Derby North Gateway TIF District Feasibility Study

MEMORANDUM
TO: Sedgwick County Finance Division Staff

FROM: Tom Kaleko, Senior Vice President/Client Representative
Tom Denaway, Analyst

DATE: March 29, 2013

SUBJECT: Sedgwick County tax increment finance policy minimum data requirements

The purpose of this memorandum is to outline the location of the minimum data requirements, as specified by the
Sedgwick County Tax Increment Finance Policy, within the Derby North Gateway TIF District Financial Feasibility
Study.

Minimum Data Requirements Location
Legal description and district map
The legal description is in Exhibit V
Map of TIF district is in Exhibit I.
Existing assessed valuation and list of owners Parcel listing in Exhibit VI
Existing zoning classifications and proposed land
uses
Zoning map in Exhibit IX
No proposed changes in land use
Description of proposed project
Section 3 describes projects
Section 5 outlines public improvements to be funded
Market feasibility
Exhibit VII indicates how district will be timed to coincide with
market support
Private pro forma Not applicable
Public sources and uses
Section 4 outlines the analysis of public funding
Exhibits II and II illustrate assumptions and annual projections
Section 5 outlines proposed public uses
Exhibit IV illustrates annual debt-service
Evidences of private funding
Exhibit VII indicates how district will be timed to coincide with
market support
Description of expanding municipal services Exhibit VII

Springsted Incorporated
9229 Ward Parkway, Suite 104N
Kansas City, MO 64114-3311
Tel: 816-333-7200
Fax: 816-333-6899
www.springsted.com

Redevelopment Project Financial Feasibility Study
Derby North Gateway TIF District
City of Derby, Kansas
March 29, 2013

1 OVERVIEW ...................................................................................... 1
2 GENERAL DESCRIPTION OF TAX INCREMENT ...................................... 3
3 PROJECT DESCRIPTION ................................................................... 4
4 PROJECTED REVENUES (BENEFITS) .................................................. 6
5 PROJECTED EXPENDITURES (COSTS) ................................................ 8
6 CONCLUSIONS ................................................................................ 9
MAP OF PROPOSED REDEVELOPMENT DISTRICT & PROJECT ............ EXHIBIT I
TIF DISTRICT AND REDEVELOPMENT
PROJECT AREA ASSUMPTIONS ........................................................... EXHIBIT II
PROJECTED PROPERTY TAX INCREMENT ......................................... EXHIBIT III
BOND PROJECTIONS ......................................................................... EXHIBIT IV
LEGAL DESCRIPTION .......................................................................... EXHIBIT V
PARCEL LISTING ................................................................................ EXHIBIT VI
MARKET FEASIBILITY STATEMENT .................................................. EXHIBIT VII
DESCRIPTION OF EXPANDED MUNICIPAL SERVICES ....................... EXHIBIT VIII
ZONING MAP ...................................................................................... EXHIBIT IX
BLIGHT STUDY .................................................................................... EXHIBIT X

Mission Statement
Springsted provides high quality, independent financial
and management advisory services to public
and non-profit organizations, and works with them
in the long-term process of building their communities
on a fiscally sound and well-managed basis.

Table of Contents
Introduction 1

City of Derby, Kansas. Redevelopment Project Financial Feasibility Study.
1. Introduction
The City of Derby, Kansas is proposing creation of a tax increment financing
(TIF) district as a means to fund public road improvements. Specifically,
realignment of Nelson Drive to the east, allowing it to intersect East Patriot
Avenue aligned with the private roadway serving the existing Lowes/Kohls
development. This Redevelopment Project Financial Feasibility Study has been
prepared to meet the requirements of state statute which are described below
and to assist the impacted taxing districts in consideration of this proposed
financing district.

Statutory Basis and Process
Sections 12-1770 through 12-1780 of the Kansas Statutes ("the Act") provide a
means for cities to finance public development and redevelopment costs
through tax increment financing. The purpose of the Act is to "promote,
stimulate and develop the general and economic welfare of the State of Kansas
and its communities and to assist in the development and redevelopment of
eligible areas within and without a city thereby promoting the general welfare
of the citizens of this state

A city may exercise the powers conferred under the Act by approval of an
ordinance adopting a plan (the District Plan) which describes the boundaries
of the specific area to be developed or redeveloped and the types of
improvements to occur. Prior to adoption of the District Plan, the city must
pass a resolution setting a public hearing and finding that the specific area
sought to be developed or redeveloped (the Redevelopment District or
District) is an eligible area under the Act.

One or more redevelopment projects (the Redevelopment Project or
Project) may be undertaken within each District. For each Redevelopment
Project undertaken within the District, a project plan ("the Project Plan") must
be prepared in consultation with the controlling planning commission. The
Project Plan must include the following:
1. A summary or copy of the Financial Feasibility Study (this document).
2. A reference to the District Plan for the District.
3. A description and map of the area to be redeveloped.
4. A Relocation Assistance Plan.
5. A detailed description of all buildings and facilities proposed to be
constructed or improved.
6. Any other information the city deems necessary to advise the general
public of the intent of the Project Plan.

The Act requires all Projects to be completed within 20 years from the date of
the approval of a Project Plan, with the exception of environmental
investigation and remediation projects which must be completed within 20
Introduction 2

years from the date the city enters into a consent decree with the Kansas
Department of Health and Environment or the U.S. Environmental Protection
Agency.

The Financial Feasibility Study must show that: a) the Projects benefits, tax
increment revenue, and other available revenues under K.S.A. 12-1774(a)(1)
are expected to exceed or be sufficient to pay for all Project costs as defined by
K.S.A. 12-1773, including the payment of principal and interest of debt used to
finance the redevelopment project; and b) the effect, if any, the redevelopment
project costs will have on any outstanding special obligation bonds payable
from the revenues described in K.S.A. 12-1774(a)(1)(D).

General Description of Tax Increment 3

2. General Description of Tax Increment
Tax increment generated within the proposed Project Area will consist only of
ad valorem property tax revenues. The Project will not redirect any portion of
the sales tax increment. Therefore, this summary description of how tax
increment is calculated and captured to fund redevelopment project costs
addresses only the property tax increment.

Upon establishment of a Redevelopment District, the total assessed valuation of
all taxable real estate within the District is determined. This valuation is
referred to as the District's "Base Year Assessed Valuation." Property taxes
attributable to the District's Base Year Assessed Valuation are annually
collected and distributed by the county treasurer to the appropriate city, county,
school district and all other applicable taxing jurisdictions in the same manner
as other property taxes.

As new development occurs within the Redevelopment District, the total
assessed valuation of the District in any given year will presumably exceed its
Base Year Assessed Valuation. The real property taxes attributable to this
increase in valuation above the Base Year Valuation represents the tax
increment that will be utilized by the District to pay eligible project costs. All
tax increment collected by the county and distributed to the city is deposited
into a segregated fund established solely for that purpose.

Tax increment funds may only be used to pay for specified eligible project
costs, including principal and interest on debt used, in whole or in part, to
finance projects within a Redevelopment Project. Such debt includes notes,
special obligation bonds, full faith and credit tax increment bonds, and other
debt instruments. Tax increment also may be paid to a developer/owner over
time as reimbursement for eligible costs incurred up-front. This payment
mechanism is commonly referred to as pay-as-you-go financing and may
include not only the principal amount of such costs but also all or a portion of
the interest accrued thereon.

Project Description 4

3. Project Description
The City of Derby is initiating the creation of the proposed TIF District. The
Derby North Gateway TIF District consists of 37 individual parcels of land
located largely on the south side of East Patriot Avenue, and bordered by K-15
Highway on the west and North Buckner Street on the east. The boundaries of
the TIF District are illustrated in Exhibit I. The District Plan which will be
proposed provides for the inclusion of a single Project Area with boundaries
coterminous to the Redevelopment District.

The City anticipates realignment of Nelson Drive within the TIF District in
conjunction with private development consisting of construction of a Menards
home improvement store and creation of 6 pad-ready development sites
adjacent to the Menards. The proposed Menards and commercial pad sites will
be classified as commercial and have a statutory property classification rate of
25.0%. Menards has previously acquired its development site. The City
intends to acquire the property necessary to accommodate the realignment of
Nelson Drive as part of the Redevelopment Project.

Realignment of Nelson Drive is anticipated to provide the following benefits to
the community and to the participating taxing entities.
Improved traffic safety through the realignment of Nelson Drive to the
east. The current intersection alignment has northbound and
southbound approaches which are slightly offset. This particular
alignment has led to right-of-way confusion and resulted in dangerous
traffic conditions. A traffic study determined that during the 40-month
period preceding the study, there were 22 accidents at the intersection.
Of these accidents, 3 were rear-end crashes, 4 were left-turn crashes,
and 15 were right-angle collisions. According to the traffic study,
right-angle collisions are of particular concern as they tend to be of
higher severity. The traffic study indicated this intersection has a
higher crash frequency than the rest of the Nelson Drive corridor,
which averages between 4 and 11 crashes per year. The realignment of
Nelson Drive will alleviate the traffic issues caused by the intersection
alignment.
Reinvestment in the Project Area and strengthening of the local
economy. Currently, the west half of the Project Area has excellent
visibility from highway K-15, but very poor access. As a result, the
Area has seen very little investment since buildings were constructed in
the 1950s through 1970s. Improved access is essential to the
proposed Menards project and will likely result in additional
development and redevelopment in the balance of the Project Area.
Transformation of a major community gateway. As this area is
improved through redevelopment and reinvestment, it will improve the
appearance of a major community entry. It is estimated that
approximately 21,000 cars per day pass the site along K-15.

Project Description 5

Based on the 2012 assessment, the total Base Year Fair Market Valuation of the
Redevelopment Area is $4,951,370, while the total Base Year Assessed
Valuation is estimated at $888,210, (see Exhibit VI for individual parcel
details).

Springsted has prepared post-development market value projections for the
Menards store for the purpose of calculating future TIF property tax revenues.
The market value projections for the proposed Menards store were based on a
review of comparable Menards stores located within Sedgwick County. Based
on these comparable projects, we have assumed a building size of 165,426
square feet and a per square foot market value of $46.65 (excluding the value of
the underlying land). These assumptions result in an increased fair market
value of $7,717,123 and an increased assessed value of $1,929,281 resulting
from the Menards development. We have assumed the value of the Menards
store will be added to the tax rolls over a 2-year period, with construction
estimated to occur over an approximately 18-month timeline.

To be conservative, our revenue projections are based on development of the
Menards building only. No additional market value growth was projected for
the 6 pad sites adjacent to the Menards building, nor any additional market
value growth on the remaining parcels located within the District.

Utilizing these assumptions, we estimate that the Project Areas total fair
market value upon project completion in 2015 (assessed January 1, 2016) at
$12,668,493. The fair market value equates to an assessed valuation of
$2,817,491. The property tax increment generated in any given year will be
determined by the increase in Current Assessed Valuation over the Base Year
Assessed Valuation (value as of January 1, 2013). It is assumed that the City
will initiate the Redevelopment Project in January of 2014.

The existing zoning classifications for land within the District is a mix of B-5
(Restricted Commercial, Warehousing, and Limited Manufacturing District)
and B-3 (General Business District). The City does not anticipate any changes
to current land uses, beyond the transition from currently vacant land into
commercial use. The zoning is projected to remain the same.

Projected Revenues (Benefits) 6

4. Projected Revenues (Benefits)

Tax Increment Revenue Base Assumptions
Base Appraised value of $4,951,370
Base Assessed value of $888,210
Current Assessment Rates assumed constant over term
Post Development Total Appraised Value of $12,668,493
Post Development Assessed value of $2,817,491
Incremental Appraised Value Growth of $7,717,123
Incremental Assessed Value Growth of $1,929,281
2012/2013 Mill Rate total 138.455, with TIF Eligible rate of 116.945
assumed constant over term
No market value inflation assumed

Increased Assessed Value
The City has the ability to use up to 100% of the property tax increment
generated by the Project Area based on its increase in Current Assessed
Valuation over its Base Year Assessed Valuation, as is illustrated below for the
Project Area at full assessment in 2016.

Project Area
Projected Total
Fair Market
Value
(1/1/2016)

Class/Rate
Projected Total
Assessed
Value
(1/1/2016)

$7,717,123 New Commercial Development $1,929,281
$4,951,370 Existing Value $ 888,210
Original Assessed Value ($ 888,210)

Increased Assessed Value $1,929,281

Exhibit II (TIF District and Redevelopment Project Area Assumptions)
details many of the assumptions used in the projection of values and tax
increment for the Project Area. Column 6 in Exhibit III (Projected Property
Tax Increment Revenue) shows the projected increased assessed valuation of
the Project Area over the maximum duration of the District.

Property Tax Rates
In order to determine the amount of tax increment generated by the Project
Area in any given year, the increased assessed value must be multiplied by the
sum of the tax rates for all TIF-applicable tax authorities for that year. For
taxes levied in 2012 and payable in 2012/2013, this total TIF-applicable rate is
Projected Revenue (Benefits) 7

116.945 mills. We assume this rate remains fixed throughout the term of the
District.

The Unified School District 260 tax rate does not include the general
20.00 mills collected by the State as this is not TIF Eligible. Includes
levy for the Derby Recreation Commission (DRC).

Projected Property Tax Increment
The projected tax increment generated for the Project Area over a 20-year
period is shown in column 9 of Exhibit III (Projected Property Tax Increment
Revenue). If the Redevelopment Project is approved by the City in early 2014,
it would be eligible to receive increment in 2014/2015 through the second-half
2033/2034 collection. The tax increment projections are based on Base Year
Assessed Valuations, increased assessed valuations, and tax rates as previously
discussed. It is assumed in all years of the report that 100% of property taxes
are paid when due. The total property tax increment projected for the Project
Area is $4,173,965.

City Administration
The City will not retain tax increment for costs of administering the District.

Jurisdiction
TIF Eligible
Mill Rate
(2012/2013)

City of Derby 47.153
Sedgwick County 29.447
Cemetery District 1.040
USD 260
*
39.305
Total 116.945
Projected Expenditures (Costs) 8

5. Projected Expenditures (Costs)
The Redevelopment Project will fund eligible project costs of $2,050,000 to
realign Nelson Drive within the Project Area. The public improvement costs
have the following line-item breakdown:

Public Improvement Costs
Line-Item Amount
Nelson Drive Realignment Construction $1,100,000
Nelson Drive Realignment Land
Acquisition
$ 500,000
Drainage Improvements $ 350,000
Landscaping $ 100,000
Total Cost $2,050,000

The City intends to fund these project costs through up-front financing of
approximately $2,215,000 ($2,050,000 in estimated public improvement costs,
and approximately $165,000 in transaction costs and capitalized interest).
Financing is anticipated to be in the form of general obligation TIF revenue
bonds with the debt service to be paid from tax increment generated by the
Redevelopment Project.

The bond issuance is likely to result in the payment of principal of $2,215,000
and interest of $438,220, for total debt service of $2,653,220. The final form,
amount and timing of the financing may differ from these terms, but this
methodology was used for purpose of forecasting Project feasibility. The bond
principal and interest payments of $2,653,220 represent the total costs to be
reimbursed by TIF revenues generated by the Project Area.

The projected total property tax TIF revenue of $4,173,965 generated by the
Project Area is sufficient to cover this total cost of $2,653,220. Based upon
current projections, bonds issued to fund project costs are anticipated to be
repaid over a period of 15-years. If the Project Area revenues are received at a
greater rate than currently projected, it is the Citys intention to accelerate
repayment of the assumed debt obligation, thereby hastening transfer of the
property tax increment to the affected taxing districts. Should the City
ultimately elect to secure the obligation with its full faith and credit (general
obligation) pledge, the City would be required to pay the bond debt service
from other legally available funds to the degree that tax increment was
insufficient.

Conclusions 9

6. Conclusions

Project Area Conclusions The Act requires that the Financial Feasibility Study demonstrate that a
Projects benefits and other available revenues are expected to equal or exceed
all Project costs.

The project benefits can be described in two forms: a) the amount of total
revenues and other contributions received over the 20-year term of the Project;
and b) the amount of project costs which can be financed by the revenues
received over the applicable term. This second category represents the
principal amount of bonds which may be supported by the future revenues plus
any other financial contributions.

The Project Area Costs, including estimated interest expenditures, are estimated
to be $2,653,220. Project Area revenues, specifically property tax increment,
through the second-half 2033/2034 collection are forecasted to be $4,173,965.
Given the assumptions and representations of the various parties to the process
and our analysis, this Feasibility Study concludes that the Project Area benefits
are sufficient to pay the Project Area costs.

The Act also requires a determination of the effect the redevelopment project
will have on any outstanding special obligation bonds. There are no
outstanding special obligation bonds that would be impacted by this
redevelopment project.

EXHIBIT I
MAP OF PROPOSED REDEVELOPMENT
DISTRICT & PROJECT AREAS

EXHIBIT II
TIF DISTRICT AND REDEVELOPMENT
PROJECT AREA ASSUMPTIONS

Exhibit II Page 1 of 2

Redevelopment Tax Increment Financing District
Sedwick Comp Scenario - 165,426SF - $46.65 psf value
Original Assessed Value (1/1/12) 888,210
TIF
2012/13 Mill Rates Total Applicable
State of Kansas 1.500 0.000
Sedgwick County 29.447 29.447
City of Derby 47.153 47.153
USD 260 (includes DRC) 39.305 39.305
USD 260 20.000 0.000
Cemetery District 1.040 1.040
Total 138.445 116.945
Assume fixed rate
Property TIF Inflation Rate: 0.00%
Sales Tax Inflation Rate: 0.00%

Exhibit II - Page 2 of 2

Sedgwick Comp Scenario - 165,426SF - $46.65 psf.
Property Tax Increment
Base and Current Values Appraised Assessed
Base - Assess January 1, 2012 4,951,370 888,210
Est. Base - Assess January 1, 2012 4,951,370 888,210
Assessment Rate: 25.00%
Project Components New Menards Building Existing Values Total Value
Estimated Square Footage 165,426
Estimated Appraised Value per SF
1)
$46.65
Total Appraised Value 7,717,123 4,951,370 12,668,493
Total Assessed Value 1,929,281 888,210 2,817,491
New Development Appraised
2)
Total Value
January 1, 2013 0%
January 1, 2014 0%
January 1, 2015 50%
January 1, 2016 100%
Estimated Appraised Value Total Value
January 1, 2013 4,951,370
January 1, 2014 4,951,370
January 1, 2015 8,809,931
January 1, 2016 12,668,493
Estimated Assessed Value Total Value
January 1, 2013 888,210
January 1, 2014 888,210
January 1, 2015 1,852,850
January 1, 2016 2,817,491
Tax Increment Total Original Captured
Assessed Assessed Assessed
Assess 20013/Distrib 2014 888,210 888,210 0
Assess 2014/Distrib 2015 888,210 888,210 0
Assess 2015/Distrib 2016 1,852,850 888,210 964,640
Assess 2016/Distrib 2017 2,817,491 888,210 1,929,281
NOTES:
1) Estimated commercial value of 165,426 square feet at a per square foot of $46.65 is based upon
size and value of existing Menards stores in Sedgwick County.
2) A one and one-half year construction period is assumed for the Menards store.
3) New Development value based only on Menards store construction. It is assumed that the
balance of the Redevelopment Area will remain at the Original Assessed Value.

EXHIBIT III
PROJECTED PROPERTY TAX
TIF REVENUE

Projected Property Tax Increment
Sedgwick Comp Scenario - 165,426SF - $46.65 psf value
(4) - (5)
Assess & Original TIF Increased Projected Projected Projected
TIF Tax Levy Tax Distrib. Total Assessed Assessed Property Tax Sales Tax Total
Year Year Year Assessed (a) Value Value Increment (b) Increment Increment
(1) (2) (3) (4) (5) (6) (7) (8) (9)
0 2012 2013 888,210 888,210 0 0 0
0 2013 2014 888,210 888,210 0 0 0 0
1 2014 2015 888,210 888,210 0 0 0 0
2 2015 2016 1,852,850 888,210 964,640 112,810 0 112,810
3 2016 2017 2,817,491 888,210 1,929,281 225,620 0 225,620
4 2017 2018 2,817,491 888,210 1,929,281 225,620 0 225,620
5 2018 2019 2,817,491 888,210 1,929,281 225,620 0 225,620
6 2019 2020 2,817,491 888,210 1,929,281 225,620 0 225,620
7 2020 2021 2,817,491 888,210 1,929,281 225,620 0 225,620
8 2021 2022 2,817,491 888,210 1,929,281 225,620 0 225,620
9 2022 2023 2,817,491 888,210 1,929,281 225,620 0 225,620
10 2023 2024 2,817,491 888,210 1,929,281 225,620 0 225,620
11 2024 2025 2,817,491 888,210 1,929,281 225,620 0 225,620
12 2025 2026 2,817,491 888,210 1,929,281 225,620 0 225,620
13 2026 2027 2,817,491 888,210 1,929,281 225,620 0 225,620
14 2027 2028 2,817,491 888,210 1,929,281 225,620 0 225,620
15 2028 2029 2,817,491 888,210 1,929,281 225,620 0 225,620
16 2029 2030 2,817,491 888,210 1,929,281 225,620 0 225,620
17 2030 2031 2,817,491 888,210 1,929,281 225,620 0 225,620
18 2031 2032 2,817,491 888,210 1,929,281 225,620 0 225,620
19 2032 2033 2,817,491 888,210 1,929,281 225,620 0 225,620
20 2033 2034 2,817,491 888,210 1,929,281 225,620 0 225,620
21 2034 2035 2,817,491 2,817,491 0 0 0 0
Totals $4,173,965 $0 $4,173,965
(a) Assumes TIF Project value will be assessed according to a 1.5-year completion schedule, with no inflation
(b) Assumes 100% collection of property taxes. Since TIF expenditures are limited to 20 years from City approval of Project estimated to occur January, 2014,
final collection would be second-half 2033 collection, distributed to City in January 2034. Assume 2012/2013 Mill Levy Rate held flat.

EXHIBIT IV
BOND PROJECTIONS

Exhibit IV - Page 1 of 3

$2,215,000
General Obligation Tax Increment Revenue Bonds, Series 2014
Market Comp - January 18, 2013
Sources & Uses
Dated 02/01/2014 | Delivered 02/01/2014
Sources Of Funds
Par Amount of Bonds..................................................................................................................................................................................... $2,215,000.00

Total Sources........................................................................................................................................................................................... $2,215,000.00

Uses Of Funds
Deposit to Project Construction Fund.................................................................................................................................................................... 2,050,000.00
Deposit to Capitalized Interest (CIF) Fund.............................................................................................................................................................. 94,055.68
Costs of Issuance....................................................................................................................................................................................... 40,000.00
Total Underwriter's Discount (1.200%).................................................................................................................................................................. 26,580.00
Rounding Amount......................................................................................................................................................................................... 4,364.32

Total Uses.............................................................................................................................................................................................. $2,215,000.00
Series 2014 GO TIF Bonds | SINGLE PURPOSE | 1/21/2013 | 3:49 PM


$2,215,000
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I Cap.Interest Net New D/S Revenue Surpls(Deficit)
12/01/2014 - - 42,750.68 42,750.68 (42,750.68) - - -
12/01/2015 - - 51,305.00 51,305.00 (51,305.00) - - -
12/01/2016 55,000.00 1.160% 51,305.00 106,305.00 - 106,305.00 112,810.00 6,505.00
12/01/2017 160,000.00 1.310% 50,667.00 210,667.00 - 210,667.00 225,620.00 14,953.00
12/01/2018 165,000.00 1.460% 48,571.00 213,571.00 - 213,571.00 225,620.00 12,049.00
12/01/2019 165,000.00 1.660% 46,162.00 211,162.00 - 211,162.00 225,620.00 14,458.00
12/01/2020 170,000.00 1.880% 43,423.00 213,423.00 - 213,423.00 225,620.00 12,197.00
12/01/2021 170,000.00 2.080% 40,227.00 210,227.00 - 210,227.00 225,620.00 15,393.00
12/01/2022 175,000.00 2.280% 36,691.00 211,691.00 - 211,691.00 225,620.00 13,929.00
12/01/2023 180,000.00 2.480% 32,701.00 212,701.00 - 212,701.00 225,620.00 12,919.00
12/01/2024 185,000.00 2.640% 28,237.00 213,237.00 - 213,237.00 225,620.00 12,383.00
12/01/2025 190,000.00 2.780% 23,353.00 213,353.00 - 213,353.00 225,620.00 12,267.00
12/01/2026 195,000.00 2.900% 18,071.00 213,071.00 - 213,071.00 225,620.00 12,549.00
12/01/2027 200,000.00 3.010% 12,416.00 212,416.00 - 212,416.00 225,620.00 13,204.00
12/01/2028 205,000.00 3.120% 6,396.00 211,396.00 - 211,396.00 225,620.00 14,224.00
12/01/2029 - - - - - - 225,620.00 225,620.00
12/01/2030 - - - - - - 225,620.00 225,620.00
12/01/2031 - - - - - - 225,620.00 225,620.00
12/01/2032 - - - - - - 225,620.00 225,620.00
12/01/2033 - - - - - - 225,620.00 225,620.00
12/01/2034 - - - - - - 225,620.00 225,620.00
Total $2,215,000.00 - $532,275.68 $2,747,275.68 (94,055.68) $2,653,220.00 $4,173,970.00 $1,520,750.00

SIGNIFICANT DATES
Dated................................................................................................................................................................................................... 2/01/2014
Delivery Date........................................................................................................................................................................................... 2/01/2014
First Coupon Date....................................................................................................................................................................................... 12/01/2014

Yield Statistics
Bond Year Dollars....................................................................................................................................................................................... $20,900.83
Average Life............................................................................................................................................................................................ 9.436 Years
Average Coupon..........................................................................................................................................................................................2.5466720%

Net Interest Cost (NIC)................................................................................................................................................................................. 2.6738440%
True Interest Cost (TIC)................................................................................................................................................................................ 2.6708111%
Bond Yield for Arbitrage Purposes....................................................................................................................................................................... 2.5249789%
All Inclusive Cost (AIC)................................................................................................................................................................................2.8945710%

Net Interest Cost in Dollars............................................................................................................................................................................532,275.68
Weighted Average Maturity............................................................................................................................................................................... 9.436 Years


$2,215,000
Coverage Ratio
Date Total Revenues Total D/S Coverage
12/01/2014 42,750.68 42,750.68 1.0000000x
12/01/2015 51,305.00 51,305.00 1.0000000x
12/01/2016 112,810.00 106,305.00 1.0611919x
12/01/2017 225,620.00 210,667.00 1.0709793x
12/01/2018 225,620.00 213,571.00 1.0564168x
12/01/2019 225,620.00 211,162.00 1.0684688x
12/01/2020 225,620.00 213,423.00 1.0571494x
12/01/2021 225,620.00 210,227.00 1.0732209x
12/01/2022 225,620.00 211,691.00 1.0657987x
12/01/2023 225,620.00 212,701.00 1.0607378x
12/01/2024 225,620.00 213,237.00 1.0580715x
12/01/2025 225,620.00 213,353.00 1.0574963x
12/01/2026 225,620.00 213,071.00 1.0588959x
12/01/2027 225,620.00 212,416.00 1.0621610x
12/01/2028 225,620.00 211,396.00 1.0672860x
12/01/2029 225,620.00 - -
12/01/2030 225,620.00 - -
12/01/2031 225,620.00 - -
12/01/2032 225,620.00 - -
12/01/2033 225,620.00 - -
12/01/2034 225,620.00 - -
Total $4,268,025.68 $2,747,275.68 -

EXHIBIT V
LEGAL DESCRIPTION
A tract of land located in the SE and the SW , Section 25, Township 28 South,
Range 1 East and in the NW , SW and the NE of Section 36, Township 28 South,
Range 1 E of the 6
th
Principal Meridian, Derby, Sedgwick County, Kansas, more
particularly described as:

Beginning at the southwest corner of Lot 3, Block C, Stone Creek Addition; thence west
150 to the southeast corner of Lot 1, Block A, Stone Creek Commercial Addition;
thence west along the south line of said Lot 1 and along the south line of Stone Creek
Commercial 3
rd
Addition to a point 10 feet east of the southwest corner of Lot 1, Block
A; thence north along a line 10 east of and parallel with the east right-of-way line of
Commerce Drive to the south line of reserve A as platted in Stone Creek Commercial
3
rd
Addition; thence west along the south side said Reserve A to the west line of Stone
Creek Commercial 3
rd
Addition; thence north along the west line of said Stone Creek
Commercial 3
rd
Addition to a point on said west line and 325 north of the south line said
Reserve A, thence west 70 to the east line of Stone Creek Commercial 2
nd
Addition;
thence south along the said east line to the south line of said Stone Creek Commercial
2
nd
Addition; thence west along said south line to a point on the easterly right-of-way
line of State Highway K-15; thence southeasterly on said right-of-way line to a point on
the S line of said Sec. 25, 188.61 feet, more or less, east of southwest Corner of said
Sec. 25; thence south 60 feet; thence west parallel with said south line 39.09 feet, more
or less, to a point on the extended westerly edge of the State Highway K-15 Frontage
Road pavement; thence southerly on said westerly edge of pavement, and westerly
edge of pavement extended to a point on the north line extended of Wal-Mart Addition
said point also being on the north line of the southwest Section 36, Township 28
south, Range 1E; thence east along north line of said Wal-Mart Addition extended to the
east line of State Highway K-15 right-of-way; thence east 233.82 feet, north 128.01 feet
and east 814.90 feet more or less, along the northerly line of said Wal-Mart Addition to a
point being 24.73 west of the northeast corner of said Wal-Mart Addition, said point also
being on the west line of Lot 20, Block 1, Old Ranch Addition; thence northerly 43.74
feet to the northwest corner of said Lot 20; thence east along the north line said Lot 20
to the west line of Duckcreek Lane; thence north along the west line of Duckcreek Lane
to the southeast corner of Lot 19, Block 1, Old Ranch Addition; thence west along south
line of said Lot 19 to the southwest corner said Lot 19; thence northeasterly along the
westerly line of Lots 6-19 inclusive to the north line of said Old Ranch Addition; thence
east along said north line and north line extended to a point being 40 east of the west
line of NE Section 36, T28S, R1E; said point being on the east right-of-way line of
Buckner Street; thence north along east right-of-way line of Buckner to the northwest
corner Lot 1, Block 1, Ridgepoint 4
th
Addition; thence north 150 to the point of
beginning.

EXHIBIT VI
PARCEL LISTING

Proposed TIF District Properties
Derby, KS
PropertyAddress Key#
Appraised
LandValue
Appraised
Improvement
Value
2012Total
Appraised
Value
Assessed
Land
Value
Assessed
Improvement
Value
2012Total
Assessed
Value
LegalDescription OwnerName OwnerAddress City State Zip Control#(PIN)
2433NBUCKNERST RIDY01349 $0 $103,900 $103,900 $0 $12,100 $12,100 COM955FTSOFNECORNW1/4THS407
FTWLY514.62FTN440.22FTELY514.28
FTTOBEGEXCRDONESEC36281E
MENARDINC
5101MENARDDRIVE
EAUCLAIRE WI 54703 346760
RIDY01343 $110 $0 $110 $33 $0 $33 LOT2BLOCK2 MENARDINC
5101MENARDDRIVE
5101MENARDDRIVE
RIDY01346 $60 $0 $60 $18 $0 $18 RESERVEB,OLDRANCHCOMMERCIAL
ADD.
MENARDINC
5101MENARDDRIVE
5101MENARDDRIVE
5101MENARDDRIVE
RIDY01345 $80 $0 $80 $24 $0 $24 RESERVEA,OLDRANCHCOMMERCIAL
ADD.
MENARDINC
5101MENARDDRIVE
5101MENARDDRIVE
5101MENARDDRIVE
5101MENARDDRIVE
5101MENARDDRIVE
5101MENARDDRIVE
RIDY01340 $1,270 $0 $1,270 $328 $0 $328 LOT7BLOCK1 MENARDINC
5101MENARDDRIVE
5101MENARDDRIVE
RIDY01361 $261,200 $0 $261,200 $31,344 $0 $31,344 LOT2EXCE214.48FTTHEREOFBLOCK1
MAYFIELDMINGEROLISONADD.
DERBYKANSASLLC
8515ENSLEYPLACE
LEEWOOD KS 66206 446496
325WPATRIOTAVE RI
DY01361000
1
$318,600 $77,700 $396,300 $79,650 $19,425 $99,075 E214.48FTLOT2BLOCK1
MAYFIELDMINGEROLISONADD.
BLTENTERPRISESLLC
1430E63RDSTS
WICHITA KS 67216 493272
401WPATRIOTAVE RIDY01587 $322,900 $0 $322,900 $0 $0 $0 LOT1BLOCKAPORTERADD. DERBYCITYOF
611MULBERRY
DERBY KS 67037 539862
407WPATRIOTAVE RIDY01588 $203,000 $161,930 $364,930 $0 $0 $0 LOT2BLOCKAPORTERADD. DERBYCITYOF
611MULBERRY
DERBY KS 67037 539863
RIDY01589 $324,400 $0 $324,400 $0 $0 $0 RESERVEAPORTERADD. DERBYCITYOF 611MULBERRY DERBY KS 67037 539864
2630NNELSONDR RIDY01378 $29,800 $6,600 $36,400 $7,450 $1,650 $9,100 BEG40FTS&963.94FTWNECORW1/2
NW1/4S312.64FTW161.08FTMLTOE
ROWLIK15HYNW181.70FTNE149.87
FTE132.67FTTO
MCGAUGHEYROBERTJ
&CAROLL
7508NANTUCKET
WICHITA KS 67212 465138
2636NNELSONDR RIDY01376 $47,800 $12,560 $60,360 $11,950 $3,140 $15,090 S108.50FTN208.5FTOFTRACTBEG40FT
S&963.94FTWNECORW1/2NW1/4S
312.53FTW161.08FTMLTOEROWLIK
15HWYTHNW181
BALDERASROBERTO
6125NBROADWAY
WICHITA KS 67219 464869
2624NNELSONDR RIDY01377 $25,400 $50,600 $76,000 $6,350 $12,650 $19,000 N100.9FTS208.6FTTRBEG40FTS&
963.94FTWNECORW1/2NW1/4S521.24
FTWTOK15NW395.32FTNE149.87FTE
132.61FTTOBEGE
PORTERWILLIAME&
CORINEE
645NMCLEAN
WICHITA KS 67203 464870
2012AppraisedValue 2012AssessedValue
3/21/2013
Proposed TIF District Properties
Derby, KS
PropertyAddress Key#
Appraised
LandValue
Appraised
Improvement
Value
2012Total
Appraised
Value
Assessed
Land
Value
Assessed
Improvement
Value
2012Total
Assessed
Value
LegalDescription OwnerName OwnerAddress City State Zip Control#(PIN)
2618NNELSONDR RIDY01375 $22,600 $64,130 $86,730 $4,125 $15,478 $19,603 S107.7FTOFTR.BEG40FTS&963.94FT
WNECORW1/2NW1/4S521.24FTW
115FTMLTOELIK15ROWNWLY395.32
FTNELY149.87
PORTERWILLIAME&
CORINEE
645NMCLEAN
WICHITA KS 67203 464868
2612NNELSONDR RIDY01373 $21,500 $12,780 $34,280 $5,375 $3,195 $8,570 S127.7FTOFTRBEG40FTS&870.99FT
WNECORW1/2NW1/4W84.66FTS
521.24FTE84.66FTN521.24FTTOBEG.
SEC3628
PORTERWILLIAME&
CORINEE
645NMCLEAN
WICHITA KS 67203 464865
2536NNELSONDR RIDY01608 $65,800 $8,730 $74,530 $10,054 $2,183 $12,237 LOT1PHILLIPSK15ADD PHILLIPSREALESTATE
LLC 1822SMEAD
WICHITA KS 67211 580269
2600NNELSONDR RIDY01609 $22,700 $0 $22,700 $5,675 $0 $5,675 RESERVEAPHILLIPSK15ADD PHILLIPSREALESTATE
LLC 1822SMEAD
WICHITA KS 67211 580270
2526NNELSONDR RIDY01363 $33,200 $2,660 $35,860 $5,427 $665 $6,092 LOT1BLOCKAK15INDUSTRIALPARK
ADD.
KUHNCO
POBOX44
DERBY KS 67037 446499
2524NNELSONDR RIDY01364 $36,400 $141,700 $178,100 $9,100 $35,425 $44,525 LOT2BLOCKAK15INDUSTRIALPARK
ADD.
KUHNCO
POBOX44
DERBY KS 67037 446500
2500NNELSONDR RIDY01365 $132,700 $68,970 $201,670 $27,104 $17,243 $44,347 BEG1197FTNSECORW1/2NW1/4W
869.09FTTOELIHYK15NW486.44FT
E977.64FTS476FTTOBEGEXCCCA
78971&EXC.10A
KEMMERERNANCYG
2500NNELSONDR
DERBY KS 67037 446501
2400NNELSONDR RIDY01355 $122,200 $589,430 $711,630 $28,903 $133,705 $162,608 LOT1BLOCKAKUHNEVANSADD. KUHNCO
POBOX44
DERBY KS 67037 446486
2300NNELSONDR RIDY01356 $112,000 $372,500 $484,500 $27,541 $93,125 $120,666 LOT2BLOCKAKUHNEVANSADD. KUHNCO
POBOX44
DERBY KS 67037 446487
2250NNELSONDR RIDY01357 $29,100 $162,500 $191,600 $7,275 $40,625 $47,900 LOT1BLOCKABAYLESSINDUSTRIAL
PARK
DOUBLEDENTERPRISES
INC 2250NNELSONDR
DERBY KS 67037 446527
2230NNELSONDR RIDY01358 $245,100 $9,800 $254,900 $46,572 $2,450 $49,022 LOT2BLOCKABAYLESSINDUSTRIAL
PARKADD.
ASTMORGAN
1813SFLORENCE
WICHITA KS 67209 446492
2212NNELSONDR RIDY01362 $304,900 $237,100 $542,000 $76,225 $59,275 $135,500 LOT1EXCS128.01FTMLBLOCKA
J.W.METZADD.
DAVISDOYLEDREVOC
TRUST 230SHADYBROOK
DERBY KS 67037 446498
2142NNELSONDR RIDY01366 $143,500 $34,600 $178,100 $35,875 $8,650 $44,525 BEGINTSECSLINW1/4&ELIK15ROW
NW145FTE264.33FTS144FTWTOBEG.
SEC36281E
M&MDECORATING
INC
3333SKESSLER
WICHITA KS 67217 446503
RIDY01374 $4,100 $0 $4,100 $0 $0 $0 BEG955.65FTW&40FTSNECORW1/2
NW1/4S521.24FTW8.29FTN521.24FT
E8.29FTTOBEGEXCPORTERADD
DERBYCITYOF
611MULBERRY
DERBY KS 67037 464867
2155NDUCKCREEK
LN
RIDY01333 $0 $0 $0 $0 $0 $0 RESERVEAOLDRANCHADD. OLDRANCHADDITION
HOMEOWNERS'ASSOC
2236DUCKCREEKLN
DERBY KS 67037 335696
Totals: $2,833,180 $2,118,190 $4,951,370 $427,226 $460,984 $888,210
3/21/2013

EXHIBIT VII
MARKET FEASIBILITY STATEMENT

March 29, 2013

Honorable Chairman James Skelton
Sedgwick County Commissioners
525 N. Main #320
Wichita, KS 67203

Honorable President Janet Sprecker
Derby Public Schools USD 260
120 E. Washington
Derby, KS 67037

Honorable Chairman James Skelton and Honorable President Janet Sprecker:

With regard to the market feasibility of the proposed Derby North Gateway Tax Increment Financing District, it is our
understanding that Menards Inc. purchased a 50.63-acre tract within the proposed District in September 2012. We do
not yet know the company's schedule for construction. However, it is the City's intention to adopt a Project Plan for
the proposed tax increment financing district only after Menards has committed to construction through acquisition of
a building permit.

The proposed District will enable the City to address traffic safety concerns identified in a Corridor Analysis of Nelson
Drive along K-15, completed in September 2010 through the Kansas Traffic Engineering Assistance Program. In
addition to improving traffic flow and safety, this Project is also expected to have a positive economic impact by
improving access to nearby vacant, and in some cases blighted, properties. Over time, this should contribute to
higher property values and increased investment in the area.

We have a high level of confidence that the proposed tax increment financing district will be financially feasible for the
following reasons:
The tax increment Project will not be created until it is known that the Menards store will be constructed.

Property tax increment will be the sole source of Project revenues. This source of revenue will almost
certainly be collected regardless of the store's performance.

Estimated property tax increment generated by the Menards store is one and one-half times the projected
cost of the improvements to be funded by the District. Current projections estimate that the project costs can
be repaid over a period of 15 years; however, it is the City's intention to pay off the bonds early if possible.

The revenue projections in the Redevelopment Project Financial Feasibility Study do not take into account
additional development likely to occur within the Project Area. Project revenue in excess of the Menards tax
increment will be used to pay the Project costs more quickly, thus more rapidly returning the property tax
increment to the affected taxing entities.

Respectfully,

Kathleen B. Sexton
City Manager

EXHIBIT VIII
DESCRIPTION OF EXPANDED MUNICIPAL SERVICES
Page 1 of 15

Extension of Major Municipal Services
A. Public Streets

Arterial Streets. The proposed TIF District is bounded by a State Highway (K-15) on the west and has
access to arterial streets on the north and east sides.
Patriot Avenue (63
rd
Street South) is a 4-lane urban arterial with standard curbs and gutter adjacent to
the north side of the district. Patriot Avenue offers a continuous left turn lane and an eastbound
continuous right turn lane for the length of the proposed TIF District. Patriot Avenue is maintained by
the City of Derby. No substantial improvements to Patriot Avenue are anticipated to be necessary.
Buckner Street along the east side of the proposed TIF District is also a 4-lane urban arterial with
standard curb and gutter. Although the portion of Buckner Street adjacent to the proposed district does
not include designated turn lanes, the City has received petitions from the adjacent property owner to
install a southbound right turn lane and southbound acceleration lane if warranted by traffic as the
properties develop. Buckner Street is maintained by the City of Derby and was milled-and-overlaid in
November of 2012.
State Highway K-15 is located along the west side of the proposed TIF District. K-15 is a 4-lane divided
highway with open ditches. Access to the TIF District area from K-15 is afforded via a frontage road,
Nelson Drive. K-15 adjacent to the proposed district was reconstructed in 1992, and is maintained by
the Kansas Department of Transportation.
Local Streets. Nelson Drive is a frontage road for State Highway K-15 and is the only local public street
adjacent to the proposed TIF District. Nelson Drive is approximately 26 ft. wide with asphalt pavement
and open ditches for drainage. Nelson Drive is maintained by the City of Derby and received an asphalt
overlay in 1993. The City plans to realign Nelson Drive to improve safety and access to the properties in
the proposed TIF District. As proposed, the re-aligned Nelson Drive will align with Commerce Drive at
Patriot Avenue (Map 1); the re-alignment project will include signalization of the intersection.
Street Services. All streets adjacent to the proposed TIF District currently receive routine maintenance
as part of Derbys Pavement Maintenance Program. This includes crack sealing and repair, patching,
seal coats and mill-and-overlay projects based on pavement condition. Streets within the City of Derby
are rated and scheduled for maintenance by the Director of Public Works.
Street Signs. Derby Public Works personnel are responsible for assuring that all traffic signs are in
compliance with the Manual for Uniform Traffic Control Devices (MUTCD) and providing for
maintenance and replacement as necessary.
Driveway Approaches. Driveway approaches located within the street right-of-way are required to be
constructed to the Citys specifications. All new approaches will be required to be constructed to the
specified standards.
Page 2 of 15

Map 1: Proposed Nelson Drive Realignment

- THE REMAINDER OF PAGE INTENTIONALLY LEFT BLANK -
C
o
m
m
e
r
c
e

D
r
.

Page 3 of 15

B. Water

Water service is presently available, or can easily be made available to all properties within the
proposed TIF District. A City of Derby water metering facility is located on the south side of Patriot
Avenue. Water is supplied to the City of Derby through a 36-inch line from the City of Wichita to the
metering facility. The Citys distribution system includes a 24-inch main line located along the south side
of Patriot Avenue; a 16-inch main along the east side of Buckner Street and a 16-inch main that extends
south and west from the metering station where it is then parallel along the east side of Nelson Drive.

When development begins on lots within the Derby Menards Addition, a 12-inch line will be installed by
boring under Buckner Street to connect to the existing 16-inch line. This loop will provide service to
each of the lots of the Derby Menards Addition.
With the addition of the proposed 12-inch line in the Menards addition, the City will be capable of
providing water service to all lots within the proposed TIF District.
Map 2 on the following page shows a layout of the existing City of Derby water system as well as
expected future extensions to serve the Derby Menards Addition lots.

Page 4 of 15

Map 2: Existing and Future Water System
Page 5 of 15

C. Sanitary Sewer

All of the tracts within the proposed TIF District are or can be easily connected to existing City of Derby
sanitary sewer lines. The proposed TIF District lies within the service boundaries of the Citys West Side
Interceptor. This interceptor is an 18-inch sewer generally located along the east side of Nelson Drive
and is easily accessible to the tracts with street frontage on Nelson Drive. Sewer laterals have been
extended east from the interceptor to serve anticipated new development. In conjunction with platting
of the Derby Menards Addition the City received petitions to install additional lines to serve lots within
the addition. The petitioned lines will be installed by the City when requested by the developer.
Existing lines have sufficient capacity to handle future wastewater flows from the proposed TIF District.
Map 3 shows locations of existing sewer lines in the area and the proposed locations to serve future
development.

- THE REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
Page 6 of 15

Map 3: Existing and Future Sanitary System Layout
Page 7 of 15

D. Flood Protection and Stormwater Management

Drainage in the proposed TIF District is accomplished through a combination of open ditches, enclosed
storm water systems, earthen channels and stormwater detention ponds. The proposed district
includes: public stormwater sewer systems along Patriot Avenue, Buckner Street, and Nelson Drive; an
existing retention pond located in Reserve A of the Old Ranch addition; several open channels and
ditches; and an existing pond in the Menards Derby Addition.

The public stormwater systems along Buckner Street, Nelson Drive, and Patriot Avenue are owned and
maintained by the City of Derby. The retention pond in Reserve A of the Old Ranch Addition is owned
and maintained by the Old Ranch Homeowners Association. The proposed development of the Derby
Menards Addition includes construction of a private stormwater system including stormwater piping
and three retention ponds to be located in Reserves A, B, and C of the Addition. The private
stormwater improvements and retention ponds required to develop the Menards Derby Addition will be
owned and maintained by the owner of Lot 1 Block A of the Addition.

According to the Federal Emergency Management Agency (FEMA) Flood Insurance Rate Map for
Sedgwick County dated February 7, 2007, All property included in the proposed TIF District is located in
Zone X Areas Determined to be Outside the 0.2% Annual Chance Floodplain. See attached Map 4.
The City of Derby enacted a stormwater fee beginning in 2013. Residential properties are assessed a
base fee of one Equivalent Residential Unit (ERU) per month, which is paid concurrently with the
monthly water bill. Commercial property rates are established by determining the number of ERUs
based on the actual impervious area constructed on the commercial property. The cost per ERU is
determined by City Council and adopted by resolution. For properties that are not connected to the City
water distribution system, the stormwater fee will be mailed twice annually, each reflecting the
stormwater fee for a six-month period. Revenue collected from the stormwater fee is utilized to
maintain and improve the Citys stormwater system. Maintenance and construction of improvements is
prioritized and scheduled by the Director of Public Works as funding permits.

Page 8 of 15

Map 4: FEMA Flood Zone

Page 9 of 15

E. Fire Protection

Fire protection is currently provided for this area by Derby Fire and Rescue. Fire protection will be
provided from Derby Fire Station #81 at 128 W. Market and Derby Fire Station #82 at 1401 N. Rock
Road. Additionally, the City of Derby has purchased land within the TIF District at 2433 N. Buckner
Street for construction of a new fire station in the future. The new station will provide better fire
protection for the northwest area of Derby, including the proposed TIF District. Currently, Derby Fire
and Rescue provides a 4 minute or less response 82% of the time within the city limits of Derby.
Derby Fire and Rescue and Sedgwick County Fire Dist. #1 have an automatic aid agreement for response
to structure fires in this area, which is expected to continue.
The number and location of fire hydrants along Nelson Drive is sufficient to provide fire protection for
the western properties of the proposed TIF District. As new development occurs, additional fire
hydrants will be added in conjunction with other improvements to the Citys water system to ensure
there is adequate fire protection coverage for all portions of the TIF District area.


Page 10 of 15

Map 5: Fire Stations
Page 11 of 15

F. Police Protection

Police protection for the proposed TIF District is presently provided by the Derby Police Department
headquartered at 229 N. Baltimore Avenue. The proposed District is located within the area covered by
Beat No. 1. There are three officers assigned to Beat No. 1 over a 24-hour period. No changes in Police
protection are expected as a result of the proposed TIF District.
Animal Control services are also provided through the Derby Police Department. Businesses or
properties located within the TIF area may contact 911 to report animal control concerns.

Page 12 of 15

Map 6: Derby Police Beats

Page 13 of 15

G. Sidewalks and Paths

There is an existing 5-foot wide sidewalk along the south side of Patriot Avenue, the north side of the
proposed TIF District boundary. The east boundary of the area is served by a 10-foot wide multi-use
path in the street right-of-way west of Buckner Street. Sidewalks and paths in this area provide
excellent pedestrian connectivity to other commercial areas as well as residential neighborhoods.
The City of Derby also has an extensive network of more than 25 miles of Hike and Bike paths
throughout the city which connect many of the Citys parks, schools and other destinations. A portion of
the existing Hike and Bike path is located along Buckner Street, adjacent to the east side of the proposed
TIF District.
There are currently no sidewalks along the west side of the proposed TIF District since the businesses
located there predate requirements for provision of sidewalks. The design of the Nelson Drive
realignment project will include public sidewalks to further enhance pedestrian opportunities.
The Citys Subdivision and Zoning Regulations require sidewalks on both sides of new streets and that all
new developments provide pedestrian paths that connect to the public sidewalks. These requirements
ensure that future developments will continue to provide adequate sidewalks to accommodate and
promote pedestrian access.

Page 14 of 15

Map 7: Sidewalks and Hike & Bike Path
Page 15 of 15

Timetable for Services

The proposed timetable for the extension of municipal services to the proposed TIF District is shown in
the following table - Timing of Services. Most city-wide municipal services are currently available and
are provided to the proposed TIF District.

Timing of Services
Proposed for
Service TIF District Timing
Street Maintenance Yes Currently Provided
Local Street Improvements Yes Currently Provided/Planned
Stream Maintenance Yes Currently Provided
Water Mains Yes Currently Provided
Water Laterals & Fire Hydrants Yes Currently provided/Upon Development
Sewer Mains Yes Currently Provided
Sewer Laterals Yes Currently Provided/Upon development
Fire Protection Yes Currently Provided
Police Protection Yes Currently Provided
City Building Code Enforcement Yes Currently Provided
City Health Code Enforcement Yes Currently Provided
Zoning Code Enforcement Yes Currently Provided


EXHIBIT IX
ZONING MAP
Meadowlark Blvd
Dry Creek Cir
Dry St ream Ct
D r y C reek Ct
Dry Brook Ct
W
o o d l a w n B l v d
Communi ty Ct
Morningview St
Lincol n St
Sunrise St
Greenway Ct
Greenway Ct
Goeldner Ln
James St
Cy St
Dry Creek Dr
Pat ri ck Henry St
Armst rong Ct
Armst rong Ct
Armst rong Ct
Armst rong Ave
Jay Ct
W
indmi ll Rd
Windmi ll Ct
Wagon Wheel Ct
Meadowlark Blvd
Mont ana St
Rawhi de St
Longhorn Ct
Longhorn St
Briarwood Rd
Bria rwood Pl
Broadmoor St
Buckboard Ct
Windmi ll Rd
Sunset Dr
Sunset Dr
R o c k R d
S u n s e t D r
Warren Ave
McClelland Dr
Horizon Dr
Ri dgecrest Rd WarrenAv eWarren Ct
James St B r i a r w o o d R d
Briarwood Ct
James St
Crestway Ave
Marguerite Pkwy
Marguerite Pkwy
Kristen Rd
Morrison Dr
Wedgewood Dr
Kristen Ct
W
oodlawn Blvd
Sommerhauser Cir
Sommerhauser St
Wedgewood Dr
Morrison Ct
Wedgewood Ct
Bodin e Dr
F a r m i n g t o n D r
R o c k f o r d S t
M a r g u e r i t e P k w y
W
illow Dr
Bodine Ct
Madison Ave
B r o o k F o r e s t R d
Hickory Branch St
Brook Forest Ct
Bea ver Tr ai l R d
Brookfiel d Ln
Oakwood Ct
Brook Forest Rd
Evergreen Ln
Hi ckory Branch St
Ri dgecrest Rd
Pine Tree Rd
Pini on Rd
Brendonwood Rd
B r i a r w o o d R d
Cresthi ll Rd Cresthi ll Rd
Brendonwood Rd
Pini on Rd
Tanglewood Rd
P i n O a k R d
Rock Rd Sum
ac Rd
Evergreen Ct
P i n O a k C t
Walnut Grove Rd
M u l b e r r y R d
Madison Ave
Tanglewood Ct
T a n g l e w o o d R d
O a k F o r e s t L n
Oak Ct
B r i a r w o o d R d
Summerch ase Cir
Sum
merchase St Tri pl e Cr ee k D r
Summerchase Ct W
Waters Edge St
Wat ers Edge St Cross Creek Ct
C r o ss
C r e ekS t
Cl earl ake St
Cross Creek Pl
T r i p l e
C re ekD
r
Waters Edge Ct
Waters Edge Cir
Wa t er s Edg eSt
Lookout St
L o o k o u t C t
R awh i d eS t
Ar b o r M e a d o w s
S t
R a w h i d e C t
R a w h i d e C i r
Lookout T er
Lookout Cir
Lookout Pl
R o c k R d
Rock Rd
Cambridge St
N e w b e r r y S t
Tall Tree Rd
Tall Tree Rd
N e w b e r r y S t
Pat ri ot Ave
Pat ri ot Ave
T r i p l e C r e e k D
r
Rough Creek Loop
Rough Creek Rd
S a w g r a s s C t
Fairway Cir
Arb o r Meadows St
Rough Creek Rd
F a i r w a y L n
F a i rw ay Ct
Sawgrass Cir
Triple Creek Dr
Tall Tree Rd
St one Path St
Moss Wood St
Rough Creek Rd
Lost Hil ls Ct
Triple Creek Dr
Thorn Apple St
Balt im
ore Ave
Meadowlark Pl
Warren St
Rai nbow Dr
Rai nbow Dr
Rock Bridge St
Rock Bridge Ct
Rough Creek Cir
Winding Lane St
Lost Hil ls St
Rough Creek Rd
Spli twood Way St Splitwood WayCt
Winding Lane St
Timber Creek St
Timber Creek St
W i n d i n g L a n e C t
Ramblewood St
Maurine Dr
Jackson Bl vd
N a n c y L n
R o c k R d
R o c k R d
55th St S
W
hitt ier St
Joel Ln
55th St S
58th St S
W
W
W
Kay St
Market St
Mary Etta St
C i r c l e D r
L a u b e r L n
W
i l l o w D r
Lauber Ln
Redwood Rd
Hackberry Rd
Chest nut Rd
B r o o k w o o d D r
Market St
Cot tonwood Rd
Post Oak Rd
W
i l l o w D r
Brook wood
Dr
Willow Dr
Brook F o r e s t Rd
Oak Forest Ln
Oak Forest Rd
Maple St
Virgini a St
A s p e n R d
Oak Forest Rd
Carolyn St
Ash St
Blue Spruce Rd
Blue Spruce Cir
M a x i n e C t
Deer Trail St
B r o o k F o r e s t R d
Redbud Ct
O s a g e R d
Osage Rd Rock Rd
Rock Rd
Chet Smith Ave
Sout hri dge Ct Sout hri dge Cir
Oxf ord Cir Oxf ord Ct
Pine Grove Ct
Sont ag St
Windwood Cir
Windwood Ct
Kay St
C r e e k s i d e C t
B e n t T ree
Ct
Kay St
Tiara Pines Ct
Tiara Pines St
Ti ara Pines St Ti ar a Pines Cir
T i a r a
Pi nes Pl
Par k L an e Ct
English C t
Engli sh Ct
Spring Creek Dr
Ci rcle Dr
Mary Ett a St
Juniper Ct
Chet Smith Ave
W
oo dla w
n Hei ght s Ct
Woodlawn Height s Rd
M e a d o w h a v e n L n
H i l l t o p R d
W
oodlawn Blvd
Meadowhaven Ln
Gasaway Dr
Gasaway Ct
Rushwood Ct
Hawt horne Dr
Cedarbrook Rd
Southcrest Dr
Southcrest Ct
C y p r e s s C t
T e r r a c e C t
H i l l t o p R d
Rushwood Dr
Hawthorne Ct
Sout hcrest Cir
Pembrook Rd Pembrook Ct
Madapalla Ct
Madapalla Ct
K r i s t a L n
Black Dog Trl
W
95th St S
95th St S
Rock Rd
Rockhill Ct
R o c k R d
Woodbrook St
Pointer Ln
BoxElder Ct
Meadow Ridge Ct
Park Hill St
Pa rkwoodCt
A r b o r Me a d o ws Ct
Ivy Hill Ct
Hiddenridge Ct
H i d d e n r i d g e C i r
Park Hill St
S u m m i t C i r
Sum
mit Rd
Woodbrook st
A r b o r M e a d o w s S t
A r b o r M e a d o w s C i r
Wood b ro o k C t
Summerlyn Dr
R a v e n w o o d S t Ravenwood Ct
Rushwood Dr
R i d g e R d
Com
muni ty Dr
Arrowhead Dr
Woodlawn Blvd
But ton Bush St
St one Path St
Forest Park St
St one Path St
Fieldstone St Fieldstone Ct
M i d w a y S t
St one Creek St
Buckner St
Co m
m
e rce Dr
Buckner St
Oliver St
60t h St S
Buckner St
95th St S
95th St S
W
e b b R d
W
e b b R d
June Ct
P o s e y C t
87th St S
87th St S 87th St S
G l e n a D r
F a w n T r a i l
W
ebb Rd
W
ebb Rd
79th St S
Madison Ave
Stonegate Cir
W
i l l o w c r e e k S t
W
a l n u t C r e e k D r
Glen Hi lls Dr
Glen Hi lls Ct
Glen Hi lls Dr
Col lege Park St
Meadowlark Blvd
Meadowlark Blvd 71st St S
Old Spring Rd Old Spring Cir
O l d S p r i n g C t
Quail Hollow St
Keys Ct
Keys Dr
Keys Pl
K e y s C i r
S p r i n g R i d g e D r
Mason Ridge Ct Mason Ridge Dr Mason Ridge Dr
Glen Hi lls Dr
Fernell St
Harral St
K-15 Hwy
Meadowlark Blvd
Nel son Dr
McInt osh Rd
W
ild Turkey Ct
Woodland Dr
White Tail St
White Tail St
W
ild Turkey Dr
Vall ey St Songbird Cir Songbird St Songbird Ct
Lincol n St.
Conyers Ave
Mahoney Dr
Conyers Ave
Ni xon Ave
Osage Rd Vall ey St ream Dr
Valley St ream Ct
Meadowbrook St Zachary Dr
Quail Hollow St
Z a c h a r y D r
Osage Rd
Crosswood Ln
Springwood Ln
Count ry View Dr
Count ry View Dr
Brookst one St
Brookst one St
B e l R u e S t
Bel Arbor St
Bel Arbor St
T i m b e r l e a f D r Timberleaf Ct
Timberl eaf Ci r Klei n St
Split Rai l Ct
Linden Ln
Timber Creek St
Timber Creek St
W
i s t e r i a C i r
W
isteria St
Timber Lane St Timber Lane Cir
Myrtlewood Cir Myrtlewood Ct Timberleaf Dr
James St
Carriage Dr
Surrey Ln
Trail Ri dge Dr
Glen Hi lls Dr
Timberl eaf Dr Rai ntree Dr
Fontenel le Dr
L a k e R i d g e C i r
Mason Ridge Dr
Hi gh Park Dr
Lake Ridge Dr
Spring Ridge Dr
Creek Ri dge Dr
Creek Ri dge Ct
James St
L a k e
R i d ge Ct
Spring Ridge Ct
Summerset St
A m
b e r R i d g e S t
Amber Ridge Ct
Amber Ridge Cir
Amber Ridge Pl
Curt is Ct Curt is St
Walnut Creek Ct
W
alnut Creek Dr
Walnut Creek Dr
63rd St S 63rd St S
Bryant St Bryant Ct
Walnut Creek Dr
95th St S
C h a p a r r a l S t
K-15 Hwy Chaparral Ct
Pecos Dr C h a p a r r a l S t
La Mesa St
La Mesa Ct
L a g u n a C t
V e r d e C t
Ri o Verde Blvd
Rio Verde Blvd Hacienda Ct
Alam
eda St
91st St S
Georgie Ave
B a l t i m
o r e A v e
Washi ngton Ave
Pit tman Dr
Market St
Main St
Emma St
Louisa St
K o k o m o A v e
Madison Ave
Cherry St
B u c k n e r S t
W
ater St
Ri ver St
Market St
Buckner St W
a t e r S t
Washi ngton Ave
Pit tman Dr
Kay St
91st St S
B u c k n e r S t
B u c k n e r S t
K-15 Hwy
K-15 Hwy
B a l t i m
o r e D r
Shady Brook Ln
Croo k e d
Cr eek
C t
Park Place Ct P a r k P l a c e C t
Park Lane St
Williams St
Springdale St
Kokomo Ave
Edgemoor St
Engli sh St
K-15 Hwy
Lakeview Dr
Buckner St
Belmont St
B a l t i m
o r e D r
Georgie Ave
K o k o m o A v e
D e r b y A v e Belmont St
Sunnydell St
Kay St
L a k e v i e w D r
W
e s t v i e w D r
R i v e r v i e w A v e
Grace St
Eng l i sh St
Ri verview Ave
Park Lane St
Kay St
Kokomo Ave
Pit tman Dr
W
e s t v i e w D r
L a k e v i e w D r
D e r b y A v e
Madison Ave.
Ri ver St
M c I n t o s h R d
Beau Jardin St
Beau Jardin St
B u c k n e r S t
G e o r g i e A v e
D e r b y A v e
Walnut St
Brit ain St
Nel son Dr K o k o m o A v e
Nel son Dr
Buckner St
B a l t i m
o r e A v e G e o r g i e A v e
Kokomo Ave
Derby Ave
Lakeview Dr
W
e s t v i e w D r
Milt on Ave
Meadowlark Blvd.
Meadowlark Blvd
Short St
Maryland St
Ohio St
Balt im
ore Ave
Georgie Ave
K o k o m o A v e
Pleasant view Dr
Communi ty Dr
P r a i r i e L n
E l P a s o D r
E l P a s o D r
W
est view Dr
Lakeview Dr
D e r b y A v e
Kokomo Ave
G e o r g i e A v e
Balt im
ore Ave
W
e s t v i e w D r
Wedgewood Dr
Crestway Ave
B a l t i m
o r e A v e
K-15 Hwy
Crestway Ave
Nel son Dr
K-15 Hwy
James St
E l P a s o D r
Crestway Ave
El Paso Dr
Wedgewood Dr
El Paso Dr
Madison Dr
Wa lnut St W al nut St
E l P a s o D r
Greenway St
B u c k n e r S t
Lincol n St
Greenway St
Mark Twain Ct
Mark Twain Dr
Blueberry Ln H u c k l e b e r r y D r
Finn Ln
Mark Twain Dr
Huckleberry Cir
Wild Plum Rd
O l i v e r S t
Milt on Ct
M i l t o n D r
Milt on Dr
F u l t o n A v e
Vil lage Lake Dr
Red Powel l Dr
J o h n s o n D r
Mallard Dr
Teal Dr
Duckcreek Ln
Hunt er St
Rosewood Ln
Tall Tree Rd
H o r s e s h o e C i r
Duckcreek Ln
Sandhil l Rd
Wild Plum Rd
Cat alpa Ct Cat alpa St
F o r e s t P a r k S t
Buckthorn Rd
Wild Plum Cir
Tamarisk St
Wahoo Cir
Wahoo St
B u t t o n B u s h C i r
T a m a r i s k S t
Persimm
on St
Sandhil l Rd
Dogwood Ct
Sandhil l Ct
Sandhil l Rd
Oak Meadows Rd
Forest Park Ct
Sandhil l Rd
W
oodlawn Blvd
I r o n w o o d C t
Basswood Ct
Fallen Tree Ct
Tall Tree Rd Tall Tree Rd
W
Pecan Ln
Burning Tree Rd Burr Hil l Rd
W
h i t e O a k R d
F o r e s t P a r k S t
Bel Arbor St
James St
T i m
b e r R i d g e C i r
Kay St
Sharon Ct
Partr i dge Ci r
Partridge Ln Pheasant Run St T i m
b e r R i d g e S t
Cardinal Ct
Cardin al Ln
Mockingbird Ct
Quail Ct M o c k i n g b i r d L n
W
hippoorwill Rd
Honeybrook Ln
Chet Smith Ave
S h a r o n D r
H i l a S t
S pringdale St
Rosewood Ct
Pepper Corn Rd
Burning Tree Rd
Nort h Point Dr
Fore st Par k St
Birchwood Rd
Twisted Oak Rd
W
oodlawn Blvd
Ridge Ct Derby Hi lls Dr
Derby Hi lls Dr
Overlook Dr
Baltimore Ct
V a l l e y V i e w S t
Baltimore Pl
B a l t i m
o r e A v e
Derby Hi lls Ct
60th St S
55th St S 55th St S
83rd St S
Moss W
ood Ct
Summerchase Pl
Red Powel l Dr
Lookout St
Newberry Ct . Newberry Cir.
Newberry St Newberry Pl.
N e w b e r r y S t
W
oodard St
B e a u J a r d i n C t
B e a u J a r d i n C i r
B e l A r b o r C i r
Bel Arbor Ct
Sharon Dr
W
oodlawn Blvd
K-15 Hwy
Nel son Dr
Pat ri ot Ave
Pat ri ot Ave
Buckner St
B u c k n e r S t
K-15 Hwy
Nel son Dr
Lee Ct
Overlook Dr
K-15 Hwy
57th St S
Pershing St
56th St S
Sout heast Dr
61st St S
55th St S
103rd St E
W
e b b R d
103rd St E
99th St E Tall Tree Rd
Birchwood Rd Birchwood Ct
Walnut Creek Dr
Tall Tree Cir
Tall Tree Rd
Am
ber Ridge St
Q u a i l R u n S t
Quail Run Ct
Quail Run Cir
Quail Run Pl
Quail Run Trl
B r i d l e B e n d S t
Kay St
Kay St
Jonah St
Jonah Pl
Jonah Ct
Kay Cir
Jonah Cir
Tawny Ln
Covey St
Fallbrook St
Hampdon Woods St
S h a d o w B r o o k S t
G r e e n T r e e Chapel Hill St
Chapel Hill Ct
Hampdon Woods Cir Woods St
Hampdon
Madison Ave
W
H a m
i l t o n D r
H a m
i l t o n C i r
Beau Jardin St
Twisted Oak Rd
Rough Cr eek Ct
Kay
Kay Ct
A m
b e r R i d g e S t
Spli twood Way St
W h i t t i e r S t
W h i t t i e r S t Ali se St
Rough Creek Rd
Rough Creek Pl
Em
erson St
Emerson St
Nancy Ln
W h i t t i e r S t
Em
erson Cir
Bridle Bend Ct
Madison Ct
Quail Run
Ter
Nolan Ct
Oliver St
Klei n Cir
Exposition St
Corporat e Park Dri ve
Corporat e Park Ct
Corporat e Park Cir
Frontage Rd
W
a l n u t C r e e k
D o v e H o l l o w
W
alnut Creek
Walnut Creek Ct
Dove Hollow Pl
Dove Hollow
Dove Hollow Ct
Chet Smith Ave
City of Derby - Zoning
63rd St. S.
71st St. S.
79th St. S.
87th St. S.
95th St. S.
W
e
b
b

R
d
.
R
o
c
k

R
d
.
W
o
o
d
l
a
w
n

B
l
v
d
.
K
-
1
5

H
w
y
.
Legend
City Limits
Zoning
Zone
"R-1" Single-Family Residential
"R-1A" Single-Family/Zero Lot Line
"R-1B" Low-Densit y Single-Family Resident ial
"R-2" Two-Family Resident ial
"R-3" Mult i-Family Residential - (15 du/ acre)
"R-4" Mult i-Family Residential - (25 du/ acre)
"MH-1" Manufactured/Mobile Home Park
"I-1" Institutional
"B-1" Office Business
"B-2" Neighborhood Business
"B-2A" Buckner Business District
"B-3" General Business
"B-4" Cent ral Shopping
"B-5" Restricted Commercial, Warehousing, Limited Manuf acturing
"M-1" Industrial
"PUD" Planned Unit Development
"NR-PUD" Non-Resident ial Planned Unit Development
Print Date: Nov 28 2012

EXHIBIT X
BLIGHT STUDY

- -- --
300 W Douglas Ave Ste 400 / Wichita KS 67202
Office (316) 265-7695 / Fax: (316) 265-7578
www.rogerturnerco.com
- -- --
300 W. Douglas, Suite 400 / Wichita, KS 67202
Office: (316) 265-7695 / Fax: (316) 265-7578

1
January 9, 2013

Allison Moeding, CEcD
Economic Development Director
Derby City Hall
611 Mulberry Rd, Ste 300
Derby, KS 67037
AllisonMoeding@derbyweb.com

RE: Study of the Proposed Tax Increment Financing District bounded by Patriot
Drive/K-15 Highway/Proposed NeIson Drive ReaIignment in Derby, Sedgwick
County, Kansas

Dear Ms. Moeding:

At your request, we have personally reviewed the area defined in your Tax Increment
Financing District for Nelson Drive Relocation and K-15 Highway. The purpose of this
assignment is to complete a surface review of suspected property found in the area that might fit
the definition of blighted or future conservation property. The report is based upon a general
understanding that this area may be considered in a plan for overall economic improvement for
the betterment of Derby, Kansas.

SCOPE OF WORK RULE
For each appraisaI consuIting assignment, an appraiser must:
1. identify the probIem to be soIved;
2. determine and perform the scope of work necessary to deveIop credibIe
assignment resuIts; and
3. discIose the scope of work in the report.

We have been requested to complete a review of a planned Tax Increment Financing
District for the City of Derby, Kansas. The client is the City of Derby, with the work to be sent to
City of Derby, Sedgwick County, Kansas.

Geographic Area

The area under review will be considered for public improvement provided it meets the
purposes of the Tax Increment District Financing Act. This act, which is included with this study,
requires a determination of the benefit district to be declared a Blighted area. The client has
requested we review the area physically and record the current conditions observed as to what
properties appear to be under the Blighted area definition.

2
Allison Moeding
January 9, 2013

To define the area we have been instructed to consider the areas defined in the report
as the site. It is mostly composed of commercial and industrial land uses such as older retail,
mini-storage, warehousing, commercial and industrial storage yards and service businesses.
The east half has a good deal of vacant unused land and an older single-family residence. This
area is also a part of the future expansion of Nelson Drive Realignment, including future retail
sites for box stores and smaller retail development.

The assignment problem is to identify what properties within this area appear to conform
to the definitions found in the Tax Increment District Financing Act. Our method includes a
surface physical investigation. We relied on the current zoning map for Derby of the area, and
the Sedgwick County Appraisers and Treasurers Tax records. Also included are FEMA Flood
Control Maps, as well as Water Contamination District Maps as provided by the Kansas
Department of Health and Environment.

In addition we have reviewed the 2000 and 2010 Federal Census tract maps and their
descriptions of constituent elements. We have recorded photos of the properties under review
as well as included accompanying GIS maps with the tax identification of the properties
reviewed.

Conservation area is defined as:

3
Allison Moeding
January 9, 2013

Blighted Area is defined by KSA 12-1770 et seq. as:

REVIEW OF CENSUS DATA OF AFFECTED AREA

The area under consideration is bound by K-15 on the west, Buckner on the east, Patriot
Drive (63
rd
Street South) on the north, with the south boundary extending about mile to the
south, in Derby, Kansas. This area constitutes a part of U.S. Census Tract 100.05. It is
mostly composed of heavy commercial and industrial land uses such as salvage yards, used
auto sales lots, light manufacturing and machine shops, and trucking/freight facilities with a
good deal of vacant unused land and some older single-family residences.

This is not a highly populated area. The census tract was divided into blocks for better
refinement. The block areas for the subject found area residents to be middle-income. The
census indications follow.

4
Allison Moeding
January 9, 2013

Population is 3,708, evenly distributed to male and female. Median Age is 36.1. Number
of dwelling units is 1,335. There are a total of 1,294 households with 1,032 families. Population
indicates 31.3% are under the age of 20 and 7% over the age of 64. Typical size of household is
2.78. 91.3% of the housing is owner-occupied.

Unemployment over 16 years at the time of the census was 3.4%. Number not in labor
force was 24.4%. Income level indicated $72,647 median household; poverty status 4.7%.
There are 6 mobile home units. Median dollar value for housing was $134,500. Rental average
was $695 per month.

5
Allison Moeding
January 9, 2013

The subject area is more specificaIIy defined as Census Tract 100.05, BIock Group
3. The foIIowing information was avaiIabIe.

Population is 997 evenly distributed to male and female. Median Age is 36.3. Number of
dwelling units is 377. There are a total of 366 households with 304 families. Population indicates
28% are under the age of 18 and 7.7% over the age of 65. Typical size of household is 2.72.
83.7% of the housing is owner-occupied.

The subject area is further defined as BIock 3002 in BIock Group 3 of Census
Tract 100.05. For this bIock, the foIIowing information was avaiIabIe. (No map avaiIabIe.)

Population is 129 evenly distributed to male and female. Median Age is 29.8. Number of
dwelling units is 45. There are a total of 44 households with 38 families. Population indicates
34.9% are under the age of 18 and 3.9% over the age of 65. Typical size of household is 2.93.
90.9% of the housing is owner-occupied.

6
Allison Moeding
January 9, 2013

Review of Current Land Uses in the Area

Our GIS mapping from the County Appraisers records indicate the following land use by
activity and the tax status and valuations for 2013. We have overlaid the zoning classifications
for the area in relationship to the current use. Most of the sites are zoned B-3 and B-5 for
business use, with a few zoned R-1 which is single-family residential. Although zoned R-1 these
sites are used for commercial purposes. It is assumed a change of zoning would be permitted
given the location and use of the sites.

The majority of the study area falls under the McConnell AOI Zone. This zone restricts
building heights but is not believed to negatively affect the development of the area.

The land uses indicate property ownerships for 15 taxpayers. Accumulated tax valuation
and tax collected is $4,950,970 and $121,923.12 not including $38,579.67 in special taxes.

Our Identification of BIighted Land Use by Property ParceI in the Area

We have elected to match the criteria of Blighted property type with the individual
properties in the selected areas. We have established through a brief physical inspection and by
photo survey those properties that fit the definition of the Statutes.

The following selected conditions for property blight were applied to those properties
under our study. They were ranked on the basis of:

1. meeting or exceeding the criteria of the category yes
2. having a questionable condition that may meet the criteria
3. having no prima facia evidence that a finding of a condition was found.

Results include a list of all properties with the selected statutory criteria and their names
and addresses.

OVERALL FINDINGS OF BLIGHTED AREA PROPERTIES

We have accumulated the following information as to our opinion on conditions of blight
for the area and how it compares with the population of property in the area:

We have divided the proposed district into two portions or halves with the east half being
the site purchased by Menards plus one and the west half with various ownerships. There are a
total of 37 properties reviewed with 22 properties located with 49.42 acres on the west half of
the study area and 15 properties with 50.56 acres on the east half. All but one parcel on the
east half has been purchased by Menards, which will construct a new store and make available
pad sites for additional development. The parcels on the west half predominantly front Nelson
Drive and K-15 to the west or Patriot Drive to the north. Each was physically cited but not
inspected.

7
Allison Moeding
January 9, 2013

The properties are listed on the spreadsheets and those which appear to meet the
definition of blight are identified. Of those properties it should be noted that most meet one or
two categories but not others.

All of but one of the properties (#21) on the west half are identified as blighted while only
one parcel on the east half was considered blighted. The accumulated number of properties that
illustrate a blighted or conservation potential site constitutes 52.07% or 52.06 acres of the total
inventory in the area.

There are four parcels in the study area which are undeveloped as Reserve areas. Two
of the parcels were part of the recent Menards purchase. A third is a reserve area for an
adjacent subdivision. Another is located near the northwest corner. As Reserve areas, the
parcels are a result of or required to allow proper drainage.

OVERALL FINDNGS OF CONSERVATION AREA

The area has been determined to be blighted and therefore is not a conservation area.
Many properties within the Blighted Area above conform to one or two factors for the
Conservation condition. The primary conservation factor is age and condition of improvements.
Building ages range from 1940 up to 1988 with a majority over 35 years old and as a result the
properties have been listed in the conservation area as a result of their ages and site conditions.
We have relied on surface information from tax records and drive-by conditions rather than
actual inspections.

The properties, however, would not fit the criteria for Conservation area as they only
meet one of the factors, that being their age of 35 years or more. Three properties are currently
vacant and would meet the conservation criteria of two or more factors. Many of the businesses
are occupied but have appearances of aging conditions.

OUR CONCLUSIONS

We have not estimated the public acquisition cost of the property considered blighted or
in a conservation condition. Certainly the tax records are not good indicators as a large number
are listed because of their use in public records other than the Sedgwick County Appraisers
Office. Other sources were not explored and they would be likely to be at the Kansas Property
Valuation Department and the Department of Revenue through the Corporation Commission.

The total land size for the area is 99.98 acres. The land area considered blighted is
52.06 acres which is 52.07% of the total study area and clearly indicates a significant amount of
land that is underachieving and in the Nelson and Patriot path.

The study area is divided into east and west halves for the purpose of analysis. These
two areas have an easy distinction of a developed west area and undeveloped east area.

8
Allison Moeding
January 9, 2013

East Half

This area has 50.56 acres comprised of 15 parcels at the time of inspection. The
southernmost parcel is a reserve area for the adjacent Old Ranch Residential Addition. Thirteen
of the parcels are found in the Old Ranch Commercial Addition, which has been purchased by
Menards and will be improved with a Menards home improvement store with available pad sites
for additional development. Menards also purchased the lone improved site at 2433 N. Buckner.
This is a 4.5-acre residential site improved with a single-family residence constructed in 1950
and several outbuildings of similar age. This site is the lone blighted parcel on the east half due
to its age and condition of improvements. The improvements are in stark difference to the
adjacent residential improvements, which are many years newer and in good condition.

With the purchase of the majority of the east half by Menards, clearly the highest and
best use is for big box retail/service with complementary development of front pad sites. This
use is evident on the north side of Patriot Ave. across from the study area where Lowes and
Kohls both occupy large lots with commercial pad sites available along the frontage.

Menards purchased their roughly 46-acre site for $87,120 per acre or $2.00 psf. The tax
valuation for the entire east half is only $108,180. The sites available across the street in the
Stone Creek development, adjacent to Kohls, range from $6.00 psf for larger interior parcels
and $14.00 psf for smaller frontage parcels.

The taxable value of the east half with the exception of the Parcel #1, the reserve on the
south end of the study area, will likely increase due to the Menards purchase. Currently, the tax
value of the east half is $108,180 or $2,140 per acre. Using the Menards purchase price of
$2.00 psf or $87,120 per developable acre, the taxable value would increase to $3,597,579.
And as the parcels become developed, the land values again would likely increase.

West Half

The west half has 22 parcels with a total land area of 49.42 acres or 2,152,739 sf. The
west half is considerably more developed than the east and has a significant number of older
businesses that front Nelson Dr. The businesses vary with service repair garages including auto
and truck repair, outdoor storage, mini-warehouse storage, multiple-tenant warehouses, limited
retail and office use, and one gentlemans entertainment establishment.

The likelihood of these uses continuing is high for the next 10 to 20 years. However, as
surrounding land is developed with new commercial use there could be a push to redevelop this
area which benefits from good visibility and has adequate access. Of those cited a few parcels
appear vacant and most are larger land areas than would appear by their number to the overall
land inventory as can be seen in the map, indicating an inefficient use of land.

The total tax valuation for both land and improvements of the west half as it exists is
$4,842,790, which is $2.25 psf of the total land area of 2,152,739 sf. This is only $0.25 psf more
than Menards paid for the 46+ acres of nearly vacant land just to the east.

9
Allison Moeding
January 9, 2013

The west half has six parcels that front Patriot to the north, one of which is the corner
parcel on Patriot and Nelson. These parcels are located along a prime commercial corridor.
Future development will be influenced by the continuing commercial growth on the north side
and other development spurred by Menards to the east.

The remaining parcels are along Nelson on the west. These parcels constitute the bulk
of the area with 1,682,351 sf or 38.62 acres. They benefit from the exposure to K-15 and have
good access with the Nelson frontage drive. The land use is as identified above with various
businesses. The majority of the improvements are older and nearer the end of their economic
lives. There are approximately 36 structures on the west half and they have an average age of
36 years. These types of improvements have a typical life expectancy of around 40 to 45 years,
although for the typical garage the life expectancy is lower. Thus, with an average age of 36
years, the buildings overall have an 80% to 90% level of depreciation. Site improvements are
similarly depreciated.

As can be seen by the aerial maps, the platting of most of the sites is for narrow and
deep parcels. The deepest parcel near the north end is 1,035 feet and tapers down to around
595 feet on the southern parcels. As individual parcels the platting has resulted in the type of
businesses predominant in the area. The uses have limited frontage appeal and make use of
ample interior space for either outdoor storage or further development with business that
requires very little visibility such as service repair garages or mini-storage units.

At one point Menards was interested in assembling several parcels in the study area
along Nelson Dr. before settling on the east half of the study area. Menards purchased 46
acres, very nearly the same as the west half has with 49 acres. The depth of the parcels would
suit uses such as Menards, with additional examples such as Lowes and Kohls which are
located just to the north and Wal-Mart to the south.

The site Lowes occupies is roughly 890 feet deep from K-15 and 825 feet from Patriot.
The Kohls site is slightly irregular but around 350-feet wide by 750 feet deep. The Wal-Mart
adjacent to the southern end of the study area has a depth of around 1,070 feet and a width of
around 850 feet. By comparison, the widest lot in the study area is roughly 475 feet. Two
parcels are approximately 270 feet wide, and the rest are even narrower.

These types of uses, big box retail such as Wal-Mart or Lowes, can utilize the land more
efficiently, requiring the depth that is available. Mini-storage projects as well can utilize the
depth and can function with narrower widths but typically are located on land located ahead of
development that is worth around $0.75 to $1.50 psf.

However, the highest and best use of the study area would be for larger box retail, which
in turn makes available small pad sites for complementary commercial use as seen on the north
side of Patriot.

10
Allison Moeding
January 9, 2013

In our opinion, these tracts combined currently reflect a much higher value than offered
by the taxing authorities. For an idea of a developable land value, Menards purchased most of
the east half of the study area for $2.00 psf. Lowes purchased their 14-acre site of in 2004 for
$5.17 psf. The site is well-located on the northeast corner of Patriot and K-15. Subject Parcel #2
on the north side fronting Patriot was purchased in 2006 for $2.63 psf. The site has remained
vacant and is now on the market with an asking price of $9.00 psf. Another site, currently
vacant, lies just south of 69
th
St. with frontage along K-15 and is on the market for $5.00 psf.
Lastly, improved Parcel #7 sold in 2007 for $100,000. The building is currently vacant. The site
is smaller than most with 14,989 sf, which would indicate a land value of $6.67 psf.

The parcels at the corner of Patriot and Nelson and also those fronting Patriot would
likely have a higher land value or around $8.00 psf. These sites benefit from the visibility and
new construction to the north. The sites along Nelson, while having frontage and adequate
access, are further removed from the newer developed area and have depth that will limit
potential users. An assemblage of parcels would be required to permit more efficient land use.
The land nearer the front or west of the sites would garner more value of around $4.00 to $5.00
psf; the interior land area would achieve something similar to what Menards paid at $2.00 psf.
Thus, if properly developed the land would have an average value of around $3.50 psf.

The developable land value using these estimates would total $9,285,062 with an overall
price of $4.31 psf.

Dan Squires, city engineer with the City of Derby planning and engineering department,
identified a small number of parcels that are affected by drainage issues, specifically Parcel #s
19, 21 and likely 22. These parcels have known issues with drainage as a result of a dry pond
located on the adjacent site to the east which is Parcel #23, Reserve A for the Old Ranch
Residential Subdivision. According to Mr. Squires, no easement has been established for the
drainage flow and as a result the owner of Parcel #20 has filled in the back (east) end of his site
to prevent the flow of the drainage onto his property. However, this has caused the flow of the
drainage to spread around to the adjacent parcels.

There is open drainage along the length of Nelson Drive. Mr. Squires noted that he has
had another property owner located near the north end of the study area also report a claim of
property being affected by poor drainage. Mr. Squires was not aware of what exactly caused the
drainage issue, although he suspects it was caused by similar issues.

11
Allison Moeding
January 9, 2013

Our findings indicate this area to be blighted primarily due to age and condition of
building and site improvements, improper platting and economic obsolescence. We trust that
this information will be useful in reviewing the areas future growth needs given its level of
current blight.

Respectfully Submitted,

Roger P. Turner, MAI

Andrew S. Koke, Appraiser
Roger Turner Company

12
CONTINGENT AND LIMITING CONDITIONS
THE FINAL ESTIMATE OF VALUE DEVELOPED IN THIS REPORT IS BASED UPON THE FOLLOWING
ASSUMPTIONS:
x That the legal description furnished the appraiser is correct.
x That the title is marketable, and as though the property was free of indebtedness.
x That the information furnished by others is reliable, but no responsibility for its accuracy is assumed.
x That the area or boundary measurements and location of the improvements are dependent on an
actual land survey for their determination when no survey has been furnished.
x Unless otherwise stated in this report, the existence of hazardous material, which may or may not be
present on the property, was not observed by the appraiser. The appraiser has no knowledge of the
existence of such materials on or in the property. The appraiser, however, is not qualified to detect
such substances. The presence of substances such as radioactive materials, asbestos, urea-
formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the
property. The value estimate is predicated on the assumption that there is no such material on or in
the property that would cause a loss in value. No responsibility is assumed for any such conditions,
or any expertise or engineering knowledge required to discover them. The client is urged to retain an
expert in this field, if desired.
x Possession of this report does not give the holder the right of publication in whole or in part without
the prior written consent of the appraiser who developed it.
x The appraiser is not required to give testimony or attendance in court by reason of this appraisal with
reference to the subject property unless arrangements have been made.
x Neither all nor any part of the contents of this report shall be conveyed to the public through
advertising, public relations, news, sales, or other media, without the written consent and approval of
the author, particularly as to the valuation conclusions, the identity of the appraiser or firm with which
he or she is connected, or any reference to the American Institute of Real Estate Appraisers or the
MAI designation.
x The distribution of the total valuation in this report between land and improvements is applied only
under the existing program of utilization. The separate valuation for land and improvements must not
be used in conjunction with any other appraisal and may be invalid if so used.
x The appraiser considers it reasonable to assume, for appraisal purposes, that no insulation or other
product banned by the Consumer Product Safety Commission has been introduced into the appraisal
premises.
x The Americans with Disabilities Act (ADA) became effective January 26, 1992. I have not made a
specific compliance survey and analysis of this property to determine whether or not it is in conformity
with the various detailed requirements of the ADA. It is possible that a compliance survey of the
property, together with a detailed analysis of the requirements of the ADA, could reveal that the
property is not in compliance with one or more of the requirements of the act. If so, this fact could
have a negative effect upon the value of the property. Since I have no direct evidence relating to this
issue, I did not consider possible noncompliance with the requirements of ADA in estimating the value
of the property.
x This report is intended for use onIy by you and others directIy connected with the review of
the proposed TIFF. Use of this report by others is not intended.

13
CERTIFICATION

-
x the statements of fact contained in this report are true and correct;
x the reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions and are our personal, unbiased professional analyses,
opinions, and conclusions;
x we have no present or prospective interest in the property that is the subject of the work
under review, and we have no personal interest with respect to the parties involved;
x we have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment;
x our compensation is not contingent upon the reporting of a predetermined value or direction
in value that favors the cause of the client, the amount of the value estimate, the attainment
of a stipulated result, or the occurrence of a subsequent event;
x the appraisal assignment was not based on a required minimum valuation, a specific
valuation, or the approval of a loan;
x our analyses, opinions, and conclusions were developed and this report has been prepared
in conformity with the requirements of the Code of Professional Ethics and Standards of
Professional Practice of the Appraisal Institute and the Uniform Standards of Professional
Appraisal Practice;
x the client has been informed that the Roger Turner Company has performed services
regarding the subject parcel #21 within the past three years;
x as of the date of this report, Roger P. Turner has completed the requirements under the
continuing education program of the Appraisal Institute;
x as of October 23, 1991, Roger P. Turner is a Certified Real Property Appraiser certified by
the State of Kansas Real Estate Appraisal Board, Cert. No. G-299, expires June 30, 2013;
x the use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives;
x Roger P. Turner and Andrew S. Koke have made a personal inspection of the property that
is the subject of this report;
x Andrew S. Koke provided significant professional assistance to the person signing this
report.

_________________________ ____________________________
ROGER P. TURNER, MAI ANDREW S. KOKE, APPRAISER

QUALIFICATIONS OF ROGER PIERCE TURNER, MAI

Education and ProfessionaI
B.A. Degree - Wichita State University - Major - Political Science, History
President - Roger Turner Company, Real Estate Appraisals
Licensed Real Estate Broker
Former Member of Kansas House of Representatives
Member of American Institute of ReaI Estate Appraisers and awarded MAI
designation in 5/81
Successful completion of Appraisal Institute courses (former American Institute of Real
Estate Appraisal)
1-A - University of Houston - 1974
1-B - Tulane University - 1974
2 - University of Oklahoma - 1976
7 - Tulane University - 1978
Second Annual Real Estate Joint Ventures Conference - New York University - 1982
Sophisticated Techniques of Real Estate Finance - New York University - 1984
Standards of Professional Practice, Part B - December 1993
Valuation, Condemnation - 1992
Highest & Best Use Analysis - 1993
Feasibility Analysis 1993
Mock Trial 1994
Brokerage Relationships in Real Estate Transactions - 1996
Standards of Professional Practice, Part A (USPAP) 1997
Law, Overview of Regulations 1997
Uniform Building Code of 1994 1997
USPAP A-12, Part II-Uniform Standards of Professional Appraisal Practice 1998
Standards of Professional Practice, Part B 1998
Capitalization Rate Seminar 1999
Appraisal of Local Retail Properties 2000
Case Studies in Commercial Highest and Best Use 2000
Physical Inspection and the Appraisal 2000
Standards of Professional Practice, Part C - 2001
Online Valuation of Detrimental Conditions in Real Estate 2002
USPAP Mini Update 2003
The Road Less Traveled: Special Purpose Property 2003
Feasibility Market Value, Investment Timing: Option Value 2003
Analyzing Distressed Real Estate - 2003
Appraising the Tough Ones - 2003
National USPAP Update Course I400 - 2012
Numerous other courses presented by the Institute
As of the date of this report, I, Roger Turner, have completed the requirements under
the continuing education program of the Appraisal Institute.
Certified by the State of Kansas ReaI Estate AppraisaI Board as a Certified
GeneraI ReaI Property Appraiser, Cert. No. G-299, effective October 23, 1991, and
expires June 30, 2013.
Associated professionaIIy with PauI R. Brown, MAI, in appraisaI work from 1972
through 5/81
Properties appraised have included residential, commercial, industrial, multiple-family,
farmland, and miscellaneous special-purpose properties
Qualifications for Roger Pierce Turner, MAI, Continued
Appraisal assignments completed for the following:
x Kansas Department of Transportation
x State of Kansas
x U.S. Corps of Engineers
x Sedgwick County, Kansas
x City of Wichita, Kansas
x Wichita Board of Education
x Fidelity Savings Association of Kansas
x Bank of America (formerly NationsBank/Boatmens Bank/Bank IV Wichita)
x Intrust Bank (formerly First Natl. Bank of Wichita/KSB&T)
x Emprise Bank
x Federal Deposit Insurance Corp.
x Commerce Bank
x Learjet Corp.
x Pizza Hut franchisees
x Boeing Military Airplane Company
x Cessna Aircraft Corp.
x Numerous private companies, estates, attorneys, etc.

Membership in ProfessionaI Societies
The Appraisal Institute, formerly the American Institute of Real Estate Appraisers
American Institute of Real Estate Appraisers Kansas Chapter #45
x President 1988, 2003, 2004
x Vice President - 1987
x Treasurer - 1986
Wichita Area Association of Realtors, Inc.
Kansas Association of Realtors
National Association of Realtors
Certified Property Managers - Wichita Chapter
Associate Member of Kansas Society of Farm Managers and Rural Appraisers
Subscribing Membership to The International Association of Assessing Officers
CCIM - Kansas Chapter
Wichita Area Builders Association

Membership in Civic Groups
Wichita Chamber of Commerce
U.S. Chamber of Commerce
Wichita Art Museum - Chairman - 1980 & 1981
Co-Trustee of the Roland P. Murdock Art Collection
Wichita-Sedgwick County Board of Community Health Chairman - 1978 & 1979
National Federation of Independent Business
Wichita Downtown Rotary Club; Advisory Board of the Salvation Army
Chairman of Wichita Area Chamber of Commerce Task Force on Reappraisal/Classification

Expert Witness
U.S. Federal Bankruptcy Court
U.S. Federal District Court
Kansas District Court
State Board of Tax Appeals
QUALIFICATIONS OF ANDREW S. KOKE, APPRAISER

Education

M.A. Degree, Wichita State University
Major: History

B.F.A. Degree, Emporia State University
Major: Communication

Successful completion of Appraisal Institute courses

Appraisal Principles 110 2002
Appraisal Procedures 120 2002
Basic Income Capitalization 310 2003
National Uniform Standards of
Professional Appraisal Practice (USPAP) 2003
General Applications 320 2004
Advanced Income Capitalization 510 2005
Highest and Best Use and Market Analysis 520 2006
Advanced Sales and Cost Approaches 530 2007
7-Hour National USPAP Equivalent 2012

Other Appraisal Education

Fundamentals of Appraisal, Farm Credit Bank -- 2002

Appraisal Experience
Associated professionally with Roger Turner Company as fee appraiser for commercial and industrial
properties since January 2002.

Appraisal assignments completed for the following:
City of Wichita
Bank of America
Intrust Bank
Sunflower Bank
Chisholm Trail State Bank
The State Bank
Legacy Bank
Unified School District #259
Kansas Childrens Service League
Salvation Army
Professional Engineering Consultants, P. A.
Columbia HCA
Various private individuals, companies, estates, etc.

Business Experience
Butler County Community College, 2001 to present
Part-time instructor

Kansas Blue Print, 1999-2001
Repro-graphics specialist

C & J Distributing, 1995-1999
Warehouse manager
Allison Moeding [AllisonMoeding@derbyweb.com]
Friday, September 28, 2012 3:14 PM
office@rogerturnergroup.com
Re: Proposed TF Scope of Work
9/6/12
Dear Ms. Moeding:
Please see the attached document.
Respectfully,
Karen Boocock
Office Manager
Roger Turner Company
300 W Douglas Ave Ste 400
Wichita KS 67202
(316) 265-7695
Fax 265-7578
- -- --
300 W. Douglas, Suite 400 / Wichita, KS 67202
Office: (316) 265-7695 / Fax: (316) 265-7578

September 4, 2012

Allison Moeding, CecD
Economic Development Director
Derby City Hall
611 Mulberry Rd, Ste 300
Derby, KS 67037
AllisonMoeding@derbyweb.com

RE: Proposed TIF District bounded by K-15 Highway/Proposed NeIson Drive
ReaIignment in Derby, Kansas

Dear Ms. Moeding:

Pursuant to your request, we have personally reviewed the area defined in your
Tax Increment Financing District for Nelson Drive Relocation and K-15 Highway. The
purpose of this assignment is to complete a surface review of suspected property found
in the area that might fit the definition of blighted or future conservation property.
The report is based upon a general understanding that this area may be considered in a
plan for overall economic improvement for the betterment of Derby, Kansas.

SCOPE OF WORK RULE

For each appraisaI consuIting assignment, an appraiser must:

1. identify the probIem to be soIved;
2. determine and perform the scope of work necessary to deveIop
credibIe assignment resuIts; and
3. discIose the scope of work in the report.

We have been requested to complete a review of a planned Tax Increment
Financing District for the City of Derby, Kansas. The client is the City of Derby, with the
work to be sent to City of Derby, Sedgwick County, Kansas.

2
Allison Moeding
September 4, 2012

Geographic Area

The area under review will be considered for public improvement provided it
meets the purposes of the Tax Increment District Financing Act. This act, which is
included with this proposal, requires a determination of the benefit district to be declared
a Blighted area. The client has requested we review the area physically and record
the current conditions observed as to what properties appear to be under the Blighted
area definition.

To define the area we have been instructed to consider the areas defined in the
report as the site. It is mostly composed of commercial and industrial land uses such
as older retail, mini-storage, warehousing, commercial and industrial storage yards and
service businesses. The east half has a good deal of vacant unused land and an older
single-family residence.

This area is also a part of the future expansion of Nelson Drive Realignment,
including future retail sites for box stores and smaller retail development.

The assignment problem is to identify what properties within this area appear to
conform to the definitions found in the Tax Increment District Financing Act. Our
method includes completing a surface physical investigation. We will rely on the current
zoning map for Derby of the area, and the Sedgwick County Appraisers and
Treasurers Tax records. Also included will be FEMA Flood Control Maps, as well as
Water Contamination District Maps as provided by the Kansas Department of Health
and Environment.

In addition we will review the 2000 and 2010 Federal Census tract maps and
their descriptions of constituent elements. We will record photos of the properties under
review as well as include accompanying GIS maps with the tax identification of the
properties reviewed.

3
Allison Moeding
September 4, 2012

Blighted Area is defined by KSA 12-1770 et seq. as:

4
Allison Moeding
September 4, 2012

Conservation area is defined as:

Review of Census Data of Affected Area

The area under consideration is bound by K-15 State Highway on the west,
Patriot Drive on the north, and includes 35 parcels of land and improvements.
This area constitutes a part of U.S. Census Tracts incIuded as Derby,
Kansas. It is mostly composed of commercial and industrial land uses such as older
retail, mini-storage, warehousing, commercial and industrial storage yards and service
businesses. The east half has a good deal of vacant unused land and an older single-
family residence.
This is not a highly populated area. The census tract was divided into tax
identification parcels for better refinement.

The total cost for this project is estimated at $3,500 with pictures of each
property, tax records, zoning classifications, and a brief review of property details.

Additional information and testimony are at a rate of $150 per hour. Expected
completion is within 45 days of agreement to commence.

"BLIGHTED AREA" means an area with a presence of a majority of the foIIowing factors:
A) deterioration of structures
B) defective street layout
C) unsanitary or unsafe conditions;
D) deterioration of site improvements;
E) tax delinquency which exceeds market value
F) defective title or ownership interest
G) improper subdivision or platting
H) conditions dangerous to life or property by fire etc.
I) ecomonic obsolescence
J) environmental contamination
K) 100-year flood plain
"CONSERVATION AREA" means any improved area comprising 15% or Iess of the Iand area
within the corporate Iimits of a city in which 50% or more of the structures in the area have
an AGE OF 35 YEARS OR MORE, which area IS NOT BLIGHTED, but may become a
bIighted area due to the existence of a combination of two or more of the foIIowing
factors:
1) dilapidation, obsolescence or deterioration of the structures;
2) illegal use of individual structures;
3) the presence of structures below minimum code standards;
4) building abandonment;
5) excessive vacancies;
6) overcrowding of structures and community facilities; or
7) inadequate utilites and infrastructure.

City of Derby TIF - East HaIf - Menards Add.
Key # Business Name/ Taxes
RI-DY Address Type of Improvement Land Improv TotaI GeneraI SpeciaI TotaI Current? Zoning PIatted
23 01333 NA Reserve A Old Ranch Res. $0 $0 - $ $0.00 $0.00 $0.00 Yes R-1 Yes
24 01334 NA Lot 1 Block 1 $80 $0 80 $ $3.27 $2,496.43 $2,499.70 Yes B-3 Yes
30 01340 NA Lot 7 Block 1 $200 $1,070 1,270 $ $45.06 $951.82 $996.88 Yes B-3 Yes
31 01341 NA Lot 8 Bock 1 $60 $0 60 $ $2.50 $815.74 $818.24 Yes B-3 Yes
34 01344 NA Lot 3 Block 2 $50 $0 50 $ $2.06 $570.54 $572.60 Yes B-3 Yes
35 01345 NA Reserve A Old Ranch Com. $80 $0 80 $ $3.27 $0.00 $3.27 Yes B-3 Yes
36 01346 NA Reserve B Old Ranch Com. $60 $0 60 $ $2.50 $0.00 $2.50 Yes B-3 Yes
37 01349 2433 N Buckner SFR - Built 1950 $17,490 $86,410 103,900 $ $1,616.65 $5.70 $1,622.35 Yes R-1 No
Totals 20,700 $ 87,480 $ 108,180 $ $1,785.77 $17,398.80 $19,184.57
East HaIf Cont'd
Key # Land Area Year BIighted Conservation
RI-DY (Acres) BuiIt Area? Area?
23 01333 3.77
24 01334 2.92
25 01335 2.76
26 01336 4.20
27 01337 5.43
28 01338 4.63
29 01339 2.81
30 01340 2.65
31 01341 2.30
32 01342 3.30
33 01343 4.18
34 01344 1.61
35 01345 3.23
36 01346 2.27
37 01349 4.50 1950 A
Total Size 50.56 acres
2013 100% Appr VaIue 2012 ReaI Estate Taxes
#24
#26
#27
#28
#35
#25
#29
#30
#31
#32 #33
#34
#23
#36
#37

East HaIf Cont'd
Key # Land BIighted/
RI-DY (Acres) Conserv. GeneraI SpeciaI VaIuation VaIue
23 01333 3.77 3.77 $0.00 $0.00 $0 Reserve $0 $0
24 01334 2.92 2.92 $3.27 $2,496.43 $80 Retail $87,120 $254,390
25 01335 2.76 2.76 $2.89 $1,029.65 $70 Retail $87,120 $240,451
26 01336 4.20 4.20 $16.08 $1,573.71 $390 Retail $87,120 $365,904
27 01337 5.43 5.43 $35.06 $1,516.10 $850 Retail $87,120 $473,062
28 01338 4.63 4.63 $30.08 $2,202.66 $730 Retail $87,120 $403,366
29 01339 2.81 2.81 $18.14 $1,008.20 $440 Retail $87,120 $244,807
30 01340 2.65 2.65 $45.06 $951.82 $1,270 Retail $87,120 $230,868
31 01341 2.30 2.30 $2.50 $815.74 $60 Retail $87,120 $200,376
32 01342 3.30 3.30 $3.68 $2,397.69 $90 Retail $87,120 $287,496
33 01343 4.18 4.18 $4.53 $2,830.56 $110 Retail $87,120 $364,162
34 01344 1.61 1.61 $2.06 $570.54 $50 Retail $87,120 $140,263
35 01345 3.23 3.23 $3.27 $0.00 $80 Reserve $80 $258
36 01346 2.27 2.27 $2.50 $0.00 $60 Reserve $60 $136
37 01349 4.50 4.50 $1,616.65 $5.70 $103,900 Retail $87,120 $392,040
50.56 50.56 $1,785.77 $17,398.80 $108,180 $3,597,579
Proposed
Dev. $/Acre
Highest &
Best Use
ReaI EstateTaxes

Age
1 1996 17 8,350
2 Vacant
3 Vacant
4 2004 8 2,490
5 Vacant
6 1997 16 1,008 Gas Pump Canopy
7 1957 56 5,224
8 1957 56 2,357
9 1955 58 2,960
10 Vacant
11 1987 26 480
12 1950 63 750
1960 53 720
13 Vacant
14 1984 29 960 estimate - bldg not on records
15 1984 29 4,500
16 1940 73 600
1950 63 780
1989 24 2,400
1989 24 231
1940 73 2,400
17 1988 25 1,918
1979 34 4,500
1979 34 6,000
1978 35 6,480
1986 27 5,500 2 mini w/h bldgs
1988 25 9,900 3 mini w/h bldgs
1977 36 4,500
1987 26 1,568
1988 25 1,080
18 1981 32 9,000
1983 30 10,500
1983 30 9,000
1987 26 1,232
19 1974 39 4,880
1980 33 3,450
20 1984 29 3,880
21 1974 39 10,270
1984 29 4,960
1978 35 2,400
22 1962 51 6,600
Ave. Age 36.3 143,828 sf
Bldg.-Yr.
Built
Size SF (ex.
basement)
West HaIf BuiIding Inventory
PHOTOS OF SUBJECT SITES
ParceI #37 - 2433 N. Buckner East HaIf Vacant Land
East HaIf Vacant Land East HaIf Vacant Land
East HaIf Vacant Land East HaIf Vacant Land
East HaIf Vacant Land ParceI #23-Reserve A

ParceI #21 ParceI #21
Looking South on NeIson Looking North on NeIson

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4671
5977
4673
4671
651900
651900
652000
652000
652100
652100
652200
652200
652300
652300
652400
652400
652500
652500
652600
652600
652700
652700
0 400 800 1,200 200
Feet
0 100 200 300 50
Meters
37 34' 44''
37 34' 4'' 37 34' 4''
37 34' 45''
Map Scale: 1:5,950 if printed on A size (8.5" x 11") sheet.
Map Unit NameSedgwick County, Kansas
Natural Resources Natural Resources Natural Resources Natural Resources
Conservation Service Conservation Service Conservation Service Conservation Service
Web Soil Survey
National Cooperative Soil Survey
1/3/2013
Page 1 of 3

Property Features:
46.13 Acre Site
Prime Corner
DeveIopment Site
SignaIized Intersection
IdeaI For Office,
MedicaI, MuIti-FamiIy
and RetaiI
DeveIopment
AII UtiIities AvaiIabIe
Zoned B3 GeneraI
Business
Immediate Access to
K-15
Located at the SW/c of
63
rd
& Buckner
Traffic Count 22,610
VehicIes per Day at
the Intersection of 63
rd
& Buckner
SaIe Price - $2.30/SF
Or $4,621,672
For more information please contact:
-
316.262.0000
Grant.glasgow@grubb-ellis.com

316.262.0000
jeff.englert@grubb-ellis.com

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-- -- --
The information contained herein was obtained from sources believed reliable; however, Grubb & Ellis Company makes no guarantees, warranties or representations as to the completeness
or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease, or withdrawal without notice.
OId Ranch CommerciaI Addition
Derby, Kansas

--
Property Features:
3 Lots AvaiIabIe
1) 1.23-Acres
2) 0.68-Acres
3) 1.19-Acres
AII UtiIities AvaiIabIe
Lots 1 & 2 Zoned I-1
InstitutionaI
Lot 3 Zoned B-3
GeneraI Business
Immediate Access to
K-15
Located at the
Intersection of Red
PoweII Drive &
Buckner
Area Users IncIude
Atwoods, Aarons and
WaI-Mart
For more information
please contact:
-
316.262.0000
Grant.glasgow@grubb-ellis.com

316.262.0000
jeff.englert@grubb-ellis.com

Lot Square Feet Acres Price/SF TotaI Price

1 Lot 1, Block 6 "-1" 53,523 1.23 $5.00 $267,615
2 Lot 1, Block 1 "-1" 29,681 0.68 $4.00 $118,724
3 Lot 2 "B-3" 51,947 1.19 $5.00 $259,735
LOT INFORMATION
Duckcreek
ViIIage Lake

-- -- --
The information contained herein was obtained from sources believed reliable; however, Grubb & Ellis Company makes no guarantees, warranties or representations as to the completeness
or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease, or withdrawal without notice.
ViIIage Lake & Duckcreek
Derby, Kansas

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The information contained herein was obtained from sources believed reliable; however, Grubb & Ellis Company makes no guarantees, warranties or representations as to the completeness or accuracy thereof.
The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease, or withdrawal without noti
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LAND SALE COMPARABLE NO. SUBJECT
Property:
Address: 2433 N. Buckner, Derby, KS 67037
Location: SWs Patriot & Buckner
Quadrant: DER MLS Zone: 951
Sales Data:
Type: Commercial (Retail)
Traffic Count:
Book: 2932
Comments: The site contained a 1,948-sf ranch SFR built in 1950. Menard also purchased most of the
lots in the Old Ranch Commercial Addition which abuts the subject on the west. The primary
site contains 1.25 acres with secondary land of 3.26 acres.
Corner Location: No
Depth: ' (approx)
Effective Price: $350,000
Flood Plain: Unknown
Frontage: ' (approx)
Grantee: Menard, Inc.
Grantor: Stewart Friedel and Darlene Friedel
GndWtr Contam:
Instrument: Warranty Deed
Legal Desc: Commencing 955 feet South of the Northeast corner of the Northwest Quarter,
thence South 407 feet, Westerly 514.62 feet, North 440.22 feet, Easterly 514.28 feet
to the beginning, except the road on the East, Section 36-28-1E.
Median Restrict:
Page: 2000
SalesDate: 9/28/2012 Sales Price: $350,000
Shape: Rectangular
Site Prep Costs: $0 Special Taxes: $0.00
Land Size: 196,455 sf
Tax Key No: RI-DY-1349 #346760
Terms: Presumed Cash
Zoning: B3
Eff Price/SqFt: $1.78 Price/SqFt: $1.78
Acres: 4.51 Price/Acre: $77,606
Property Data:
Specials/SqFt: $0.00
Title Data:
Eff Price/Acre: $77,606
-217-36-0-21-00-001.01-0 CAMA No: 087
Visibility:
Confirmed by: svq#2012-026045
Time on Market:
ID: 19214

LAND SALE COMPARABLE NO. SUBJECT
Property:
Address: N. Buckner, Derby, KS 67037
Location: SW/c Patriot & Buckner
Sales Data:
Traffic Count:
Book: 2932
Comments: The geo codes are RI-DY-1345, 1346 #345440, 41; RI-DY-1334 thru RI-DY-1344 #345429
thru 345439. Menard also purchased a lot adjacent on the east that fronts Buckner.
Corner Location: Yes
Depth: ' (approx)
Effective Price: $3,686,000
Grantee: Menard, Inc.
Grantor: North Derby Investment, LC (Elizabeth A. Knudson)
GndWtr Contam:
Legal Desc: Lots 1-8, Block 1, Lots 1-3, Block 2, and Reserves A and B, Old Ranch Commercial
Addition to Derby, Sedgwick County, Kansas
Median Restrict:
Page: 1999
SalesDate: 9/28/2012 Sales Price: $3,686,000
Shape: Irregular
Land Size: 1,840,846 sf
Tax Key No: SEE COMMENTS
Zoning: B3
Acres: 42.26
Property Data:
Title Data:
CAMA No: 087
Visibility:
Time on Market:
ID: 19213

LAND SALE COMPARABLE NO. 1
Property:
Address: S. K-15 Hwy, Derby, KS 67037
Location: NE/c K-15 Hwy & 63rd S.
Sales Data:
Traffic Count: 32,755
Book: 2853
Comments:
Corner Location: Yes
Depth: ' (approx)
Effective Price: $3,125,000
Grantee: Lowe's Home Centers, Inc.
Grantor: Lusk Holdings, LC (W. E. Lusk, Jr.)
GndWtr Contam:
Legal Desc: Lot 1, Block A, Stone Creek Commercial 2nd Addition
Median Restrict: Yes
Page: 3218
Proposed Use: Retail
SalesDate: 1/13/2004 Sales Price: $3,125,000
Shape: Irregular
Tax Key No: RI-DY-01579
Zoning: B-5
Acres: 13.88
Property Data:
Title Data:
CAMA No: 087
Visibility: Good
Confirmed by: cov#2004-000377
Time on Market:
ID: 11858

LAND SALE COMPARABLE NO. 2
Property:
Address: E. Patriot, Derby, KS 67037
Location: SE/s 63rd S. (Patriot) & K-15
Quadrant: SSE MLS Zone: 901
Sales Data:
Type: Commercial (Unknown)
Traffic Count:
Book: 2881
Comments: The B-5 zoning is for restricted commercial, warehousing, limited manufacturing use.
Corner Location: No
Depth: 491' (approx)
Frontage: 213' (approx)
Grantee: Derby Kansas LLC
Grantor: A. Clair Crandall and Dorothy J. Crandal
GndWtr Contam:
Legal Desc: Lot 2 except the East 214.48' thereof, Block 1, Mayfield-Minge-Rolison Addition
Median Restrict:
Page: 3051
SalesDate: 8/29/2006 Sales Price: $275,000
Shape: Rectangular
Zoning: B-5
Acres: 2.40
Property Data:
Title Data:
CAMA No: 087
Visibility:
Time on Market:
ID: 14555

Property:
Address: 2630 N. Nelson, Derby, KS 67037
Location:
Sales Data:
Type: Industrial (Office Warehouse)
SalesDate: 3/30/2007
Sales Price: $100,000
Above Grade Gross Bldg Area: 5,224 sf
Eff Price/SqFt: $19.14
Price/SqFt: $19.14
Land Value: Bldg Price/SqFt:
Terms of Sale: Presumed Cash
Time on Market:
Land Value/SqFt $0.00
Bal of Special Taxes: $3,154.50
Property Data:
-217-36-0-22-01-005.00-0 CAMA No: 087
Building Type: Industrial Year Built: 1957
Construction: Masonry Sprinkler System:
Condition at Sale:
Land Size (SqFt): 14,230 Land to Bldg Ratio: 2.72:1
Acres: 0.3
Occupancy at Sale:
SqFt Finish/Office: 24.00% Sidewall Height (L/H): 10/11
Dock High: Yes Overhead Doors: 2
Book: 2887
Grantee: Robert J. McGaughey
Grantor: Lucille M. Chapman
Legal Desc: part of the West Half of the Northwest Quarter of Section 36-28-1E.
Page: 319
Title Data:
Comments: There is 5,224 sf of basement storage area, 3,968 sf of storage area on the ground floor
with 1,256 sf of office area. There is also 1,820 sf of concrete paving.
Confirmed By: svq#2007-003359
ID: 15081

ID: 15081 Page 2 for 2630 N. Nelson, Derby, KS 67037

Properties for SaIe
Prepared for
1/9/2013
(316) 265-7695
office@rogerturnergroup.com
Presented by Trecia McDoweII
1 NW/s Buckner & 63rd Street South, Derby, KS 67037
Property Description
Retail site available in Kohl's and Lowe's anchored development. Site features excellent visibility and access on an expanding retail corridor.
Price $485,538
Lot Size 80,923 SF
Property Sub-type Retail (land)
Status Active
Property Notes
Lots
# Price Size Price/Size Description
$485,538 $6 /SF 80,923 SF
2 NW/s Buckner & 63rd Street S, Derby, KS 67037
Pad site to Kohl's and Lowe's anchored development. Site features excellent visibility and access on an expanding retail corridor.
Price $604,786
Lot Size 43,199 SF
Property Sub-type Retail-Pad (land)
Status Active
Property Notes
Lots
$604,786 $14 /SF 43,199 SF
3 NW/s 63rd Street S and Buckner, Derby, KS 67037
Price $628,320
Lot Size 44,880 SF
Status Active
Property Notes
Lots
$628,320 $14 /SF 44,880 SF
2013 Trecia McDowell, Roger Turner Co.
Price $628,320
Lot Size 44,880 SF
Status Active
Property Notes
Lots
$628,320 $14 /SF 44,880 SF
Price $784,392
Lot Size 56,028 SF
Status Active
Property Notes
Lots
$784,392 $14 /SF 56,028 SF
6 NW/s 63rd Street S & Buckner, Derby, KS 67037
Price $790,440
Lot Size 56,460 SF
Status Active
Property Notes
Lots
$790,440 $14 /SF 56,460 SF
7 NW/s Buckner and 63rd Street South, Derby, KS 67037
Price $975,384
Lot Size 162,564 SF
Status Active
Property Notes
Lots
$975,384 $6 /SF 162,564 SF
8 NW/s Buckner & 63rd Street South, Derby, KS 67037
Price $978,208
Lot Size 69,872 SF
Status Active
Property Notes
Lots
$978,208 $14 /SF 69,872 SF
9 NW/s 63rd Street South and Buckner, Derby, KS 67037
Price $1,230,894
Lot Size 205,149 SF
Status Active
Property Notes
Lots
$1,230,894 $6 /SF 205,149 SF
10 NW/s Bucker and 63rd Street South, Derby, KS 67037
Big box/shopping center site available in Kohl's and Lowe's anchored development. Site features excellent visibility and access on an expanding retail corridor.
Price $1,826,484
Lot Size 304,414 SF
Status Active
Property Notes
Lots
$1,826,484 $6 /SF 304,414 SF
Big box/shopping center site available in Kohl's and Lowe's anchored development. Site features excellent visibility and access along an expanding retail
corridor.
Price $1,854,545
Lot Size 264,935 SF
Status Active
Property Notes
Lots
$1,854,545 $7 /SF 264,935 SF

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MEMORANDUM

TO: Sedgwick County Finance Division Staff

Lot Square Feet Acres Price/SF TotaI Price

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