The Humagen Group of Companies

I. INTRODUCTORY INFORMATION
    A. GENERAL INFORMATION
    B. MARKET FACTORS
    C. VALUATION FACTORS

II. DETAILED DESCRIPTION OF THE PROPERTY
    A. GENERAL PROPERTY DESCRIPTION
    B. APPROXIMATE LAND DIMENSIONAL CHARACTERISTICS
    C. BUILDING STRUCTURE CHARACTERISTICS

I. INTRODUCTORY INFORMATION:

A. GENERAL INFORMATION

Two parcels of “premier profile/location” property in the City of Minnetonka are offered for sale. The properties' northern border is parkland owned by the Minnehaha Creek Watershed District. The northern boundaries of the parkland have 495 “straight line” feet of frontage on the south public access side of Minnehaha Creek between the Gray’s Bay Outlet of Lake Minnetonka and Interstate Highway 494. The two parcels have existing single-family homes situated upon them. The properties are currently zoned R-1, low-density single family residential.

The properties are partially populated by a variety of tree species (mature oaks, poplar, small/medium maples, birch, some elm, pines, and crab apple) in various stages of maturity, along with other forms of undergrowth. The general soil condition of the properties consists of a shallow layer of black dirt over a sand/gravel base.

A north/south running electric power line easement is part of approximately the easterly 60 feet of the most easterly-located parcel. This is an easement for location of power line poles, line service and maintenance access, and limits the power company, Excel Energy, to a specific number and type of power transmission poles allowed on the parcel along the extent of the easement.

iesB. MARKET FACTORS:

The subject propert are located in the City of Minnetonka, Hennepin County, Minnesota. The city is a second ring suburb located approximately 10 miles west of the downtown Minneapolis Central Business District. The properties have easy access to major north-south (Interstate 494) and east-west (Interstate 394) freeway systems, allowing for easy access to major transportation arteries throughout the Twin Cities area, and easy access to downtown Minneapolis. Bus service is available within less than two blocks walking distance.

The properties are bounded on the north by parkland and Minnehaha Creek. Approximately one block to the south is the Minnetonka Civic Center Complex, which includes the City Hall, Fire and Police Departments. Amenities within the Complex include a Community Center, two Ice Arenas, a small outdoor amphitheater, soccer/playfields, an indoor recreation center, additional access to Minnehaha Creek, and hiking trails.

A major shopping center, Ridgedale, is within a few minutes drive of the property location. Major automotive service centers, other major grocery and shopping locales (including Cub Foods, Byerly’s Foods, Lund’s Foods, Whole Foods Natural/Organic, Target Greatland and K-Mart), and a wide variety of restaurants are within minutes of the location. Three major west suburban hospitals (North Memorial, Methodist, and Fairview-Southdale) are within a 15-minute drive. The property is approximately 1.5 miles east of Lake Minnetonka’s Gray’s Bay public access marina, and within another mile of the Wayzata Bay Yacht Club. A premier health and wellness center, The Marsh, is located within 2 ½ blocks.

The properties are located with the boundaries of Hopkins School District #270. The Hopkins School District is considered one of the finest in the State of Minnesota.

The neighborhood and surrounding area consists mainly of good quality and well-maintained residential homes varying widely in age, design, price range and appeal. There are 14 homes on the Timberhill Road circle drive, ranging in value from approximately $280,000 to over $1,000,000. It appears there are no obvious adverse influences affecting the marketability of properties in the area.

In the wider area surrounding the neighborhood, all types of zoning classification and land use are evident. These include single and two family dwellings, town homes, institutional and scattered commercial/retail.

C. VALUATION FACTORS:

The properties are unique,considering the proximity to Minnehaha Creek, the characteristics of the landscape, the secluded nature of the location and the close proximity of municipal utilities.

Valuations typically include two methodologies: the replacement or “cost approach” and the “market approach”. A third evaluation method used with developable property is the “highest use approach”, which seeks to project the market potential of the property if prepared for its highest reasonable marketable possibility. The “highest use approach” provides an estimate of both a wholesale and retail valuation of the property, relative to its existing condition and its projected marketability.

A separate analysis of the properties, in terms of their maximum market potential, which could include the teardown of the existing single- family homes, will not be done in this report. Teardown would be an alternative if the developable land valuations exceed the total market value of the single-family home’s individual marketability situated on the relatively large 1 acre acre lot sizes.

II. DETAILED DESCRIPTION OF THE PROPERTY:

A. GENERAL PROPERTY DESCRIPTION:

The property consists of two parcels located in the City of Minnetonka, County of Hennepin, State of Minnesota. All parcels are part of Broin Creek Addition, County of Hennepin, State of Minnesota.

Parcel #           Property I.D. #           Address Location

1                      16-117-22 13 0026     14802 Timberhill Road, Minnetonka, MN
                        (Broin Creek Addition, Lot 1 Block 2)

2 16-117-22 13 0025 14814 Timberhill Road, Minnetonka, MN
(Broin Creek Addition, Lot 1 Block 1)

B. APPROXIMATE LAND DIMENSIONAL CHARACTERISTICS:

Parcel #           Property Type            Approximate Property Size

1   Lot 1 Block 2          Torrens                  1.00 Acre


2   Lot 1 Block 1          Torrens                   .95 Acre


NOTE: Dimensions per Broin Creek Addition Survey. One U.S Survey Acre equals 43,560 square feet.

C. BUILDING/STRUCTURE CHARACTERISTICS:

1. Parcel #1: 14802 Timberhill Road, Minnetonka, MN 55345

Parcel #1 has two buildings located upon it: A single-family dwelling and small detached storage building.

The single-family dwelling is a “California Style” cedar shake Rambler with two fireplaces and a tuck-under double garage. The home was completely remodeled by the “Home Savvy” Learning Channel Television Crew over a two-year period during the middle 1990’s. It has a “California” style main entry open front porch, a three-season rear porch, and a composite rear deck. The detached outside barn-style storage building is approximately 10.3 X 11.2 feet (115 Sq. Ft.), and sits on a concrete slab.

2. Parcel #2: 14814 Timberhill Road, Minnetonka, MN 55345

Parcel #2 has one building located upon it: a single-family two story walkout.

The single-family dwelling is a walkout rambler with two stone fireplaces, a built-in stone kitchen fireplace/grill, and a two-car garage. The home is of brick and redwood siding construction.