Calgary Church Appraisal Report

Real Estate Appraisal
Institutional Church With Classrooms & Gym
Lot C, Block 7, Plan 7610673
6415 Ranchview Drive NW
Calgary, Alberta
Prepared for:
Muslim Association of Canada
Attention: Mr. Hassan Gerbara (Calgary Chapter)
2270 Speakman Dr.
Mississauga, Ontario L5K 1B4
Prepared by:
Dale Yachimec, AACI, P.App., MBA
Appraisal Property Shop Inc.
Effective Date: May 02, 2016

7239A Flint Road SE
Calgary, Alberta, T2Z 2X1
Ph.: 403.767.9999 • Fax: 1.888.845.2886
Email: karen.barry@appraisalpropertyshop.com
Our Invoice No. #6261002
Client File No.
May 11, 2016
Muslim Association of Canada
2270 Speakman Dr.
Mississauga, Ontario L5K 1B4
Attention: Hassan Gerbara (Calgary Chapter)
RE: Current Real Estate Appraisal Presented in a Full Narrative Report of the Institutional
Church Located at 6415 Ranchview Drive NW, Calgary, Alberta
Dear Mr. Gerbara:
As requested, the above referenced property has been examined for factors deemed pertinent in
arriving at an estimated market value. The purpose of this appraisal is to estimate the Current
Market Value of the Fee Simple Interest of the above property legally described as Lot C, Block 7,
Plan 7610673. The following pages constitute my appraisal report, including the data and
analyses utilized in forming an estimate of market value, which is summarized in the Executive
Summary of Salient Facts and Conclusions section of the appraisal report. This appraisal report
was requested by Hussan Gerbara on behalf of the Muslim Association of Canada for confirmation
of the property value in relation to a pending offer to purchase the property and for first mortgage
financing purposes following purchase of the property. Therefore, the client and intended user of
this report is who requested this appraisal report, or the Muslim Association of Canada, Calgary
Chapter, Attention: Hussan Gerbara and the selected financial institution identified in a separate
transmittal letter signed by the Appraiser.
In order to carry out this assignment, the subject property was inspected on May 02, 2016 and a
market study of real estate activity in the vicinity of the subject property has been conducted. This
investigation included the collection and analysis of real estate market transactions, listings,
offerings and information pertaining to other transactions that have occurred in the area in the
recent past.
Based upon the data, analyses and conclusions contained in this report, the following Current
Market Value estimate has been concluded effective May 02, 2016.
* - See Extraordinary Assumptions & Hypothetical/Limiting Conditions

The estimated market value stated above, as well as every other element of this appraisal, are
qualified in their entirety by the Fundamental Assumptions and Limiting Conditions set forth in this
report, which are an integral part of this appraisal.
Should you have any questions concerning this report, please do not hesitate to call me directly at
780-902-2522.
Respectfully submitted,
Dale Yachimec, AACI, P.App., MBA
Inspected Property: _√_Yes __No

TABLE OF CONTENTS
Page
Title Page........................................................................................................................................ 1
Cover Letter .................................................................................................................................... 2
Table of Contents............................................................................................................................ 4
INTRODUCTION ................................................................................................................................................5
EXECUTIVE SUMMARY OF SALIENT FACTS AND CONCLUSIONS.........................................................5
FUNDAMENTAL ASSUMPTIONS AND LIMITING CONDITIONS................................................................6
EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL/LIMITING CONDITIONS ....................................8
EFFECTIVE DATE OF THE APPRAISAL/DATE OF THE REPORT .............................................................9
PURPOSE OF THE APPRAISAL...................................................................................................................9
INTENDED USE OF THE APPRAISAL..........................................................................................................9
PROPERTY RIGHTS DEFINED.....................................................................................................................9
LOCAL MARKET AREA DEFINED ...............................................................................................................9
ARMS LENGTH TRANSACTION DEFINED..................................................................................................9
MARKET VALUE DEFINED.........................................................................................................................10
EXPOSURE PERIOD DEFINED ..................................................................................................................10
PROPERTY RIGHTS APPRAISED..............................................................................................................11
PROPERTY IDENTIFICATION ....................................................................................................................11
SCOPE OF THE APPRAISAL......................................................................................................................11
FACTUAL DATA...............................................................................................................................................12
REGIONAL/MUNICIPAL ECONOMIC ANALYSIS......................................................................................12
ALBERTA ECONOMIC ANALYSIS..........................................................................................................12
CITY OF CALGARY/RANCHLANDS DISTRICT AREA ANALYSIS ........................................................18
MARKET AREA ANALYSIS ........................................................................................................................25
SITE DESCRIPTION & ANALYSIS..............................................................................................................26
TAXES AND ASSESSMENT INFORMATION .............................................................................................30
OWNERSHIP/SALES HISTORY..................................................................................................................30
TITLE ENCUMBRANCES............................................................................................................................31
MUNICIPAL PLANNING & LAND USE OVERVIEW ...................................................................................32
IMPROVEMENTS DESCRIPTION ...............................................................................................................35
ANALYSIS OF DATA AND OPINIONS OF THE APPRAISER ........................................................................37
HIGHEST AND BEST USE ANALYSIS .......................................................................................................37
APPRAISAL METHODOLOGY....................................................................................................................39
COST APPROACH ......................................................................................................................................40
DIRECT COMPARISON APPROACH TO VALUE ......................................................................................59
RECONCILIATION AND SUMMARY OF THE FINAL MARKET VALUE ESTIMATE.................................72
CERTIFICATION OF APPRAISER ..............................................................................................................74
ADDENDA ........................................................................................................................................................76
Exhibit
Subject Photographs...................................................................................................................................A
Title Certificate .............................................................................................................................................B
Land use Bylaw............................................................................................................................................C

INTRODUCTION
EXECUTIVE SUMMARY OF SALIENT FACTS AND CONCLUSIONS
Client: Muslim Association of Canada, Attention: Hussan Gerbara (Calgary
Chapter)
Property Owner: The Reorganized Church of Jesus Christ of Latter Day Saints
(Canada)
Intended Use and User(s): For confirmation of the property value and first mortgage financing
purposes following the purchase of the property by the client, or the
Muslim Association of Canada, Attention: Hussan Gerbara (Calgary
Chapter) and the selected financial institution as identified in a
separate transmittal letter signed by the Appraiser
Property Address: 6415 Ranchview Drive NW, Calgary, Alberta
Legal Address: Lot C, Block 7, Plan 7610673
Property Type/Use: Institutional Church With School Classrooms & Gym
Land Use Designation/Zoning: S-CI – Special Purpose - Community Institution
Inspection Date: May 02, 2016
Effective Date of Appraisal: May 02, 2016
Report Date: May 11, 2016
Property Rights Appraised: Fee Simple Interest
Classification of Report and Appraisal: Current Market Value Presented in a Full Narrative Report
Land Size: 1.35 Acres, or 58,806 Square Feet
Gross Building Footprint Area: 14,275 Square Feet
Gross Usable Area: 15,287 Square Feet, Includes Developed Mezzanine Office Space
Highest and Best Use as Vacant: Public/Institutional Usage
Highest and Best Use as Improved: Community Church and Children's School
* - See Extraordinary Assumptions & Hypothetical/Limiting Conditions
Exposure Time
(as defined in this report):
12 to 15 months given market conditions within Calgary, the larger size of the
church and observed exposure periods of similar sized churches that have recently
sold within Calgary

FUNDAMENTAL ASSUMPTIONS AND LIMITING CONDITIONS
The certification of the appraiser in this appraisal report is subject to the following assumptions and limiting conditions and any
other specific conditions set forth by the appraiser elsewhere in the report.
General
1. The effective date to which the opinions expressed in this report apply is set forth in the Cover Letter. The appraiser
assumes no responsibility for economic or physical factors occurring at some later date that may affect the opinions
stated herein. No opinion is expressed regarding legal matters that require specialized investigation or knowledge
beyond that ordinarily employed by real estate appraisers.
2. Information, estimates, and opinions contained in this report were obtained from sources considered reliable and
believed to be true and correct. However, the appraiser assumes no responsibility for accuracy of such items
furnished by the appraiser obtained from other parties.
3. The appraiser assumes no responsibility for legal matters affecting the property appraised or the title thereto, nor
does the appraiser render any opinion as to the title, which is assumed to be marketable. The property is appraised
as though under responsible ownership and management and free and clear of any or all liens or encumbrances
unless otherwise stated.
4. The appraiser is not required to give testimony or appear in court because of having prepared this appraisal of the
subject property unless arrangements have been made otherwise.
5. Disclosure of the contents of this appraisal is governed by the by-laws and regulations of the professional appraisal
organizations with which the appraiser is affiliated.
6. Neither all nor any part of the contents of this report or copy thereof (including conclusions as to property value, the
identity of the appraiser, professional designations, reference to any professional appraisal organizations, or the firm
with which the appraisers are connected) shall be used for any purpose other than the intended use of this appraisal
outlined in this report by anyone but the client or the client's assigns without the prior written consent of the
appraiser. Nor shall this report be conveyed by anyone to the public through advertising, public relations, news,
sales, or other media without the prior written consent and approval of the appraiser.
7. No engineering survey has been made by the appraiser. Except as specifically stated, data relative to sizes and
areas were either estimated through measurement or taken from sources considered reliable, and no encroachment
of any real improvements present is assumed to exist other than specified. All maps, plats and exhibits included are
for illustration only, as an aid in visualizing matters discussed within the report and should not be considered as
surveys or relied upon for any other purpose. All engineering and other information obtained from the client
regarding the subject property are assumed to be correct.
8. It is assumed that all applicable zoning regulations and restrictions have been complied with, unless nonconformity
has been stated, defined, and considered in the appraisal report.
9. No changes of any item of the appraisal report shall be made by anyone other than the appraiser, and the appraiser
shall have no responsibility for any such unauthorized changes.
Site
10. The appraiser inspected the subject land and found no obvious evidence of soil deficiencies except as stated in the
report. However, no responsibility can be assumed for hidden soil deficiencies, such as weight bearing capacity
limitations, or conformity to specific government requirements, without the provision of specific professional or
governmental inspections. For purposes of this appraisal, the appraiser assumes that there are no hidden or
unapparent soil deficiencies of the property, subsoil, or structures if present, which would render it more or less
valuable. The appraiser assumes no responsibility for such conditions or for engineering that might be required to
discover the factors.
11. The completion of an environmental assessment was not within the scope of this analysis. Unless otherwise stated in
this report, the existence of petroleum leakage, chemicals or toxic waste, which may or may not be present on the
property or adjacent properties, were not called to the attention of, nor were they observed by the appraiser.
Therefore, the assumption is being made that no environmental hazard problems are evident on the subject land
except those discussed within the context of this report.
12. The value concluded herein is entirely contingent upon the subject property not being within or subject to any
unknown provincial or federal regulations not identified on the title, such as building height restrictions, nature
reserves, etc., which, as a result might limit, restrict, and/or prevent development of the subject land to its highest
and best use.

Building Improvements
13. The appraiser inspected the buildings on the subject lands, and found no obvious evidence of structural deficiencies
except as stated in the report. However, again no responsibility for hidden defects or conformity to specific
government requirements, such as fire, building and safety, earthquake, or occupancy codes, can be assumed
without provision of specific professional or governmental inspections.
14. Unless otherwise stated in this report, the existence of hazardous materials within the buildings present on the
subject land, if any, including, but not limited to, asbestos, urea-formaldehyde foam insulation, polychlorinated
biphenyls, were not called to the attention of, nor were they 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 as listed above or any other potentially hazardous materials may
affect the value of the property. The value opinion is predicted on the assumption that there is no such material on or
in the property, or on or in adjoining properties that would cause a loss in value to the property being appraised. No
responsibility is assumed for any such conditions or for any expertise or engineering knowledge required discovering
them. The client is urged to retain an expert in this field, if desired. In the event that a conclusion is reached whereby
corrective action will be required to clean up any environmental contamination, the appraiser will at that time retain
the right to modify and/or change the value conclusions presented herein.
15. On any appraisals involving proposed construction, the appraisal report and value conclusions are contingent upon
completion of the proposed improvements, in accordance with the plans and specifications the appraiser obtained
from the client.
16. The distribution of the total valuation in this report between land and improvements present, if any, applies only under
the existing program of utilization. The separate valuations for land and building, if applicable, must not be used in
conjunction with any other appraisal and are invalid if so used.
17. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative
authority from any local, provincial, or federal government or private entity or organization associated with the uses of
buildings present, if any, have been or can be obtained or renewed for any use on which the value opinion contained
in this report is based.
18. It is assumed that the utilization of the land and building improvements, if any, is within the boundaries or property
lines of the property described and that there is no encroachment or trespass unless noted in the report.
19. The forecasts, projections, or operating estimates of buildings present, if any, contained herein are based upon
current market conditions, anticipated short-term supply and demand factors, and a continued stable economy.
These forecasts are, therefore, subject to change as a result of variations in the market.
20. The construction and condition of improvements present, if any mentioned in the body of this report, are based on
observations. No engineering study has been provided on the buildings present, if any, which would assist in the
discovery of any latent defects. No certification as to any of the physical aspects of the buildings present, if any,
could be given unless a proper engineering study was made.

EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL/LIMITING CONDITIONS
Extraordinary Assumptions/Hypothetical Conditions:
Extraordinary Assumption is defined as “An assumption, directly related to a specific assignment, which, if found
to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact
otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or
about conditions external to the property such as market conditions or trends; or about the integrity of data used
in an analysis. An extraordinary assumption may be used in an assignment only if:
-It is required to properly develop credible opinions and conclusions;
-The appraiser has a reasonable basis for the extraordinary assumption;
-Use of the extraordinary assumption results in a credible analysis; and
-The appraiser complies with the disclosure requirements set forth in the latest Canadian Uniform
Standards for extraordinary assumptions.
Hypothetical Condition is defined as a hypothetical condition that is known to be contrary to what exists.
However, the conditions are asserted by the appraiser for the purposes of the analysis as per the terms of
reference provided by the client. An example would be valuing a property as if vacant when building and/or site
improvements are present. For every Hypothetical Condition, an Extraordinary Assumption is also required.
The following Extraordinary Assumption/Hypothetical Condition(s) is/are being made:
None
Extraordinary Limiting Conditions:
Extraordinary Limiting Conditions is defined as a necessary modification or exclusion of a Standard Rule, which
may diminish the reliability of the report. An example would be the appraiser's inability to inspect the interior of a
building being appraised.
The following Extraordinary Limiting Conditions are being made:
None

EFFECTIVE DATE OF THE APPRAISAL/DATE OF THE REPORT
INSPECTION DATE: May 02, 2016
EFFECTIVE DATE: May 02, 2016
DATE OF THE REPORT: May 11, 2016
PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to provide an estimate of the Current Market Value of the Fee Simple Interest of
the subject property.
INTENDED USE OF THE APPRAISAL
The intended use of this appraisal is for confirmation of the property value in relation to a pending offer to
purchase the property and for first mortgage financing purposes following purchase of the property by the client.
Therefore, the intended user of this appraisal is solely the client, or the Muslim Association of Canada, Attention:
Hussan Gerbara (Calgary Chapter) and the selected financial institution as identified in a separate transmittal
letter signed by the Appraiser.
PROPERTY RIGHTS DEFINED
The property rights being appraised are those of the “Fee Simple Interest”. Fee Simple interest includes a
“bundle of rights”, which embraces the right to use the property, to sell it, to lease it, to enter it, or to give it away.
It also includes the right to refuse to take any of these actions. These rights and privileges are limited by powers
of government that relate to taxation, eminent domain, police power and escheat.
LOCAL MARKET AREA DEFINED
Local Market Area is an area or region in which real estate properties generally share similar location and/or
economic characteristics, such as a municipal neighbourhood or district, an entire municipality or a region within
a municipality, or a region within a province. A local market area can be broad or specific depending on the type
of property.
ARMS LENGTH TRANSACTION DEFINED
An arms length transaction is a sale transaction in which both parties of the transaction acted in their own self-
interest and thus were not subject to any pressure, duress or favoritism from the other party. An arms length
transaction can involve a sale transaction resulting from an open market sale of a property involving a real
estate agent or involve a private sale transaction between unrelated parties.

MARKET VALUE DEFINED
The latest edition of the Canadian Uniform Standards defines market value as follows:
“The most probable price in terms of money which a property should bring in a competitive and
open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently,
knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is
the consummation of a sale as of a specified date and the passing of title from seller to buyer under
conditions whereby:
1. Buyer and seller are typically motivated.
2. Both parties are well informed or well advised, and each acted in what they consider their own best interest.
3. A reasonable time is allowed for exposure in the open market.
4. Payment is made in terms of cash in Canadian dollars or in terms of financial arrangements comparable
thereto; and
5.The price represents the normal consideration for the property sold unaffected by special or creative financing
or sales concessions granted by anyone associated with the sale.”
EXPOSURE PERIOD DEFINED
The latest edition of the Canadian Uniform Standards defines exposure period as follows:
“The estimated length of time the property interest being appraised would have been offered on
the market prior to the hypothetical consummation of a sale at market value on the effective date
of the appraisal; a current estimate based upon an analysis of past events assuming a
competitive and open market."
Exposure time is different for various types of real estate and under various market conditions. It is noted that
the overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but
also adequate, sufficient and reasonable effort. This statement focuses on the time component.
The fact that exposure time is always presumed to occur prior to the effective date of the appraisal is
substantiated by related facts in the appraisal process: the supply/demand conditions as of the effective date of
the appraisal; the use of current cost information; the analysis of historical sales information (sold after exposure
and after completion of negotiations between the seller and buyer); and the analysis of future income
expectancy estimated from the effective date of appraisal. The estimate of the most probable exposure time is
based upon consideration of one or more of the following:
• Statistical information about the time the properties are listed on the open market;
• Information gathered through sales verification; and,
• Interviews of market participants.

PROPERTY RIGHTS APPRAISED
The subject property rights being appraised are Fee Simple Interest.
PROPERTY IDENTIFICATION
The subject property is legally described as Lot C, Block 7, Plan 7610673.
SCOPE OF THE APPRAISAL
As part of the valuation process, the appraiser inspected the subject property, viewed the surrounding
properties, viewed the market area and inspected those comparables deemed necessary. The highest and best
uses were analyzed and determined for the subject property.
A search for comparables was made based upon, but not limited to the following search criteria: 1) Similarly
located comparable sales within the general area. 2) Date of sale within the past several years and 3) Similar
potential use. The most comparable sales were then selected from those transactions that met these criteria.
The sources of comparables used in this analysis included use of an in-house developed database of market
transactions obtained from a variety of sources including but not limited to land title transfers obtained from
Alberta Land Titles, pending and/or sold comparable sales obtained from Commercial Edge or the Multiple
Listings Systems provided by the local Real Estate Board, or CREB in this case, and/or through discussions
with local Realtors, property owners and appraisers knowledgeable of the area that were verified by the
appraiser. The appraiser is responsible for the researching and analysis of all data and conclusions utilized
within this report.
Any exterior photographs in this report of comparables that were obtained from Sale/Listing sheets, Assessment
Reports or from other sources that are considered reliable and relevant. Unless otherwise stated herein, the
appraiser believes that the selected photographs are an accurate illustration of the property as of the listed, sale
or assessed date and complies with the Personal Information Protection and Electronic Documents Act
(PIPEDA).
To arrive at the value estimate, the appraiser researched the assessed value, land use designation and
potential future uses of the subject property. All applicable current land use and planning documents were
obtained from the municipality and reviewed as applicable to the subject property. A copy of the current Title
Certificate for the subject property was obtained and all encumbrances were reviewed. Also, the appraiser
reviewed all documentation made available for the subject property, such as studies, surveys as well as the
property history and key characteristics.
All valuation techniques were considered during the valuation of the subject property, however only those
techniques deemed appropriate were selected and applied. The three key approaches considered are outlined
later in this report.

FACTUAL DATA
REGIONAL/MUNICIPAL ECONOMIC ANALYSIS
ALBERTA ECONOMIC ANALYSIS
Regional Location Map
The subject property is located within the northwestern part of Calgary, which is within the south
central part of Alberta, as shown in the above map.

2014 GDP Growth
Source: AlbertaCanada.com Economic Dashboard January 2016
Alberta’s economy had shown positive GDP growth since economic growth contracted in 2009
following the global financial crisis during the fall of 2008 and had the highest GDP growth of all
provinces during 2014, as shown in the above graph. Alberta’s real GDP rebounded 3.3% during
2010 and advanced 5.2% in 2011, which represents the province’s highest economic growth rate
since 6.2% reported in 2006. In 2013, Alberta experienced a GDP growth of 3.9% and in 2014
experienced 4.4%. However, However, The Conference Board of Canada reported during 1Q 2016
that Alberta’s GDP is expected to have contracted by 1.8% during 2015 and forecasted Alberta’s GDP
to contract a further 1.3% during 2016 and then will rebound in 2017 to have 1.7% GDP growth during
2017 and then have 2.7% GDP growth during 2018.
Historical Oil Prices
Source: AlbertaCanada.com Economic Dashboard

Contributing towards Alberta’s past economic growth was that the price of West Texas Intermediate
(WTI) oil, often a world reference price for light synthetic crude oil quoted in the media, had trended
upward from $50 US to $100 US per barrel between January 2009 and December 2014 until dropping
to near $50 US per barrel during 1Q 2015. Oil prices rebounded to the $60 per barrel mark later in
2015 but then dropped below $50 US per barrel in August 2015 and then later further dropped to
below $40 US per barrel in December 2015 and then to below $30 US per barrel in February 2016
and then rebounded again to near the $40 US per barrel mark in April 2016. The price of Western
Canada Select (WCS) oil, the lower price obtained by 50% of Alberta’s exports due to having a
heavier synthetic crude oil blend, was also down substantially on a year over year basis. In view of
the recent decline in oil prices, the Government of Alberta forecasted in March 2015 a real GDP
growth of 0.4% for 2015. Also, Stephen Poloz, governor of the Bank of Canada, announced in
December 2015 that the bank would consider cutting its interest rate to below zero per cent if Canada
is faced with a major economic shock in 2016.
Three key factors are contributing towards lower oil prices due to over supplies, which are anticipated
not to change over the short term. One, the end of the US-led embargo on Iran resulted in a surplus
of oil in Iran. The financial embargo on that country had damaged its economy. Iran is now in extreme
need for cash, which is resulting in the country pumping out as much oil as physically possible no
matter how low oil prices drop. Two, Libya had suffered a lot of damage to its oil infrastructure during
the overthrow of Gadaffi years ago. However, Libya’s oil terminals are now under attack by the Islamic
State. Like Iran, Libya is desperate for cash and is selling as much oil as it can no matter how low the
oil price goes. And three, fracking in the US is increasing oil supplies.1
However, in February 2016,
Qatar, Saudi Arabia, Russia and Venezuela agreed to freeze oil production levels at January levels in
an attempt to help stabilize prices.
Positive overall increases to Alberta’s monthly building permit values between 2011 and 2014 support
evidence of strong economic growth in Alberta during those three years, as shown in the following first
chart. However, during 2015, it became evident that Alberta’s overall monthly total permit values
began trending downward with a significant drop observed in January 2016, also shown in the
following first chart. Building permits appear to have rebounded in February 2016 as shown on the
following second chart. In February 2016, Alberta municipalities issued $1.6 billion in building
permits, up 25.6% from February 2015. Alberta led all provinces in year-over-year growth in the value
of building permits in February 2016, with its 25.6% rate2
.
1
Oil-Price.net, Oil Price Drops on Oversupply, Steve Austin, 2014/10/06
2
Albertacanada.com Economic Dashboard, http://economicdashboard.albertacanada.com/BuildingPermit

Alberta Monthly Total Permit Value Statistics
Source: AlbertaCanada.com Economic Dashboard February 2016

Alberta’s inflation rate as of February 2016 was 1.4% and has generally been fluctuating between
1.4% and 2% since mid-2015. Although Alberta’s inflation rate has been generally fluctuating
between 0% and 3% since 2011, several local building construction companies reported that 2015
building construction costs were currently 30% to 40% higher than 2008 construction costs, which
equates to a construction inflation rate of closer to 4% to 6% per year between 2008 and 2015.
Source: AlbertaCanada.com Economic Dashboard February 2016
Despite the slowdown in Alberta’s economy, Alberta is still leading other provinces in terms of
population growth. On October 1, 2015, Alberta’s population reached 4,216,875, up 69,835 or 1.7%
from October 1, 2014. The national growth rate was 0.9% over the same period as last quarter.
Alberta accounted for 23% of Canada’s population increase over the past year and ranked 1st
in the
year-over-year population growth rate3
.
3
Albertacanada.com Economic Dashboard, Aug. 2015, http://economicdashboard.albertacanada.com/BuildingPermit

Source: AlbertaCanada.com Economic Dashboard, January 2016
In summary, Alberta’s economy had been experiencing overall positive economic and population
growth between 2011 and 2014. However, in response to the recent decline in oil prices beginning in
January 2015, downward pressure now exists on real estate property values, particularly within those
municipalities whose local economy is strongly influenced by the oil and gas industry.

CITY OF CALGARY/RANCHLANDS DISTRICT AREA ANALYSIS
City of Calgary Location Map
The subject property is located within the northwest part of the City of Calgary in the Ranchlands
residential district, as shown in the above map, which will be discussed at the end of this section.
Given the subject general location within Calgary and the specific location within the Ranchlands
district influences the subject property, an analysis of Calgary’s economy will be done first followed by
a review of the Ranchlands district.

As a national transport centre, Calgary serves as the gateway to two major Rocky Mountain passes,
as well as the crossroads of Alberta's rail and road systems. Calgary is also a major business centre
for Southern Alberta and Western Canada with over 135 head offices. With an abundance of major
services and cultural amenities fitting a city of over one million, and no provincial sales tax, the City
draws new residents from throughout the Province and beyond as exemplified in the steady
population growth. Calgary is also Western Canada’s distribution hub. The latter attraction has lead to
the development of numerous mega warehouse complexes within the city’s industrial parks and
numerous head offices for companies operating in the oil and gas industry.
The population of Calgary is reported to be 1,230,915 persons as of April 2015. The City has shown
positive growth since 2005 and given net migration into Alberta is still positive and was over 10,000
persons during 3Q 2015, Calgary’s population level continued to grow throughout 2015. The following
chart illustrates the population growth from 2005 to 2015:
CALGARY’S POPULATION GROWTH
CENSUS POPULATION
INCREASE/
DECREASE
% GROWTH
FROM PREVIOUS
2015 1,230,915 35,721 2.99%
2014 1,195,194 45,642 3.97%
2013 1,149,552 29,327 2.62%
2012 1,120,225 30,189 2.77%
2011 1,090,036 18,521 1.69%
2010 1,071,515 6,060 0.57%
2009 1,065,455 22,563 2.16%
2008 1,042,892 22,950 2.25%
2007 1,019,942 28,183 2.84%
2006 991,759 35,681 3.73%
2005 956,078 22,133 2.42%
The oil sector has experienced declining prices, as outlined within the previous Alberta Economic
Analysis section, which has been having a negative effect on Calgary’s unemployment level. The
city’s unemployment level jumped from 4.25% in December 2014 when oil prices were still relatively
high to near 7.5% in January 2016 when oil prices dropped to below $30 US per barrel, as shown in
the following unemployment chart.

The following Permit Statistics were obtained from the City of Calgary’s web site:
Total construction activity trended upward between 2013 and 2014 due to growth within the residential
sector. However, total construction activity in 2015 was reported to be 3.4% below the 2014 level but
still remained above the 2013 level. The above chart exemplifies that Calgary’s total construction
activity is over 50% residential in nature and construction within this sector was still relatively strong
during 2015 despite the price of oil beginning to significantly decline in January 2015.

Analysis of Churches within Calgary
Given the Highest and Best subject property is institutional/church usage, as concluded later in this
report, the following market information provides some insight as to the number of churches present
within Calgary as a whole and within Calgary’s different sectors and how often churches change
ownership.

From the previous map, it is observed that a higher concentration of churches are located within the
central parts of Calgary but churches are present within almost every residential district of the city.
The following chart summarizes the number of churches located within each sector of Calgary along
with the total number of churches listed on Canada’s on-line Yellow Pages.
Calgary Sector Number of Churches
Listed on Yellow Pages
Northeast Calgary 114
Northwest Calgary 103
Southeast Calgary 150
Southwest Calgary 139
Calgary City 506
From the above chart, it is observed that the greatest number of churches are located within
southwest Calgary and the least number of churches are located within northwest Calgary.
Commercial Edge is a local service affiliated with the Calgary Real Estate Board (CREB) that tracks
commercial sales within the Greater Calgary Area that includes church sales. The following chart
summarizes the volumes and sale prices of churches that Commercial Edge Reported to have sold
within Calgary during the past 10 years.
Sale Price Range Number of Churches Sold
Since 2006
Less than $1M 8
From $1M to $2M 14
From $2M to $3M 2
From $3M to $4M 1
From $4M to $5M 1
From $5M to $6M 1
From $6M to $7M 1
Total Church Sales: 28
From the above sales data, it is observed that nearly 80% of the 28 churches that have sold during
the past 10 years had sold for less than $2,000,000. The remaining 20% of the churches that had
sold within Calgary had sold for between $2,000,000 and $7,000,000.
City of Calgary Summary
In summary, Calgary’s population is still growing despite the significant decline in oil prices that began
in January 2015. A review of the number of churches that exist within Calgary, or over 500 churches,
and that 28 churches have sold within the past 10 years, or 2 to 3 churches per year on average that
range from less than $1,000,000 to $7,000,000, a market exists for churches within Calgary with the
strongest market being for churches less than $2,000,000 and the most limited market being for
churches worth from between $2,000,000 and $7,000,000.

RANCHLANDS AREA ANALYSIS
As indicated earlier in this report, the subject property is located within the northwest part of Calgary,
as shown in the map below that shows the boundaries of this district. The subject property is located
within the southeast part of the Ranchlands district, also illustrated in the map below.
Ranchlands Boundary Map and Subject Location within the District
The population of the Ranchlands district was reported to be 7,926 persons during 2014, which is up
3.6% from the population level of 7,654 persons reported during 2009. As such, Ranchlands
represents a mature neighbourhood with a low annual population growth of 0.7%.
Although the neighbourhood is adjacent to four arterial roadways, most notably Crowchild Trail NW,
access to the district is limited to being via Ranchlands Boulevard NW that interect with Nose Hill
Drive NW and Jogh Laurie Boulevard NW that border the district on the west and north boundaries,
respectively. Access to the subject church is via Ranchview Drive NW that intersects Ranchlands
Boulevard NW at two points. As such, users of the church located outside of the district have to travel
through half to three quarters of the district to reach the subject church.

Churches within Ranchland
The above map illustrates that five churches are located within the Ranchlands district of which one is
adjacent to the subject church and the other three churches are located within the northern and
western parts of the district and thus have moderately better accessibility from outside the district.
Overall, access to the subject church is relatively quick from the north via John Laurie Boulevard NW
and via Ranchlands Boulevard NW.
Ranchlands Summary
In summary, the subject church is located within the Ranchlands residential district that is a mature
district with nominal annual population growth. Access to the subject church is somewhat secondary
within the district given the location within the southeast part of the district, which is at the opposite
ends of the district that have access from the arterial roadways that border the district. the west part of
the district is deemed to have the best accessibility given the two access points are in close proximity
to Crowchild Trail NW, which represents the most major roadway bordering the district.

MARKET AREA ANALYSIS
Market Area Map
The subject land under analysis a consists of an institutional church with classrooms located on 1.35
acres of land zoned SCI-Special Purpose Community Institution that is located within the
southeastern part of the Ranchlands district within northwest Calgary, as shown in the above map.
The land is near Crowchild Trail NW/Highway 1A but the district is accessed via the roadways that run
along the west and north boundaries of the district.
In view of the preceding, the subject local market area is generally defined as SCI-Special Purpose
Community Institution zoned land designated located within northwest Calgary, as outlined in red on
the above map. The latter recognizes that a more specific local market area would be the
southeastern part of the Ranchlands District that would have highly similar locational attributes, and a
more general local market area would be the entire City of Calgary. SCI-Special Purpose Community
Institution zoned properties within northwest Calgary would generally have similar accessibility and
locational characteristics from a Calgary-wide accessibility perspective.

SITE DESCRIPTION & ANALYSIS
Subject Land Titles System Map

Subject Building Footprint and Mezzanine Measured Areas

Aerial Satellite Photo of the Subject Property and Adjacent Surrounding Area

The reader is referred to the previous information that pertains to the subject property. Below are key
features and characteristics of the subject land:
Municipal/Legal Address: 6415 Ranchview Drive NW, Calgary, Lot C, Block 7, Plan
7610673
Land Area:
Gross Land Area: 1.35 Acres 58,806 SF
Primary Road Frontage: 330 ’- Ranchview Drive NW
Access: Direct by Ranchview Drive NW.
Shape: Triangular
Corner Lot: No
Visibility: Visibility from Ranchview Drive NW and surrounding
development is rated as Average.
Paved Road Access: Yes
Sidewalk: Yes
Curb And Gutter: Yes
Storm Sewer: Yes
Availability of Utilities
Electricity: Yes
Municipal Water: Yes
Municipal Sewer: Yes
Natural Gas: Yes
Telephone: Yes
Underground Utilities: Yes
Adequacy of Utilities: Average
Street Lighting: Yes
Topography: Level to sloped
Flood Plain: No
Adjacent Uses: The surrounding uses are predominantly a mixture of low
and medium density residential usage intermixed with
institutional and public park usage and some
neighbourhood commercial usage along Ranchlands
Boulevard NW, which is the main arterial roadway leading
through the Ranchlands district.
Easements/Encumbrances Issues: None deemed detrimental
Environmental Issues: None noted
Engineering Study: No
Summary:
The subject land consists of a triangular interior lot that is overall level with the front yard a bit hilly.
The lot is surrounded by mature trees on three sides and a public walkway runs along the east side of
the land that makes the subject land more accessible by foot. The larger size of the lot is such that
the triangular shape does not significantly reduce the amount of usable land, as a sizable building is
present on the building along with a large amount of paved parking space and landscaped yard
space. The building and site improvements will be discussed further later in this appraisal report
within the Improvements Description section.

TAXES AND ASSESSMENT INFORMATION
A summary of the assessment of the subject is provided in the following table, which was obtained
from the municipality’s Assessment Department.
ASSESSMENT FOR TAX YEAR 2015
Subject
Assessed Other/Combined Value $1,050,000
Total Other/Combined Value $1,050,000
Total Assessment $1,050,000
OWNERSHIP/SALES HISTORY
The most recent transfer of the subject land title was on July 9, 1979 when the subject land was
transferred to the current owner with a reported value of $150,000.
The appraiser is aware that the subject property is currently listed for sale at Market with no asking
price specified and that the client has a pending offer to purchase the subject property for $3,850,000
and several other lower bids were received to purchase the property.
To the best of the writer’s knowledge, the subject property was not involved in any other sales related
activity during the three years preceding the effective date of this appraisal.

TITLE ENCUMBRANCES
Reference is made to Exhibit B of the addenda of this report that contains a current copy of the
subject Title Certificate that identifies the encumbrances registered against the subject title. An
encumbrance can have a positive, negative or no effect on the value of the subject property
depending on the nature of the encumbrance.
Encumbrances that have a positive effect on value would typically include those encumbrances that
generate revenue, such as surface leases, or encumbrances that enhance the use of the property,
such as access easements registered on the subject property that affect adjoining properties that are
beneficial to subject property in terms of increased accessibility and/or yard size.
Encumbrances that have a negative effect on value would typically include those encumbrances that
generate costs or diminish the use of the property, such as easements or right of ways located within
the interior parts of a property that could be detrimental to the property in terms of limiting the size
and/or location of buildings that could be constructed.
Lastly, encumbrances that have no effect on value would typically include those encumbrances that
have no effect on the use of the subject property, such as farmland with underground facilities that
can be cultivated over top, or any encumbrances that are temporary in nature and can readily be
removed without any significant cost, such as mortgage financing caveats.
Title Encumbrances Comments
A total of four encumbrances are registered against the subject land title that involve two utility right of
way agreements and two restrictive covenants. The two utility right of way encumbrances are of no
concern as the right of ways are to provide utility services to the area.
Regarding the two restrictive covenants, review of the documentation associated with these
encumbrances obtained from Alberta Land Titles revealed that one encumbrance surrounds
forbidding the construction of structures on any of the utility or public sidewalk easements present on
the subject land. The second restrictive covenant surrounds and old encumbrance registered prior to
when the subject building was built that had provided temporary building sites and access routes
across the subject land when the area was being developed and accessibility was limited. Given all of
the required subject building and site improvements are already present to operate as a church and
school and these improvements comply with the first restrictive covenant that is still applicable, these
two encumbrances are of no concern as well.
In summary, all four encumbrances are deemed not to have any significant positive or negative effect
on the use and value of the subject property as it stands.

MUNICIPAL PLANNING & LAND USE OVERVIEW
Municipal Development Plan Usage Map

The reader is referred to the previous information obtained from the municipality's planning
department surrounding the City of Calgary urban usage structure and current land uses of the
subject property and the immediate surrounding area.
There are a series of municipal planning documents that affect the future and current uses of the
subject property, or the Municipal Development Plan, the Area Structure Plan and the Land Use
Bylaw. The Municipal Development Plan and an Area Structure Plan, where applicable, were
reviewed primarily from the perspective of future land usage regulations that would apply to the
subject property and the immediate surrounding area. Conversely, the Land Use Bylaw was reviewed
primarily from a current use perspective of the subject property and the immediate surrounding area.
Below are the aspects of the existing planning documents reviewed that apply to the subject property:
Current Land Use Designation: S-CI – Special Purpose - Community Institution
Purpose: The purpose of the S-CI zoning is to:
(a) provide for large scale culture, worship, education, health and treatment facilities;
(b) provide for a wide variety of building(forms located throughout the city; and
(c) be sensitive to the context when located within residential areas.
Current Use: The subject building is currently used as a community church and a children's school.
Legally Conforming: Yes. The church and school usage of the subject property complies with the
discretionary uses of the SCI land use designation, most notably Pace of Worship -
Large and School - Private.
Zoning Change
Requested:
Likely:
New Zoning:
No
No
N/A
Potential Future Uses: The future use of the subject property coincides with the current institutional zoning
and use of the property given the location within a mature residential neighbourhood
as identified in the previous Municipal Development Plan Calgary usage map and the
relatively low population growth levels of the Ranchlands district, which is resulting in
no significant pressure to re-zone and redevelop the subject property into some form
of medium or high density multi family residential development.
Permitted/Discretionary Uses:
Permitted uses of the S-CI include the following:
- Home Occupation;
- Natural area or park;
- Small power generation facility;
- Emergency services;
- Signs; and
- Utilities
A wide range of discretionary uses of the S-CI zoning generally include the following:
- Wide range of public services, such as hospital, cemetery, museum and alike;
- Wide range of sizes of places of worship;
- Private and post-secondary schools; and
- Other forms of public and utility uses
From the above permitted and discretionary uses, the City of Calgary has a strong degree of control as to how S-CI zoned
land is used to ensure that the use is in the public's best interests.
Refer to Exhibit C of the addenda for a full list of permitted and discretionary uses and all regulations associated with this
land use designation.

IMPROVEMENTS DESCRIPTION
Below is a summary of the key characteristics of the subject property building improvements:

Improvements Comments:
The reader is referred to Exhibit A of the addenda containing photos of the subject exterior and
interior finish.
The subject building consists of a wood frame church that has the following estimated key areas
measured by the appraiser and key features:
- Overall building footprint of 14,275 SF
- 1,012 SF of modernly finished mezzanine office space added in 2004 with 5 partitioned rooms
- Total usable floor area of 15,287 SF including mezzanine office space
- 3,571 SF gym with hardwood flooring, 20' ceiling, high intensity lighting and team washrooms
- 2,484 SF 200 person chapel with an abundance of woodwork, a skylight above a baptismal font,
raised wooden choir section, indirect fluorescent lighting, and an entrance with tall windows
- 8,220 SF of highly partitioned office-like space consisting of a reception area, multiple smaller
sized classrooms some with sinks, large reading room with indoor fire place, kitchen room and
multiple men's and lady's washrooms. Interior finish varies from carpet, linoleum and ceramic tile
flooring, painted drywall walls and stipple and suspended tile ceilings with a mixture of fluorescent
and incandescent lighting. New asphalt shingles were installed in 2011 on the building, which
occupies 10,700 square feet, or 75% of the building.
The building has above average heating and cooling systems in the form of three rooftop HVAC
systems that have been maintained by a property management company and several natural gas
furnaces to provide further zone heating. The power system is also above average given the 600 amp
service to the building. The subject building is rated as being in overall average condition with the
asphalt roofing and three rooftop HVAC systems being rated in good condition. The appraiser has
concluded that a degree of deferred maintenance is present in the form of repainting some areas,
replacing flooring in some areas and other minor cosmetic repairs and eventual replacement of the
roofing over the gym that has not been recently replaced.
The subject property has several site improvements present as well that include the following:
- 16,000 SF of paved parking space with 42 counted parking stalls
- 370 linear feet of concrete sidewalks ranging from 3.0 to 4.5 feet wide
- Landscaped front yard with planted trees along three sides of the property
- Extension of commercial grade servicing to the building including 600 ampere power service
The paved parking space was observed to be in good condition and the sidewalks were observed to
be in average condition but not designed for wheel chair access. The landscaped front lawn was
observed to be in fair condition with areas of little to no grass growth due to the front yard being
heavily trampled during children playing on the lawn. However, all of the trees were observed to be in
good health.

ANALYSIS OF DATA AND OPINIONS OF THE APPRAISER
HIGHEST AND BEST USE ANALYSIS
Highest and Best Use
Four criteria are examined in order to determine the highest and best use of the subject property. The
criteria and their applicability to the subject, both “as vacant” and “as improved” are as follows:
Physically Possible: the size, shape and topography affect the uses to which land may be
developed. The utility of a parcel is dependent on its frontage and depth. Sites with irregular
shapes may be more expensive to develop, and topography or subsoil conditions may make
utilization too costly or restrictive. Highest and best use as improved also depends on physical
characteristics such as condition and utility.
Legally Permissible: a legally permissible use is determined primarily by current zoning
regulations. However, other considerations such as long-term leases, deed restrictions, and
environmental regulations may preclude some possible highest and best uses.
Financially Feasible: the use of the property is analyzed to make a determination as to the
likelihood that the property is capable of producing a return which is greater than the combined
income needed to satisfy operation expenses, debt service, and capital amortization. Any use that
is expected to produce a positive return is classified as financially feasible.
Maximally Productive: the use that provides the highest rate of return among financially feasible
uses is the highest and best use. The use of the land must yield a profitable net return, and the
quantity of land devoted to any specific use must be limited to that quantity which will yield a
maximum return to each owner.
Current/Historic Use
The subject building is currently used as a community church and a children's school with a three quarter
size gym.

Highest and Best as Vacant
Physically Possible
Commercial, Industrial, Institutional/Public, Recreational or Residential Usage
Legally Permissible
Institutional/Public, Recreational or Utility Usage
Financially Feasible
Maximally Productive/Assemblage
Institutional/Public or Utility Usage. Assemblage with additional land is not required to realize the optimal
use of the subject property given the size of the land.
HIGHEST AND BEST USE AS VACANT: Public/Institutional Usage
The optimal use of the subject land as vacant would be some form of permitted Institutional/Public or Utility
usage given the location, surrounding uses, the institutional zoning and that the Ranchlands district has a
relatively low annual population growth rate and that Calgary’s residential market is currently suppressed,
which reduces the demand for the subject institutionally zoned land to be purchased and later rezoned for
multi-family residential development given the high risks present at this time to do so.
Highest and Best as Improved
Physically Possible
Commercial, Industrial, Institutional/Public, Recreational or Residential Usage
Legally Permissible
Financially Feasible
Institutional/Public or Recreational Usage
Maximally Productive/Assemblage
Institutional/Public Usage. Assemblage with additional land is not required to realize the optimal use
of the subject property given the size of the land.
HIGHEST AND BEST USE AS IMPROVED: Community Church and Children's School
The optimal use of the subject land as improved would Community Church and Children's School
given the building and site improvements in place, the subject location, surrounding uses and
institutional zoning. Furthermore, the significant amount of improvements present on the land that are
in overall average condition with the roof and heating/cooling systems rated as being in good
condition, residential land values within the Ranchlands district are not yet to the extent that the
subject property would have a higher value as residential development land in relation to the value of
the subject land as is given the larger sized church with classrooms and the three quarter sized gym
present.

APPRAISAL METHODOLOGY
There are three main approaches to value that can be applied for properties of this type, or the Cost
Approach, Income Approach and Direct Comparison Approach.
COST APPROACH
The Cost Approach is a method in which the value of a property is developed by adding the value of
the site as vacant to the depreciated value of the building and site improvements. The Cost Approach
is most applicable to newer properties and becomes subjective for older properties due to the
approach involving estimating a large amount of depreciation. However, the Cost Approach becomes
more applicable to older properties that are unique, owner occupied properties.
DIRECT COMPARISON APPROACH
The Direct Comparison Approach consists of the comparison of similar properties that have recently
sold or currently offered for sale. This comparison process involves making adjustments between the
subject property and the comparable properties on an item-by-item basis and is highly reliant on the
availability of suitable recent comparable sales. As such, this approach is most applicable to vacant
land and owner occupied properties that are relatively common in design.
INCOME APPROACH
The Income Approach converts an anticipated annual net income into an indication of value. This
approach is predicated upon the relationship between income and value. As such, the Income
Approach is most applicable when financial information is available for the appraised property or could
be estimated relatively accurately through the use of market data.
Given the unique characteristics of the subject property, availability of market data and that the
subject building is owner occupied, the following approaches will be applied commencing with the first
approach listed below:
Cost Approach
Direct Comparison Approach
Each selected approach is explained in detail at the beginning of the application of the approach. The
applicability and reliability of each approach considered are briefly reviewed again during the
reconciliation and summary of the subject property final market value estimate at the end of this
appraisal report.

COST APPROACH
The Cost Approach has been defined as:
“That approach in appraisal analysis which is based on the proposition that the
informed purchaser would pay no more than the cost of producing a substitute
property with the same utility as the subject property. The approach is particularly
applicable when the property being appraised involves a relatively new improvement
which also represents the highest and best use of the land or when relatively unique
or specialized improvements are located on the site for which there exists no
comparable properties on the market.”
Cost is essentially defined as the amount of money necessary to produce a commodity, whereas
value is thought of as the relationship between a thing desired and a potential purchaser. A property
can be less or more valuable than its cost immediately after construction of the improvement has
been completed, and it is also possible that structures of similar cost could have different value.
Therefore, it is emphasized that the cost and market value are not necessarily synonymous.
The Cost Approach is most applicable to newer properties and becomes partially subjective for older
properties due involving estimating the depreciated value of a property, which depends on estimating
the effective age and the economic life of the property. However, the Cost Approach becomes the
only approach applicable to non-income producing properties that are highly unique.
In the application of the “Cost Approach”, the property being appraised is treated as a physical entity
that is separated into site and improvements for valuation purposes. As such, the Cost Approach
develops the value of a property by 1) estimating the market value of the subject site as vacant, 2)
estimating the replacement or reproduction cost new of the subject improvements, 3) deducting the
estimated depreciation from all sources, 4) adding this depreciated reproduction or replacement cost
of the building and site improvements to the site value as vacant. The site value is based upon a
vacant site being used to its highest and best use. Generally speaking, the site value is estimated by
the Direct Comparison Approach.
The difference between the cost of a new building and its value (if less than cost) is depreciation. As
such, the depreciated value of improvements is estimated by deducting from the reproduction cost or
replacement cost new the amount of diminished utility known as accrued depreciation. Replacement
or reproduction cost new can be derived from reliable cost manuals or from interviews with reputable
local contractors. Depreciation can be from physical, functional, or economic causes. Physical
depreciation is simply the percentage of life past due to physical wear and tear of the improvements.
Functional depreciation is based upon the “cost to cure” outdated and inferior designs. Economic
depreciation is based on the revenue or value losses incurred due to negative external influences.
Ideally, depreciation is estimated from the market by observing comparable properties.

ESTIMATE OF LAND VALUE
The Cost Approach generally begins with valuation of the land as if vacant. There are several
methods appraisers can employ when developing an opinion of land value is if vacant. The six basic
procedures are the (1) Direct Comparison Approach, (2) Allocation Method, (3) Extraction, (4)
Subdivision Approach, (5) Land Residual Technique, and (6) Ground Rent Capitalization Method. All
six methods are derived from the three basic approaches to value. Direct Comparison and income
capitalization (i.e. Ground Rent Capitalization) can be directly applied to a land valuation with the
latter applicable when land is leased. Allocation and Extraction procedures reflect the influence of the
Direct Comparison and Cost approaches; the Land Residual Technique is based on the income
capitalization and the Cost Approach. The Subdivision Approach draws on elements of all three
approaches and estimates the present value of development land based on subdivided lot sales over
an estimated absorption period less costs and an expected developer’s profit. The most appropriate
valuation technique for vacant land of this type is the “Direct Comparison Approach”, as it most
reflects the behaviors of the buyers and sellers of this type of land. Therefore, the Direct Comparison
Approach was used to value the subject land as if vacant.
Direct Comparison Approach (Land Valuation)
The Direct Comparison Approach is a process of comparing actual comparable property sales. This
approach to value is based upon the Principle of Substitution, which holds that "the value of a property
tends to be set by the price that would be paid to acquire a substitute property of similar utility and
desirability within a reasonable amount of time. This principle implies that the reliability of the Direct
Comparison Approach is diminished if substitute properties are not available in the market." (The
Appraisal of Real Estate, 13th Edition).
This approach is based upon the collection of similar sales and offering data for comparison. Market-
derived adjustments for relevant factors can sometimes be extracted from these and other sales. The
sales data is compared to the subject on the basis of those elements of comparison, which include
real property rights conveyed, financing terms, conditions of sale, and date of sale. Location and
other physical characteristics are then considered. Physical characteristics typically used in
comparison are size, shape, topography, street frontage, services, zoning, title encumbrances and
alike. Because adjustments for these relevant factors are market derived, the desires and actions of
typical buyers and sellers are reflected in the comparison process.
Listed on the following pages are those comparables, which were considered to be the most similar to
the subject land as vacant. Emphasis was initially placed on searching for recent open market sales
of institutional land within the subject local market area. However, due to a limited number of such
sales being available for analysis, research was extended to consider a broader area, an extended
period, sales of residential zoned land given place of worship usage is a discretionary use of
residential zoned land. Also, research was also extended to consider private arms length transactions
as defined earlier in this report and withdrawn and/or rejected offers.

Land Sales Analysis
Land Sales Location Map

The reader is referred to the Site Description & Analysis section earlier in this report that contains the
key features of this subject land parcel being valued.
For purposes of this analysis, the value per acre was chosen as the unit of comparison, which reflects
what buyers and sellers use in the market place for this type and size of land. Consideration was also
given to overall values. The following discusses the adjustments required to the comparable sales to
account for differences in key features and characteristics in comparison to the subject property.
Discussion of Adjustments
Property Rights - The transaction price of a comparable sale is always based on the real property
interest conveyed. In this instance, an adjustment for this attribute was not considered necessary for
any of the comparables.
Financing/Sale Terms - The price paid in acquiring a property may be influenced by atypical
financing and/or sale terms involved, if any. Above or below market financing or special sale terms
could have a negative or positive affect on the price paid. Therefore, some method of converting
these financing and/or sale terms to cash must occur so that the adjustment process may be applied
to the affected sales. In reviewing the comparables, an adjustment was not required for atypical
financing or sale terms to any of the comparables.
Conditions of Sale - Adjustments made for conditions of sale usually reflect atypical motivations of
the buyer and seller at the time of conveyance. A sale may be transacted at a below market price if
the seller needs cash in a hurry. A financial, business, or family relationship between the parties may
also affect the price of property. Interlocking corporate entities may record a sale at a non-market
price to serve their business interest. When non-market conditions of sale are detected in a
transaction, the sale must be thoroughly researched before an adjustment is made. Within the
confirmation process, detailed attention was made to ensure the conditions of each sale. Based upon
the research performed, it is believed that all of the comparable sales involved regular arms-length
transactions without the presence of duress or adverse market influence. Thus, no adjustments were
warranted to any of the comparables.
Market Conditions/Time Adjustment Percentage - Market conditions may change between the time
of sale of a comparable property and the date of the appraisal of the subject property. Changed
market conditions often result from various causes, such as inflation or changes in demand and/or
supply. Time itself is not the cause for the adjustment.
Historical sales and market trends revealed that the market was trending upward up to January 2015
and then has been trending downward due to low oil prices. Appreciation in land values up to
January 2015 are deemed to near equally offset the depreciation in land value since January 2015.
Therefore, no significant net timing adjustments were deemed necessary to any of the land sales
given the sales had occurred during the past two years.

General Location in Calgary - Location considerations include such factors as location within the
municipality and proximity to major urban areas plus accessibility or adjacency to major highways.
When reviewing the comparables, it was determined that the locations of all the comparables are
similar to the subject property in terms of having locations within the peripheral parts of Calgary and
therefore no location adjustments were required for any of the comparables.
Land Size/Shape - The subject is 1.35 acres, or 58,806 square feet in size. The shape is triangular.
Larger lots tend to have lower unit values than smaller sized lots due to larger sized lots being more
capital intensive and that the market for larger lots are more limited than smaller sized lots. The sizes
of the five comparables range from 0.71 to 1.00 acres in size. The unit sale prices of the four vacant
lots, or Comparables 1, 3, 4, and 5 do not vary significantly with the size of the lots. Therefore, a
moderately bigger lot of 1.35 acres in size is deemed not to be significantly less in value on a per acre
basis than the comparables that are 1.0 acre in size. Therefore, no size or shape adjustments were
required to any of the comparables.
Accessibility - Corner located properties generally bring a premium in the marketplace due to ease
of access and increased visibility. However, these features are of less value to an institutional church
property, particularly if usage of the property is low. Therefore, no adjustments were deemed
necessary to any of the comparables given the low usage nature of institutional churches.
Topography/Soil Conditions - The subject has a level to sloped topography and has average soil
conditions. The less adverse the topography is and the more poor the soil quality, the more usable the
land is and the less costly the land is to develop and vice versa. When reviewing the comparables,
one comparable, or Comparable 5 was known to have poor soil quality in the form of excessive top
soil, which would result in additional soil removal and site preparation work. Therefore, an upward
adjustment was applied to Comparable 5 to account for the inferior soil quality.
Zoning - The subject is zoned S-CI - Special Purpose - Community Institution. The more limiting the
zoning is in terms of development potential, the less valuable the land and vice versa. When
reviewing the comparables, two comparables were deemed to have superior more intensive
residential zoning and thus were adjusted downwards recognizing that place of worship is a
discretionary use of residential zoning and that these two comparables could readily be uses as a less
intensive institutional church.
Improvements - The subject land is being valued as vacant at this stage of the Cost Approach. The
greater the quantity and better condition of the improvements present on a land parcel, the more
valuable the land is and vice versa. One comparable, or Comparable 2 was noted to have an old hall
present on the land along with a few minor site improvements. Therefore, a downward adjustment
was applied to this sale according to an estimated depreciated value of the old building and site
improvements present.

Encumbrances – As outlined earlier in this report within the Title Encumbrances section, an
encumbrance can have a positive, negative or no effect on a property depending on the nature of the
encumbrance.
The subject property has no encumbrances registered against the land title that affect the subject
property value. None of the comparables required adjustments to reverse the effect the
encumbrances would have had on the sale prices. Therefore, no adjustments were required under
this heading.
The following chart summarizes the overall net adjustment required to each of the comparables and
contains further brief comments surrounding the adjustments that were deemed necessary.

Conclusion
After making adjustments, the average, minimum and maximum adjusted unit prices for the
comparables are as shown in the chart below.
In weighing the adjusted sale prices for the three most recent comparables and those comparables
that are the most overall similar with the least overall net adjustments, and in considering the average
adjusted unit price and current market conditions within Calgary, the concluded market value estimate
of the subject land as if vacant is represented in the following table:

CAPITAL COST ANALYSIS
The application of the Cost Approach to value involves estimating the total reproduction cost of the
improvements as if new. These cost estimates are then depreciated according to the physical
deterioration, functional depreciation and external depreciation inherent within the property. This in
turn results in a depreciated value of the improvements which is then added to the estimate of land
value as if vacant to yield an overall indication of the market value of the subject property via Cost
Analysis. To facilitate a review of the reproduction cost new of the subject improvements, the writer's
investigations have concentrated on two basic areas.
Initially, conversations have been held with various contractors and sub-contractors serving the
subject area. A brief description of the improvements was provided and cost estimates thereby
extracted. This information is considered to be key, and has been emphasized. As well, Internet
research was conducted to determine published costs from various other contractors also serving the
subject area. Then, depreciation was estimated, which is discussed in detail next.
DEPRECIATION ANALYSIS
Depreciation may be defined as a loss in value due to any cause. Further, accrued depreciation may
be defined as the actual depreciation existing within a property as at a given date. The following
includes a general discussion on the various forms of depreciation considered applicable to the
subject improvements.
Physical Deterioration
The analysis of physical deterioration focuses strictly on incurable items. Two methods exist to
estimate depreciation, or a straight line "age/life" analysis or a modified "age/life" analysis. The
straight line "age/life" analysis derives a rate of depreciation by contrasting the estimated effective age
of the improvements to the projected economic life span. The modified "age/life" analysis derives a
rate of depreciation by contrasting the estimated effective age of the improvement to the projected
economic life span and referencing these variables to the Marshall & Swift Depreciation Tables. The
straight line "age/life" analysis typically applies to buildings located within rural areas or small urban
communities where building values depreciate at a more constant rate with time. Conversely, the
modified "age/life" analysis typically applies to buildings within major urban areas where building
values depreciate at a slower rate due to a greater demand for buildings within major urban areas. In
both cases, physical depreciation for buildings at or beyond the end of the economic life span that are
still functional typically plateaus at 80% depreciation. Thus, the remaining economic life for such
buildings is estimated to be 20% of the economic life span.
Although the subject property is located within an urban area, physical depreciation was derived
based on a straight line "age/life" analysis, as a church within an urban area with a limited demand for
re-sale tends to physically depreciate at a regular rate similar to improved properties within rural
settings that also have a limited demand.

The following table highlights the effective age and economic life span utilized for the subject building
along with the corresponding estimated physical depreciation percentage:
KEY BUILDING
IMPROVEMENT
ECONOMIC
LIFE
EFFECTIVE
AGE
REMAINING
ECONOMIC LIFE
PHYSICAL
DEPRECIATION
Church with Classrooms 60 25 35 42%
Although the subject building has a chronological age of 30 years, the recent replacing of 75% of the
subject building roofing in 2011 and the property management of the three roof top HVAC systems
have resulted in 75% of the roofing and these three systems as being in good mechanical condition.
Therefore, an effective age moderately lower than the chronological age of 30 years, or 25 years was
concluded. Again, physical depreciation was derived based on a straight line "age/life" analysis for
purposes of this application of the Cost Approach given the rate of physical depreciation for churches
within major urban areas more closely follows a relativity constant rate of annual physical
depreciation. This is unlike commercial properties within urban areas that have a less constant and
lower rate of physical depreciation that more closely follows the depreciation rates for commercial
properties chart contained in the Marshall Valuation Service guide. A similar process was followed to
estimate the depreciated value of the site improvements recognizing that shorter life spans would
apply.
Functional Depreciation
Functional depreciation, curable and incurable, refers to a loss in value due to the inability of a
structure to perform its proper function efficiently, arising from various physical characteristics.
Functional depreciation can also be in the form of super adequacies that commonly exist in the form
of above average features and/or finish. A uniquely designed church has a limited market and thus a
degree of functional depreciation is commonly present, which is unique for each church and difficult to
separate from physical depreciation. From a church usage perspective, the subject building appears
on the surface to have some degree of functional depreciation in the form of its unique
church/classroom mixed usage, a sidewalk that is not wheel chair accessible, a large amount of
smaller sized classrooms and an excessively large building with a large gym. However, from a school
usage perspective, functional depreciation would be only in the form of having no significant amount
of playground area given the 1.35 acre lot size and a large chapel area.
To assess whether churches experience functional depreciation and to what degree if present, the
Appraiser performed a detailed analysis of the depreciated values of the comparable sales used later
in this appraisal during the application of the Direct Comparison Approach. The premise of this
analysis is to deduct from the time adjusted sale price of each building an estimated value for land
and site improvements to isolate the depreciated value of the building. Once this is calculated, then
the ratio of this depreciated value to the reproduction new cost of the building is calculated to derive
an overall building depreciation percentage, which is then converted to a depreciation rate per year
based on the building age. This information was then analyzed to estimate the amount of
depreciation that would realistically apply to the subject building given the building’s age and
reproduction construction costs. The results of this analysis are as shown in the following chart.

From the above chart and summary, it is observed that the annual rate of depreciation generally
declines as the building gets older. That is, a church that is from 21 to 50 years in age generally
depreciates at an average rate of 1.56% per year compared to newer and older churches that
depreciate at a quicker and slower rate, respectively.

The subject building has a chronological age of 30 years but was concluded to have an effective age
of 25 years. Based on the above data, an appropriate range in annual depreciation rates that would
generally apply to the subject building would be generally in the order of 1.5% to 2.0% per year given
the subject building chronological age of 30 years. In considering that 75% of the subject roofing was
replaced in 2011 and that the rooftop heating/cooling systems are good condition due to being
maintained by a property management company, an annual depreciation rate at the lower limit of the
latter range, 1.5% per year is deemed appropriate for the subject building. When applying this rate to
the 30 year age of the subject building, a total depreciation amount of 45% is derived, which is 3%
higher than the physical depreciation of 42% calculated via a straight line "age/life" analysis based on
an effective age of 25 years and an economic life of 60 years. In view of the preceding, this excess
depreciation is deemed to be attributed towards functional depreciation in the order of 3%, which was
included in the costing chart to follow.
External Depreciation
External depreciation is caused by changes external to a property such as economic or environmental
forces that shift supply/demand relationships in the market. Factors that could cause a loss in value
due to external depreciation would relate to inharmonious or incompatible land uses within the
surrounding area, isolated locations, pollution caused by nearby heavy industry, etc. A fairly broad
analysis of the local market would indicate that external depreciation is not at play. The subject
property in this instance enjoys a positive general location within the Ranchlands residential district of
Calgary. Thus, no deductions were required to account for external depreciation under this heading.
Deferred Maintenance
Deferred maintenance consists of significant maintenance or repairs that are clearly overdue, such as
a roof that leaks, an interior or exterior finish that is damaged, or mechanical or electrical systems that
are very old, broken down or missing. As identified earlier in this report within the Building
Improvements description, a degree of deferred maintenance is present in the form of repainting and
replacing flooring in some areas, some minor cosmetic repairs and eventual replacement of the
original roofing over the 3,571 square foot gym that is near due for replacement. Therefore, an
amount of $50,000 in deferred maintenance costs was estimated to account for the latter pending
upgrades, which is deemed to be realistic given the larger size of the overall building and the gym.
The following chart summarizes the costing information obtained along with the estimated
depreciation.

BUILDING AND SITE IMPROVEMENTS COST CHART
Reproduction Cost New
Wood Frame Church with 8' to 20' Ceilings
1
14,275 Sq. Ft. @ $300/Sq. Ft. $4,282,500
Mezzanine Office Space With 5 Rooms 1,012 Sq. Ft. @ $100/Sq. Ft. $101,200
Total: $4,383,700
Less: Depreciation/Deferred Maintenance
Physical Depreciation @ 42%
2
($1,841,154)
Functional Depreciation @ 3%
3
($131,511)
External Depreciation @ 0% $0
Deferred Maintenance
4
($50,000)
Total: ($2,022,665)
Depreciated Value ($165/SF) $2,361,035
Site Improvements (Depreciated)
Extension of Services to the Building Inc. 600 Amp Power $15,000
Concrete Sidewalks $10,000
Landscaped Yard with Trees $10,000
Paved Parking $20,000
Sub Total: $55,000
Overall Depreciated Value of Improvements $2,416,035
Plus: Land Value as if Vacant $1,350,000
Value Estimate via Cost Analysis $3,766,035
Rounded To: $3,765,000
Notes
1. Reproduction costs were based on discussions with a representative from Genesis Building Corp. who
indicated that a wood frame building of this size and features would generally cost from $250 to $300 PSF
given the wood frame design and larger size. The upper limit was selected given the subject above average
features in the form of high roof ceilings, commercial grade heating /cooling, woodwork and skylights.
2. Physical depreciation was estimated based on a straight line "age/life" analysis based on an effective
age of 25 years and an economic life of 60 years.
3. Functional depreciation was estimated based on an analysis of church sales to determine an annual
depreciation rate for church buildings that are in the order of 30 years old.
4. Deferred maintenance is to account for re-painting and re-flooring portions of the building interior and to
eventually to replace the gym roof that is soon due for replacement given its age.

Conclusions
The Cost Approach has yielded the following depreciated building and site improvements value
estimate for the subject property.
COST APPROACH VALUE RECONCILIATION
Value Estimate
Building & Site Improvements (Depreciated) $2,416,035
Land Value As Vacant $1,350,000
Conclusion (Rounded) $3,765,000
The approach has been developed on a realistic basis utilizing costing information derived from a
local contractor to construct similar improvements and then deducting accrued physical and functional
depreciation based on observed depreciation rates of older churches that have recently sold within
Calgary and then deducting an estimated amount for deferred maintenance.

DIRECT COMPARISON APPROACH TO VALUE
The Direct Comparison Approach draws heavily upon the principle of substitution. In essence, this
principle states that a prudent purchaser will pay no more for any particular property than it would cost
him to acquire an equally desirable alternate property. This approach consists of the comparison of
similar properties, which have recently sold or are currently being offered for sale. This comparison
process involves making adjustments between the subject property and the comparable properties on
an item-by-item basis. The factors considered in the comparison include date of sale, conditions of
the sale (including financial terms), and physical characteristics. The subject property is the standard,
and the adjustments are made to the sale price of the comparable property in order to arrive at an
indication of value for the subject. This approach is most applicable to vacant land and improved
properties that are owner occupied.
The weakness of this approach includes the fact that there may be inadequate data in the
marketplace to justify its use, the fact that it is based upon historical data rather than future
expectations, and the fact that the conditions of comparability may not closely conform to the subject
property. Its strength lies in the fact that it reflects actual market behavior of typical purchasers under
current market conditions. In short, the reliability of this approach depends upon the comparability of
the comparable properties, verification of sales data, the conditions under which the property is sold,
and the date of the sale.
In order to estimate the value of the subject property as improved, the local Real Estate Board system
was first searched for comparable open market transactions and real estate brokers were consulted
for information on listed and sold properties that would be in competition with the subject if it were
offered for sale on the open market.
Listed on the following pages are the comparable sales selected and used in this analysis. Emphasis
was initially placed on searching for recent open market sales within the subject local market area.
However, due to a limited number of such sales being available for analysis, research was extended
to include a broader area, an extended period and include researched private arms length
transactions as defined earlier in this report. Nevertheless, the appraiser believes that the selected
comparables represent a sufficient sample of the data to estimate the market value of the subject
property from this approach.
.

Improved Sales Analysis
Comparable Sales Location Map

Listed on the preceding pages are those church sales deemed to be the most comparable to the
subject church, which are illustrated in the previous location map. To arrive at a value conclusion for
the subject, it is necessary to adjust the comparable sales prices for characteristics that are
dissimilar from those of the subject property. The characteristics that may require adjustments
include property rights, financing/sale terms (cash equivalency), conditions of sale, non-sale status,
market conditions (time), and physical characteristics such as location, size, quality of construction,
amount of interior finish out, occupancy, zoning, visibility and alike.
In developing the Direct Comparison Approach involving churches such as the subject property,
consideration can be given to several forms of unit of comparison measures to quantify adjustments
to arrive at a market value estimate for the subject property. Common units of comparison
measures involve utilizing either a unit value per square foot of building footprint, above ground
area, total usable area, or simply utilizing overall values/sale prices. The former per square foot
approach is most applicable when building and site sizes of the subject property and the selected
comparables are relatively similar and when the building key areas are relatively homogeneous in
design and finish. In this instance, a wide range in building and land sizes exist and the building key
areas range from main level, second level, mezzanine level and basement level space with varying
ceiling heights and interior finish. Therefore, the unit of comparison will be developed on the basis
of “Overall Values”. The value of the key features that were deemed different between the
comparables and the subject property were quantified in total dollars and then adjusted using
percentages according to an estimated difference in the overall value of the key feature. Those
features requiring adjustments will be discussed in the following narrative and summarized in a
subsequent adjustment chart, which contains further adjustment notes.
Discussion of Adjustments
Property Rights - The transaction price of a comparable sale is always based on the real property
interest conveyed. In this instance, an adjustment for this attribute was not considered necessary
for any of the comparables.
Conditions of Sale - Adjustments made for conditions of sale usually reflect atypical motivations of
the buyer and seller at the time of conveyance. A sale may be transacted at a below market price if
the seller needs cash in a hurry. A financial, business, or family relationship between the parties
may also affect the price of property. Interlocking corporate entities may record a sale at a non-
market price to serve their business interest. When non-market conditions of sale are detected in a
transaction, the sale must be thoroughly researched before an adjustment is made. Within the
confirmation process, detailed attention was made to ensure the conditions of each comparable
sale. Based upon the research performed, it is believed that all of the comparable sales involved
regular arms-length transactions without the presence of duress or adverse market influence. As
such, no adjustments were warranted.

Financing/Sale Terms - The price paid in acquiring a property may be influenced by atypical
financing and/or sale terms involved, if any. Above or below market financing or special sale terms
could have a negative or positive affect on the price paid. Therefore, some method of converting
these financing and/or sale terms to cash must occur so that the adjustment process may be applied
to the affected comparables. In reviewing the comparables, an adjustment was not required for
atypical financing or sale terms to any of the comparables.
Market Cond./Time Net Adjustment Percentage - Market conditions may change between the
time of sale of a comparable property and the date of the appraisal of the subject property.
Changed market conditions often result from various causes, such as inflation or changes in
demand and/or supply. Time itself is not the cause for the adjustment.
Historical sales and market research revealed that property prices have been fluctuating over the
past five years. Increasing in construction costs were driving improved property values up since
2011 when it became evident that Alberta’s economy was recovering following the recession period
during 2009 and 2010 after the onset of the financial global crisis that occurred during the fall of
2008. However, construction costs began declining since January 2015 when oil prices dropped
resulting in a slowdown in Alberta’s economy.
In view of the preceding, upward timing adjustments of 5% per year pro-rated monthly was applied
to those sale that had sold prior to January 2015 up to January 1, 2015 followed by a downward
adjustment of 3% per year pro-rated monthly that was applied to all sales between January 1, 2015
and the effective date of this appraisal, or May 2, 2016.
The remaining adjustments required to account for differences in locational, physical and zoning
characteristics are identified in the following chart, which contains brief comments surrounding the
adjustments that were deemed necessary.
General Location Within Calgary - Location considerations include such factors as size of the
municipality in which the property is located, the location within the municipality, proximity to major
urban areas plus accessibility to transportation routes. When reviewing the comparables, it was
determined that the locations of the first four comparables are relatively similar to the subject
property peripheral city location and therefore no location adjustments were required to any of these
four comparables. However, Comparable 5 warranted a downward adjustment to account for the
relatively central Calgary location, which is in close proximity to the Calgary downtown area as well.
Building Size - The subject gross building footprint area (GBA) is 14,275 square feet. The larger
the building, the greater the property value and vice versa. When reviewing the comparables, the
comparables with an inferior smaller building size were adjusted upward based on the depreciated
value of $165 per square foot applied to the difference in size, which was the depreciated unit value
of the subject building derived from the Cost Approach previously applied. Conversely, those
comparables with superior larger buildings size were adjusted downward using the same factor

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