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The appraiser completed a full interior and exterior inspection of the subject property and improvements. All other subject property information was gathered from available county records, GIS and other data sources, as necessary. A MnDOT survey crew located and marked the existing right of way, proposed temporary easement and proposed driveway location to aid the appraiser and property owner in identifying the proposed acquisition area. Note, interior photos of the subject home were taken but are retained in the appraiser's work file. Highest and Best Use of the Subiect: A logical and thorough analysis of the subject property's highest and best use is vital to the value conclusion. During this analysis process, certain logical deductions were made. This method is further discussed under the Highest and Best Use section of this report. Valuation Process: The three valuation approaches — Cost Approach, Sales Comparison Approach, and Income Approach — were each considered for use. The subject property is improved with a single family rental residence; however, the proposed acquisition will not directly impact the subject improvements; therefore only the subject land will be valued in the appraisal. With no building considered in the valuation, the Cost Approach to value is not applicable. As -if vacant residential land similar to the subject is not typically leased in this market area; therefore, the Income Approach to value is not applicable in the development of the site value. Only the Sales Comparison Approach was used to determine market value of the subject site in the before and after conditions. The Sales Comparison Approach is typically the most reliable indication of value for partial acquisitions of land only. Income Approach techniques were utilized in the development of severance damage estimates due to the current income producing rental use of the subject property. Cost Approach techniques were utilized in the estimation of site improvement values. Data Research: Sales data for the Sales Comparison Approach was collected by research of information from the multiple listing service (MLS), information available at the Sherburne County Assessor's departments and the Minnesota Revenue eCRV website. Discussion with the Assessor's personnel corroborated that the information obtained there had been verified, as much as possible. These sources are considered reliable and their data accurate. Comparable sales were viewed by the appraiser. The properties determined to be most comparable to the subject property were selected and included in the report. MARKETABILITY AND ESTIMATED MARKETING/EXPOSURE TIME Based on interviews with local market participants and available sales data; improved sales of properties similar to the subject property are estimated to require a marketing time of approximately 3 months which includes consideration for the current winter marketing season. The estimate of exposure time is considered to be the same or less than the marketing time, estimated at 3 months or less. There is currently only a 2.7 month supply of single family housing in the Elk River market, which directly influences the short marketing times. Vacant residential land within the subject's market of Elk River is estimated to require a marketing and exposure time of approximately 3 months; say 2 to 4 months. The marketing and exposure time estimates are based on a sale study utilizing the Northstar MLS that was performed within the subject's Elk River market area for similar single family residential vacant land properties to the subject. A total of 12 sales were recorded over the past three years with a range in marketing time from 7 days on market (DOM) to 1,316 DOM; however, the high end of the range was an outlier. The adjusted high end of the range is 228 DOM. The adjusted mean marketing time was 87 days and the median was 82 days, indicating a typical marketing time of approximately 3 months, say 2 to 4 months. There appears to be a stable balance of available land on the market. S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 20