APPRAISAL REPORT OF THE CURRENT MARKET VALUE OF THE NW AND SW 20-17-20-W2M OWNED BY 101225232 SASKATCHEWAN LTD. LOCATED WITHIN THE CITY OF REGINA, SASKATCHEWAN Prepared For VERTEX Prepared By CANADIAN RESOURCE VALUATION GROUP INC. OCTOBER, 2013 File No. 13596 CANADIAN RESOURCE VALUATION GROUP INC. #101, 24 Inglewood Drive, St. AlbertI AB T8N 6K4 Telephone: (780) 424?8856 Fax: (587)290-2267 Email: jwasmuth@crvg.com Website: Vertex October 8, 2013 2222 Ave CRVG File No 13596 North Saskatoon, Saskatchewan S7L 6C3 Attention: 24(1 Dear Sir: RE: APPRAISAL REPORT OF THE CURRENT MARKET VALUE OF THE NW AND SW 20-17-20-W2M OWNED BY 101225232 SASKATCHEWAN LTD. LOCATED WITHIN THE CITY OF REGINA, SASKATCHEWAN As requested, we have completed an appraisal estimating the Current Market Value of the herein described subject properties to assist in purchase/sale negotiations with the owner. As instructed in the terms of reference we have provided our opinion of the current market value of the subject properties based on a roadside inspection of the subject properties. It is hereby certi?ed that we conducted a roadside inspection from improved and unimproved roadway allowances of the subject properties on September 26, 20l3 and have also relied upon aerial photographs, assessment information, maps, land use planning documents, and information in the public domain. The effective date of this appraisal corresponds with the date of inspection and is September 26, 20l3. To the best of our knowledge and belief statements contained In this appraisal report, subject to the limiting conditions set forth, are true and correct. We hereby certify that we have no present or contemplated interest in the subject properties which would in any way affect statements of value expressed. Employment in and compensation for making this appraisal are in no way contingent upon the values reported. In our opinion, subject to the assumptions and limiting conditions outlined herein, the Current Market Values of the respective subject properties, as at September 26, 2013, are: NW 20-17-20-W2M - SEVEN MILLION FIVE HUNDRED NINETY SEVEN THOUSAND DOLLARS ($7,597,000) sw 20-17-20-W2M - FOUR MILLION FOUR HUNDRED FIFTY EIGHT THOUSAND DOLLARS ($4,458,000) The reader is invited to review our research, analyses, opinions and conclusions contained within the attached report. Yours truly, CANADIAN RESOURCE VALUATION GROUP INC. 24(1)(k) REAL APPRAISAL - LITIGATION SUPPORT - - BusINLss CONSULIING APPRAISAL REPORT OF THE CURRENT MARKET VALUE OF THE NW 20-17-20-W2M AND SW 20-17-20-W2M OWNED BY 101225232 SASKATCHEWAN LTD. LOCATED WITHIN THE CITY OF REGINA, SASKATCHEWAN INDEX I?l APPENDICES EXECUTIVE SUMMARY .. PURPOSE OF APPRAISAL .. FUNCTION OF APPRAISAL .. DEFINITIONS .. AREA DATA .. SUBJECT PROPERTY DATA .. HIGHEST AND BEST USE .. MARKET VALUE ESTIMATE .. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS .. J. CERTIFICATION AS TO THIS APPRAISAL REPORT .. PAGE ..2 ..2 ..2 ..2 ..8 ..ll .. l6 ..25 ..28 QR 5 VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE I APPRAISAL REPORT PREPARED FOR: VERTEX 2222 Avenue North Saskatoon, Saskatchewan A. EXECUTIVE SUMMARY A.1 Municipality: A.2 Legal Description of Subject Properties: A.3 Current Title Numbers: A.4 Titled Acres: A.5 Registered Title Holder: A.6 Current Zoning: A.7 Municipal Development Plan Future Land Use Policy Area: A.8 Highest And Best Use: A.9 Effective Date of Appraisal: A.10 Date Report Issued: S7L 6C3 City of Regina, Saskatchewan NW 20-17-20-W2M and SW 20-17-20-W2M 143310912 and 143310473 1 16.86 acres and 87.40 acres 101225232 Saskatchewan Ltd. Urban Holding Zone (UH) Light Medium Industrial Holding property with the interim use of agricultural production ripening to light and/or medium industrial in the medium term. September 26, 2013 October 8, 2013 Estimated Value effective September 26, 2013, subject to the assumptions and limiting conditions outlined herein: NW - SEVEN MTLLION FIVE HUNDRED NINETY SEVEN THOUSAND DOLLARS ($7,597,000) SW - FOUR MILLION FOUR HUNDRED FIFTY EIGHT THOUSAND DOLLARS ($4,458,000) A.12 In the preparation of any appraisal report there are certain applicable ?Assumptions and Limiting Conditions? which are outlined within Section I of this report. These assumptions and limiting conditions provide the basic foundation of the report and the reader is urged to review them along with the analyses and conclusions provided within this report. 5' 8V VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 2 B. PURPOSE OF APPRAISAL: To estimate the current market value of the fee simple estates within the subject properties, effective September 26, 2013, the date of inspection. C: FUNCTION OF APPRAISAL: To estimate the current market value of the fee simple estates within the subject properties to assist Vertex in negotiations with the owners(s) of the subject properties to enable possible buy/sell agreement(s) with the owner(s). D: DEFINITIONS: DEFINITION OF MARKET VALUE: ?Market value? is herein de?ned per the Canadian Uniform Standards of Professional Appraisal Practice, which were adopted by the Appraisal Institute of Canada on January 1, 2012. The de?nition is as follows: The most probable price which a property should bring in a competitive and open market as of the specified date under all conditions requisite to a fair sale, the buyer and seller each acting prudently and ltnowledgeably, and assuming the price is not a?ected by undue stimulus. lmplicit in this de?nition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1 buyer and seller are tjpicall motivated; 2. both parties are well informed or well advised, and acting in what they consider their best interests; 3. a reasonable time is al lowed for exposure in the open marltet; 4 payment is made in terms of cash in Canadian dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold una?ected by special or creative financing or sales concessions granted by anyone associated with the sale. DEFINITION OF FEE SIMPLE ESTATE: "Fee Simple Estate is an interest in property involving possession of a title establishing absolute ownership unencumbered by any other interest or estate. subject only to the limitations imposed by the governmental powers of taxation, expropriation, police power and escheat. E. AREA DATA: Location/Population/Economic Base This report addresses the current market value of two parcels of land located within the municipal boundaries of the City of Regina (2011 pop 193,100) in the south-eastern portion of Saskatchewan. cRVo \Yt 1 The Appraisal of Real Estate, Second Canadian Edition, 2002, the Appraisal Institute ofCanada, Page 5.2 VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 3 E.2 The economy of the province of Saskatchewan has been very robust over the past several years and much of the provinces success is driven by activity in and around the City of Regina. The Avison and Young ?2012 Year In Review 2013 Market Report Regina describes the province?s economy and growth in the City of Regina as follows: "Saskatchewan cemented itself as a "have province in 2012 based on increases in Gross Domestic Product (GDP), population, and total value of building permits issued. GDP growth Was 2. second among the provinces and above the national rate of2. For 2013, the average forecast for Saskatchewan GDP is ?rst among the provinces (tied with Alberta) and exceeding the national forecast (again 2. The Royal Bank (3. and Conference Board of Canada (3. 4 expect the province ?s growth rate to be the highest in Canada. Population growth reached 6. 7% for the cumulative five years to 2012, the largest growth spurt since Statistics Canada began recording information in 1956. Residential vacancy sits at less than 0.7% and is now considered an impediment to the province?s expansion. City of Regina 2012 building permits were close to 48% ahead of2011, surpassing the record of $54 7 million issued the same year. Records have been set in 10 of the last 11 years. and permits for all construction sectors were up more than 27% provincially in 2012. E3 The positive economic analysis above is supported by the City of Regina?s Building Permit Reports which indicate signi?cant increases in building permit activity since 2011 (see tables on the following pages). OCTOBER 2013 REGINJBA I (jib: of Heqina VERTEX AND SUSTAINABILITY DEPARTMENT BUILDING STANDARDS BRANCH GLOBAL TRANSPORTATION HUB PAGE 4 BUILDING REPORT FOR THE MONTHS OFJAN UARY 2012 201i TYPE. PERMITS VALU UNITS PERMITS VA LU UNITS Slush: anily I. I35 $218,448,976 I.I 35 I4 7.291.345 794 Duplex mh-ellingn 49 57.945. 1 07 93 27 4,306,424 76 Smui-Dctudzml Dwellings '33 $20,954,934 :42 In 3.157.675 2n 50 $31,539.68! 616 25 42.520..-l65 398 Dwellings I7 719 10 ?any? 434 SUBTOTAL 1.324 $402,460.394 1,720 872 8231561907 I722 Raid mliul Rurculimnl 6 52 65.000 - IO 25 1,599 RL-sillcminl Building 2M 54.031138 - 2-17 2.83.1, I 83 1.007 $30,137.783 - 1166 26,259.50? - SUBTOTAL 1.367 8353139321 - 1423 ?niche-"Molds 2 $16,383,000 - .l 9,18] - l-Iulclmulcl Ala-tuliqu 59.900.000 - 5 59 I5 - 53 71861.133 - Conuncrcinl SEGA-15.843 - 267 - 41 $66,251.40? - l6 14.9w.me - Industrial Alla-a?och 12 57,187,.? 0 - 24 l7.l IEMOJ - lnFlimIionnl 4 - 2 - luslilutimulAllcruliww 28 - :1 41090.13 . Gnm'mnml 2 - 2 25,967.27? (Jot-211mm? Alterations 11 $13,540.55 - 3 [0,443,413 SUBTOTAL 446 - 400 3.236.608.033 - Dunulilimu. 203 520,000 - 95 1.900 - 205 820.000 - 95 31.900 GILKND TOTAL 3.341 3773372570 2,720 2790 517.721.3219 1722 OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 5 'iri?r? '1 Ely-1 1M: :1 CGWLIAMCE DEPEWMEHW FE 0F 6- 3-11. 2513 3313 TYPE FEEIITE WILLIE UNITE Eiruh Fm?y?mihl? 315 [Film ?unk: Handing!? E??n?-Ela?mal ??lilm 5! $1159.55? 18 El 9T5 '3 $18 'I?lfl?lfill? 1? l'i .lpmimriej. 35.131551? ELIETEITEL 351Rad-mum human? Eunith $w55?? - 11 5'335533 - 151 a 3! 51595;!? Hun-aw? - - - - Hnida??hlsl ?ialaimm i 55. Elil'll'l?? - - - - El $135,511? . 15 $15.15? 445.1 - ?whim-5?4 $31 316.533 - HIE - IuIm-Juial Imilglijmd I - - - Imilmijn? Haldiljlw 5 $1 - 3 - {mm-?elmaiuna - 5 341 in? - 33 mag-12,513 115 H1 mun-a Fianna-Ala . . - - - WETETJIL I- I- 33 n- 55" $155,833,208 B113 .531 ?3 VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 6 E4 The subject properties are located adjacent to the Global Transportation Hub to the west and Reserve Land to the east within an area of current or ?sture light/medium industrial development. The following are quotes from the AECOM website. "in December of 2007, the Government of Canada and the Province of Saskatchewan announced their intention to fund the Global Transportation Hub (GTH) as part of the Asia-Pacy'ic Gateway and Corridor Initiative. The GTH has become one of Saskatchewan ?s most important economic development initiatives encompassing approximately 2, 000 acres of serviced land to serve as a centre for transportation and logistics developments. Canadian Paci?c Railway (CPR) is presently building a new state of the art intermodal facility capable of supporting 250,000 container li??s annually between trains and trucks. Canadian Logistics Services, servicing Loblaws stores, has a I, 000, 000 square foot distribution centre. A second major development, the relocation of CPR yards from downtown Regina to the GTH to form a new interinodal facility, is also nearing completion. These existing and future developments require a high speed, high capacity connection to the national highway system. The Saskatchewan Ministry of Highways and [n?'astructure in co-operation with the City of Regina and the Rural Municipality of Sherwood, initiated a plan to design and build a new roadway connection between Highway No. and Highway No. ll on the west side of Regina. The new roadway was to form a portion of the long term bypass around the City and provide access for future development, speci?cally the GT I E.5 Historically the economy of southern Saskatchewan was primarily agriculturally related but the economic growth in the province over the past several years has signi?cantly increased the importance of the manufacturing, energy, mining and information technology sectors to the local Regina economy. In addition to private ventures, Regina is the provincial capital of Saskatchewan and contains of?ces for numerous provincial government departments and Crown corporations. 13.6 The area is serviced by the Trans-Canada Highway; running west to Moose Jaw and Swift Cunent and to Manitoba, Highway #10 running nor?ieast to Yorkton, Highway #1 1 running northwest to Saskatoon, Highway #48 and Highway #33 running southeast towards Manitoba and Highway #6 running south to the Canada - USA border. The area is also serviced by a well established grid system of paved or graded gravelled municipal roads. In addition both the Canadian National Railway and the Canadian Paci?c Railway provide rail transportation for the shipment of farm products and heavy or bulk goods to and ??om the area. E.7 Currently under construction is the West Regina Bypass ?'om Highway #1 to Highway #11, with an interchange to be located along the east side of the subject NW 20-17-20-W2M. West Bypass is a proposed four lane twinned highway connector road linking Highway #1 a VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 7 Highway #11. The new connector road across Dewdney Avenue will carry 5,500 vehicles per day upon projected completion in 5 years, increasing to 33,000 vehicles per day in 25 years. The West Bypass will become part of the long term bypass route around Regina, and will accommodate ?Jture growth of the city to a population of 300,000.2 Climate ES The Regina area has a continental climate characterized by warm summers, cold winters, and comparatively low annual precipitation. The Regina area varies in elevation from 1,350 to 2,400 feet above sea level. The average annual precipitation is 36 cm (14 inches), with approximately 70% falling during the growing season. E.9 July is the warmest month, with an average high of and an average low of January is the coldest month with an average high of and an average low of The host free period lasts from about May 24'11 to September 1 1th or 109 days relative to an average year. The length of the growing season varies from 174 to 179 days. Topography E.10 The topography of the general area varies from level to gently rolling. 2 Pinkie Road - Wikipedia VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 8 F. SUBJECT PROPERTY DATA: Subject Property #1 Legal Description: NW 20-17-20-W2M Registered Owners: 101225232 Saskatchewan Ltd. Title Number: 143310912 (see Appendix VI Estate: Fee Simple Municipality: City of Regina Date Registered: February 26, 2013 Sales History of the Subject Property: Plottage: Topography: Current Utilization: Zoning: Municipal Development Plan Policy Area Improvements: Access: Services: Location: Date of inspection: Effective Date of Appraisal: Public records show that the subject property transferred on February 26, 2013 for $9,818,588 from 139 Land Corporation to 101225232 Saskatchewan Ltd., this sale has been utilized as Index On March 21, 2012 there was a miscellaneous interest registered on title by 139 Land Corporation claiming an interest as purchaser under an accepted Offer to Purchase for $55,000 per acre confirmed with the purchaser. Written documentation was not provided. To our knowledge the subject property is not currently listed for sale, nor to our knowledge are there any sale agreements or offers to purchase the subject property. However, we understand the subject property is currently owned by a development company that is active in the area. 116.86 total acres, fully cultivated with the exception of some minor slough areas (see Appendix 1V). Undulating with some depressional slough areas. Agricultural use (crop production). Designated Urban Holding? [see paragraph The current utilization is a permitted use. ?Light and Medium Industrial? None visible via roadside inspection and review of available aerial photography. Access via paved Secondary Highway #730 that borders the north boundary. Rail is located a short distance east of the east property boundary. There are currently no services stubbed onto the property. Per conversations with city officials, there is a 600 mm diameter water main and a 500 mm diameter sanitary main located on the north boundary of the NW 20-17-20-W2M that is available for hook up. In addition, hook up to the regionally designed water and sewer lines of the GTH may also be available upon payment of pro-rata infrastructure service charges. City of Regina West Side September 26, 2013 QRVQ September 26, 2013 VERTEX Subject Property #2 Legal Description: Registered Owners: Title Number: Estate: Municipality: Date Registered: Sales History of the Subject Property: Plottage: Topography: Current Utilization: Zoning: Municipal Development Plan Policy Area Improvements: Access: Services: Location: Date of Inspection: Effective Date of Appraisal: OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 9 SW 20-17-20-W2M 101225232 Saskatchewan Ltd. 143310473 (see Appendix Fee Simple City of Regina February 26, 2013 Public records show that the subject property transferred on February 26, 2013 for $6,264,954 from 139 Land Corporation to 101225232 Saskatchewan Ltd., this sale has been utilized as Index On March 21, 2012 there was a miscellaneous interest registered on title by 139 Land Corporation claiming an interest as purchaser under an accepted Offer to Purchase for $45,000 per acre con?rmed with the purchaser. Written documentation was not provided. On September 13, 2011 there was a non?arms length transfer of the property between related parties. To our knowledge the subject property is not currently listed for sale, nor to our knowledge are there any sale agreements or offers to purchase the subject property. However, we understand the subject property is currently owned by a development company that is active in the area. 87.40 total acres, cultivated with the exception of some smaller slough areas (see Appendix IV). Undulating with some depressional slough areas. Agricultural use (crop production). Designated Urban Holding? [see paragraph The current utilization is a permitted use. ?Light and Medium Industrial? None visible via roadside inspection and review of available aerial photography. No improved roadside access at time of inspection. Inspection completed by walking to property corner on unimproved road allowance. Rail is located a short distance east of the east property boundary. There are currently no services stubbed onto the property. Per conversations with city of?cials, there is a 600 mm diameter water main and a 500 mm diameter sanitary main located on the north boundary of the NW 20-17-20-W2M that is available for hook up. In addition, hook up to the regionally designed water and sewer lines of the GTH may also be available upon payment of pro-rata infrastructure service charges. City of Regina September 26, 201 3 @3170 September 26, 2013 VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 10 Subject Properties Title Encum brances and Restrictions F.l F2 The subject titles have several encumbrances registered against each title as outlined within the photocopies of the Certi?cates of Title (pulled on August 28, 2013), exhibited in Appendix VI at the end of this report. All interests registered on title are summarized as follows: NW Registration No. Date Registered Interest Registered To the Bene?t of: 161956244 Aug. 29/78 CNV Easement Transgas Limited 161956255 Oct. 5/79 CNV Easement Kinder, Morgan Cochln ULC . . . Petroleum 161956266 Aug. 16/10 Publlc Transmission Easement Company 161956277 Dec. 22/10 Pipelines Act Kinder Morgan Easement Cochin ULC . . . Petroleum 161956288 Feb. 7/11 Public Transmission Easement Company 161956312 Feb. 26/ 13 Mortgage COHBXUS Credit Union 2006 1619 563 34 Feb. 26/13 Assignment of Conexus Credit Rents Union 2006 SW Registration No. Date Registered Interest Registered To the Bene?t of: 1619551 19 CNV Easement Aug. 29/78 Transgas Limited 161955120 CNV Easement Dec. 3/99 Saskatchewan Telecommunication The author of this report is not quali?ed to comment on any legal rami?cations of these encumbrances, therefore it is recommended that legal counsel be consulted to determine the precise effects of the encumbrances on any future proposed uses or utilities of the subject properties. Per paragraph 1.1 of this report we have assumed each title is in good and marketable condition in estimating the fair market value of the subject properties. It is relevant to note that in determining the market value of the subject properties we have not considered any discount or adjustment relative to those areas encumbered by registered pipeline rights of way, for which the owner has been compensated at the time of signing a right of way agreement or subsequently under a Surface Rights Compensation Order. VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 1] Opinion of Market Exposure Time F.3 Under the Canadian Uniform Standards of Professional Appraisal Practice we must, as Professional Appraisers, provide an estimate of normal market exposure time. ?Exposure Time? is de?ned as: ?the estimated length of time the properQI interest being appraised would have been offered on the market before the hypothetical consummation of a sale at market value on the e?ective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. ?3 F.4 It is the appraiser?s opinion; considering the location, the current land use designation and the potential uses for the subject properties, that the normal market exposure time to consummate a sale at fair market value would be approximately six months to twenty four months. Notwithstanding this potential exposure time, the opinion of market value contained herein is effective September 26, 2013. G. HIGHEST AND BEST USE: (3.1 ?Highest and Best Use? is described in appraisal texts as the foundation on which market value rests. The highest and best use of a parcel of land is not determined through subjective analysis by the property owner, the developer or the appraiser; but rather the competitive forces within the market where the property is located shape highest and best use. The analysis and interpretation of highest and best use is therefore an economic study of market forces focused on the subject property. G.2 The phrase ?highest and best use? may be de?ned as follows: ?that reasonable and probable use that will support the highest present value, as defined, as of the effective date of the appraisal. Alternatively. that use, ?rst? among reasonably probable and legal alternative uses. found to be physically possible, appropriately supported, ?nancially feasible, and which results in highest value. ?4 6.3 Market forces; such as supply, demand, ability to generate income and costs to reproduce, create market value. Therefore, the interaction between market forces and highest and best use is of crucial importance. The general data that is collected and analyzed to estimate property value are also utilized by the appraiser to formulate an opinion of the property?s highest and best use. The highest and best use of comparable or index properties should be the same or similar to that of the subject property being appraised, as chit; it 3 Canadian Uniform Standards ofProfessional Appraisal Practice: Appraisal Institute of Canada, 2012. 4 N. Boyce, Real Estate Appraisal Terminology, Ballinger 1984. pp. 126-12? VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 12 it is land use or utility that in?uences value. This premise has been applied in respect of the market indices utilized within this report. (3.4 if a reasonable forecast of a property?s highest and best use indicates a change in the near future, the present highest and best use is considered an interim use. For example, the highest and best use of a farm in the path of industrial growth would be for interim use as a farm, with the potential ?Jture use being industrial subdivision and/or development. Alternatively if the property is ready for development at the time of appraisal then there is no interim use as the highest and best use is for industrial development. On the other hand if the farm has little potential for development, then its highest and best use is a farm property with no alternative interim use. G.5 There are four criteria that must be considered in the analysis of highest and best use, for both vacant land as well as improved property. The highest and best use must be: - legally permissible - physically possible - ?nancially feasible - maximally productive The tests of legal permissibility and physical possibility must be applied before the remaining tests of ?nancial feasibility and maximal productivity. Financial feasibility and/or productiveness have no relevance to a site if the proposed use is not legally permitted or physically possible. In addition to these factors, the determined highest and best use must be within the realm of probability, not speculative or conjectural; there must be demand for such a use and the use must provide the highest net return for the longest period of time. Legally Permissible (3.6 If there are no private restrictions or restrictive covenants registered on title, then the property uses allowed by the municipal zoning typically re?ect the available choices in the highest and best use determination, subject to the probability of an imminent change in zoning. Reference to Regina Development Plan is useful for gauging the likelihood of any zoning change. VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 13 G7 The current City of Regina Land Use Bylaw NO. 9250 (LUB) (see Appendix designates the subject properties as ?Urban Holding Zone - The intent, application, permitted uses and discretionary uses within the area designated are quoted ??om Section 9C.9 of the LUB as follows: 9C. 9 URBAN HOLDING (UH) 9.1 INTENT (I) The UH zone is designed to protect lands required for future urban development ?'om premature subdivision and development. Specij'icalbi, the zone is intended to: provide for orderly transition of agricultural land to other uses in areas planned for eventual urban development; defer urban development until the City and other local government bodies determine that adequate public facilities can be provided at reasonable costs; (6) ensure that future urban development is compatible with local land use plans and policies; and provide opportunities for periodic review to determine whether all or part of the lands should be transferred to another zone. (2) Recognizing that the City is situated on and surrounded by prime agricultural land, agricultural uses that are not associated with nuisance factors will be allowed [1992/9250] 9. 2 APPLI CA TION The zone will be generally applied to recently annexed or urbanized areas where lands are predominantly in agricultural or related open space use, but where conversion to non-agricultural uses is expected in the near future. 9.3 PERMITTED USES Residential Secondary Suite Agricultural Agricultural Production (1997/9904) Culture and Recreation Community Garden (2006?63) Miscellaneuos Public Use VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 14 9. 4 DISC REA TIONAR USES Residential Detached Dwelling Agricultural Horticultural Specialties (1996/9 776) Vegetable Production {1996/9 776) Services Amusement Park, Commercial Campground Church (Religious Institution) Golf Course or Golf Driv ing Range Theatre, Drive-in G.8 Within the City of Regina Regional Development Plan, published April 2006, the future land use of the subjects is designated as ?Light and Medium industrial? (see Appendix The City?s ?Location of industrial Lands? and policies regarding the subject properties, as stated within Section 4.8 of the Regional Development Plan, are quoted as follows: 4.8 Location of Industrial Lands g) That new areas for industrial growth be designated east of Ross Industrial Park(east of Fleet Street) for short to medium term mixed industry and for the West Industrial Lands (including the GT H) for immediate to long ?term light and medium industrial uses. 2 007 ~90 [2010 ?19] G.9 The current utilization of the subject properties is for extensive agricultural production (Le. ?eld crops) which is permitted in the current zoning of the subject parcels. Considering the current uses and current land use bylaws the legally permissible Highest and Best Use of the Subject Properties is as holding properties ripening to industrial development in the medium term future, with interim use for agricultural production. Physically Possible G.10 In order for a use to be considered the highest and best use the site must be physically capable of supporting whatever use is determined to be appropriate. The shape, size, topography and physical make?up of the subsoils all combine to enable the creation or continued support of the probable use of the site. In addition, the infrastructure of the neighborhood, such as water, sewer, gas and electricity, must support the use as well as location and access. The highest and best use must be physically attainable and be 5 attainable within expected norms of design and cost to create or maintain. VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 15 The subject properties are located in a future industrial area within the City of Regina which is currently utilized for agricultural production. The NW 20 is accessed via paved Secondary Highway #730 while the SW 20 has no improved public access but can be accessed via crossing the NW 20. The subject properties comprise larger parcels ranging in size from 1 16.86 acres to 87.40 acres. At present, municipal water, sewer and drainage services are located within the GTH to the west of the subject properties. The subject properties cun'ently have no services. Water, sewer and drainage services are aVailable at the north property boundary of the NW or could be connected through the GTH for a service connection charge. Per discussions with Saskatchewan Ministry of Highways an interchange is proposed for the east side of the subject properties for the West Bypass roadway. A design for this bypass has not been ?nalized. Condie Road right of way is located on the west boundary of the subject properties. G.l2 Considering the locations, access and sizes of the subject properties, the physically possible highest and best use of the subject properties will remain to be agricultural use (crop productions) for the interim period until demand for light/medium industrial development is sufficient to warrant transition to some form of light/medium industrial use. Financially Feasible I. G.l3 A review of the City of Regina LUB map and our inspection of the area indicates the majority of the land in the immediate area of the subject properties is currently utilized for agricultural production and industrial development within the GTH. A 100,000 square foot distribution center for Loblaws is located approximately 1 km west of the SW 20-17-20-W2M and the CPR yard is located approximately 1.35 km southwest of the SW 20-17-20-W2M. The market in the area is currently being driven by speculators/developers seeking appreciation in land values as the lands ripen for development. G. 14 In determining the most ?nancially feasible uses of the subject properties the appraisers? have considered factors such as the current and future land use zoning, permitted uses, location and municipal planning. In view of the speculative nature of the market and taking into account the above factors, the most ?nancially feasible uses of the subject properties are considered to be as holding properties awaiting light/medium industrial development in the medium term future, with primary agriculture production in the interim period. 57 VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 16 Maximally Productive 6.15 To determine the maximum productivity of the subject properties we researched land sales of similar bareland properties located within the surrounding area. Considering the current land use zoning and permitted uses, and the speculative nature of the market, the most maximally productive uses of the subject properties are considered to be as holding properties awaiting urban development in the medium term future, with uses of primary agriculture production in the interim period. Conclusion and Opinion as to Highest and Best Use G.16 PM As of the effective date of this appraisal, the subject properties are being utilized for agricultural production. If a willing seller, as of the effective date of this appraisal, placed the subject properties on the open market it is most probable that a willing buyer would purchase the properties as medium term holding properties for ?Jture light/medium development. Considering the above, and based on local land use patterns and market conditions, it is the opinion of the appraiser that the Highest and Best Use of the subject properties, subject to the assumptions and limiting conditions outlined herein, as at the effective date of appraisal, are as holding properties awaiting light/medium development in the medium term future, with primary agricultural production uses in the interim period. MARKET VALUE ESTIMATE: There are three general approaches; the Direct Comparison Approach, the Cost Approach and the Income Approach, that may be utilized to provide estimates of current market value. The Direct Comparison Approach arrives at a value estimate of the subject property land and buildings) as a unit. The unit is compared to similar properties of the same type and class which have sold, which have been offered for sale, or on which offers have been made in the same area or similar areas at or about the same effective date. The Cost Approach provides an estimate of value derived by estimating the current cost to construct a reproduction of the existing structure, subtracting the accrued depreciation, then adding the estimated bareland value. In the case of bareland the methodology is the same under the Cost Approach as the Direct Comparison Approach. As the subject properties are not improved we have used only the Direct Comparison Approach. The Income Approach has not been utilized as we could ?nd little in the way of comparable land lease or rental information in order to support such an approach. ewe VERTEX H.2 H.3 H.4 OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 17 The values of the subject properties have been estimated by application of the Comparative Sales Method, assuming the principle of substitution whereby a willing and informed purchaser will pay no more for a speci?c property than he/she will for another property that has similar features and amenities and is equally as desirable. We have carried out roadside/driveway or boundary line inspections of the subject properties and market indices. We have attempted to search for market indices which best represent the subject properties, taking into consideration development capability, size, location, access, topography, and zoning requirements. The market indices listed within Table and H2 were all purchased as ?bareland? with each being purchased by real estate investment entities or development companies. Based on our research of transfer documents obtained from Saskatchewan Land Titles Registry, inspections of the market indices and information obtained from market participants, the market indices contained within Table HI and H2 are considered to provide the best market information for establishing fee simple bareland value relative to the subject properties. The locations of the subject properties and market indices utilized to estimate the market value of the subject propelties are outlined on the Area Map attached as Appendix II. VERTEX OCTOBER 2013 Market Index #1 Legal Description: Municipality: Bareland Sale Price: Sale Date: Vendor: Purchaser: Access: Plottage: Zoning Regina Development Plan: Topography: Improvements: Comments: Unadjusted Bareland Price: Market Index #2 Legal Description: Municipality: Bareland Sale Price: Sale Date: Vendor: Purchaser: Access: Plottage: Zoning Regina Development Plan: Topography: Improvements: Comments: Unadjusted Bareland Price: GLOBAL HUB PAGE 18 NW 21-17-20-W2M City of Regina $7,904, I34 April 4, 2013 Sherwood Multitech Estates Ltd. Westerra Development Corp. Paved - Dewdney Avenue and Pinkie Road Gravel - l3th Avenue and Courtney Street 367.42 acres UH - Urban Holding Industrial Growth Undulating to Depressional None $21,513 per acre NW 20-17-20-W2M (Subject Property City of Regina $9,818,588 February 26, 20l3 139 Land Corporation 101225232 Saskatchewan Ltd. Paved - Secondary Highway #730 16.87 acres UH - Urban Holding Light/Medium Industrial Undulating to Depressional None $84,013 per acre Unadjusted Bareland Price: Market Index #4 Legal Description: Municipality: Bareland Sale Price: Sale Date: Vendor: Purchaser: Access: Plottage: Zoning Regina Development Plan: Topography: Improvements: Comments: Unadjusted Bareland Price: XERTEX OCTOBER 2013 GLOBAL TRANSPORTATION Hun PAGE 19 Market Index #3 Legal Description: SW 20- 7-20-W2M (Subject Property Municipality: City of Regina Bareland Sale Price: $6,264,954 Sale Date: February 26, 2013 Vendor: 139 Land Corporation Purchaser: 101225232 Saskatchewan Ltd. Access: No access. Condie Road right of way located on west boundary of the property. Plottage: 87.4l acres Zoning UH - Urban Holding Regina Development Plan: Light/Medium Industrial Topography: Undulating to Depressional Improvements: None Comments: $71,673 per acre NE l8-l7-20-W2M City of Regina $l,234,500 January 18, 2013 John Mainski et al Global Transporation Hub N0 access 4 .16 acres UH - Urban Holding Light/Medium Industrial Undulating to Depressional $50 $29,993 per acre Unadjusted Bareland Price: Market Index #6 Legal Description: VERTEX OCTOBER 20l3 GLOBAL TRANSPORTATION Hun PAGE 20 Market Index #5 Legal Description: SE 23-l7-l9-W2M Municipality: RM of Sherwood Bareland Sale Price: $7,000,000 Sale Date: July 15, 2012 Vendor: SFJ Inc. Purchaser: Harvard Developments Access: Paved - Tower Road Plottage: 4 .20 acres Zoning A - Agricultural Municipal Development Plan: A - Agricultural, Urban Fringe Topography: Undulating Improvements: None Comments: $49575 per acre NE Municipality: RM of Sherwood Bareland Sale Price: $9,227,400 Sale Date: June 28, 2012 Vendor: P.W. Lorch Associates Purchaser: Hanjai Management Inc. Access: Paved - Service Road Plottage: 94.24 acres Zoning A - Agricultural Municipal Development Plan: A - Agricultural, Urban Fringe Topography: Depressional. Property is low and ?oods None Comments: Unadjusted Bareland Price: $97,9l4 per acre 5 ?Kit/ VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 21 H. MARKET VALUE ESTIMATE DIRECT COMPARISON APPROACH: Tillie 111 Market Rehlhl Io NW El?n-?u Suhjecl 9mm?) prom?). 2 3 5 6 Transfer-Darn: 04?Apr-13 26ch13- ll l3 IS-JLI- 2 28-Ju1? l2 Nee: 57,904, 13-! $9,318,538 56.254354 $1,234,300 $1,000.me 59.221400 Billellmd $7,904,134 59.318588 56,264,954 34.50" 59,2 21400 SW 2 NW 20- n-zn-sz [xgll Dcsuip?onm: NW 2U- lT?llJ-WlM SE 21 - I T-ED-WZM [abjch SW 20- IT-ZU-WZM NE 13- SE NF. 35- IG-ZU-WEM Shende Mulik'ch Estutrs Lurch Associllurs Vouchn lid. 13?} Lam] I39 lam Cuq?mrulhn Jnh'l Karrhikicl .11 SM lid. It! I 2252.12 IDI 225232 Hutlmser. Corp Ltd. Dd. Lilobul 'I'WIlmtiJll Ilb Iluwni [)exehpnerls Hanjai Im. Deudrej' Au'ruz ani P'nk'n Na died access Candi: No dirL?cl access Con?: Road I?awd anl right ol'uny 'u bcaicd Road is heated PMin Aman and Cnu?nay and: mm hnn?ary nl'the on 1112 bDLniaIy ul?Ih: Santa o?'ol?l?Iuy - Amen: Highuuy #730 Urine! #730 - Pmud plupcmr. Tnu'er Road - Pawd Pun-d 367.42 37:? 4146 NLIU 94.14 Zoning: UN - Urban Hurling. 70m LII-I Urban Hukiqunn: U1 1TH - Urban Hahing Zorn: UH Uxbam I Iu?dllz Em}: A - Ail-tum} A Agil?uul DesignaIed Fuilme Use IigM/Medin?n blush-i]! Inimlr'ul (310ml: [rhinith [Wedim A - Agru?unl A - Agiu'luul City Cin' of Repin Cit" nfReyu Civ ul?chhl Civof Reg'm RM RM Ann?s br?l?l Cu'nn?y aha] Ii?l' midi] ful {fluently ??ned for And: L?I?gh Wihh uf Puch'lsed with 25% cash 5rd ngr'cuhnl :Ip?tmml crap agatulmnl production Regi'n mm. Al 75% ?111m lake buck Wusl 3313.155 Ann's laugh tml?aclihn Fume WESI Bypass l-?mm: Wczil Bypass Iin: prupuacd Interchange healed helcl'urge adjach 1L1 casi Cmn?rll)? Lutml 1hr Merci-mg: adjacent In east herd-um; adjacent. to cast Assurul Ann's Luigi}: ?-l'lle hemhuge heard on on HI: NE currL-r oflh: Cumnls: sh?: ol?pmcel aghl?nwl crop siic ol?pamcl sile ul?pantel NE conrr ul?prupenv property. a r? [hith Unlth Unduth UnluhLi-Ig Unilatth Urduhting ll'rplul rhyme: Nmn: Nun: None Nun: Nun: Nam Nun: Sen Ices: Nun.- I haentec] {harn?isrd Lhwn?mxi [hunth Urbuntud Machined lnritakd Bantam] Sah- Price: $7,904,134 39.3 [3583 56.264.954 51.234.500 51000.00" 59,2 21400 lm?cal'cd Unll Value pcrAcru: S2 .5l3 534.08 SELF-13 $29,993 349,5?5 $91914 Tim: 'j 0% 0% 0% ?9?0 0% 0% Rial?: Adjlutm?ll 40% 0% H35: 0% 3?9 40% "I'm-Emlth 2 Adjusted Value per Am: [Slum]: 830.1"! 554,013 571.613 529.993 549,515 558.148 Elmer USE: Sinihr Sink: S'mzhr Sinihr Infcr'nr Ink-rm S'm: Sinihr Simhr Shullr Sinhr Sin?u' Sirr?u' Tow? Sin'lhr Sinth S?mh: Sin-11: S'm?hr LnJ?L-rbr Incath??mss: Inl?crbr Sin-?u Infer'nr Sin?lr Sim'hr Dru-nil ln??ur Sinilar Inkrlur Inferior Sin?nr Sin??Ir VERTEX OCTOBER GLOBAL TRANSPORTATION HUB PAGE Tilt 1-1.2 lndInel Rehlh?e in SW 10-3140va Elkc?v: Septu?nr 26, 2013 Pmperty Sub]ch Panc-Ity 1 2 3 4 5 6 Transfer Dale: 04-Apr? I 3 26-Feh- I 2G-FEI1- 3 13 I I 2 28-Ju1- 12 Hire: 57.901. I34 $9,818,538 56.264354 3 ?34,500 39.221400 Bade Price: 57.904. [34 59.3 [3.538 $6,264,954- 5 I 234,500 SNKJUIJOU 51221400 NW SW 2 l? I 29- Legal Desc?p?unm: SW 20- SE 2I- NW 1,0- IT-IO-WIM (subject property] NE IRA SF. 23- NE 35? 812nm nd Mu?cch P. W. Lurch Assm'nie: Vendn: Ltd. 139 Corpnrulim 139112.111 Corpommn lulu Kmrl'mkict SFJ Inc. Ltd. ?31215232 I0 I 22 52 32 Purchaser. Corp Llil. Lid. ?lb IIdnunI Haniai Inc. No meet?. Cnndia Rand Awnu: and Nn died access. Cord'e No dinxl accuss. Candi: It}! nl?uay is hand an Ih: Road. Pam! Road r'ghl ol?nny is bcaicd Road rig: ufuuy is bum-rd \wsl bouxjan' ul'lh: Con-may un I11: um bumduxy quhe on LII: cast hunhry nflha Surr'm: mad u?'ufl luy HI - Access: pimped}: 51:ch ?mwl I?gmn)? - Fined pmpeny. property. I?uum Ruud ind Pnu?d Tnml?cres: 37.41 36142 I I637 81-1] I-II.20 94.24 UH UrhmHoEang Ion: U'll Urban UH - Uran Hoh?lnanm L111 UrIxul HuliingZum Utbnn Half-1113 km: A - Agiu?tlml A Agtt?uml Designated Futun: Us: LigIWulhm Lulu:th InlLElrhI (Hm-.111 Inimlr'ul L?Mdiun [Wadim Irduilr'n] A Ag'izuIlm'ul A Ag??uml Municipliu': Cii' Civuchgiu Civ uchgiu City nf?egim Cit?.? orRtgiau RM ufSIunwud RM nfS?mnmod Arm's l-qnh lmmauLim L?Lrnn'lly uu?aal [in Cum-nil}- mien] liar (An-nn?y mind in Arm's Wi??-l City uI? ?id: 25% cash uni muhtul ptm'lmtinn, mtukmul crop production ngr'nuhxnl ch'm mmlimuml A1 'IS?fr?o \vnior Lake back Fun?: ??31 Bypass Ann's bly?l lmr?acliln Future. West Bypass Funn- Wcal Bypass lire nl'purcl'usc [Imposed rrun?glagc. heated huml?urg: udjuccrl u cast Ll?'md Fur [duel-urge lu uml [IleNIul?gd adj-leer! tn east Arm's L'I'glh ?lm: irucrcl'nng: bcalud on NE corner nf?'le siic ol'pmel ugrnuhrul crup plodlut'un s'de silc ufpamL-l Lmrmulbn lh: NF, some: r' . thuhtim lhduhlirg Lll'dml'qr. Uninht'ng Unjumhg UnluhLim. mpreuim? Inprm'ermnb: Nam Nun: None Nun: Nona Nun: Nuns: Sen ices: Non: thuniml Unsented Lhu-niwd Ulmn'iccd Ursa nimd Lim-ntud Indicated Sale Price: $1904, I 34 $9,3l8,538 $6,254,954 3 I 214.500 51221400 Indicated Unil Value pal-Acre: $2 I ,5 I 3 584.0 I 3 371,673 $29,993 549.575 $97,914 0% 0% 0% 0% 0% Motive Adjusl'nrni 40% 0% 0% (We 40% Tin'm'Muliw Adjusltd Value pcrAcn: {Shem}: SJDJIE 529,593 549.575 559.743 DlterAdjuntnb Use: .?iirr?Jr Sinibr Simllr S'mlu llfer?m Mai): 5131:: Sinhr Sirr?lr Simllr Sinihr Sinillr Sinhr Topugmph Sh?lr Sinth Sim?Jr Sil?lr Infar?nr Localknr?mss: Inferior Sqrer'ur Simhr infer'm Superbr Superbr Ow tall Infe IiDl' Supt: rIor Sim'lar Similar Sinilnr In l?e n'nr Ci VERTEX OCTOBER 20l3 LOBAL HUB PAC 23 Comments and Correlations Ti_mg H.6 All six market indices are considered relatively good indicators of bareland value for the subject properties within the City of Regina, although the prices vary signi?cantly from one sale to the others. A review of these market indices and other market information does not suggest a definitive trend in lands prices over time in the immediate area of the subject properties and therefore no time adjustments have been applied. At present, due to increased demand of industrial lands in the City of Regina and signi?cant speculation, there is upward pressure on prices of industrial land but no de?nite trend could be determined within areas surrounding the City of Regina. Motive mew H8 The subject properties are located within the ?Urban Holding? area of the current City of? Regina LUB No. 9250 and designated for future uses of light/medium industrial. Indices #3 and #4 are considered similar to the subject properties as the current use and/or planned future use of these properties are urban holdings for future light/medium industrial development. Market Indices #5 and #6 is considered to contain inferior zoning and planned use as the properties contain agricultural zoning with designated agricultural future use. 5 ck VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 24 H.9 The subject properties range in size ?'om 116.87 to 87.41 acres. The market indices range in size from 367.42 acres to 41.16 acres. All six of the indices are considered comparable on a per acre basis relative to size. mm H.10 The topography of the subject properties is undulating to depressional. Index #6 topography is depressional and subject to ?ooding. All ?ve of the other market indices are considered similar to the subject properties relative to topography. Location/Access H.11 The subject property NW is within the City of Regina and is accessed via paved Secondary Highway #730. An interchange for the West Bypass is planned for development adjacent to the property's east side. Market Index #1 contains similar access but does not have access to an interchange which is considered inferior to the subject property. Market indices #3 and #4 do not have access. Market index #3 will likely have access to a future interchange. Market index #4 will not have access to a future interchange. Market indices #3 and #4 are considered inferior to the subject property. Market indices #5 and #6 contain similar access and have access to an existing 01' proposed future interchange therefore are considered similar to the subject property H.12 The subject property SW is within the City of Regina and does not have access. An interchange for the West Bypass is planned for development adjacent to the property's east side. Market Index #1 has access but does not have access to an interchange which is considered inferior to the subject property. Market Index #5 and #6 have access as well as access to a current or future proposed interchange and are considered superior to the subject property. Market indices #4 does not have access and will not have access to a current or proposed future interchange and is considered inferior to the subject property. Market index #3 does not have access but will have access to a ?xture interchange and is considered similar to the subject property. Conclusion H.12 The market indices indicate a non-adjusted average price per acre of approximately $54,000. However, for Subject Property the NW 20-17-20-W2M, Indices #3 and #4 are considered inferior. The average indicated value per acre excluding Indices #3 and 4 is approximately $65,000. For Subject Property the SW Index #2 is considered superior and Indices #1 and #6 are considered inferior. The average indicated value per acre excluding Indices #2 and 6 is approximately $51,000. a? VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 25 H.13 Considering all market information obtained and the values indicated via the Direct 1. Comparison Approach it is the appraisers? opinion the respective Market Values of the Fee Simple Estates in respect of the subject properties as at September 26, 2013 are: NW is $65,000 per acre or $7,597,000 116.87 acres, rounded) SW 20-17-20-W2M is $51,000 per acre or $4,458,000 87.41 acres, rounded) STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: 1.1 1.2 We have assumed that: the legal descriptions of the titles are correct the land surveys and acreages as supplied by Saskatchewan Land Titles Registry are correct. No legal surveys on our part were made, and we assume no responsibility in this connection the titles are good and marketable and that there are no encroachments, encumbrances, restrictions, leases or covenants that would in any way affect the valuation, except as expressly noted herein. Any charges registered against the subject properties are outlined within the photocopies of the Certi?cates of Title contained within Appendix VI of this report. there are no hidden 01' unapparent conditions of the properties or subsoil that would render them more or less valuable and no responsibility is assumed for such conditions or engineering that might be required to discover these factors the subject properties comply with government regulations including zoning, building codes and health regulations Per the terms of reference, we performed only roadside/driveway inspection of the subject properties and the owners of the subject property were not contacted. Unless otherwise stated in this report, the appraiser has no knowledge of any hidden or unapparent conditions of the properties (including but not limited to the soils, physical structure, etc.) or adverse environmental conditions (on them or a neighbouring property, including the presence of hazardous wastes, toxic substances, etc.) that would make the properties more or less valuable. It has been assumed that there are no such conditions unless they were observed at the time of inspection or became apparent during the normal research involved in completing the appraisal, in which case they would be noted in this report. This report should not be construed as an environmental audit or detailed property condition report, as such reporting is beyond the scope of this report and/or the quali?cations of it; VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 26 appraisers. The authors make no guarantees or warranties, express or implied, regarding the condition of the properties, and will not accept any responsibility for any such conditions that may exist or for any engineering or testing that might be required to discover whether such conditions exist. The bearing capacity of the soils is assumed to be adequate. If the party relying on this report requires information about environmental issues, then that party is cautioned to retain an expert quali?ed to address such issues. We expressly deny any legal liability relating to the effect of environmental issues on the market value of the subject properties. 1.4 Market data has been obtained from documents registered at Saskatchewan Land Titles Registry, Farmland Securities, or as reported by the local real estate board. In addition to relying on such documented and generally reliable evidence of market transactions, it was also necessary to rely on hearsay evidence. Except as noted herein, a reasonable attempt has been made to verify all such information. l.5 Information furnished by others and used in preparation of this appraisal report has been cross-checked wherever possible during the course of the appraisal and is assumed to be accurate. All estimates and/or opinions of value contained herein are stated in terms of Canadian Dollars, and are expressed in terms of cash or in terms of ?nancial arrangements equivalent to cash. 1.7 We reserve the right to review all information, data, assumptions, understandings and calculations included or referred to in this report and, if we consider it necessary, to revise our conclusions and/or opinion(s) in light of any new facts or conditions which, unknown to us, existed at any time prior to 01' at the date of issuance of this report, but which become known to us subsequent to the date of this report. 1.8 Because market conditions; including economic, social and political factors, change rapidly and on occasion without warning, the market value estimate expressed as of the date of this appraisal cannot be relied upon as of any other date except with 5' further advice from the appraisers and con?rmed in writing. VERTEX 1.9 1.10 [.11 OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 27 Maps and aerial photographs are included in the Appendix of this repOrt only to act as aids in interpretation of the appraisal, and no attempt has been made by the appraisers to verify the accuracy of these. The use and application of this appraisal report is reserved for Vertex and Global Transportation Hub and its use is limited to the speci?c purpose and function stated within Sections and respectively. Liability is expressly denied to any other person or entity. Possession of this report, or a copy thereof, does not carry with it the right of publication. All cepyright is reserved to Canadian Resource Valuation Group Inc. (CRVG) and is considered con?dential as between CRVG, Vertex and Global Transportation Hub. However, this report may be disclosed to the owner of the subject properties for the purpose of negotiations for possible acquisition/disposition of the lands, however, this disclosure does not void the copy right and does not permit any further distribution, in hard copy or digital format, to any other person(s) or entities. Subject to the above this report cannot be disclosed, quoted from or referred to, in whole or in part, or published in any manner without the express written consent of CRVG. VERTEX OCTOBER 2013 GLOBAL TRANSPORTATION HUB PAGE 28 J. CERTIFICATION AS TO THIS APPRAISAL REPORT We certify that, subject to the limiting conditions and assumptions, to the best of our knowledge and belief: J.l J.2 1.3 1.4 J.5 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 limiting conditions, and are our personal, impartial and unbiased professional analyses, opinions and conclusions we have no present or prospective interest or bias in respect of the properties that are the subject of this report, and we have no personal interest or bias with respect to the parties involved our engagement in and compensation for this assignment are not contingent upon developing or reporting predetermined results, the amount of our value estimates, or any particular conclusion stated herein the reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and the Uniform Standards of Professional Appraisal Practice of the Appraisal Institute of Canada. we have the knowledge and experience necessary to complete this assignment competently as of the date of this report the undersigned has ful?lled the requirements of ?The Appraisal Institute of Canada Continuing Professional Development Program? for its designated members and candidate members as of the date of this report the undersigned remained licensed as a Real Estate Appraiser, pursuant to the licensing requirements of the Real Estate Act of the Province of Alberta 24(1)(k) completed a roadside inspection of the subject properties and performed background research and assisted in the preparation of this report; however, all opinions expressed herein are those of 24(1 - 24(1 did not inspect the subject properties but for the preparation of this report provided direction to the above consultant, reviewed this report and the background material where necessary, and was involved in the determination of the ?Market Value? stated herein. THIS REPORT IS NOT TO BE COPIED DISTRIBUTED BEYOND VERTEX AND GLOBAL TRANSPORATATION HUB WITHOUT PRIOR WRITTEN CONSENT FROM CANADIAN RESOURCE VALUATION GROUP INC. In our opinion, subject to the limiting conditions and assumptions outlined herein, the Market Value of the Fee Simple Estates of the herein described subject properties as at September 26, 2013,.are: NW 20-17-20-W2M $65,000 per acre or SEVEN MILLION FIVE HUNDRED NINETY 24(1Xk) SEVEN THOUSAND DOLLARS ($7,597,000) SW $5l,000 per acre or FOUR MILLION FOUR HUNDRED FIFTY EIGHT THOUSAND DOLLARS ($4,458,000) V0 APPENDICES REGIONAL MAP ..I AREA MAP .. 11 CITY OF REGINA DEVELOPMENT PLAN MAP .. 111(3) CITY OF REGINA LAND USE BYLAW MAP AERIAL PHOTOGRAPHS .. IV PHOTOGRAPHS OF SUBJECT PROPERTIES .. COPLES OF LAND TITLES REGISTRY TITLES .. VI PROFESSIONAL RESUME OF JOHN F. WASMUTH ..VII PROFESSIONAL RESUME OF G. YORKSTON .. . Lucky a 7 Lake Cram Isiand new ..Bu1 93 - Aylesbury: Hotdfast.. Alice Beach 3 Mammal? a 03:3qu each)r - :Rtvernurst ?Tugaske IWee Too E??-Gn?oumey Par aupmn - ha be Ey??m dam; we Kannala quL I Centrm- . Findlatet? .I jivalley Shan?alcarres" Butte Brownies North VISIB'Sasl-talchewan Beach Lemar "Ahemen Lumsden Beacn Beaver: Keeley" ?vae ?-Belhune 'v Lamberg lValley, Flat Maquis Lake Dli-?EYSden . {Even EdemwI -. District wan-Ey- - of Katepvfa . Tmord . QU?Appelle Rush {phapi'n Momach ?pamnport (33:2: Regina McLean Simaluta u-Lake 7 Belle - orse =Waldeck . Flame: zpe?sa? 5?"9 Current Moose Vibank '5 _Drinkwater ?Odessa gKendal I 31: I1 Shamrom - -. a . 1" Hodgevme 0 we? Bnerctesl Wilcox ll mm [.0le .. Elana-Sa- sedl?y Moni?wame Neville I . . - - Milestone? D0529.95- Mossbank Lancg I .- Graueibourg . I ?Filmore Creelrnan? CijlIaI?T-Pontak: rYellowc?Grass r. . Hazegmore . McTaggade La?eche? - . . We burn . . Kincaid Pam-imam I. .. 3? SloL Vang uarci Assinibora REGIONAL MAP APPENDIX I AREA MAP APPENDIX Index #1 1h . huquu gm with '25- \mu?uli I aunt-I. uqu rquI-l "Eu- 71?4- ll 1n Subject Properties a'vil 4-. I rt w-TI-?CITY OF REGINA DEVELOPMENT PLAN MAP APPENDIX MAP 2.3: POTENTIAL LONG TERM GROWTH AREAS LEGEND 1RESIDENTIAL GROWTH .- 1 INDUSTRIAL GROWTH -- - I i EXISTING CITY LIMITS 1? t? ?5 - IPSCO Butter Lands Light Industrial 34 ha. by 2031 LEE-S - - 2: x. 5 manJWQAE East at Floss lndust?at Park a Mixed lndUStrial I j, . p, 6' t4?26ha.by2031 - 3 I. West Industrial Lands ?9 Light and Medlum Industrial 59? ha. by 2031 . .. . gt 4 3?'Ik?a laxbject Properties 4?Alrpon Abunan Lands 1 I at Light Industrial ?o 2? 80 ha. by 2031 magi-'93" City of Regina - 10 Revised January 201 1 Planning Sustainability Policy Plan Bylaw 2006-1 1687 SW LP SE CITY OF REGINA LAND USE BYLAW MAP APPENDIX 11100?) 1888 b' Jec roper a UH 5w 2u?n?2o?m RR NW I NE 13-4; Lao?m NW REVISED Date Jm'g 25. 20? Bylaw No. 2011?42 City of Regina I REGINA fr?HHr Planning 8.: Sustainability Department 0 50 100 200 500 Scale: Me [res ZONING MAP 1887 CITY OF REGINA LAND USE BYLAW MAP APPENDIX 1689 1889 NW WE 5w 19?11?20?w.2 REWSED Daie .1qu 25, 201! Bylaw N0. 2011?42 NE 17- ED--W.2 LP Subject Properties SE NW 2r1?n?20?h?r2 UH UWTS 1887 SW 20- CityofRegina I REGINA ?ml:un Planning 8.: Department 0 50 um 2m) 500 Scale: HE Lres 2088 ZONING MAP 1888 AERIAL PHOTOGRAPHS APPENDIX IV NW . I . w~ .361. . - Ill'n. SW 20-17-20-W2M -- . .. - SUBJECT PROPERTY PHOTOGRAPHS OF SUBJECT PROPERTIES APPENDIX (3) (Taken September 26, 2013) NW NW CORNER LOOKING SOUTH ALONG CONDIE ROAD IT OF WAY NE CORNER LOOKING SOUTH PHOTOGRAPHS OF SUBJECT PROPERTIES APPENDIX (Taken September 26, 2013) NW NE CORNER LOOKING WEST DOWN SECONDARY HIGHWAY #730 NE CORNER LOOKING SOUTHWEST PHOTOGRAPHS OF SUBJECT PROPERTIES (Taken September 26, 2013) SW APPENDIX SW CORNER LOOKING NORTHEAST SW CORNER LOOKING NORTHEAST PHOTOGRAPHS OF SUBJECT PROPERTY APPENDIX (Taken May 16,2013) SW 20-17-20-W2M TAKEN FROM CENTRAL EAST BOUNDARY 0F SE 20-17-20-W2M LOOKING WEST AT SUBJECT PROPERTY NOTE: INTERCHANGE MOUNDS IN BACKGROUND SITUATED ON EAST SIDE OF SW TAKEN FROM THE SW CORNER OF SW 20-17-20-W2M - ZOOMED INTO DIRT MOUNDS FOR FUTURE BYPASS ON EAST SIDE OF SW 20-17-20-W2M NOTE (SAME INTERCHANGE MOUNDS) Title Detail Page 1 of 4 APPENDIX VI Province of Saskatchewan Land Titles Registry Title Title 143310912 As of: 28 Aug 2013 09:40: 14 Title Status: Active Last Amendment Date: 06 Mar 2013 13:30:25.287 Parcel Type: Surface Issued: 26 Feb 2013 16:11:43.920 Parcel Value: $9,818,588.00 CAD Title Value: $9,818,588.00 CAD Municipality: CITY OF REGINA Converted Title: 96R32979 Previous Title and/or Abstract 139832927 101225232 SASKATCHEWAN LTD. is the registered owner of Surface Parcel #165025414 Reference Land DescriptionExtension 1 This title is subject to any registered interests set out below and the exceptions, reservations and Interests mentioned in section 14 of The Land Titles Act, 2000. Registered Interests: Interest 161956244 CNV Easement Value: Reg'd: 29 Aug 1978 02:10:43 Interest Register Amendment Date: Interest Assignment Date: 18 Jan 2012 10:23:14 Expiry Date: Holder: TRANSGAS LIMITED 1000 - 1777 VICTORIA AVENUE REGINA, SK, Canada S4P 4K5 Client 100399484 Int. Register 101206224 Converted Instrument 78R42753 Feature 100035098 Interest 161956255 CNV Easement Value: Reg'd: 05 Oct 1979 02:12:29 Interest Register Amendment Date: Interest Assignment 3 1091 28/08/201 3 Title Detail Page 2 of 4 Date: Expiry Date: Holder: KINDER MORGAN COCHIN ULC 1500 1874 SCARTH STREET REGINA, SK, Canada S4P 4E9 Client 100407642 Int. Register 101206235 Converted Instrument 79R48704 Feature 999999 Interest 161956266 Public Utility Easement Value: Reg'd: 16 Aug 2010 11:10:20 Interest Register Amendment Date: Interest Assignment Date: Expiry Date: Holder: Petroleum Transmission Company P.0. Box 11162, Suite 1100, 1055 West Georgia Street Vancouver, British Columbia, Canada V6E 3R5 Client 100939901 Int. Register 116678706 Interest 161956277 Pipelines Act - Easement Value: Reg'd: 22 Dec 2010 14:19:31 Interest Register Amendment Date: Interest Assignment Date: Expiry Date: Holder: Kinder Morgan Cochin ULC #68 BO Chippewa Road Sherwood Park, Alberta, Canada T8A 4W6 Client 121164397 Int. Register 117048078 Interest 161956288 Public Utility Easement Value: Reg'd: 07 Feb 2011 11:43:49 Interest Register Amendment Date: Interest Assignment Date: 3 1091 28/08/2013 Title Detail Page 3 of 4 Expiry Date: Holder: Petroleum Transmission Company P.O. Box 11162, Suite 1100, 1055 West Georgia Street Vancouver, British Columbia, Canada V6E 3R5 Client 100939901 Int. Register 117140442 Interest 161956312 Mortgage Value: $6,081,725.00 CAD Reg'd: 26 Feb 2013 16:11:48 Interest Register Amendment Date: Interest Assignment Date: Expiry Date: Holder: CONEXUS CREDIT UNION 2006 P.O. Box 1960 Stn. Main REGINA, Saskatchewan, Canada S4P 4M1 Client 102031591 Int. Register 118991841 Interest 161956334 Assignment of Rents Value: Reg'd: 26 Feb 2013 16:11:49 Interest Register Amendment Date: Interest Assignment Date: Expiry Date: Holder: CONEXUS CREDIT UNION 2006 P.O. Box 1960 Stn. Main REGINA, Saskatchewan, Canada S4P 4M1 Client 102031591 Int. Register 118991863 Addresses f9: Service: Name Address Owner: 101225232 SASKATCHEWAN LTD. 116 ALBERT STREET REGINA, SK, Canada 54R 2N2 Client 128333202 Notes: Parcel Class Code: Parcel (Generic) 091 28/08/2013 Title Detail Page 4 of 4 1091 28/ 08/20 1 3 Title Detail Page 1 of 2 APPENDIX VI Province of Saskatchewan Land Titles Registry Title Title 143310473 As of: 28 Aug 2013 09:42:58 Title Status: Active Last Amendment Date: 06 Mar 2013 13:30:25.453 Parcel Type: Surface Issued: 26 Feb 2013 16:10:03.930 Parcel Value: $6,264,954.00 CAD Title Value: $6,264,954.00 CAD Municipality: CITY OF REGINA Converted Title: 99RA25307 Previous Title and/or Abstract 141187653 101225232 SASKATCHEWAN LTD. is the registered owner of Surface Parcel #166005862 Reference Land DescriptionExtension 2 This title is subject to any registered interests set out below and the exceptions, reservations and interests mentioned in section 14 of The Land Titles Act, 2000. Registered Interests: Interest 161955119 CNV Easement Value: Reg'd: 29 Aug 1978 01:11:15 Interest Register Amendment Date: Interest Assignment Date: 18 Jan 2012 10:18:16 Expiry Date: Holder: TRANSGAS LIMITED 1000 - 1777 VICTORIA AVENUE REGINA, SK, Canada S4P 4K5 Client 100399484 Int. Register 101206246 Converted Instrument 781242754 Feature 100035098 Interest 161955120 CNV Easement Value: Reg?d: 03 Dec 1999 00:47:08 Interest Register Amendment Date: Interest Assignment 3 28/08/2013 Title Detail Page 2 of 2 Date: Expiry Date: S'ly 7.5 metres Holder: Saskatchewan Telecommunications 13th Floor, 2121 Saskatchewan Drive Regina, Saskatchewan, Canada S4P 3Y2 Cllent 100006861 Int. Register 101206257 Converted Instrument 99RA28285 Adgtegges for Semigg: Name Address Owner: 101225232 SASKATCHEWAN LTD. 116 ALBERT STREET REGINA, SK, Canada 54R 2N2 Client 128333202 Notes: Parcel Class Code: Parcel (Generlc) D/tps/ scripts/1? 433 1 28/08/201 3 PROFESSIONAL RESUME APPENDIX VII 24(1)(k) Academic Qualifications and Continuing Professional Development (CPD) 24(1)(k) Memberships 24(1)(k) Professional Activities 24(1)(k) CANADIAN RESOURCE Career Experience 2 4(1 1979-199] 1978 - 1979 1974 - 1978 Prior to 1974 Appraisal Assignments 24(1)(k) .- .- .. '3 RCF Assessments of Agricultural Losses 24(1)(k) Selected Studies Technical Reports 24(1)(k) Prepared a number of papers and presentations involving the following topics: CANADIAN INC. APPENDIX Vll] PROFESSIONAL RESUME 24(1)(k) A. Academic Quali?cations and Continuing Professional Development B. Professional Institute and Association Memberships/Licenses 24(1)(k) C. Career Development 24(1)(k) CANADIAN RESOURCE GROUP IVE Page on ?54(1 D. Professional Experience 24(1)(k) Consulting Assignmel? CANADIAN RESOURCE VALUATION GROUP INC. Page 2 of2