WILLIAM C. PORTH LAW 1791 ROBKNSON 25326

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ROBKNSON &McELWEE

June 2 1 , 2006

BY HAND DELIVERY

Mrs. Sandra Squire Executive Secretary West Virginia Public Service Commission 201 Brooks Street Charleston, WV 25301

Re: Appalachian Power Company Case No. 06-0692-E-PC

Dear Mrs. Squire:

I enclose herewith a single copy of the responses of Appalachian Power Company to the Staffs first set of discovery requests in the above-referenced proceeding.

WILLIAM C. PORTH ATTORNEY AT LAW

P.O. BOX 1791 CHARLESTON, WV 25326

DIRECT DIAL: (304) 347-8340 E-MAIL: [email protected]

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WCP:dlm Enclosures

Very truly yours, wk e . William C. Porth (W.Va. State Bar #2943)

Counsel for Appalachian Power Company

PHONE: (304) 344-5800 FAX: (304)344-9566 WEBSITE: www.ramlaw.com 400 FIFTH THIRD CENTER 700 VlRGINIA STREET, EAST CHARLESTON, WV 25301

mailto:[email protected]

http://www.ramlaw.com

Appalachian Power Company Responses to the Staffs

First Set of Discovery Requests Case No. 06-0692-E-PC

Request No. 1:

The accounting history, including the account numbers used, the original cost, and the date of purchase of the property at issue.

Response No. 1:

The property was purchased on June 11, 1940 from Leopold Marmet for $29,776.00. The cost of the property was recorded in account 121, Nonutility Property. In 1984, the Company added $84,598 of improvements including sewer lines, water lin and landscaping to convert the property to a mobile home park. These ad were also recorded in account 121.



Request No. 2:

Any proposed assignment or allocation of the book value of the subject parcel of land to the total parcel of land used as ApCO's transmission and distribution service facility.

Response No. 2:

There is no proposed assignment or allocation of the book value of the subject parcel of land. The property is recorded in account 121 Nonutility Property in general plant account 389, Land and Land rights.

Appalachian Power Company Responses to the Staff's


Request No. 3:

All of the proposed journal entries associated with the sale or transfer of the real property, including account numbers and amounts.

Response No. 3:

See the attached spreadsheet, detailing the journal entries related to this sale.

Appalachian Power Company Marmet Sale of 4.23 acres

Sale of 4.23 Acre Tract in Marmet to Leonard Johnson Funeral Home

Journal Entries

Credit - Debit Account # Account Name - 121 122

131 122

122 Various

122 421 1

Nonutility Property Accumulated provision for depreciation To retire the original cost of the property

Cash (proceeds from sale) Accumulated provision for depreciation To record cash proceeds from the sale

Accumulated provision for depreciation Costs Related to Sale (estimated) To record costs related to the sale

Accumulated provision for depreciation Gain on Land Sale To record the gain on sale

TOTALS

$1 14,374.00 $1 14,374.00

$226,000.00 $226,000.00

$20,506.72 $20,506.72

$91 ,I 19.28 $91 ,I 19.28

$452,000.00 $452,000.00



Request No. 4:

The method of determining open market value of subject real estate along with a copy of the latest appraisal of the real estate.

Response No. 4:

The property was put up for sale by sealed bid. The highest bid, from the proposed Buyer, effectively established the market value of the property. The appraised value was a lower amount. A copy of the appraisal obtained by the Company is attached hereto.

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APPRAISAL OF AMERICAN ELECTRIC POWER COMPANY A.K.A. APPALACHIAN POWER COMPANY

HIGH LINE MOBILE HOME PARK 91st STREET, MARMET

KANAWHA COUNTY, WEST VIRGINIA

C o m m e r c i a l and I n d u s t r i a l R e a i E s t a t e

1014 Bridge Road P.O. Box 271 Telephone. (304) 343-5695 Charleston, West Viginii 25321 FAX (304) 343-5694

September 15,2003

Joyce Halteman Leachan American Electric Power Company Land Management 700 Morrison Road Gahma, Ohio 43230

Re: High Line Mobile Home Park 9ISt Street, Mannet, Kanawha County, West Virginia

Dear Ms. Leachman:

At your request I have observed the High Line Mobile Home Park, which is a twelve space mobile home park located off of 9ISt Street in Marmet, Kanawha County, West Virginia. The site contains approximately 3.42 acres, according to the Kanawha County tax records and the only improvements include hfhstructure for the mobile home park such as roads, utilities and parking pads. The purpose of this appraisal is to provide an opinion of the current market value and assist you with decisions regarding the disposition of the property.

The date of my observation and the effective date of the appraisal was August 26,2003.

Market value is defined Within the body of this report. The report is intended to meet the requirements of the Uniform Standards of Professional ADpraisal Practice. It is a complete appraisal and summary appraisal report. The appraiser is competent to appraise this type of property through experience and training.

It is my opinion that the market value of the subject property as of the appraisal date of August 26,2003, was:

One Hundred Sixty Five Thousand Dollars ~~

($165,000.00)

Joyce Halterman Leachman September 15,2003 Page Two

Attached to this letter of transmittal is a narrative appraisal report, which includes information on the property and its surroundings, limiting conditions and certifications, qualifications, and other pertinent data.

This letter must remain attached to the report, which contains 63 pages plus related exhibits, in order for the value opinions set forth to be considered valid.

Sincerely,

GOLDMAN ASSOCIATES, INC.

Todd Goldman WV State Certification #255

TGcas Attachments

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TABLE OF CONTENTS

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CONTINGENT AND LIMITING CONDITIONS

SUMMARY OF SALIENT FACTS AND CONCLUSIONS

SUBJECT PROPERTY ................................................................................................................................... 1

PURPOSE AND INTENDED USE OF THE APPRAISAL ................. ............................... ........................ ..... 1

APPRAISAL TYPE ........................................................................................................................................ 1

DEFINITION OF MARKET VALUE .......................,.,,,,.............,.,,..,..,,.............~,,..~,...,.,......~......................... 2

-TENT OF DATA COLLECTION ................................................................................................................ 2

DATE OF REPORT ....................................................................................................................................... 3

RIGHTS APPRAISED .................................................................................................................................... 3

ENVIRONMENTAL CONDITIONS ................................................................................................................ 4

LEGAL DESCRIPTION .................................................,.....,....,.......,,,..,.,.,.,. ................................................. 4

TAX DATA .........................................................,.....,........,,........,..,..,,.,,...................................................... 24

AREA DATA ..................................................................................,.......................,....~.,~,,,,,.,,,,,..........,.,,.,.. 25

NE 10 H BO RHOOD DATA , . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . , . . . . . . . . . . . . . .32

SITE DATA .................................................................................................................................................... IMPROVEMENT DATA ......................... .................................................................. ........ ... ..................... .... 40

HIGHEST AND BEST USE .....,...................................,,.,,..,,........,..,,.,,..,,.,.......,.....,................................... 41

APPRAISAL PROCESS ...........................,.,,.,.............................................. ... .,.......... .......... ...................... 43 DIRECT SALES COMPARISON APPROACH - IMPROVEMENTS ............................ ......... ................ . .... 46

COST APPROACH .....................................,...,..,....,.................................,....................,........ . .................... 54 INCOME APPROACH ................................................................,,.,...,......................................................... 55 CORRELATION AND FINAL ESTIMATE OF VALUE ...................................................... ...... ..................... 61

EXPOSURE AND MARKETING TIME .................................................,...,......,,.....,.................................... 62

QUALIFICATIONS ...... .... ....... . ...... . ...... , ..... , ... ... ... . .. .. .. ... ... . ... ... ... ... . ... ... . ... .... .... . ... . ... . ... .... ......... ... ... .... .. . .... .63

ADDENDA SUBJECT PHOTOGRAPHS

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CONTINGENT AND LIMITING CONDITIONS

This appraisal report and the certification are made expressly subject to the following assumptions and limiting conditions and any special limiting conditions contained in the report which are incorporated by reference.

The legal description furnished is assumed to be correct. I assume no responsibility for matters legal in character nor do I render my opinion as to the title, which is assumed to be good. All existing liens and encumbrances, if any, have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management.

The user of this report may wish to have legal, engineering, or physical component inspections made by qualified experts in those fields to determine the suitability of the property for the proposed or present use. The appraiser has not conducted these types of inspections.

The sketch in this report is included to assist the reader in visualizing the property. I have made no survey of the property and assume no responsibility in connection with such matters.

I believe to be reliable the information which was furnished by others, but assume no responsibility for its accuracy.

Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by any but the applicant without the previous written consent of the appraiser or the applicant and then only with proper qualifications.

I am not required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless arrangements have been previously made therefore.

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 appraisal and are Invalid if so used.

The land, and particularly the soil, of the area under appraisement appears firm and solid. Subsidence in the area is unknown or uncommon, but this appraiser does not warrant against this condition or occurrence.

Subsurface rights (minerals and oil) were not considered in making this appraisal. The appraiser observed the buildings involved in this appraisal report, and damage, if any, by

termites, dry rot, wet rot, or other manifestations, was reported as a matter of information by your appraisers, and I do not guarantee the amount or degree of damage, if any.

All furnishings and equipment, except those specifically indicated and typically considered as a part of real estate, have been disregarded by this appraiser. Only the real estate has been considered.

m e comparable sales data relied upon in this appraisal is believed to be from reliable sources. However, i t was not p ossible to inspect the comparables completely, and it was n ecessary to rely on information furnished by others as to said data. Therefore, the value conclusions are subject to the correctness and verification of said data.

Our observation m akes i t reasonable t o a ssume, for a ppraisal purposes, that no insulation or other product banned by the Occupational Safety and Health ACT (OSHA), the Consumer Product Safety Commission, or Environmental Protection Agency (EPA) has been introduced into the appraised premises.

The appraiser has inspected, as far as possible, 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.

The liability of the appraiser is limited to the fee received from the client for the preparation of the report.

Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser or the firm with which he is consequently connected) shall be disseminated to the public through advertising media, news media, sales media or any other public means of communication

-without thepriorwritten-consentandapproval-of-the~undersigned~ ~ ~ ~ ~~~~ ~~

CERTIFICATION

I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions

and I imiting conditions, a nd a re my p ersonal, impartial, and unbiased professional a nalyses, opinions, and conclusions.

I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved.

I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

My engagement in this assignment was not contingent upon developing or reporting predetermined results.

My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

I have made a personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the person signing the report.

Respectfully submitted,

Todd Goldman WV Certification #255

SUMMARY OF SALIENT FACTS AND CONCLUSIONS

Location:

Tax District:

Client:

Owner:

Purpose of Appraisal:

Appraisal Type:

Ownership Interest:

Type of Improvements:

Land Area:

Zoning:

Highest and Best Use:

Current Year Taxes:

Date of Observation:

Date of Appraisal:

Market Value Estimate:

High Line Mobile Home Park, 9ISt Street, Marmet, Kanawha County, West Virginia

Marmet M aplParcel : 31239

American Electric Power

Appalachian Power Company (A.K.A. American Electric Power)

Provide an Opinion of Current Market Value

Complete Appraisal and Summary Appraisal Report

Fee Simple Estate

Infrastructure for Mobile Home Park (Le. Roads, Utilities, Parking Pads)

3.42 Acres

None

Mobile Home Park

2003 - $1,807.80

August 26,2003

August 26,2003

$1 65,000.00

PROPERTY DATA

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Subject Property

The subject property is known as the High Line Mobile Home Park and located

along the Kanawha River at the end of 91st Street in Marmet, Kanawha County, West

Virginia. The property is currently owned by Appalachian Power Company and includes

a twelve space mobile home park located on 3.42 acres. The mobile home park is fully

occupied and all of the buildings are owned by the tenants and the only infrastructure

includes roads, utilities and parking pads.

Purpose and Intended Use of Appraisal

The purpose of this appraisal is to provide an opinion of the current market value

of the fee simple estate. The intended use of the appraisal is to assist American

Electric Power Company with decisions regarding the disposition of this property.

The information and opinions contained in this appraisal set forth the appraiser's

best judgment in light of the information available at the time of the preparation of this

report. Any use of this appraisal by any other person or entity, or any reliance or

decisions based upon this appraisal are the sole responsibility and ai the sole risk of the

third party, The appraiser accepts no responsibility for damages suffered by any third

party as a result of a reliance on, decisions made, or actions taken based on this report.

Appraisal Type

This i s a complete a ppraisal and summary appraisal report. The appraiser is

competent to appraise this type of property through experience and training and the

report is intended to be in compliance with the Uniform Standards of Professional

Appraisal Practice, as amended January 1 , 2003.

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Property Data

Definition of Market Value

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The definition of market value is defined by the Office of the Comptroller of the

Currency under 12CFR, Part 34, Subpart C-Apmaisals. 34.42 Definitions lq as follows:

'The most probable price which a property should bring In a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowfedgeably, and assumlng the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under condltlons whereby:

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buyer and seller are typically motivated;

both parties are well informed or well advised, and acting in what they consider their best interests;

a reasonable time is allowed for exposure in the open market;

4. payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto;

5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone assodated with the sale.

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Extent of Data Collection

The scope of the assignment is to formulate the appraiser's opinion of the

estimated market value of the fee simple estate of the subject property. The property

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was observed on August 26, 2003. The appraiser has attempted to use all three

approaches to value to determine the value estimate. These approaches included the

Income Approach, Sales Comparison Approach and the Cost Approach.

Information in this appraisal has come from a variety of sources. The appraiser

toured the site alone on August 26, 2003. Joyce Leachman with American Electric

Power provided documentation regarding the property including maps. She indicated

that all of the leases are for short terms and the expense sharing structure. Factual

information regarding the subject property was obtained from the Kanawha County

Courthouse with the Clerk's and Assessor's Offices. A representative of the City of ~~ ~~

Marmet confirmed that there is no zoning in this area. Market information was obtained

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by reviewing sales of similar size properties in the area, reviewing sales of mobile home

parks and from conversations with local real estate brokers and appraisers that are

familiar with this type of property. All of this information was obtained, analyzed and

used to develop an opinion of value.

Date of Report

The date of observation and the effective date of the appraisal was August 26,

2003.

Rights Appraised

The rights appraised were the fee simple interest, subject to any easements or

right-of-ways discovered in a thorough title examination or survey. There is one obvious

right-of-way that is a power transmission line that travels along the bank of the Kanawha

River between the road and the river on the subject property. This area could not be

used based on the aerial easement, which prohibits construction in the power line right-

of-way. It could be used for parking or for green space. Ne other easements or right-of-

ways were identified that would restrict the value or use of the property. According to

Ms. Leachman, all of the leases are based on $140.00 per month and they all have 30

to 60 day cancellation clauses. These are viewed as short term leases, however many

of the residents have been in place for several years. The actual leases were not

reviewed because they were not provided by the client, however the terms are all the

same.


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Environmental Conditions

The assumption is made that there are no adverse environmental conditions

affecting the property caused by the previous ownership of the property that may

adversely impact the value. It is always prudent to obtain a Phase I Environmental

Audit to make a final determination of any environmental conditions.

No environmental reports were submitted for the appraiser’s review, so the

existence of environmental concerns is unknown. If any adverse environmental

conditions are discovered within the subject property, this could affect the indicated

value.

Legal Description

The subject property is described in Deed Book 1590 at Page 598 in the

Kanawha County Clerk’s Office. The property was conveyed from Leopold K. Marmet,

et al. to Appalachian Power Company on June I I, 1970. The Deed conveys several

parcels and the specific Deed reference for this property appears on Page 606. A copy

of the Deed is located on the following pages for the specific legal description.

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TAX DATA

Tax Data

The subject property is assessed in the name of Appalachian Power Company in

the Kanawha County Assessor's Office in the Marmet Tax District on Map 3 as Parcel

239. In most cases, Appalachian Power Company would not be taxed because it is a

public utility. In this case, the property is leased for investment purposes and therefore

it is taxed. The 2002 tax assessment and the 2003 taxes are as follows: -

Tax Map 3 Parcel 239

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Land Building Total

Class IV Tax Rate Annual Taxes

$ 53,340.00 8,520.00

$ 61,860.00

0.029224 $ 1,807.80

County Real Estate Assessors are supposed to appraise property at 100% of

market value and then apply a 60% assessment for tax calculation.

the assessed value. The appraised value for this property is $

appraisals typically differ significantly from market value appraisals.

This is known as

03,100.00. Tax

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Area Data

West Virginia is geographically located in the mid-Atlantic region which extends

as far north as Pittsburgh, Pennsylvania; as far west as Columbus, Ohio: as far east as

Washington D. C.; and as far south as Richmond, Virginia. According to the 2000

Census, within this state there are approximately 1.8 million people, which is an

increase of approximately I % from 1990.

Charleston is the State Capital and the County Seat of Kanawha County. The

Charleston Standard Metropolitan Statistical Area includes approximately 251,662

people and intersects with the Huntington Standard Metropolitan Statistical Area which

has a similar amount. These two combined areas have slightly less than one third of .- . . the state's total population. Charleston and Huntington are located approximately fifty

miles apart. The trade area encompasses portions of Ohio and Kentucky. Charieston

has the heaviest concentration of governmental offices and is the financial and

professional center of the state.

Population

According to the United States Census Bureau and estimates by the City of

Charleston, population figures for Charleston and Kanawha County since 1970 are

shown below:

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As shown above, the population of the City of Charleston has decreased overall

since 1970. The most recent estimate is the findings of the 2000 Census. The

population of Kanawha County has also decreased overall since 1970. The population


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for Kanawha County in 2000 was 200,073. Although the population has decreased in

Charleston a nd Kanawha County, Charleston continues to serve a much larger area

with daytime employment.

Employment

Kanawha County's unemployment rate in June 2003, was 4.8%, which compares

to 5.2% one year earlier. West Virginia's unemployment rate in June 2003, was 6.3%.

The following table summarizes employment for the county and state:

The following table summarizes and displays the 2001 per capita income figures

on a county, state, and national level.

The typical civilian employee in Kanawha County, as of August 2000, works

either in Services (33%), Trade (22%), or Government (19%). The median household

Effective Buying Income for 2002 was estimated on a city, county and state tevel as

fof lows:

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Kanawha County $32,595.00 West Virginia $43,532.00

School Electric

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The ten largest employers in the Metro Charleston Area are summarized as

Kanawha County American Electric Power

follows:

Gas Water/Sewer

Telephone

Services

Allegheny Power Municipal Systems

Verizon (f.k.a. Bell Atlantic of WV)

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Transportation

Charleston is served with Interstate Highways 64, 77, and 79, and Appalachian

Corridor G (U.S. Route 1 'l9) that connects Charleston with the Kentucky border through

the southwestern portion of the state. There are several major federal and state

high ways.

Charleston is served with Yeager International Airport, which has direct flights to

major connecting hubs.

The rail service is provided by Amtrak, CSX, and Norfolk Southern.

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Area Data

The Kanawha River is a heavily used industrial waterway which maintains a 9’

channel depth. Recent upgrades have been made to the Winfield Locks and Dam and

the Marrnet Locks are scheduled for upgrade over the next three years.

Retail Sector

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The largest retail center in downtown Charleston is the Charleston Town Center,

which is a 1,000,000 square foot mall containing approximately 180 storefronts. The

project is approximately 18 years old, and it has had a stabilizing effect in downtown

Charleston.

Southridge Centre, another major retail development, is located approximately 6

miles south of Charleston on Corridor G. Southridge includes big-box tenants such as

Sam’s, Wal-Mart, along with the accompanying fast food restaurants and specialty

stores. Home Depot will open in early 2003.

The Shoppes at Trace Fork is located approximately one quarter of a mile from

the Southridge Centre off of Corridor G. The shops located at this plaza include, Kohl’s,

Goody’s, Books-A-Million, Office Depot, restaurants and specialty stores.

Dudley Farms is an additional retail center located across the Corridor from The

Shoppes at Trace Fork. This shopping center includes a Target, Dick‘s Sporting Goods,

Lowe’s H orne C enter a nd severai other entities including some fast food chains and

restaurants.

Hotel Sector

Charleston is fortunate to have major hotels located in the downtown area and at

interstate interchanges. The major hotels in downtown include the following:

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Hotel Number of Rooms

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Marriott Hotel Elk River Town Center Inn Charleston House Holiday Inn Embassy Suites Civic Center Holiday Inn Super 8 Fairfield Inn Hampton Inn

352 Rooms 300 Rooms 256 Rooms 252 Rooms 200 Rooms 160 Rooms 136 Rooms 113 Rooms

Office Space

Charleston is a compact office market, which includes several major office

buildings. They are shown in the accompanying chart.

Building Number of Square Feet

4 Laidley Tower 4 BankOne 4 + Huntington Banks 4 United Bank

B B & T Building

21 5,162 square feet 273,000 square feet 250,429 square feet 1 16,000 square feet 151,102 square feet

There a re other m id-rise buildings in the Charleston market, and a number of

older office buildings, which have been renovated in the village district. The Federal

Courthouse was recently completed and is one of the largest buildings in Charleston.

The former Diamond Department Store renovations were recently completed and

the State has taken occupancy of the building. This adds approximately 1,000 people

to downtown each day.

Education

Charleston is served by the following colleges and universities:

. . . + University of Charleston 4 4 West Virginia State College 4

West Virginia University Medical Center

Marshall University and College of Graduate Studies


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Public Facilities

Charleston is currently undertaking an $120 Million Center for the Arts. &

Sciences. It opened in June of 2003 after four years of construction. It is located just

outside of the Central Business District of Charleston on Lee Street, Washington Street,

Leon Sullivan Way and Brooks Street. The Charleston Civic Center and Coliseum

provides an arena for sports, conventions and trade shows. It recently has been

renovated for additional convention center area. The State Capital Complex is also a

major tourist attraction.


NEIGHBORHOOD DATA

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Neighborhood Data

A neighborhood is a portion of a larger community in which there is a

homogenous grouping of inhabitants, buildings, or business enterprises. Neighborhood

boundaries may consist of w ell-defined n atural or m anmade barriers or they may be

more or less well defined by distinct changes in land use or in the character of the

inhabitants. In evaluating a neighborhood, the appraiser must consider physical

boundaries, legal boundaries, use patterns, and the availability of services.

The Town of Marmet is located approximately five miles east of Kanawha City,

which is the eastern most boundary of Charleston. Marmet was founded based on the

coal boom and chemical industry boom in the 1930s and 1940s. This area has been

densely developed with small lots and primarily residential housing. Marmet has never

adopted zoning regulations so commercial businesses, industrial land uses and

residential properties all coexist with no real pattern. Most of the commercial activity

takes place along MacCorkle Avenue, which travels eastlwest through the town and is a

major a rtery in the K anawha Valley. MacCorkle Avenue begins in Chesapeake and

travels west to St. Albans.

Like many small towns in West Virginia, Marmet used to be self-sufficient and

have all of the retail shopping opportunities necessary for the local citizens. In the era

of big retailers, most of these small businesses have been replaced with bigger

businesses located in Charleston. For example, there is a locally owned hardware store

in Marmet, but there is a relatively new Lowe's in Kanawha City. Most of the

commercial uses in Marmet are now geared toward immediate needs such as

convenience stores and fast food restaurants.

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Interstate 64 runs parallel to MacCorkle Avenue and has an intersection in

Marmet. This provides immediate access to the West Virginia Turnpike and to three

different interstates within ten minutes. Access to the surrounding area is good, which

has also been harmful to the local commercial businesses. M armet i s now primarily

used as a bedroom community to Charleston and the Kanawha Valley and

predominantly for residential housing. It is unlikely that there would be a significant

change in the foreseeable future, The Marmet Locks and Dam are in the process of

being u pgraded, but most o f t he p roperty that has an immediate impact h as a lready

been purchased by the Army Corps of Engineers. This has provided a boost t o the

local residential market because there have been several hundred displaced families.

Other significant changes are not predicted for the next five to ten years.

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NEIGHBORHOOD MAP

SITE DATA

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Site Data

The subject property is estimated to contain 3.42 acres, according to the

Kanawha County tax records. It is a long narrow site that is bordered on one side by

the Kanawha River and the other side by private property owners. It has access from

two points and a main asphalt road that provides direct access to each of the

residences. One of the main access points is 91" Street and the site is several blocks

east of MacCorkle Avenue.

The majority of the site is level and at grade with the access roads. There is a

portion along the Kanawha River that is quite steep and would never be developable.

Between the Kanawha River a nd the main i nterior access road is a power company

transmission line. This area has an aerial right-of-way that would prohibit any type of

construction in that area. It leaves that area open for parking, green space or roads.

The mobile homes have been lined along the western boundary of the subject property

and adjacent to other residential land uses. The site is plenty large for its current use

and even though the configuration is long and narrow, it is easily adaptable to this type

of application.

All utilities are available at the site including public water, sewer, natural gas,

electric, telephone and cable. It has access from two City streets and is well situated in

the community based on residential uses. There is no zoning that effects the subject

property because the Town of Marmet has not adopted zoning regulations.

Surrounding land uses are almost exclusively for residential purposes, although the

former American Electric Power Coal Loading Facility is located south of the property.

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Due to having a different access and some separation along the southern boundary, the

adjacent use does not impact the subject site. The property appears to be located


Site Data

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outside of the 100 year flood hazard area, however there is undoubtedly some portion

of the riverbank that would be prone to flooding. A surveyor would need to make a final

determination regarding the elevation of the subject property and the location of the

flood hazard area. The property is shown on Federal Emergency Management Agency

(FEMA) Flood Insurance Rate Map, Community Panel 540079 0001 C, dated April 3,

1985.

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Site Data i

TAX MAP


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FLOOD ZONE MAP


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Improvement Data

The only improvements on the subject property are infrastructure that is

necessary for the mobile home park use. These include asphalt roads, utilities and

parking pads. These are fairly minimal improvements to the property and all of the

dwellings are owned by the residents.


HIGHEST AND BEST USE

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Highest and Best Use

Based on The Dictionary of Real Estate Appraisal, Fourth Edition, published by

The Appraisal Institute, the definition of highest and best use is as follows:

The reasonably probable and legal use of vacant land or an improved property,

which is physically possible, appropriately supported, financially feasible, and that

results in the highest value. The four criteria the highest and best use must meet are

legal permissibility, physical possibility, financial feasibility, and maximum productivity.

The site is unzoned because the Town of Marmet has not adopted zoning

regulations. The potential land uses would be limitless or only limited by the physical

specifications of the site. Access to the property is fairly good and surrounding land

uses are for residential purposes. The site is large enough to accommodate a variety of

uses, however the configuration would indicate that a dense commercial or industrial

use would be unlikely. There is interaction with the Kanawha River, which would be a

positive, but the existence of the power line right-of-way and the aerial easement would

limit access to the Kanawha River to pedestrian type traffic. If a site were vacant, the

logical use of the property would be for some type of residentiai development. It may

take the form of dividing the property into numerous single-family residential lots that -

- would have access to the Kanawha River or a multi-family residential development that

would be for apartment dwellers. The access would lend itself to residential

applications and the configuration would not severely restrict how the property is

developed for residential uses. The highest and best use of the site, as though vacant,

would be for single-family residential development.

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The property has improvements in the form of infrastructure needed for a mobile

7 home park. They include asphalt roads, underground utilities and parking pads. While

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these are not significant improvements in the sense that they cost a lot, they are

significant to the use of the property. The property has been used for a mobile home

park for over a decade and it is a logical way of developing the property to create a

return to the owner and maximize the use of the site. The historical operation of the

property has proven to be financial feasible and maximizes the value of the property, as

imp roved.


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APPRAISAL PROCESS

Appraisal Process

The appraisal process is the analysis of the various data to arrive at an estimate

of market value. In order to express a reasonable opinion of the market value of the

subject property, the appraiser has considered various valuation methods. The three

approaches that are available include the Sales Comparison Approach, Cost Approach

and the Income Approach. Information for each of these approaches comes from the

market place and at times is interrelated.

Direct Sales Comparison Approach - Improvements

The Sales Comparison Approach is the most easily understood and probably the

most widely used. It is most appropriate and applicable when similar types of improved

properties are available for direct comparison. This approach involves analyzing key

factors of similarity and dissimilarity of similar type properties that are located in the

same or competing areas. The principle underlying this technique is that it is expressive

of the value established by informed buyers and sellers in the market area. This

approach also serves as a reliable indicator regarding the amount of market activity. Its

limitations are lack of similar data, older data and sales, which lack comparability. It is

also utilized when developing an opinion of value for the land, as vacant.

Cost ApDroach

The Cost Approach considers t he current c ost of reproducing or replacing the

existing improvements with consideration for depreciation and obsoiescence.

Replacement costs are typically used because it allows for replacing the existing

improvements with modern building materials that are common in the market at the time

of the appraisal. The depreciation that is deducted can come from three sources

including physical deterioration, functional obsoiescence and external obsolescence.


Appraisal Process

The value of the land, as though vacant, is added to the depreciated value of the

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improvements to indicate the market value from the Cost Approach. This approach is

directly related to the principle of substitution, which states that no one is likely to pay

more for an existing property than what it would cost to recreate it.

Income Approach

The measure of value in this approach is directly related to the net income that

the subject can create during the remaining economic life of the improvements. The

process includes estimating the gross income, vacancy and expenses that are incurred

by the property owner from leasing the property. Several methods are available for this

approach, including capitalization of the first year's net operating income, as well as an

analysis of the discounted cash flow over a forecasted holding period. The net income

is capitalized to arrive at an indication of value from the standpoint of an investment.

Competing investments may i nclude r ea1 estate, s ecurities o r a variety o f i nvestment

vehicles. All of the information in this procedure must be obtained from the market to

use standards, which are accepted by investors in the area. The principle underlying

this method is the present worth of anticipated future benefits (net income) derived from

the property.

Conclusion

The appraiser, in applying the tools of analysis to the problem in question, seeks

to simulate the thought process of a probable decision maker rather than a particular

one with specific individual interests. The various approaches to valuation are merely a

simulation of these alternative courses of action, potentially open to the decision maker.

The appraiser's judgement concerns the applicability of alternative tools of analysis to

the facts o f the problem, the data, information needed to apply these tools, and the

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selection of the most applicable approaches to solve the appraisal problem. Some

appraisal problems will fully utilize each valuation procedure while others may lack

enough data to develop each approach. In all assignments each approach will be

considered.


DIRECT SALES COMPARISON APPROACH - IMPROVEMENTS

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The appraiser has conducted research through the Kanawha Valley to find the

most recent comparable properties that are used for mobile home parks. The subject is

relatively s mall compared to m ost mobile h ome parks by o nly h aving twelve s paces.

Some of the larger mobile home parks may have between I00 and 200 spaces. These

types of investments are typically sought after by local investors because they are

primarily cash businesses and there is minimal overhead such as maintenance, repairs

and management time. For this reason, owners are reluctant to sell these type

properties and with the ability to refinance at significantly lower interest rates, many

properties cash flow better now than they have in the last ten to fifteen years. In other

words, owners have preferred to refinance these investments and hold onto them rather

than sell the property, pay capital gains tax and then search out a new investment. This

is also an affordable investment for local investors. The reason that these factors have

been discussed is because the data is somewhat old and it is the best that is available,

is older than what would be ideal. A summary of the sales that have been considered is

as follows:

"~ - Goldman Associates, Inc. Page 46

IMPROVED SALES MAP


Location:

Sale Date:

Grantor:

Grantee:

Sale Price:

Building Size:

Lot Size:

Unit Price:

Comments:

Location:

Sale Date:

Grantor:

Grantee:

Sale Price:

Bhlding Size:

Lot Size:

Unit Price:

Comments:

Comparable Building Sale One

Ohio Avenue & West Virginia Turnpike, Marmet, Kanawha County, West Virginia

4/00 Recorded: 2496127

Tomahawk Land, L.L.C.

R & D Land, L.L.C.

$106,000.00

Seven Mobile Homes; One Billboard

0.75 Acres

$1 0,857.00 Per Lot (Based on Billboard Value of $30,000.00)

This has seven mobile home lots leased for $150.00 per month each and a billboard leased for $280.00. The value of the billboard is estimated at $30,000.00. The park is not as good quality as the subject property.

Comparable Building Sale Two

West Main Street, St. Albans, Kanawha County, West Virginia

1 I98 Recorded: 2432/900

Hugh Caudill, et al.

Brent Mallory

$50,000.00

Seven Mobile Home Lots

0.56 Acres

$7,143.00 Per Lot

This lot i s along the river and was not as good o f quality as fhe subject property. It is also a very small lot.


Direct Sales Comparison Approach - Improvements t

Comparable Building Sale Three

Location:

Sale Date:

Grantor:

Grantee:

Sale Price:

Lot Size:

Unit Price:

Comments:

Location:

Sale Date:

Grantor:

Grantee:

Sale Price:

Lot Size:

Unit Price:

Comments:

Kensington Drive, Cross Lanes, Kanawha County, West Virginia

7/96 Recorded: 2390/410

B & G Mobile Park, Inc.

Larry and Kathryn Westfall

$310,000.00

3.96 Acres

$5,652.00 Per Lot (i $50,000.00 is applied to home and trailers)

There was a house and five mobile homes included in the sale price. The condition of this park is below average.

Comparable Building Sale Four

Near 40* &Williams Dr., Nitro, Kanawha County, West Virginia

6/93 Recorded: 2321/942

Charles S. Bracken, Ill

David and Melody Douglas

$2 1 0,000 .oo

13.5 Acres

$6,000.00 Per Lot

The mobile home community had approximately 35 usable sites. The park was older and in fair condition. The mobile home sites were rented for $137.00 per month that includes water, sewer and garbage.

Goldman Associates, h c . Page 49


Location:

Sale Date:

Grantor:

Grantee:

Sale Price:

Lot Size:

Unit Price:

Comments:

Location:

Sale Date:

Grantor:

Grantee:

Sale Price:

Lot Size:

Unit Price:

Comments:

Comparable Building Sale Five

Lower Falls Road, St. Albans, Kanawha County, West Virginia

3/94 Recorded: 2335/356

Thelma M. Kingston Trust

Gordon Ray and Sheila A. Sutphin, II

$140,000.00

8.75 Acres

$1,555.00 Per Lot

The mobile home sites were rented for $100.00, which includes water and sewer. This is a n o lder mobile home community with approximately 50% occupancy. Lot sizes were originally for smaller mobile homes but the new owner reorganized the sites.

Comparable Building Sale Six

240 Offutt Drive, Big Chimney, Kanawha County, West Virginia

6/95 Recorded: 2366/41 I

L. Angle Parsons

Terry A. Smart

$60,000.00

0.637 Acres

$7,500.00 Per Lot

The site was occupied by eight mobile homes that rented for $150.00 per month that included water, sewer and garbage. The park was in good condition but the lots were very small.


Direct Sales Comparison Approach - hmovements

rt Based on Billboard Value of $30,000.00

The comparable building sales indicate a price per lot between $1,550.00 to

$10,860.00. The lowest unit price is reflected by a sale where there was approximately

50% vacancy and the rents were low. The indicated range per lot when it is excluded is

between $5,650.00 and $10,860.00 and the subject is considerably better quality than

those developments.

Comparable Building Sale One is the only mobile home park that is located near

the subject in the Marmet vicinity. This property contains seven mobile homes and one

billboard. The rents for the mobile home spaces were $150.00 per month and the

billboard was leased for $280.00 per month. The tenants were responsible for their own

utilities at this location. By assigning the value of $30,000.00 to the billboard, the

indicated unit price of the mobile home spaces was $10,860.00. This is the most recent

transaction and also indicates the highest unit price. It is the only property that is

relatively close to the subject.

Comparable Building Sale Two is a seven space mobile home park in St. Albans.

It is located along the river and sold five years ago. I his unit price was $/,lsoroB per


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lot and the tenants were responsible for their own utilities. Information regarding the

rents at the time of the sale was not available,

Comparable Building Sale Three is approximately seven years old. This park is

located in Cross Lanes within two miles of Interstate 64. It is an older park and has not

been maintained as well as the subject property and it contains approximately forty-six

mobile home lots. There is also a home on the property that is rented. The purchase

price was $310,000.00, which reflected the forty-six mobile home lots, one home and

five mobile homes that are rented by the owners. The lot size of the property is

approximately four acres, which equates to 3,750 square feet per lot. This sale required

a $50,000.00 adjustment to reflect the value of a home and trailers that were part of the

transaction. This indicates a unit price of approximately $5,600.00 per lot.

Comparable Building Sale Four is a ten year old sale of a mobile home

community in Nitro that had thirty-five spaces. The lot size was thirteen and a half

acres, which provided ample room for the trailer lots and at the time of the sale the lots

were rented for $137.00 per month. That price included water, sewer and garbage

service. This sale represents a unit price per space of $6,000.00 and this property is

considered inferior to the subject.

Comparable Building Sale Five is a mobile home community located in St.

Albans that transferred in 1994. There were approximately ninety trailer lots, however

only half of those were occupied at the time of the sale. The property suffered from lack

of management and was not in as good condition as the subject property. The rent at

the time was $100.00 per space per month and that included water and sewer. Overall

this property is considered inferior to the subject and the rental rates were substantially



rower. This property was reconfigured into 54 spaces and rents were raised to $130.00

per month.

Comparable Building Sale Six is a small mobile home community located in Big

Chimney, North of Charleston. The sale price was $60,000.00 for eight lots indicating a

unit price of $7,500.00 per site. This sale is approximately eight years old and is inferior

to the subject. The rental rates at the time of the sale were $150.00 per month and

water, sewer and garbage were included.

Obviously, the building sales that were considered are several years old and lack

many of the amenities that the subject property has. The subject has a newly paved

road, substantial green space around the traiiers, is along the river and is well

maintained. It is within close proximity too many amenities such as grocery stores and

schools. The subject property is substantially better than the comparable sales for

several reasons. One of the primary considerations is that the occupancy at the subject

site has remained high and according to Ms. Leachman there has been a waiting list.

This is a good indication that the park will continue to perform well. There is also good

maintenance at the subject and most of the expenses are paid for by the tenants. The

unit price for the mobile home lots at the subject should be above the range established

by the comparable sales because it has better amenities. This also accounts for the

difference in market conditions during the last few years, which has had a positive

impact on values. A unit price of $13,000.00 will be adopted, indicating a market value

of $1 56,000.00 rounded to $155,000.00.


COST APPROACH

Cost Approach

The Cost Approach is an effective method of determining the current market

value o f properties that are new or have m inimal identifiable depreciation. It is also .-

useful when valuing special use properties, such as governmental buildings, museums

or properties that do not frequently sell.

The Cost Approach can be developed utilizing several methods. The most

common method is using national cost estimators such as Marshall Valuation Service or

Boeckh General Estimate Manual to provide a base rate for a specific type of

construction, which is then adjusted for the local market. A secondary approach would

be to speak with contractors that are familiar with this type of construction and obtain

proposals to recreate the building. The third approach would be the appraiser basing

cost on experience with prior assignments that are similar to the subject.

The improvements on the subject property contribute to the highest and best use

in the sense that they are necessary for a mobile home park. However, the majority of

the income is due to leasing these sites in conjunction with the improvements and that

is how the value of the property is maximized. In this situaiion, the Cosi Approach

would not indicate a value indicative of the overall value of the property and the Income

Approach is a far more suitable method of valuing the property.


INCOME APPROACH

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Income Approach

The Income Approach is one of the more heavily relied upon indications of value

for commercial real estate. This is particularly true when a property is owned strictly as

an investment. This would indicate that an investor purchasers the property and then

leases the land or improvements, or both, for their highest and best use. The cash flow

to the property owner is viewed as the return on their investment and can be measured

to estimate value. The Income Approach must take into consideration the quality,

quantity and longevity of the future cash flows.

There are multiple methods that can be employed to develop the Income

Approach. Two of the most common include the capitalization approach and the

discounted cash flow analysis. The capitalization approach takes into consideration the

first year of stabilized income and expenses and applies a capitalization rate to the net

operating i ncome. A d iscounted cash flow a nalysis will view m ultiple years d uring a

hypothetical holding period and the net operating income cash flow is discounted to the

current period to provide an estimate of value.

The first step in developing the Income Approach is to determine what the

potential gross income would be for the subject. The subject property has twelve

mobile home lots that create monthly income. The property owner provided current

data regarding the lease rates and expense terms. The tenants own their own mobile

homes and pay $140.00 per month for each space. The tenants pay all of their utilities

and cut the grass. The owner has liability insurance and pays the real estate taxes.

The appraiser conducted a review of six other mobile home parks in the

Kanawha Valley to obtain various information such as vacancies, what amenities are

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Pine Valley Valley Brook

Income Atmroach

91 < 5% X X X X $1 50.00 90 < 5% X X $1 50.00

included and the monthly fees. The following table outlines the information regarding

the other properties:

Country Roads Walnut Valley

Dal ewood

132 < 5% X X X X $145.00 49 < 5% X X X $155.00 88 < 5% X X X $155.00

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The rental rates at the other mobile home parks focus around $150.00 per lot.

Two of the parks include water and sewer, which is an additional benefit to the tenant.

The rents at the subject property are slightly below the market for similar mobile home

parks, but since tenants are expected to pay their own utilities and trash service, the

difference is offset. The potential gross income for the mobile home lots will be based

on the current rents of $140.00 per month or $20,160.00 per year.

From this estimate, the vacancy and credit loss will be deducted to arrive at the

effective gross income. The vacancy and credit loss will account for vacancies at the

subject property, as well as tenants that leave with rental payments due. By reviewing

the information on the six mobile home parks in the area, vacancies are relatively low

and are consistently less than 5%. All of the other parks have low vacancies and Ms.

Leachman indicates that they have had few vacancies at this park and typically a

waiting list. A vacancy and credit loss at the subject property of 2% will be used. This

indicates that the effective gross income of the subject property is $19,757.00 per year.

From this estimate, expenses will be deducted to arrive at a net operating

income. ine expenses ttmtwrH oe 2

maintenance and repairs, reserve account and management fees. Since tenants pay

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Income Approach

their own utilities and garbage fees and they cut the grass, there are minimal expenses.

Property taxes are based on the actual amount. Insurance is estimated because it is

wrapped into one main policy for AEP. A maintenance and repairs account was based

on conversations with Ms. Leachman and from a review of other mobile home parks

that the appraiser has knowledge of. A reserve account of $50.00 per space will be

deducted to account for long term capital improvements. For the subject property, this

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will mainly consist of repairs to the roads and parking pads.

A management fee of 5% is included to recognize the oversight of this operation.

This type of facility is typically owner managed, but the management fee takes into

consideration the time and effort involved in managing the property. While owner

managers typically do not pay themselves a management fee, there should be some

acknowledgement for their efforts. Expenses such as lawn service and utilities are paid

by the tenants. The following Pro Forma Income Statement was developed based on

the pre-stated assumptions:

Pro Forma Income Statement

Potential Gross Income (12 Spaces @ $140.00/Month) Less: Vacancy and Credit Loss (2%) Effective Gross Income

$ 20,160.00 403.00

$ 19,757.00

Expenses Insurance $ 500.00 Property Taxes 1,850.00 Maintenance & Repairs 500.00 Reserve Account ($25.00 @ 12 Lots) 300.00 Management (5%) 990.00 $ 4,140.00

Net Operating Income $ 15,617.00

The estimated net operating income before depreciation and interest expense is

$1 5,617.00 per year. Now that the net operafing income has been determined it can be

used to indicate an overall value of the property. There are several approaches that


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Income Approach

can be used to determine a capitalization rate that can be used to capitalize the net

operating income into an overall value. An overall capitalization rate must be estimated

based on market data that is available. The most pure method of developing a

capitalization rate is through extracting it from the real estate market. This would be

done by locating a sale of a similar property that has taken place in the recent past and

where the net operating income and sales price are known. This can be difficult to

establish because owners are reluctant to divulge income and expense information.

A secondary approach to establishing a capitalization rate is through a Band of

Investments model. This model is developed by utilizing current lending criteria by local

lending institutions and based upon equity investors expected return on their money. A

confidential real estate transaction is known to the appraiser where the investor built a

building based on a 12% equity capitalization rate. This took place several years ago

and will be adjusted up to reflect the current market. This information will be used in the

Band of Investments model, which is as follows:

Band of Investments Loan to Value 80%

Loan Term 20 years Mortgage Constant ,0895

Loan Rate 6.5%

Equity Capitalization Rate 12%

Equity 0.2 x .I200 - 0.071 6 0.0240 0.0956

Rounded to 9.55%

- - - Loan 0.8 x .0895

The overall capitalization rate, based on the Band of Investments formula, is

9.55%.

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The final method that is often used to develop a capitalization rate is by

researching national data regarding capitalization rates. One of the pitfalls of using this

information is that the data is collected from markets that are substantially larger than

Charleston or West Virginia and are typically locations such as Pittsburgh, Richmond,

Atlanta and Columbus. The appraiser subscribes to a quarterly publication known as

KorDacz Real Estate Investor's Survev that i s prepared by P riceWaterhouseCoopers.

This publication breaks down the commercial real estate markets into certain segments,

as well as geographic locations. The most recent publication is from the Second

Quarter of 2003 and the information that will be used is the national net lease market.

The reason that this will b e u sed i s because a mobile home park i s s imilar to a net

lease, since the landlord is not responsible for very many expenses. The expenses that

the landlord is responsible for are fairly stable and easy to predict. The overall

capitalization rate quoted for the Second Quarter of 2003 has a range of 7.5% to 10%

with an average of 8.6%. This is an eighteen basis point decrease from last quarter and

a fifty five basis point decrease from one year ago. In general, capitalization rates for

commercial property have been dropping but the trend has stabilized and may be

moving in the opposite direction. These rates are expected to be lower than what is

found in the local market because there are more purchasing opportunities and more

financing opportunities in larger cities.

With two estimates of a capitalization rate, the subject would fall somewhere

within the established range. The Band of Investments indicates an average return for

an average investment in the market area. The subject has below average risk and

thus would indicate a slightly lower Capitalization rate. A rate of 9.S% will be adopted.

Based on an estimated net operating income of $15,617.00 and the indicated


Income Approach

capitalization rate, the market value is estimated at $1 64,390.00 rounded to

$1 65,000.00.

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CORRELATION AND FINAL ESTIMATE OF VALUE

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Correlation and Final Estimate of Value

Three approaches to value have been considered in this assignment. Only two

approaches arrive at value indications and they are as follows:

Sales Comparison Approach for Improvements $ 155,000.00

Cost Approach N/A

Income Approach $ 165,000.00

The Income Approach is undoubtedly a better method of valuing this type of

property. This property is always purchased as an investment and only for that reason.

The Income Approach takes into consideration the expectations of a potential investor

and how they would view the property as an investment. It can only be valued based on

the positive cash flow that is created. In this case, the Sales Comparison Approach for

Improvements also indicated a similar value, which supports the Income Approach, but

the Income Approach is the overriding factor.

Based on the information in this appraisal, it is the appraiser's opinion that the

market value of the subject property as of August 26, 2003, was:

One Hundred Sixty Five Thousand Dollars

($1 65,000.00)


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EXPOSURE AND MARKETING TIME

Exposure and Marketing Time

The only source of data that tracks commercial property transactions in the

Kanawha Valley is the Multiple Listing Service. This indicated the time needed to

expose a property to the market to create a sale. The data is somewhat flawed

because it does not include prior marketing efforts by a separate broker or if a property

had been for sale by owner. Most residential properties in the Kanawha Valley have an

average marketing time of approximately 100 days and investment residential

properties are closer to four to six months. This type of property would peak interest in

the market because it is a good quality investment and is affordable to many buyers.

This should shorten the exposure and marketing time to a range of three to six months.

This is based on the property being priced appropriately and marketed through a real

estate broker.

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QUALIFICATIONS

Todd Goldman Goldman Associates, Inc.

APPRAISAL QUALIFICATIONS

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Education 8s Degree in Finance - Virginia Polytechnical Institute and State University MBA - Marshall University

Member - Local, State, and National Board of Realtors CClM - Certified Commercial Investment Member (REALTORS)

Professional Membershim

Teachina Experience Adjunct faculty member -The College of West Virginia Junior Achievement - Success Skills

Licenses and Certifications West Virginia #006769 - Real Estate Sales License Virginia #lo225037927 - Real Estate Sales License West Virginia #255 - State Certified General Real Estate Appraiser

Courses Completed: Advanced Income Capitalization - Appraisal Institute; Basic Income Capitalization - Appraisal I nstitute; Appraisal Principles - Appraisal I nstitute; Appraisal Procedures - Appraisal Institute; Standards of Professional Practice, Part A - Appraisal Institute; Decision Analysis for Commercial Real Estate - CIREI; Standards of Professional Practice, Part B - Appraisal Institute; Advanced Techniques in Leasing and Marketing - ClREl

Real Estate and Appraisal Courses

Previous Clients

1014 Bridge Road Charleston, WV 25314

American Electric Power National Park Service Branch Banking & Trust (BB & T) Parkline, Inc. City National Bank Standard Laboratories Cline Resources State of West Virginia Harrison County Bank Union Carbide Kanawha County Commission United Bank Kanawha County Ambulance Authority United States Postal Service Mingo County Commission WesBanco Mountain International Williams-Union Boiler

Other Banks, Attorneys, Companies, and Individuals

Testimony Qualified as an expert witness in the following Courts: Putnam and Kanawha Circuit Courts; Federal Bankruptcy Court, Southern District, West Virginia

Charleston Rotary Club Salvation Army Advisory Board


ADDENDA

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Appalachian Power Company Responses to the Staff's


Request No. 5:

Describe the terms and conditions of the leases, or encumbrances, for the mobile homes situated on the property at issue. Additionally, please describe the notification procedure APCO will use to notify tenants of the proposed sale of the property at issue.

Response No. 5:

The leases were originally written for a term of one year with a clause extending the lease after the original term on a month-to-month basis. Month-to-month tenants were notified of the impending sale via the attached notification. Several of the newer leases have original terms which do not expire until dates in 2006 or 2007. Since the sale will be made subject to those leases, the original terms will not be impacted and the tenants will be sent a notice comparable to that sent to the month-to-month tenants.

April 1,2002

TO ALL RESIDENTS OF THE HIGHLINE MOBILE HOME PARK

As the operations of Appalachian Power Company have changed and we have centralized most of our operations out of our North Charleston Service Center, we are forced to evaluate our need for the property located in Marmet, West Virginia. It has been decided that this property will be placed on the market for sale in April 2002. The mobile home park will be sold in its entirety.

Your lease agreement will continue as usual and will be assigned to the new owner of the park. The sale could take 6-9 months to complete. We anticipate the transfer of ownership to have very little impact on your day-to-day lives; however, we are aware that any change can be stresshl, therefore, we will keep you informed as to how the sale is proceeding.

Please continue to make your monthly payments as usual and direct any questions or concerns to Joyce Leachman at (304) 348-4733 or E-mail address [email protected].

LAND MANAGEMENT SECTION

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mailto:[email protected]

Appalachian Power Company Responses to the Staff‘s


Request No. 6:

Please explain what the Buyer’s intended use of the property is. This would include the Buyer’s intent to comply with current leases and/or options.

Response No. 6:

The sale is being made subject to the existing leases. The Buyer has indicated to the Company that it has no plan to change the use of the property.



Request No. 7:

Please describe the terms and conditions of the parking lease with Barlow Bonsall Funeral Home situated on the property at issue. Additionally, please describe the notification procedure APCO will use to notify Barlow Bonsall of the proposed sale of the property.

Response No. 7:

The lease with Barlow Bonsall Funeral Home was for an original term of one year, followed by a month-to-month tenancy. Leonard Johnson Funeral Home d/b/a Barlow Bonsall Funeral Home is the proposed Buyers of this property. Due to the identity of Buyer and Tenant, there was complete knowledge of the transaction and no need for any independent notice.

VERIFICATION

STATE OF WEST VIRGINIA, 1

COUNTY OF KANAWHA, TO-WIT: 1

Steven H. Ferguson, Principal Regulatory Consultant for Appalachian

Power Company, after being duly sworn, states that, to the best of his information and

belief, all of the facts and allegations contained in the foregoing Responses are true and

correct.

n

%\ %$*. Steven H. Ferguson

Taken, subscribed and sworn to before me on the Ifday of June, 2006.

My commission expires: / h 23, 2015 ,

s.K*-m ~

Notary Public (SEAL)

PUBLIC SERVICE COMMISSION OF WEST VIRGINIA

CHARLESTON

CASE NO. 06-0692-E-PC

APPALACHIAN POWER COMPANY

CERTIFICATE OF SERVICE

I, William C. Porth, counsel for Appalachian Power, do hereby certify that a true

copy of APPALACHIAN POWER COMPANY’S RESPONSES TO THE STAFF’S

FIRST SET OF DISCOVERY REQUESTS was served upon the Staff by hand

delivery this 21St day of June, 2006, addressed as follows:

Leslie J. Anderson, Esquire Public Service Commission of West Virginia 201 Brooks Street P. 0. Box 812 Charleston, West Virginia 25323

A

william c. Porth (WV State Bar No. 2943)

WILLIAM C. PORTH LAW 1791 ROBKNSON 25326

Documents

Transcript of WILLIAM C. PORTH LAW 1791 ROBKNSON 25326