03-12-07 Item 7D, Resolution 07-34 Final Plat at Lake Johanna Woods

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ADDENDUM Borrower: Property Address: xxxx Lake Johanna Boulevard City: Arden Hills lender. Private Party File No.: 00031773 Case No.: State: MN Zip: 55112-3669 This appraisal was transmitted to the client electronically and includes digital signatures. A digital signature is defined by USPAP as "personalized evidence indicating authentication of the work perfonned by the appraiser and the acceptance of the responsibility for content, analyses, and the conclusions in the report." According to USPAP, "a signature can be represented by a handwritten mark, a digitized image oontrolled by a personal identification number. or other media, where the appraiser has sold personalized control of affixing the signature." The Statement on Appraisal Standards No.8 (pg. 91 & 92 of the 2000 edition of USPAP) clarifies many issues regarding the use of digital signatures and electronic transmission of appraisals. The "conclusion" of Statement 8 summarizes the important issues as follows: * An electronically transmitted report is a written report and must meet USPAP reporting requirements. * Appraisers must take reasonable steps to protect the data integrity of transmitted reports. * Any software program used to transfer a report electronically must provide, at a minimum, a digital signature security features for all appraisers signing the report. * Electronically affixing a signature to a report carries the same level of authenticity and responsIbility as an ink signature on a paper copy report. * The "Record Keeping" section of the ETHICS RULE applies to all reports and permits storage on electronic, magnetic, or other media. A true electronic and/or paper copy of the transmission must be retained by the appraiser. This appraisal also included digital photos of the subject and comparables. The images shown in this report are printed exactly as they were taken. No alteration or enhancement of the digital photos was made_ ThIS appraiser has made every attempt to comply with the requirements set forth in USPAP regarding this issue. If the reader of this report requires any further information Final Reconciliation Based on the com parables cited. a value of $180,000 or $5.30 per square foot, is considered reasonable for the subject site. Using the dimensions shown on attached plat map of Lake Johanna Woods, I have roughly calculated the permanent drainage (ponding) easement area acquired from this site to be approximately 20,162 square feet. Please note, I did not include the perimeter drainage and utility easement area, as this type of easement is typically dedicated on all newly platted lots in Arden Hills. (t is my understanding that the easement area to be acquired was existing low land with limited utility in the before position. While this area is part of the whole, and does contribute to the overall size of the site, in my opinion the reimbursement value should be based on something considerably less than the overall value of $5.30 per square foot. There will be a permanent easement over a large portion of the site, however for all practical purposes the land area remains as a portion of the whole. Based on all of the above, it is my opinion that a reasonable rate of reimbursement is approximately 20% of the per square foot factor of $5,30 or $1.06 per square foot. Applying this rate to the permanent easement or 20,162 SF, a total value of $21,371.72 results for the permanent easement acquisition. Addendum Page 2 of 2