1. CONSERVATION EASEMENT AS PART OF A $2.2 MILLION DEC FINE FOR A LARGE FISH KILL

13. Result of Lagoon Breach 3,000,000 gallons spilled into the Black River 250,000+ fish killed Strongly scented tide moved through Watertown Water supplies shut down River activities shut down

14. NYS DEC Actions $2.2 Million Fine for Fish Kill (250,000 x $10 = $2.2 Million±) $1.5 Million = Environmental Contribution $700,000 = Cash or Equivalent

15. Environmental Contributions $180,000 = Fishing Rights, Parking Areas and Paths to Black River $1,320,000 = Development Rights

16. Development Rights Lowville Area, Lewis County Parent Property = 3,269.98 Ac. Flood Plain included 602.90 Ac. Base Acres for CE = 2,667.08 Ac. Assumed NYS FPP Requirements –Land Valuation Only –Standard NYS FPP Ag CE Terms

18. Before Appraisal Market Study –Frequency of Residential Land Sales –Size Ranges of Sales –Price Ranges for Size Ranges –Patterns of Land Purchases –Potential for Interior Subdivisions

19. Before Appraisal - HBU Multiple Economic Units / Lots (81) Size Mix Similar to Results of Market Study All Roadfront Lots (no interior roads or utilities) Considered Amenities

20. Before Appraisal - Valuation Appraised All EUs as Individual Lots Gross Value Discounts for Subdivision, Marketing –Used Market Study As Basis Net Value of Land

21. After Appraisal Appraised Property as Single EU 2,667.08-Ac. Tract of Farmland –Devoid of Development Rights –Ag-Related Development Permitted Used Sales Approach Surveys of CEs and ACEs ICA – Ag Values of Soils + Other Retained Rights

22. Value of Development Rights Difference of Before and After Appraisals Total Difference > $1,320,000 Acreage for AgCE Withdrawn Based on Owner’s Priority –Locations to Retain Development Rights –Deducted Difference of: Discounted Value of EUs Ag “After” Land Value

23. QUESTIONS?