New Grissom High School Site Evaluation & Recommendation for Weatherly Road Site March 2013

OVERALL SITE MAP Hays Farm

INITIAL SITE LOCATION

IDENTIFIED INITIAL SITE LOCATION. SITE SELECTION PROCESS IDENTIFIED INITIAL SITE LOCATION. SEPTEMBER 2012 CONDUCTED PRELIMINARY DUE DILIGENCE REVIEW. OCTOBER/NOVEMBER 2012 CONDUCTED COMMUNITY / NEIGHBORHOOD INFORMATIONAL MEETINGS AND LISTENING TOUR. NOVEMBER/DECEMBER 2012 JANUARY 14, 2013 COMMUNITY WIDE INFORMATIONAL MEETING HELD AT GRISSOM HIGH SCHOOL PROCESSED COMMUNITY QUESTIONS, CONCERNS AND INPUT REGARDING TRAFFIC, ENVIRONMENTAL, ARCHAELOGICAL AND OTHER EXPRESSED INFORMATION. JANUARY 2013 APPROACHED HYLIS ABOUT NEW SITE LOCATIONS. IDENTIFIED THE NEW SITE LOCATION. JANUARY / FEBRUARY 2013 NEGOTIATED WITH HYLIS AND CITY OF HUNTSVILLE THE TRANSACTION REQUIREMENTS FOR THE NEW SITE. FEBRUARY/MARCH 2013

NEW SITE LOCATION 61.4 ACRES

Currently no identified environmental or archaeological issues NEW SITE BENEFITS VERSUS INITIAL SITE LOCATION Currently no identified environmental or archaeological issues Better existing road infrastructure Existing road and utility infrastructure allows for an immediate construction start Significantly less site development cost More developable square footage area More prominent visibility from all directions

SELLER’S PROPERTY APPRAISAL Due to the mixed zoning (C4 & R2A) and terrain characteristics of the subject property, the appraiser utilized a variety of land comparable’s in estimating the market values of the subject property. Based on market data extracted from similar bulk investments in north Alabama, the appraiser recognizes support for a sale discount of the subject property in the 5% range. Recognizing the aggregate value of the various land areas of the subject tracts summarized in the previous pages at $10,348,000, the appraiser estimates the subject property, if marketed to a single investor as a whole, would be best supported at a market value rounded to $9,830,000. Therefore, review of the sales considered most comparable to each portion of the subject tract, the appraiser recognizes market support for the subject property, at a point specific value, as of January 30, 2013 at: Cite: Fowler, Bedwell & Associates, Summary Appraisal Report, Hays Property 61.4 Acres, dated January 30, 2013 Note: Initial site location appraisal value was $6,140,000.00. The new site location has an Appraised value that is $3,690,000.00 greater than the initial site value. Neither Huntsville City Schools nor the City of Huntsville will absorb this increase in land cost. Instead, Hylis will increase its gift to the Huntsville City School System by this cost differential.

PROPOSED TRANSACTION FOR NEW GRISSOM HIGH SCHOOL SITE Land Costs of $9,830,000.00 Hylis will gift $7,298,733.00 to Huntsville City Schools towards land cost value. Huntsville City Schools will pay Hylis $2,531,267.00 for the 61.4 acre New School property. The City of Huntsville will construct the new Weatherly Road extension and the new Connector Road, including all related infrastructure costs. Hylis will pay for the Engineering and Design of the new Road and Utility infrastructure Hylis will gift to the City of Huntsville the required property for the Right of Way required to construct the new roads and infrastructure (approximately 11.885 acres). Hylis will gift to the City of Huntsville approximately 5.33 acres of additional land for the City’s use as a Nature Park.

Secure an independent appraisal. HUNTSVILLE CITY SCHOOLS DUE DILIGENCE REQUIREMENTS Secure an independent appraisal. Ensure the proper sub-division of the property. Update the existing traffic study for the New Site location. Perform all necessary environmental reviews and assessments. Perform all necessary archaeological reviews and assessments. Develop preliminary Master Site Layout to affirm that the DeJong-Richter Programming Document is compatible with the site. Negotiate a sales agreement with Hylis.

AREAS SHADED IN RED ARE INDIAN SITE PRELIMINARY ARCHEALOGICAL DUE DILIGENCE RESEARCH AREAS SHADED IN RED ARE INDIAN SITE IDENTIFIED AREAS (M527 & M528) ON THE NEW SCHOOL SITE PROPERTY. M-527 M-528 M-529

PRELIMINARY ARCHEALOGICAL DUE DILIGENCE FOR INDIAN SITE IDENTIFICATION NO M527 SITE 1MA527   Site 1MA527 was recorded by the University of Alabama during a cultural resource survey associated with a proposed southern bypass around Huntsville (Meyer 1994). During the initial recordation of the site, it was described as a large lithic reduction site with an abundant amount of chert debitage (stone-tool manufacturing debris) scattered over its surface. Several stone tool fragments were collected from the surface during the survey. Recommendations for the site at that time suggested that subsurface cultural features could be present at the site and avoidance or additional testing was recommended. These observations would at least warrant a potentially NRHP eligible recommendation for the site. This site was again revisited by the University of Alabama in December 2003 (Watkins 2004). During the revisit, site conditions were described as recently plowed with the main part of the site situated on the crest of a rise. The site was described as being approximately 305 meters by 150 meters in size. Several shovel tests at the site identified mixed soils and evidence of sheet erosion. The revisit findings did not concur with the earlier assessment that the site was potentially NRHP eligible, and no additional investigations were recommended. CITE: Tennessee Valley Archaeological Research Report January 16, 2013 Information confirmed by the University of Alabama Office of Archaeological Services

PRELIMINARY ARCHEALOGICAL DUE DILIGENCE FOR INDIAN SITE IDENTIFICATION NO M528 SITE 1MA528   Site 1MA528 was recorded by the University of Alabama in 1994. The site was described as a medium sized, approximately 160 meters by 84 meters, lithic reduction site with a considerable amount of chert debitage spread across the entire site. The recorders felt that the density of lithic debris at the site indicated that stone tool manufacturing took place at the site. While the site has been subjected to years of agriculture, the recorders still indicated a potential for intact cultural deposits at the site and recommended avoidance or further testing. No chronologically diagnostics artifacts were collected during this site visit (Meyer 1994). This site was again revisited by the University of Alabama in December 2003 (Watkins 2004). During the revisit, site conditions were described as recently plowed with excellent surface visibility. A couple of shovel tests at the site did not result in the recovery of artifacts. The revisit findings did not concur with the earlier assessment that the site was potentially NRHP eligible, and no additional investigations were recommended. CITE: Tennessee Valley Archaeological Research Report January 16, 2013 Information confirmed by the University of Alabama Office of Archaeological Services

FINALIZE SALES AGREEMENT WITH HYLIS. THE WAY AHEAD FINALIZE SALES AGREEMENT WITH HYLIS. MARCH/APRIL 2013 FINALIZE AGREEMENTS WITH CITY OF HUNTSVILLE FINALIZE DISCUSSIONS WITH CITY OF HUNTSVILLE OVER FUTURE USE OF EXISTING GRISSOM SITE AS A COMMUNITY ASSET. BOARD OF EDUCATION APPROVAL OF LAND AQUISITION AND CITY AGREEMENTS. APRIL 2013 COMPLETE DUE DILIGENCE INVESTIGATIONS. APRIL/MAY/JUNE 2013 INITIATE ARCHITECTURAL DESIGN PROCESS. BEGIN CONSTRUCTION. MAY 2014 SCHOOL OPENS AUGUST 2016

New Grissom High School MARCH 2013