.8% 3,671 7.9% 3,456 7.3% 25-29 3.029 6.6% 3.329 7.2% 3,539 7.5% 30-34 3,167 6.9% 2,702 5.8% 3,025 6.4% 35-39 3.437 7.5% 3.001 6.5% 2.574 5.5% 40-44 3.462 7.6% 3.186 6.9% 3,020 6.4% 45-49 3,195 7.0% 3,387 7.3% 3,213 6.8% 50-54 2.664 5.8% 3.306 7.1% 3.279 7.0% 55-59 2,052 4.5% 2,653 5.7% 3,322 7.1% 60-64 1.742 3.8% 1,996 4.3% 2.443 5.2% 65-69 1,610 3.5% 1,620 3.5% 1,728 3.7% 70-74 1.643 3.6% 1,330 2.9% 1,362 2.9% 75-79 1.391 3.0% 1,372 3.0% 1,136 2.4% 80-84 974 2.1% 1,108 2.4% 1,142 2.4% 85+ 898 2.0% 1.083 2.3% 1.204 2.6% <18 11.847 25.9% 11,299 24.3% 11.239 23.9% 18+ 33,832 74.1% 35,160 75.7% 35,847 76.1% 21+ 31.724 69.4% 33,011 71.1% 33.734 71.6% Median Age 35 3 36.4 36.7 Data Note:Detail may not sum to totals due to rourxing. • Source:U.S Bureau of the Census,2000 Census of Population and Hcusmg.ESRI forecasts for 2007 and 2012 SHANER APPRAISALS, INC. Demographic Reports • 90 Downtown Salina H.D. Lee Complex i '°ro'°'' Detailed Age Profile S Prepared by Shaner Appraisals Places:Salina city,KS Total Population by Detailed Ape Percent ._...... _ �.,.... __..�, .... _.. ,, 0.8 10 210 3? 4? 510 6i0 70 8 G `t 1 4.111111.111111.111 2-111111111.1111101111iT 3-11111■1.1111111.119 1-1111.11111111111111111 5-111111111111.1.111111T 6---1111.1.11.. 7-1111111111....r s 9-1■11111•111W 10-I II I 12-11111111■1111. 1311, 14-=11.11r 15 is -111.111111.111T ki 164......, III 1. 17 Ism I 19 20-21 2529 30-31 35-39 3014 1 4519 50.54 55.59 i 60.64 � I 6568 70.74 7579 80-I Census 2000 -2007 D 2012 Source:u S Bu eau o11te Census.2000 Census of Pooutalton and Housaiq ESRt*recasts lot 2007 and 2012 I SHANER APPRAISALS, INC. Demographic Reports • 91 Downtown Salina H.D. Lee Complex • :'�'^r sees_ Detailed Income Profile Prepared by Shaner Appraisals Places:Salina city.KS Census 2000 2007 2012 2007-2012 2007-2012 Change Annual Rate popular 45,679 46.458 47,090 632 027% Households 18.523 18.953 19,248 295 0 31% Average Household Size 2.39 2.38 2.38 0 0% Families 11.878 11,980 11,986 6 0.01% Average Fanly Size 2.98 2.95 2.95 0 0% Census 2000 2007 2012 Number Percent Number Percent Number Percent Households by Income HH Income Base 18,537 100.0% 18.954 100.0% 19.247 100.0% .510,000 1,684 91% 1,390 7.3% 1,164 6.0% 510,000-514,999 1,267 6.8% 822 4.3% 678 3.5% 515,000-$19,999 1,463 7.9% 1,067 5.6% 799 4.2% 520,000-524,999 1,396 7.5% 1,031 54% 911 4.7% $25,000-$29.999 1,378 7.4% 1.123 5.9% 879 4.6% $30.000-534.999 1,735 9.4% 1,133 6.0% 1,052 5.5% $35,000-539,999 1,423 7.7% 1,238 6.5% 977 5.1% 544000-544,999 1.285 6.9% 1,361 7 2% 1,015 5.3% 545,000-549,999 1,046 5.6% 1,148 6.1% 1,132 5.9% 550.000-559,999 1.832 9.9% 1,995 10.5% 2.127 11.1% 560,000-574.999 1.815 9.8% 2.258 11.9% 2,442 12.7% 575.000-599.999 1,180 64% 2,392 12.6% 2.726 14.2% $100,000-5124,999 505 2.7% 874 46% 1.500 7.8% 5125.000-5149.999 178 19% 438 2.3% 771 4.0% • $150,000-$199.999 158 0.9% 363 1.9% 560 2.9% 52 ,000.5249,999 192 10% 151 0.8% 229 1.2% $250.000.5499.999 WA 143 0.8% 210 1.1% i500,060. N/A 29 02% 75 0.4% Median Household Income 536,084 546,256 $54.277 Average Household Income 544,888 557,317 $68,556 Per Capita Income 518,593 $23,811 528.436 Families by Income Fanny income Base 11,979 100.0% 11.979 100.0% 11,985 100.0% .510,000 514 4.3% 421 3.5% 397 3.3% 510,000-514,999 450 3.8% 240 2.0% 178 1.5% 515.000-519.999 687 5.7% 312 2.6% 205 1.7% 520.000-524,999 648 5.4% 536 4.5% 350 29% 525.000-529,999 745 6.2% 514 4.3% 385 3.2% 530,000-534,999 939 7.8% 555 4.6% 473 3.9% 535.000.539,999 978 62% 631 5.3% 417 3.5% 540,000-544,999 957 8 0% 751 6.3% 567 4.7% $45.000.549,999 821 69% 771 6.4% 583 4.9% 550,000-559,999 1,559 13.0% 1,516 12.7% 1,352 11.3% 560,000-574,999 1,682 14 0% 1,749 14.6% 1,637 13.7% $75,000-599,999 1,082 90% 2,148 17.9% 2,234 18.6% 5100.000-5124,999 415 3.6% 765 6.4% 1,579 13.2% 5125,000-5149,999 170 14% 453 3.8% 604 5.0% 5150,000-$199.999 152 1.3% 335 2.8% 544 4,5% 5200.000-1249,999 160 1.3% 139 1.2% 242 2.0% 5250.000-1499,999 N/A 123 1.0% 180 1.5% $500.000. N/A 20 0.2% 58 0.5% Median Family Income 545,388 $57,986 $69,102 Average Fannity Income 554.367 589,777 $85,309 Data Note:Income represents the annual income for the preceding year.expressed in current dollars,including an adjustment for inflation(for 2007 and 2012).In 2000,the Census Bureau reported Income to an upper interval of 5200,000e.ESRI forecasts extend income to 5500.000*.N/A means Not Available. Source:U S Bureau of the Census,2000 Census of Population and Housing.ESRI forecasts for 2007 and 2012. el SHANER APPRAISALS, INC. Demographic Reports • 92 Downtown Salina H.D. Lee Complex ex p:r SauPpr"'" '".- Age by Income Profile Prepared by Shaner Appraisals Places:Salina city.KS Census 2000 2007 2012 2007-2012 2007-2012 Change Annual Rate Population 45,679 46,458 47,090 :32 0 27% Households 18.523 18,953 19,248 29:, 0 31% Median Age 35 3 36 4 36 7 0 3 0 16% Census 2000 Households by income and Age of Householder <25 25-34 35-44 45.54 55-64 65-74 75+ HH Income Base 1,233 3,304 3,978 3,442 2,352 2,021 2,207 •:$10,000 208 265 161 144 271 235 400 S10.000-$14,999 132 178 244 116 136 176 285 S15,000-$24,999 384 541 405 433 299 374 423 525,000-$34,999 279 690 662 414 300 375 393 535.000-$49,999 157 746 933 686 477 394 361 S50.000-$74,999 65 684 1,059 889 485 272 193 575.000•$99,999 0 111 315 438 178 74 64 5 100,000-$149,999 8 69 115 199 147 82 63 S150,000-$199999 0 8 45 54 29 16 6 S200,000+ 0 12 39 69 30 23 19 • Median HH Income S21.079 534:629 542,249 348,080 340,177 $31,049 S24,842 Average HH Income S23,917 $38.697 $50,589 $58,620 $47,614 541,088 $34.758 Percent Distribution <25 25.34 35.44 45-54 55-64 65-74 75+ HH Income Base 100 0% 100 0% 100 0% 100.0% 100 0% 100 0% 100.0% <$10,000 16.9% 8.0% 4 0% 4.2% 11.5% 11.6% 18 1% 510.000-$14,999 10.7% 5.4% 61% 3.4% 58% 8.7% 129% S15 000.324,999 31 1% 16 4% 10 2% 12 6% 12 7% 18.5% 19 2% 525.000•534.999 22 6% 20.9% 16 6% 12.0% 12 8% 18.6% '17.8% 535.000-549,999 12 7% 22 6% 23.5% 19 9% 20 3% 19.5% 16.4% 550.000-$74,999 5.3% 20.7% 26 6% 25.8% 20 6% 13.5% 8 7% 575,000-$99,999 0.0% 3 4% 7.9% 12.7% 7.6% 3.7% 2.9% S100.000-$149.999 0.6% 2.1% 2.9% 5.8% 6.3% 4.1% 2.9% S150.000-3199,998 0.0% 0.2% 1.1% 1 6% 1.2% 0.8% 0.3% 5200.000+ 0.0% 0.4% 1.0% 2.0% 1.3% 1.1% 0.9% Data Note:Census 2000 income is expressed in current(1999)dollars. Source:1J S Bureau of the Cens;-s.2000 Census of Population and Housing.ESRI forecasts for 2007 and 2012 • SHANER APPRAISALS, INC. Demographic Reports • 93 Downtown Salina H.D. Lee Complex • 5a"Pp^ IA.. Age by Income Profile Prepared by Shaner Appraisals Places:Salina city.KS 2007 Households by Income and Age of Householder --25 25-34 35.44 45.54 55-64 66-74 75+ HH Income Base 1.339 3.200 3,511 3,931 2,788 1.861 2.328 •515,000 299 362 230 190 308 289 535 515,000-324,999 334 370 283 363 210 261 278 S25.000-334,999 255 492 390 331 267 235 285 S35.000-$49,999 149 718 824 781 509 343 421 $50.000-$74.999 119 845 1,030 1,016 613 345 283 875.000-399,999 86 256 518 738 409 137 248 S100.000-$149.999 56 118 128 323 329 163 195 S150,000-5199.999 27 27 48 89 62 50 61 3200.000-$249,999 12 10 28 43 29 12 19 S250,000-$499.999 2 2 26 49 42 21 3 5500.000+ 0 0 6 8 10 5 0 Median HH Income 826.017 $41,350 $50,381 $55,091 $52,731 $40.059 $36,682 Average HH Income 339.199 $47.435 358.788 $67,766 $68,112 $56.163 $49,357 • Percent Distribution <20 25-34 35.44 45-64 55.64 65.74 76+ NH Income Base 100.0% 100.0% 100 0% 100.0% 100 0% 100.0% 100 0% <SI5,000 223% 113% 6.6% 4.8% 110% 15.5% 23.0% 315.000-$24,999 24.9% 11.6% 8 1% 9.2% 7.5% 14.0% 11.9% 525.000.334,999 19 0% 15.4% 11 1% 84% 9 6% 12.6% 12 2% S35,000-$49,999 11 1% 22 4% 23.5% 19.9% 18 3% 18.4% 18.1% 550.000-374,999 8.9% 26 4% 29 3% 25.8% 22 0% 18.5% 12 2% S75.000-$99,999 64% 8.0% 14 8% 18.8% 14 7% 7.4% 10.7% $100.000-$149,999 4 2% 3.7% 3 6% 8 2% 11 8% 8.8% 8 4% S150000-$199.999 2 0% 0.8% 1.4% 2.3% 2.2% 2.7% 2.6% S200,000-3249.999 0.9% 0.3% 0.8% 1.1% 1 0% 0.6% 0 8% 3250.000-$499.999 0 1% 0.1% 0 7% 1.2% 1 5% 1.1% 0 1% 5500,000+ 0 0% 0.0% 0.2% 0.2% 0 4% 0.3% 0 0% Data Note:Income reported for July 1.2007 represents annual income for the preceding year.expressed in current(2006)dollars.including an adjustment for inflation. Source:ESRI forecasts for 2007 • SHANER APPRAISALS, INC. Demographic Reports • 94 Downtown Salina H.D. Lee Complex "pr"'ppr.r S�H ""'. Age by Income Profile • Prepared by Shaner Appraisals Places:Salina city.KS 2012 Households by Income and Age of Householder <25 25.34 35-44 45-54 55.64 65-74 75+ HH Income Base I 2'j5 3,434 3,144 3,731 3,408 1,987 2,248 <$15,000 236 298 194 147 290 240 438 S15.000-524,999 279 314 201 277 218 229 192 S25.000-$34,999 198 436 311 259 277 207 242 S35 000-$49,999 127 666 601 623 473 304 327 $50,000-$74,999 163 982 993 995 741 385 309 S75.000-$99.999 120 395 487 728 502 200 294 5100,000-5149,990 117 243 197 462 633 276 341 5150.000-$199.999 39 61 82 110 104 89 77 S200,000.$249.999 14 29 29 48 65 21 25 $250,000.5499.999 2 8 38 60 73 28 2 S500.000+ 0 2 11 22 32 8 1 Median HH Income $30,963 $50,042 554,230 $61.154 $62,495 550.571 $45.661 Average HH Income $49.415 $57,027 $67.182 $77,862 $84,055 S68,456 $60.259 Percent Distribution • <25 25.34 35.44 45-54 55-64 65.74 75+ HH Income Base 100.0% 1000% 1000% 10-3.0% 100 0% 100.0% 100 0% 415,000 18 2% 8.7% 6 2% 3,9% 8 5% 12.1% 19 5% 515.000.$24,999 21 5% 9.1% 6 4% 7.4% 6 4% 11 5% 8 5% 525.000-$34,999 15 3% 12.7% 9 9% 6.9% 8 I% 10.4% 10.8% S35,000-549,999 9 8% 19 4% 19 1% 16.7% 13 9% 15 3% 14.5% 550,000-$74,999 12 6% 28.6% 31.6% 26..7% 21.7% 19.4% 13 7% S75.000-$99,999 9 3% 11 5% 15 5% 19.5% 14.7% 10.1% 131% S100,000-S149,999 9 0% 7.1% 6 3% 12.4% 18 6% 13.9% 152% $150,000-$199,999 3 0% 1 8% 2 6% 2.9% 3 1% 4.5% 3 4% 5200.000-$249.999 1 1% 0.8% 0 9% 1 3% 1 9% 1.1% 1.1% 5250,000-$499,999 0.2% 0.2% 1 2% 1 6% 2 1% 14% 0 1% 5500.000• 0 0% 0.1% 0 3% 0 6% 0 9% 0.4% 0 0% Data Note:Income reported for July 1.2012 represents annual income for the preceding year,expressed in current(2011)dollars,Including an aolustment for inflatron. Source:ESRI forecasts for 2012. • SHANER APPRAISALS, INC. Demographic Reports • 95 Downtown Salina H.D. Lee Complex • Places:Salina City,NS 2000 • 2007 Civilian Employed Population 16+ Annual 1.13% Rate 2007 - 2812 Civilian Employed Population 16+ Annual 0.62% Rate Total Civilian Employed Population 16+ =Area 1__1 :0000 25075 25867 2 000 23377 21009 20000 15300 10000 5000 0... 1900 2000 2007 2012 .... Source: U.S.Bureau of the Census,2000 Census of Population and Housing.ESRI converted 1990 Census data Into 2000 geography.ESRI forecasts for 2007 and 2012. • 1111 SHANER APPRAISALS, INC. Demographic Reports • 96 Downtown Salina H.D. Lee Complex Places:Salina city.KS • 2007 Employed Civilian Population 16+by Industry IMI Area 1 I Percent 00 20 40 80 80 100 120 140 180 180 Agriculture.Freese).Fishing arid Hunteq 0,8 140‘80- 0.1 Constructwn- 8 5 uaxRxtureg 17 wt+otesatc Acne -��--� rteae loge- naospotata,V asenousn7 3 0 uwi,es• 08 nFxnyWr t 9 Fnxrce;n aance 3 7 Real E$Wte17entat'teaung I8 Proless�ona uandsc.and T urn a S4nnetc a4 • G.... ,„M COrnc,araelenre∎prifel" 0 1 j Admit,.Support anaWaste t.19m1 Services- 7 4 Eaucmgn.n Services Hearth CmnSa+a Assistnce 5 5 AncEnianannwaixKr•aAm DI--- Arf;Mm1)oOOuon-F000 Senores 90 <one,Services 4.7 immommim Pugot A,o.rasbAlon.. 71 4 Data Note: industry descriptions based on 2000 Census of Population and Hounnp definitions. Source' ESRI forecasts for 2007. III SHANER APPRAISALS, INC. Demographic Reports • 97 Downtown Salina H.D. Lee Complex IIII sa HPPrursuln- Demographic and Income Profile - Appraisal Version Prepared by Shatter Appraisals Places:Salina city,KS Summary 2000 2007 2012 Population 45.679 46,458 47.090 Households 18.523 18,953 19.248 Families 11.878 11,980 11.986 Average Household Sae 2.39 2.38 238 Owner Occupied HUs 12.244 12.855 12.999 Renter Occupied HUs 6.279 6.098 6.249 Median Age 35.3 36.4 36 7 Trends:2007.2012 Annual Rate Area National Population 427% 1.30% Households 0.31% 1 33":. Families 0.01% 1 08".. O-mer HHs 0.22" 1 41% Median Household Income 3 25`•, 3 32"', 2000 2007 2012 Households by Income Number Percent Number Percent Number Percent <515.000 2.951 15.9% 2.212 11,7% 1.842 9 6% 515.000-S24.999 2.859 15 4% 2,098 11.1% 1,710 8.9% 525.000-534.999 3.113 16.8% 2,256 11.9% 1.931 10,0% 535.000.549,999 3.754 20.3% 3.745 19.8% 3.124 16.2% 550.000-574.999 3,647 19,7% 4.253 22.4% 4.569 23.7% 575.000•599.999 1,180 8.4% 2,392 12.6% 2,726 14.2% • 5100.000.5144.999 683 3.7% 1.312 6.9% 2,271 11.8% 5150.000-5199.000 158 0.9% 363 1.9% 560 2.9% 5200.000+ 192 1.0% 323 1.7% 514 2.7% Median Household Income 536.084 546.256 554,277 Average Household Income 544.888 557,317 568.555 Per Capita Income 518.593 523,811 528,496 2000 2007 2012 Population by Age Number Percent Number Percent Number Percent 0.4 3.264 7.1% 3,334 7.2% 3,379 7.2% 5.9 3.333 7.3% 2.977 6.4% 2.979 6.3% 10.14 3.238 7.1% 3.138 6.8% 2.979 6.3% 15-19 3.470 7.6% 3,265 7.0% 3.307 7.0% 20.24 3.110 6.8% 3.671 7.9% 3,455 7.3% 25.34 6.196 13.6% 6.031 13.0% 6,564 13.9% 35-44 6.899 15.1% 6.187 13.3% 5.594 11.9% 45.54 5.859 12.8% 6.693 14,4% 6.492 13.8% 55.64 3.794 8.3% 4.649 10.0% 5.765 12.2% 65-74 3.253 7.1% 2,950 8.3% 3,090 6.6% 75.84 2.365 5.2% 2.480 5.3% 2.278 4.8% 85+ 898 2.0% 1.083 2.3% 1.204 2.6% Dote Note:Income rs expressed in current Wears Source.1.1$Bureau of the Census.2000 Census of Pnpuiuii n anti ttouunq ESRI Inrer:nsts lot 3007 snit;O I2 • SHANER APPRAISALS, INC. Demographic Reports • 98 Downtown Salina H.D. Lee Complex ner '°aPPhaS°'°°' •Demographic and Income Profile -Appraisal Version Prepared by Shaner Appraisals Places:Salina city,KS Trends 2007-2012 i c 3 0 I d`i 2.5 I a c 2 MO Area io 1 I U.S. jp 1 3 Q 9.5 --......_0................................1104._----- Households ..,.....-.--Females ....,...,..........._Owner HHs...._........Madan H_...Income Population by Age 14- 13- 12- I1- 10- C 9- 8- I 1 2007 7- 2012 I e 1 5- 4- 3- 2- 1- ...._._____ 0A 5-9 1Iii 124 25-34 35-44 45-54 5584 85-74 _.75-84 8 i 2007 Household Income MK-99K(12 6%1 5100K.S149K(8 9%) ' -`'t $150-199K+)1.9%) K-74K(22 4%) SDK.(1.1%) kb* 415K(11.7%)! $15K-S24K(11.1%i S35K-$49K(19 6%) I K(11.9%) I I I i I • • SHANER APPRAISALS, INC. Demographic Reports • 99 Downtown Salina H.D. Lee Complex • xlar2 a :0.7 Se nrarals_ Income-Employment Profile Prepared by Shiner Appraisals Places:Salina city.KS 1990 Census 2000 2007 2012 Percent Change Count Percent Count Percent Count Percent Count Percent 1490.2000 2007.2012 Total Population 42.508 45 670 46 458 47.090 7 3% 1 4% Total Households 17.349 98 523 18,953 19248 68% 1 6% Civilian Population 16.In Labor force Crvraun Employed 21,099 95 I% 23 377 96 4% 25,075 94 7% 25.867 94 6% 108% 32% Crvr9mt Unemployed 1,094 4 9% 865 30% 1.395 5 3% 1,473 5.4% .209% 5.6% Households by Income Total 17,355 100% 18.537 100% 18,954 100% 19.247 100% 68% 1.5% .,$10.000 2,938 189% 1,684 91% 1,390 73% 1,164 60% -427% -163% 510000.514.999 1,879 108% 1,267 68% 822 43% 678 35% .376% -17.5% 515 000-519,999 2929 117% 1,463 7 9% 1,067 5 6% 799 4 2% 27 9% -25 1% 520.000•524,999 1,775 10 2% 1,396 7 5% 1,031 5 4% 911 4 7% .21 4% .11 6% 525 000-529.999 1.736 100% 1.376 7 4% 1.123 5 9% 879 4 6% -20 6% -21 7% 530 000.534.999 1,822 9.3% 1,735 9 4% 1,133 6 0% 1,052 5 5% 7 0% -7 1% 335 000.539.999 1,297 7 5% 1.423 7 7% 1.296 6 5% 977 5 IS 9 7% .210% $40 000-'149,099 1,581 9.1% 2.331 12.6% 2 509 13 2% 2.147 11 2% 47 4% -14 4% 550.000.$59949 1.009 5 8% 1,632 9 9% 1995 10 5% 2.127 11.1% 816% 6 6% $60 000-574.999 735 4.2% 1,815 9.8% 2,258 119% 2,442 12.7% 1469% 81!%e 575000-$99.999 332 19% 1,180 64% 2,392 128% 2.726 142% 2554% 140% $100,000.$124,999 177 10% 505 2 7% 874 46% 1.500 7 8% 1653% 71.6% S125,000.$149,999 42 02% 178 10% 438 2.3% 771 40% 323.8% 76.0% $150,000- 203 12% 350 1.9% 666 3.6% 1.074 58% 724% 566% Median Household Income $25.152 535064 546.256 $54277 435% 17 3% Average Household Income $31,595 $44 RSA $57,317 $68556 42 1% 196'• Per Capita Income $13.012 $18.593 $23.811 $28,498 420% 197'• • Number Percent 2007 Households by Disposable Income Total 18.454 100.0% $15 000 2.852 14.0% 515 000.524.959 2.080 14 1% 525 000-534.999 3.297 17.4% 535 000-549.999 4.115 21 7% 550 000-574.999 4.33$ 229% 575 000.599.999 016 4.8% 5100 000-5149.999 669 3 5% $150.000.5199,999 181 1.0% $200000• 106 0.6% L'ydran Disposable Income $37.169 Average Disposable income $44,857 2007 Consumer Expenditures Average Household Expenditure 554,385 Average HiOusehdd Exp4ndiure on Retail Goods 520.440 Census 2000 Population 16•by Employment Status Total 35 204 100% In 10901 F0106 24.265 69 0% t:,nlon Employed 23.377 664% C.rnl an Unemployed 605 25% In Armed Forces 43 0.1% Nol 0 Labor Force 10.919 31.0% Census 2000 Populallon 25.by Educational Attainment Total 29.352 100% Leos than 545 Grade 1.357 4.6% 9119.121h Grade.Yo Dmlonla 2,709 9.2% High School Graduate 10,119 34.5% Some College,No Degree 7.$11 25.6% Associate Degree 1.886 58% Bachelor's Degree 4.110 14.0% hosteis'Prol Doctorate Degree 1 858 63% Oats Note:Chia mat not sum to 1otars due to rounding g income represents the annual income Out the preceding year Income ton 2007 and 2012 4 expressed m cwreM 00550 nctudng an ad,ustmenr'or nealm Seuteer U 9.8:reau elf*Omura.2002 Cows of Popedeon and Housing E518 convened 1930 Census data n102020 otOgrapec EtOl beecasts for 2037 and 2012 Expendttee data dashed Iran The 2002 ?Mond d 2004 Grnsianer Expenoture 9urvess.swear,a Labor 9tateas • SHANER APPRAISALS, INC. Demographic Reports • 100 Downtown Salina H.D. Lee Complex sa iftPpro ools_ • Housing Profile Prepared by Sharler Appraisals Places:Salina city.KS 2000 Total Population 45,679 2000 Median HH Income $36,084 2007 Total Population 46,458 2007 Median HH Income $46.256 2012 Total Population 47,090 2012 Median HH Income $53,277 2007-2012 Annual Rate 0.27% 2007-2012 Annuel Rale 3.25% Housing Units by Occupancy Status and Tenure Census 2000 2007 2012 Number Percent Number Percent Number Percent Total Housing Units 19.699 100.0% 20.269 100.0% 20,706 100.0% Occuo:ed 18.523 94.6% 18.953 93 5% 19,248 93.0% 0..ner 12,244 62.6% 12.855 63.4% 12.999 62.8% Renter 6,279 32.0% 6.098 30.1% 6,249 30.2% Vacan! 1,076 5.5% 1.316 66% 1.458 7.0% Owner Occupied Housing Units by Value Census 2000 2007 2012 Number Percent Number Percent Number Percent Total 12.261 100.0% 12 858 100.0% 12.996 100.0% <510,000 217 1,8% 172 1.3% 148 1.1% 510.000-514,999 103 0.8% 99 0 8% 73 0.6% 515,000-519,999 63 0.5% 79 0.6% 59 0.5% 520.000-$24,999 132 1.1% 58 0.6% 49 0.4% $25.000-529.999 269 2.2% 62 0.5% 46 0.4% $30.000-$°$4,999 276 2,3% 122 0.9% 67 0.5% III $35,000.$39,999 359 2.9% 144 1.1% 134 1.0% $40.000-$49.999 926 7.8% 416 3.2% 301 2.3% 550.000-$59.999 1.105 9.0% 563 4.4% 436 3.4% $60.000-5439.999 1.340 10.9% 853 8.8% 556 4.3% $70.000-579,999 1.196 9.8% 697 5.4% 688 5.3% 580.000.589.999 1.175 9.6% 913 7.1% 779 6.0% $90.000-$99.999 1.072 8.7% 892 6.9% 702 5.4% 5100,000-5124,999 1.441 11.8% 2.384 18.5% 2.083 16.0% $125.000.5149.999 1.142 9.3% 1.778 13.8% 1,967 15.1% $150.000-$174.999 589 4.8% 1.141 8.9% 1,194 9.2% 5175.000-5199.999 300 2.4% 751 5.8% 1.036 8.0% 5200,000.$249.989 273 2.2% 905 7.0% 1.198 9.2% 5250,000-5299.999 136 1.1% 376 2.9% 748 5.8% 5300.000-5399.999 102 0.8% 281 2.2% 389 3.0% $400.000-5499.999 15 0.1% 88 0.7% 195 1.5% $500,000.$749,999 13 0.1% 60 0.5% 108 0.8% 5750.000-$999.999 0 0.0% 8 0.1% 12 0.1% 51.000.000. 17 0.1% 16 0.1% 28 0.2% Median Value $81.230 5114.251 5129.792 Average Value 594.526 5130.967 5152.020 Data Note'Detail may not sum to totals duo to rounding Souree U S.Sweatt of the Census.2000 Census of Population and 0005■9.ESRI forecasts for 2007 and 2012. • SHANER APPRAISALS, INC. Demographic Reports • 101