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USPAP MASS APPRAISALREPORTFebruary 18,2020City of Portsmouth, NH, 2019 StatisticalValuation UpdatePrepared By:J. Michael TarelloVision Government Solutions, Inc.1 Cabot RoadHudson, Ma. 01749Phone: 1-800-628-1013; Fax: 508-351-3797Developed by Cornell Consultants for the City of Portsmouth1 Page

ContentsLetter of Transmittal . 8SALIENT FACTS . 13Date of Report:. 13Client: . 13Date of Mass Appraisal Report:. 13Effective Date of the Mass Appraisal: . 13Final Opinion of Value: . 13Appraisal Firm Completing the Work: . 13Appraisers: . 13Intended Use of the Mass Appraisal Report: . 14Intended Users of This Mass Appraisal: . 14Interest Valued: . 14Type of Value Estimated: . 14Real Estate Valued. 16Extraordinary Assumptions: . 16Hypothetical Conditions: . 17Scope of Work . 17Format of This Mass Appraisal Report: . 19Competency: . 19Highest and Best Use - Explanation:. 19Highest and Best Use Determination: . 20Approaches to Value Considered and Utilized .20Approaches to Value Not Utilized 20PROCEDURE FOR MASS VALUATION APPRAISALS . 21OVERVIEW OF MASS APPRAISAL AND VALUATION MODELING . 21TIME AND MARKET ANALYSIS .22SPECIFICATION AND CALIBRATION REVIEW . 24Underlying Economic Principles .24Approaches to Value . 25Land/Site Valuation in Mass Appraisal . 26

Overview of Base Land Valuation Techniques. 26Scope of Land Valuation . 27Site Valuation – Sales Comparison Approach. 27Site Valuation – Market Extraction (Land Residual Technique). 28Residential Neighborhood analysis .29Commercial Neighborhood analysis .40Base Land Value and Factors . 57Base Land Value - Residential . 57Base Land Value Factors – Commercial . 58Adjustments Made to Base Residential Land Values (Neighborhoods Map) . 59Base Land Value Refinements Within Neighborhoods . 61Residential . 61Adjustments Made to Base Land Values (Land Size) . 63Commercial and Residential . 63Residential Land Pricing .64Valuation Modeling 66Commercial . 66Commercial Land Pricing .68Special Base Land Rates . 70Land pricing for Apartments, Mobile Home Parks and Hotels .70C/I Condo 74COST APPROACH - GENERAL EXPLANATION . 75Building Base Valuation . 78Effective Area Factors 85Building Valuation (Building Base Rate Adjustment) . 93Story Height 114Model Specification. 114Improvement Data . 114Land Data . 115Location Data . 115Model Calibration. 115Grade . 115Quality adjustment Rating . 116Quality Grade Guidelines .116Building Size . 123Extra Features . 124Out Buildings .126Depreciation . 131Summary of Depreciation . 136Building Valuation Model Calculation . 136Cost Approach Conclusion . 137SALES COMPARISON APPROACH FOR IMPROVED PROPERTY .138

Sales Comparison Model . 139INCOME APPROACH .139Income Model Overview . 140INCOME VALUATION . 141Gross Income Base Rates . 141Income Adjustments . 144Size Adjustment . 144Location Adjustment . 146Use Adjustment. 146Vacancy . 146Expenses . 148Expense Adjustments . 150Capitalization Rate Tables . 150Summary of Income Approach. 153MODEL TESTING .170Sales Ratio Study . 170Coefficient of Dispersion . 171MODEL TESTING - RESIDENTIAL .171Price Related Differential . 1722018 Ratios . 172Residential Neighborhoods . 172Neighborhood Analysis Conclusion . 175Residential Property Style . 175Style Analysis Conclusion . 176Residential Property Neighborhood and Style . 176Neighborhood Combined with Style Analysis Conclusion . 181Grade . 181Grade Conclusion . 182Condition . 182Condition Conclusion . 182Year Built . 182Age Conclusion . 183Size . 183Size Conclusion . 184Review of Ratios Citywide . 184Citywide Conclusion . 186Conclusion of Residential Model Testing . 186MODEL TESTING - COMMERCIAL .187Price Related Differential . 187Commercial Neighborhood . 188Neighborhood Analysis Conclusion . 188

Commercial Property Style. 188Style Analysis Conclusion . 189Commercial Property Neighborhood and Style . 189Neighborhood Combined with Style Analysis Conclusion . 190Grade . 190Grade Conclusion . 190Year Built . 190Age Conclusion . 191Size . 191Size Conclusion . 192Review of Ratios Citywide . 192Citywide Conclusion . 193Conclusion of Commercial Model Testing . 194CONCLUSION AND SUMMARY OF MASS APPRAISAL .194GENERAL ASSUMPTIONS AND LIMITING CONDITIONS .195CERTIFICATION .197Appraiser Qualifications . 197ADDENDUM .208Sales Codes 208Sales Used in Analysis. 209Unqualified Sales .218Capitalization Rate Analysis 222Zoning Ordinances 223Equalization Study 2018 Summary 225Copy of Contract 227Definitions .242

Links to Tables in ReportTable 1: Summary by Sales Date Residential and Commercial . 22Table 2: Residential Land Residual .35Table 3: Commercial Land Residual . 42Table 4: Income Land Residual . 42Table 5: Neighborhood Land Values- Commercial . 58Table 6: Neighborhood Land Values- Residential . 60Table 7: Residential Site Index . 61Table 8: Commercial Site index. 62Table 9: Residential Land Curve . 64Table 10: Commercial land curve . 67Table 11: Apartment Land Value . 71Table 12: Special Land Adjustments . 72Table 13: M&S Residential Construction Survey Rates 78Table 14: Residential Base Rates . 79Table 15: Condo Base Rates . 80Table 16: M&S Commercial Construction Survey Rates . .82Table 17: Commercial Base Rates . 83Table 18: Sub Area Codes .86Table 19: Property Attributes . 93Table 20: Grade Adjustment 123Table 21: Extra Features . 124Table 22: Outbuildings . 126Table 23: Residential and Residential Condo Depreciation Table . 132Table 24: Mobile Home Depreciation Table . 133Table 25: Commercial & Industrial Depreciation Table . 134Table 26: Base Income Rates . 143Table 27: Income Size Adjustment . 144Table 28: Income Location Adjustment . 146Table 29: Income Use Adjustments . 146Table 30: Income Vacancy Rates . 147Table 31: Income Vacancy Adjustments . 148Table 32: Base Income Expenses . 149Table 33: Income Expense Adjustments . 150Table 34: Income Capitalization Rates . 151Table 35 Capitalization Rate Adjustments . 152Table 36: Adjusted Capitalization Rates . 152Table 37: Income Value Per Unit . 152Table 38: 2018 Ratio Study . 172Table 39: Residential Neighborhood Ratios . 173Table 40: Residential Condo Ratios . 174Table 41: Residential Mobile Home Ratios . 174Table 42: Residential Style Ratios . 175Table 43: Residential Condo Style Ratios. 175Table 44: Residential Model Home Style Ratios . 176

Table 45: Residential Neighborhood/Style Ratios . 176Table 46: Residential Condo Neighborhood/Style Ratios. 179Table 47 Residential Mobile Home Neighborhood/Style Ratios . 181Table 48: Residential Grade Ratios . 182Table 49: Residential Condition Ratios . 182Table 50: Commercial Neighborhood Ratios . 188Table 51: Commercial Style Ratios. 189Table 52: Commercial Neighborhood/Style Ratios . 189Table 53: Commercial Grade Ratios. 190Table 54: Sales Codes . 208Table 55: Sales Used in Analysis . 209Table 56: Unqualified Sales .218Links to Charts in ReportChart 1- Commercial Price Per Acre . 59Chart 2- Residential Land Curve. 64Chart 3- Commercial Land Curve . 68Chart 4: Residential Depreciation Chart . 133Chart 5: Mobile Home Depreciation Chart . 134Chart 6: Commercial & Industrial Depreciation Chart . 136Chart 7: Residential Actual Year Build Ratios . 183Chart 8: Residential Living Area Charts . 184Chart 9: Residential Ratio Map . 185Chart 10: Residential Outlier Map . 186Chart 11: Overall Ratio Map . 187Chart 12: Commercial Actual Year Build Ratio Chart . 191Chart 13: Commercial Size Ratio Chart . 192Chart 14: Commercial Ratio Map. 193

Letter of TransmittalFebruary 18, 2020Municipal and Assessing OfficialsMunicipality of Portsmouth1 Junkin’s AvenuePortsmouth, NH 03801RE: 2019 Portsmouth, NH USPAP Mass Appraisal ReportIn accordance with your request, Vision Government Solutions has completed a statistical valuationupdate of all properties in the City of Portsmouth. The purpose of this mass appraisal is for taxassessment purposes.The intended user of this appraisal is Municipal and Assessing Officials. Other users include the NewHampshire Department of Revenue (DRA). This report may also be used by the New Hampshire Boardof Tax and Land Appeals (BTLA) and the General Court of the State of New Hampshire. The appraiser isnot responsible for unintended use of this report. No third parties are authorized to rely on this report.This letter must remain attached to the report for the opinions set forth herein to be considered valid.This is a Mass Appraisal Report which is intended to comply with the appraisal development andreporting requirements set forth under Standard Rules 5 and 6 of the Uniform Standards ofProfessional Appraisal Practice (USPAP). Supporting documentation concerning the data, reasoningand analyses is retained in the appraiser’s file. The information in this report is specific to the needs ofthe client and for the intended use stated in this report.The reported analyses, opinions, and conclusions were developed, and this report has been preparedin conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice ofthe Appraisal Institute. It has also intended to comply with International Association of AssessingOfficials (IAAO) Standards.This is a mass appraisal. It is assumed that all factual and financial data provided the appraiser in thereport is accurate, unless otherwise stated. This is what USPAP refers to as an extraordinaryassumption; if found to be incorrect, it could affect the conclusions.The following is a summary of the new assessed values and the number of parcels in each usecategory.USE DESCRIPTION905C906VTotal Assessed ParcelValue 3,679,300 274,400COUNT218 Page

999VAC LAND IMPAPT 4-7 UN MDL94APT OVER EIGHTAUTO REPR MDLAUTO S S&SAUTO V S&SBOARDING HS MDL94CABLE ROWCBL-TV TRCDMVCELL TWRCHAR CONDOCHAR MDL-00CHARITABLECHARTBLCHARTBL 00CHARTBL 01CHURCH ETC MDL94COMM BLDGCOMM CONDOCOMM WHSECONDO SITECONDO/XMPTMDL-06CONDOMINIUMCONV FOODDAY CAREDEVEL LANDDOCK YARDSDRA ELEC -MDL-00DRA GAS MDL-00DRA IND CONDOUTILEDUC BLDGELEC PLANT MDL00ELECSUBSTAEX HARDWOODW/O 0 2,327,378 87,350,900514121 207,398,004 16,503,700 6,692,900 40,579,700 481,70035164121 2,212,688 95,168,283 0 2,345,300 1,173,700 824,600 16,965,900 74,439,651 5,156,100 9,934,000 575,500112463133310101 33,206,000 116,853,400 21,820,200 840,900 2,417,30013421168 962,372,000 585,500 1,613,000 26,604,305 9,775,300 675,033 813,400 5,059,626227912324111 4,023,900 13,920,803111 8,515,600 81531

USE DESCRIPTIONEX OTHER W/OEX UNPROCUCTIVEFACTORYFARM LANDFRATNL ORGFUEL SV/PRFUNERAL HMGAS PLANTGAS ROWGAS ST SRV MDLGAS STGGYMSHARD WOOD W/OHOPITALHOTELSHRDWARE STHSNG AUTHIND BLDGIND CONDOIND LD DVIND LD POIND LD UDIND OFFICEIND WHSESINNSLUMBER YRD MDL94MARINAMARINASMH PARK MDL-00MIXMOBILE HOMEMOTELSMULTI HOUSESMUNICIPALMUNICPAL MDL-01MUNICPAL MDL-94NOT SEP ASSESSEDNURSING HMOFF CONDOOFFICE BLDTotal Assessed ParcelValue 2,590 100 57,431,400 2,179 3,656,300 15,915,394 1,678,600 2,347,100 56,801,807 4,350,200 627,700 4,077,700 1,671 103,626,500 175,649,200 769,300 45,719,200 10,331,700 2,787,700 4,019,600 186,200 362,400 43,762,800 152,616,600 8,550,100 2,224,900COUNT 2,493,900 955,400 10,463,500 1,014,600 26,624,300 1,728,800 56,179,134 83,100,800 1,061,100 133,015,400 0 14,175,200 277,669,700 21416341517116041

USE DESCRIPTIONOTHER CULTOTHER OUT DOOROTHER W/OPARK GARPARK LOTPOT DEVELPRI COMMPRI RESIPRI SCHOOLPROF ASSOCPROF BLDGPUB TANKSPUB TANKS MDL-00PUB-SCHOOL MDL94R-D FACILRELIGIOUSRELIGIOUS MDL-01RELIGIOUS MDL-94RES ACLNPORES ACLNUDREST/CLUBSRETAILRTL CONDOSAND&GRAVLSFR WATERFRONTSFR WATERINFLSHOPNGMALLSINGLE FAM MDL00SINGLE FAMILYSTATESTATE MDL-01STATE MDL-94STATE MDL-96STORE/SHOPTEL POLE/CONDUITTEL ROWTEL X STATHREE FAMILYTRANSPORTATIONTWO FAMILYTotal Assessed Pa

RE: 2019 Portsmouth, NH USPAP Mass Appraisal Report In accordance with your request, Vision Government Solutions has completed a statistical valuation update of all properties in the City of Portsmouth. The purpose of this mass appraisal is for tax assessment purposes. The intended use