20211105Application.pdf

APPLICATION FOR AUTHORITY TO INCUR DEBT Page 1 of 5
15914430_2.docx[13988.13]
Preston N. Carter, ISB No. 8462
Blake W. Ringer, ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
Attorneys for the Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
FALLS WATER COMPANY, INC. FOR
AUTHORITY TO INCUR DEBT TO ACQUIRE
REAL PROPERTY
Case No. ___________________
APPLICATION OF FALLS WATER
COMPANY, INC. TO APPROVE DEBT
Falls Water Company, Inc. (“Falls Water” or “Company”), an Idaho corporation that
serves potable water to areas in Bonneville County, Idaho, makes this Application to the Idaho
Public Utilities Commission (“Commission”) for the purpose of obtaining authorization to incur
debt in the amount of $691,500 to pay for the acquisition of certain real property integral to
Company’s operations.
Please serve all notices and communications with regard to this Application upon:
FLS-W-21-02
RECEIVED
2021 NOV -5 PM 3:00
IDAHO PUBLIC
UTILITIES COMMISSION

APPLICATION FOR AUTHORITY TO INCUR DEBT Page 2 of 5
15914430_2.docx[13988.13]
Preston N. Carter
Blake W. Ringer
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Eric W. Nelsen
Senior Regulatory Attorney
NW Natural
250 SW Taylor St.
Portland, Oregon 97204
Telephone: [phone]
[e-mail]

K. Scott Bruce
Falls Water Company, Inc.
2180 North Deborah Drive
Idaho Falls, ID 8340
Telephone: [phone]
[e-mail]

BACKGROUND
1. Falls Water is a regulated public utility that provides water service to
approximately 5,570 residential and commercial customers located generally north of the City of
Ammon and Northeast of the City of Idaho Falls in Bonneville County, Idaho. Falls Water’s
principal place of address is 2180 North Deborah Drive, Idaho Falls, Idaho 83401.
DESCRIPTION OF PROPOSED DEBT
2. Falls Water has applied to Zions Bank and received a proposal for a 15-year loan
(“Loan”) of $691,500.00 with an interest rate of 0.90% APR for the first 12 months, 2.99% APR
for years 2 through 10, and 6.50% APR for years 11 through 15. An “Indication of Interest”
letter from Zions Bank is attached as Exhibit 1.
3. The Loan principle will be applied to the purchase of the real property located at
2180 North Deborah Drive, Idaho Falls, ID 83401, and 2220 North Deborah Drive, Idaho Falls,
ID 83401 (together, the “Property”), which Property will serve as the collateral on the Loan.
4. A legal description of the Property is provided in Exhibit 2. The total purchase
price of the Property is $922,000.00, to which the Company will make a 25% down payment.

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5. The purchase price of the Property was based on a recent appraisal, which is
attached as Exhibit 3.
PURPOSE OF LOAN
6. The Property consists of two lots that are integral to Company’s operations. On
one of the lots sits the Company’s main office building from which it manages and oversees its
water service. There is also additional warehousing space on this lot.
7. The adjacent lot is a vacant lot used to store equipment and other material.
8. Falls Water has run its operations from this Property since 2009 and has
historically leased the Property from its owner. The Company’s monthly lease payments in the
past were $3,496. The Company was informed earlier this year that upon expiration of the
Company’s current lease, which was set to expire in August 2021, the Company could renew the
lease for an increased monthly payment of $5,500.
9. Instead of renewing the lease, the Company exercised its option under the lease
agreement to purchase the Property and now has a limited window of time since the lease
agreement’s expiration to secure financing and close on the purchase. That window of time will
close around the end of the year, although the transaction could conceivably close in the first
quarter of 2022 as well.
10. The Company’s decision to purchase the Property is based on sound business
judgment and constitutes a worthwhile investment. The Company’s monthly payments on the
Loan will be less than the $5,500 it would have otherwise paid in monthly lease payments.
11. The Property itself is at a central location in the Idaho Falls area and is located at
the heart of the Company’s service area. Acquiring the Property will provide a convenient office
location for the foreseeable future, providing certainty to the Company and to its customers.

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12. According to internal accounting models, the Company also believes that
purchasing the Property will result in lower costs.
PRUDENCY DETERMINATION
13. As noted above, the Company believes that exercising its option to purchase the
Property is a reasonable and prudent business decision. To the extent reasonable and appropriate,
the Company respectfully requests that the Commission determine that entering into the Loan is
a reasonable and prudent decision under the circumstances.
14. Falls Water recognizes that the ultimate decision on whether to include expenses
associated with the Loan in rates will be made in a future proceeding.
MODIFIED PROCEDURE
15. Falls Water believes that a hearing is not necessary to consider the issues
presented in this Application and respectfully requests that it be processed by modified
procedure, using written submissions rather than a hearing, under the Commission’s Rules of
Procedure 201 through 210.
REQUEST FOR EXPEDITED CONSIDERATION
16. As mentioned, the Company’s contractual right under its lease agreement to
purchase the Property lasts only until the end of the year, although the Company may be able to
close the transaction in the first quarter of 2022. If the Company cannot secure financing in time
to close on the Property, there is a risk that the Property will be sold to another buyer.
17. For these reasons, the Company respectfully requests that the Commission and
Commission Staff review this Application in an expedited fashion, providing a final decision to
the Company by no later than December 13, 2021.
CONCLUSION
Falls Water respectfully requests that the Commission enter an order:

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1. Authorizing this matter to be processed by modified procedure;
2. Authorizing Falls Water to incur the Loan described in this Application, or a Loan
on equivalent terms;
3. To the extent reasonable and appropriate, indicating that incurring the Loan is a
reasonable and prudent business decision under the circumstances; and
4. Granting such other relief as the Commission deems just and reasonable.
For the foregoing reasons, the Company respectfully requests expeditious and favorable
consideration of this Application.
Dated: November 5th, 2021.
GIVENS PURSLEY LLP

_____________________
Preston N. Carter
Blake W. Ringer
GIVENS PURSLEY LLP
Attorneys for the Company

EXHIBIT 1
FALLS WATER COMPANY, INC.

Indication of Interest
(2 PAGES)

EXHIBIT 1 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 1 of 2
EXHIBIT 1 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 2 of 2

EXHIBIT 2
FALLS WATER COMPANY, INC.

Legal Description
(1 PAGE)

Legal Description of Real Property

The Real Property is the following described premises situated in Bonneville County, State of
Idaho, to-wit:

Lot 5 Block 4, Ammon Lincoln Industrial Park Div. # 3

and

Lot 6 Block 4, Ammon Lincoln Industrial Park Div. #3

Subject to Roads and Easements of Record.

EXHIBIT 2 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 1 of 1

EXHIBIT 3
FALLS WATER COMPANY, INC.

Recent Appraisal
(44 PAGES)

Main File No. 05481Curtis Boam & Associates
Boam and Associates
1820 E 17th Street
Suite 230
Idaho Falls, ID 83404
208-528-9200 x 208-528-9204
Scott Bruce
,
05481
05481
05481
82-3872015
Scott Bruce
2180 N Deborah Dr
Idaho Falls
Bonneville ID 83401
LOT 5 & 6, BLOCK 4, AMMON-LINCOLN INDUSTRIAL PARK #3 SE1/4, SEC 10, T 2N, R 38
Commercial Report 2,500.00
2,500.00
0
2,500.00
Form NIV5D - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
FROM:
Telephone Number:Fax Number:
TO:
E-Mail:
Telephone Number:Fax Number:
Alternate Number:
INVOICE
INVOICE NUMBER
DATES
Invoice Date:
Due Date:
REFERENCE
Internal Order #:
Lender Case #:
Client File #:
FHA/VA Case #:
Main File # on form:
Other File # on form:
Federal Tax ID:
Employer ID:
DESCRIPTION
Lender:Client:
Purchaser/Borrower:
Property Address:
City:
County:State:Zip:
Legal Description:
FEES AMOUNT
SUBTOTAL
PAYMENTS AMOUNT
Check #:Date:Description:
Date:Check #:Description:
Check #:Date:Description:
SUBTOTAL
TOTAL DUE $
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 1 of 44
Boam & Associates
Real Estate Appraisal Report Of:
2180 N Deborah Drive
Idaho Falls, ID 83401
Date of Appraisal Report:
May 14, 2021
Prepared For:
Brent Johnson
Prepared By:
Boam & Associates
Curtis Boam, ID-CGA #51
File Name:
#05481
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 2 of 44
Curtis J. Boam
Certified General Appraiser
June 22, 2021
Scott Bruce
Idaho Falls, ID 83402
RE: Commercial Property
2180 N Deborah Drive
Idaho Falls, ID 83401
Dear Mr. Bruce:
As requested, I have completed the appraisal on the above referenced property. A personal
inspection was made of the property by me.
I have analyzed the various factors that influence value for the purpose of estimating a
supportable indication and appraisal of the market value of the subject properties in its present
condition and based on its highest and best use.
This is an appraisal report.
As a result of my inspection, investigation, and analysis, I have concluded the following opinion
of the market value of the subject property. The estimate market value of the subject property as
of May 14, 2021 is $922,000.
Sincerely,
Curtis J. Boam
Appraiser, CGA-51
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 3 of 44
TABLE OF CONTENTS
TRANSMITTAL LETTER
TABLE OF CONTENTS 1
OVERVIEW 2-3
SCOPE OF WORK 4
AREA DATA 5-6
AREA MAP 7
NEIGHBORHOOD DESCRIPTION 8
NEIGHBORHOOD MAP 9
DEFINITIONS 10
SUBJECT PROPERTY SPECS 11
PLAT MAP 12
BUILDING SKETCHES 13
PROPERTY DESCRIPTION 14
HIGHEST AND BEST USE 15
PHOTOS OF THE PROPERTY 16-18
APPROACHES TO VALUE 19
COST APPROACH 20-21
INCOME APPROACH 22-23
SALES COMPARISON APPROACH 24-28
RECONCILIATION AND CONCLUSION 29
ASSUMPTIONS AND LIMITING CONDITIONS 30
APPRAISER CERTIFICATION 31
HAZARDOUS SUBSTANCE STATEMENT 32
QUALIFICATIONS OF THE APPRAISER 33-34
LIMITING CONDITIONS 35-37
ADDENDUM 38
COMPARABLE SALES MAP
COMPARABLE SALES PHOTOS
.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 4 of 44
Overview

Property Type

Commercial Property

Real Estate Appraised

2180 N Deborah Drive

County

Bonneville

Client

Scott Bruce

Borrower(s)

N/A

Intended User

Scott Bruce

Intended Use

Estimate Market Value
Effective Value Date
(point in time that the value applies)

05/14/2020
Report Date
(date the report is transmitted to
client)

06/22/2021

Appraisal Report Standard:
My analyses, opinions, and conclusions were developed, and this report has been prepared, to conform to the Uniform Standards of Professional Appraisal Practice (USPAP) and Federal Financial Institutions Regulatory Agencies (FFIRAs) and Related Bodies that were in effect at the time this report was prepared.

EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 5 of 44
Overview Continued:

Property Rights Appraised:

The real property is appraised as a fee simple interest. No personal property was included in the appraisal
report.

Ownership and Recent History:

Recorded County Records indicate that the property is currently owned by Brent Johnson.

Sales History:

No sales history was available or obtained in the preparation of this appraisal report for the last three years.

EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 6 of 44
Scope of Work:

The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the
reporting requirements of this appraisal report form, including the following definition of market value,
statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum:
(1) perform a complete visual inspection of the interior and exterior areas of the subject property, (2)
inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research,
verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis,
opinions, and conclusions in this appraisal report.
The report is to be used only by the client for their purpose. The report does not allow for any other use or
purpose.

Development upon the intended use, intended users, and agreements between the appraiser and the client,
the appraisal development process may include several, but not necessarily all of the following tasks:
● Observation of the property appraised
● Research for appropriate market data
● Data verification
● Consideration of influential market area, physical, economic, and governmental factors
● Determination of the subjects highest and best use(s), if appropriate
● Development of one or more applicable approaches to value
● Reconciliation of value indications
● Preparation of this report
Extent of Services Provided:
Number of Final Value Opinions Developed 3
Value Opinion(s)Reflect the Worth of the
Property Appraised
As-Is
Extent of Report Preparation A Summary Appraisal Report
Other Report of Preparation Report Complies with FIRREA
Data Sources Local MLS; Public Records
Documents Considered County Records and local MLS data
Data Verification Direct and Indirect Materials
Extent of Subject Observation by Appraiser Adequate Interior and Exterior Inspections

EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 7 of 44
Area Data:
The subject property is located in the central portion of the City of Idaho Falls which is in central
Bonneville County. Idaho Falls is the county seat and has a population of approximately
63,543people. Idaho Falls is located in southeastern Idaho and is a major trade center. The
county population is approximately 121,680 people.
Idaho Falls is an agricultural community with the main crop being potatoes. There is also grain,
livestock, and other commodities grown here, but the main industry is potatoes.
Other major industries and employers in the area are the Idaho National Laboratory and related
contractors with that facility, manufacturing businesses, various retail stores, various
construction companies, school districts, and medical facilities. Also providing employment are
various other service industries. There are numerous marketing and manufacturing firms in and
around the area.
Idaho Falls is the home of College of Eastern Idaho, which is a state-owned educational
institution. The ISU/UI Center for Higher Education and University Place which are affiliated
with Idaho State University and the University of Idaho are located here.
Idaho Falls is in the heart of summer and winter recreation areas such as Island Park and West
Yellowstone. There are two national parks and a national monument located in the area. There
is also fishing, boating, camping, snowmobiling, skiing, and other recreational features located
throughout the region.
The area is served by numerous financial organizations. They include banks, credit unions,
mortgage companies, and etc.
Transportation for the area is provided by major airlines in Idaho Falls. It is also serviced by a
bus line. Union Pacific Railroad runs through the area. Interstate Highway 15, State Highways
26 and 91 also run throughout the area. Numerous trucking companies are located in the area.
There is both city and county government.
There is an annual precipitation of approximately 9 inches. Winter temperatures average from
10-30 degrees and summer temperatures ranging from 50-90 degrees for an average. The
elevation is approximately 4700 feet.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 8 of 44
Area Data Continued:
Health care is mainly provided by Eastern Idaho Regional Medical Center and Mountain View
Hospital. There are also a nursing home and living centers, surgical centers, and numerous
physicians and surgeons in the area.
Basic services such as grocery stores, eating establishments, service stations, and various other
service and convenience businesses are found in the area.
The greater Idaho Falls area has two school districts serving all grades kindergarten through 12th
grade. There are several church and religious denominations in the area.
Several parks are located throughout the city. There is an aquatic center, park, museum, and zoo
in the center of town. There are four 18 hole golf courses in the area.
Because Idaho Falls is a main route to the national parks and other points of interest in the area,
there is some tourism. There is motel/hotel facilities scattered throughout.
In addition to Idaho Falls being a major trade center in the area, it is also a major employment
center which provides additional employment to the people who live in surrounding
communities.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 9 of 44
Main File No. 05481 Page # 5 of 9
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Area Map
2180 N Deborah Dr
Idaho Falls Bonneville ID 83401
Borrower
Lender/Client
Property Address
City County State Zip Code
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 10 of 44
Neighborhood Description:
The neighborhood is north east Idaho Falls, and is referred to as the Lincoln/ Bonneville area.
East Anderson and Ammon Road provide access through the area. The immediate neighborhood
is a subdivision of commercial and light manufacturing properties. The properties in the
neighborhood vary in design and use. There are some vacant parcels scattered throughout the
neighborhood. To the south and south east are two convenient stores. To the north east and south
west are residential areas. There is an old sugar factory industrial site in the neighborhood. A
railroad runs through the area to the north. Further north is the Bonneville High School campus.
Neighborhood land use mix appease compatible. There are no apparent environmental or adverse
conditions in the neighborhood.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 11 of 44
Main File No. 05481 Page # 4 of 9
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Neighborhood Map
2180 N Deborah Dr
Idaho Falls Bonneville ID 83401
Borrower
Lender/Client
Property Address
City County State Zip Code
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 12 of 44
Definitions Used in this Appraisal:
Market Value: The most probable price which a property should bring in a competitive and open market
under all condition’s requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeable, 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
where by:
●Buyer and seller are typically motivated;
●Both parties are well informed or well advised, and acting in what they consider their best
interests;
●A reasonable time is allowed for exposure in the open market;
●Payment is made in terms of cash in United States dollars or in terms of financial arrangements
comparable thereto; and
●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. (USPAP
2018-2019 Addition page 153)
Highest and Best Use: The reasonably probable use of property that results in the highest value and best
use must meet legal permissibility, physical possibility, financial feasibility, and maximum productivity.
The use of an asset that maximizes its potential and that is possible, legally permissible, and financially
feasible. The highest and best use may be for continuation of an asset/’s existing use or for some
alternative use. This is determined by the use that a market participant would have in mind for the asset
when formulating the price that it would be willing to bid. (IVS)
The highest and most profitable use for which the property is adaptable and needed or likely to be needed
in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) (Dictionary
of Real Estate Appraisal 6th Addition page 109)
Improvements: Buildings or other relatively permanent structures or infrastructure (e.g., sewer lines,
water lines, and roads) located on, or attached to land. (Dictionary of Real Estate Appraisal 6th Addition
page 114) Other improvements may be but are not limited to cleaning of debris, landscaping, etc.
Appraisal is also subject to lender’s definitions. See attached engagement letter.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 13 of 44
Subject Property Specs:
Legal Description:
LOT 5 & 6, BLOCK 4, AMMON-LINCOLN INDUSTRIAL PARK #3 SE1/4, SEC 10, T 2N, R 38
Zoning:
The properties are subject to zoning ordinances of Idaho Falls City classified as IM-1, Industrial Manufacturing.
Assessed Value and Taxes:
According to the Bonneville County Treasurer 2020 taxes were $6,772
Assessor’s Parcel # RPO3452004006O & RP03452004005O
Flood Hazard:
Flood Hazard Zone X, Map # 1600270070D, Map Date April 2, 2002.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 14 of 44
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 15 of 44
Main File No. 05481 Page # 6 of 9
Form SKT.BLDSKI - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Building Sketch
2180 N Deborah Dr
Idaho Falls Bonneville ID 83401
Borrower
Lender/Client
Property Address
City County State Zip Code
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 16 of 44
PROPERTY DESCRIPTION:
The subject property is two parcels containing 133642 sq. ft. or 3.07 acres. Parcel one with the
improvements is 1.68 acres and parcel 2 is 1.4 and is vacant land. It is irregular shaped. There is
street frontage along the west and a county road along the east. There is an asphalt drive and
parking on the south and east sides of the property. The balance of the property is gravel
covered. Typography is level. Public utilities are available to the property.
The subject building was built in approximately 2005 and has been occupied by the client since.
The building is approximately 8000 sq. ft. of this is 2160 sq. ft. of office space. There is also an
upper-level office area of the same size. The balance of the main level is a shop area which is
approximately 5840 sq. ft. The main level office includes a reception area, office areas and a
break room. There are also restrooms. The upper level includes office areas, restrooms and a
conference room. Upper level is accessed by a stairway. The interior finish is painted drywall
with carpet and tile floor coverings. Windows and access doors are adequate. Plumbing, heating
and electrical appear adequate. Construction is concrete foundation with metal frame structure.
The exterior is metal as well as the roof. The shop area has three overhead doors and several man
doors. The overall condition is above average. The property appears well maintained.
Remaining economic life is estimated at less than 40 years. Building appears suitable for its
current use.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 17 of 44
HIGHEST AND BEST USE:
The highest and best use definition is indicated in the Definition Section of this report. The
characteristics of the land such as size, shape, location, and topography have been considered. In
addition, the analysis has included the surrounding developments, existing zoning, access,
utilities, current market trends, and demand for property of this type in the market area.
The land value is based on the premise of the highest and best use "as though vacant". There are
four tests which are taken into consideration in developing an opinion of highest and best use.
These four tests include an examination of those uses that are physically possible, legally
permissible, financially feasible, and maximally productive. Each criterion is considered
cumulatively and provides the best analysis for the highest and best use of the land.
The improvements on the subject property conform to zoning. Current use as a warehouse shop
with accommodating office space.
Neighborhood trends appear stable.
Considering the subject property’s characteristics and the above four tests, the uses of the
property allowed by their current zoning of Single Family Residential in its highest and best use
currently. It is likely that the property would have to be rezoned for any use other than
SDR1/Single Family Residential.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 18 of 44
Main File No. 05481 Page # 1 of 9
Form PIC15 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Photograph Addendum
2180 N Deborah Dr
Idaho Falls Bonneville ID 83401
Subject Subject Exterior Subject Exterior
Subject Exterior Subject Exterior Subject Exterior
Subject Exterior Subject Parking Lot Street View
Street View Subject Exterior Subject Exterior
Subject Exterior Shed Subject Additional Lot
Borrower
Lender/Client
Property Address
City County State Zip Code
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 19 of 44
Main File No. 05481 Page # 2 of 9
Form PIC15 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Photograph Addendum
2180 N Deborah Dr
Idaho Falls Bonneville ID 83401
Mechanical Storage Mechanical
Office Interior Office Interior Bathroom
Bathroom Office Interior Office Interior
Office Interior Office Interior Bathroom
Office Interior Bathroom Breakroom
Borrower
Lender/Client
Property Address
City County State Zip Code
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 20 of 44
Main File No. 05481 Page # 3 of 9
Form PIC15 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Photograph Addendum
2180 N Deborah Dr
Idaho Falls Bonneville ID 83401
Shop Area Interior Shop Area Interior Shop Area Interior
Shop Area Interior Shop Area Interior Shop Area Interior
Shop Area Interior Shop Area Interior Shop Area Interior
Office Interior Office Interior Office Interior
Office Interior Office Interior Office Interior
Borrower
Lender/Client
Property Address
City County State Zip Code
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 21 of 44
APPROACHES TO VALUE:
Three approaches to value are generally considered in arriving at an estimate of value of Real
Estate. These are called Cost, Income, and Sales Comparison Approaches.

In the Cost Approach, a value is estimated by computing the present replacement cost of the
improvements and then applying an appropriate depreciation rate to arrive at a depreciated value,
found by comparison in the market, to arrive at a value for the property. This approach is based
on the assumption that the replacement cost is the upper limit of value. This approach is best
used when the improvements are new or near new and are proper. As improvements increase in
age and depreciation accumulates, the validity of this approach lessens.

The Income Approach is a process of developing the gross income from a property into an
indication of value. This is accomplished by analyzing the relationship of net incomes from
similar properties based on economic rent to their selling prices in the market. The relationship
between net income and selling price is called the capitalization rate. This rate is divided into the
indicated net income for the subject property, other units of comparison were also considered.

The application of the Sales Comparison Approach produces an estimate of value by comparing
it with similar properties of the same type and class that have sold or are currently offered for
sale, is this considered the most reliable approach for the subject property. Prices of those
properties deemed most comparable tend to set the range in which the value of the subject
property will fall. When properly applied, this approach generally allows for decrease or
increase in value.

EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 22 of 44
COST APPROACH:
Commercial Building 8,000 sq.ft. @ 100.68 per sq.ft $805,401
Site Improvements $50,000 (Parking, Driveway)
Total Estimated Replacement Cost New $855,401
Less Depreciation 15% $<171,000>
Estimated Replacement Cost New
Less Depreciation $684,401
Costs taken from Marshall & Swift Cost Valuation Service Section 16.
Land Valuation:
Sale Location Sale Date Sale Price Property Square
Footage
Sale Price Per sq. ft.
1 11 Jones Drive Idaho Falls 83402 07/2020 $131,800 66560 sq. ft. $1.98
2 4 Jones Drive
Idaho Falls 83402
07/2020 $82,500 38681 sq. ft. $2.13
3 2930 McNeil Drive Idaho Falls 83402 03/2021 $84,000 29621 sq. ft. $2.84
4 TBD Sherry Ave Idaho Falls 83402 01/2019 $89,900 35719 sq. ft. $2.52
5 8 Jones Drive
Idaho Falls 83402
01/2021 $113,000 56672 sq. ft. $1.99
6 L2B2 Omni Drive Idaho Falls 83402 11/2019 $57,000 23305 sq. ft. $2.45
7 B2L13 Yellowstone Idaho Falls 83401 12/2019 $80,000 38550 sq. ft. $2.08
8 2729 W Omni Drive
Idaho Falls 83402
12/2019 $163,000 87120 sq. ft. $1.87
Comparable commercial land sales were limited throughout the market. There was a wide range in size
thus a wide range in sale prices. Based on the data available I estimate the value of the subject lot at $2.00 per square foot. Therefore, the subjects 72,614 sq. ft. at $2.00 per sq.ft. = $145,228
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 23 of 44
Cost Approach Summary:
Improvements: $684,401
Land Value: $145,228
Total $829,629
Called $830,000
Parcel 2- Vacant Lot
Parcel 2 is 1.4 acres or 60,984 sq. ft. This lot is valued at the same rate of $2.00 per sq. ft.
Parcel 2 Lot Value
61,027 sq. ft. at $2.00 per sq. ft =$122,054
Called $122,000
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 24 of 44
INCOME APPROACH:
The subject property is currently tenant occupied, and is used as a retail/service business. Subject
has been used as a rental for several years.
Current income is $4,496 per month or $5.99 per sq ft. This information was provided by the
property manager. No expense data was provided. The expenses were estimated from the market.
A market survey was made and current rent appears at market.
The market estimate for the subject's annual income is indicated at $8.00 per sq. ft. or $72,000
per year. Based on the market rent, the monthly rent is indicated at $6,000.
Expenses considered are as follows:
Current overall expenses are estimated at 25% of gross income. This includes management at
10%. Balance of expenses include maintenance and repair. Current tenant has occupied the
building for over 15 years.
Estimated gross income is indicated at $72,000.
Capitalization rates were developed from the market and with additional information from other
knowledgeable people, which includes associate appraisers, real estate agents and nationally
published rates. Rents indicated range from 5% to as high as 9%. For the purpose of this report,
I am estimating the cap rate at 6%. Cap rates vary throughout the market depending on size,
location, condition and use of building.
Gross Income $ 72,000
Less Management 10% < 7,200>
Less Maintenance, Insurance, Repairs, Utilities, Taxes etc. < 16,200>
Indicated Net Income $ 48,600
Capitalization Rate .06
$810,000
Called $810,000
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 25 of 44
Rental
#
Location Size Property
Type
Rent/SqFt/Year
1 1896 W Heyrend Way
Idaho Falls
24,000 sq. ft. Office,
Industrial,
Retail
$9.72
2 4390 N Yellowstone
#D
Idaho Falls
3,000 sq. ft. Industrial $8.04
3 4390 N Yellowstone
#D-E-F
Idaho Falls
9,000 sq. ft. Industrial $8.04
4 4390 N Yellowstone
#A-B-C-D
Idaho Falls
12,000 sq. ft. Industrial $7.80
5 3875 S American Way
Idaho Falls 83402
12,230 sq. ft. Office
Industrial
$9.00
6 1647 Woodruff Park
Idaho Falls 83402
3,529 sq. ft. Office
Industrial
$8.28
7 2399 24 N
Idaho Falls 83401
6,600 sq. ft. Office
Industrial
$7.09
Rentals were located throughout the market area. They were mostly commercial/ industrial
buildings that had a similar potential use as the subject. Office space varied. Based on the data I
estimate the market rent at $8.00 per sq. ft. Comparables 3, 4, 5, and 6 were most similar to the
subject.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 26 of 44
SALES COMPARISON APPROACH:
In arriving at an estimated value by this approach, the market has been investigated for sales of
similar properties in the area. Recent sales of similar, comparable properties are limited.
The comparable sales considered were as representative of the subject as possible. They were
located in the subject and competing neighborhoods within the market area. They also varied in
size, design, condition, and use. They were the most current available. Data obtained from local
MLS, public records, local real estate agents, and associate appraisers.
Marketing time for commercial property in the subjects' market area is estimated in excess of
180 days. A quicker marketing time could be obtained depending on buyer and sellers'
motivation reflected in asking prices and offers made and accepted. Exposure time is estimated
similar to market time.
Value appears to be related to a particular property with considerations given to size. Also,
improvements have some limited value depending on their condition and overall contribution.
Quite often in purchases of this type, property sales do not reflect a firm pattern but more desire
or needs of an individual and are often affected by the sellers and or buyer’s motivation and
supply and demand.
Commercial construction has been limited in the neighborhood over the past several years. The
subject is fully developed. Any new construction would include remodeling of existing buildings
or the removal of existing buildings for redevelopment. Currently supply and demand appears in
balance for property similar to the subject.
5 improved sales were considered to establish a value for the subject property.
A summary of these sales is on the next three pages with complete sale data located in the sale
data section of the report. Data is retained in the appraiser’s file.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 27 of 44
Sales Comparison Approach Continued:
Sale (Subject) 1 2 3 4
Location 1680 Woodruff Park
Idaho Falls
83401
1720 Woodruff Park
Idaho Falls
83401
305 Briggs Idaho Falls 83401
170 E Stanley Street
Idaho Falls
83401
Sale Date 03/2020 03/2020 09/2019 05/2020
Sales Price $575,000 $585,000 $400,000 $525,000
Land Size (72,614 sq. ft.) 37897 sq. ft. 32670 sq. ft. 12632 sq. ft. 59242 sq. ft.
Building Size (8000 sq. ft.) 8,000 sq. ft. 7,962 sq. ft. 7,345 sq. ft. 6,000 sq. ft.
Sale Price Per sq.ft. Of Building
$71.88 $73.47 $54.46 $87.50
Adjustments:
Land Building Office
+68,000 +80,000 +120,000
+35%
+26,800-10%+20%
Indicated
Adjusted Value/per unit
$80.38 $83.52 $89.86 $100.72
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 28 of 44
Sales Comparison Approach Continued:
Comparable 1: Located on the corner of a commercial area. In the neighborhood west of the
subject. The building is currently retail. Construction quality is similar. It has a partial basement
for storage and a small upper level for offices. It has a corner location. On-site parking. The
building was built in 1955. The building has had some minor updates since it’s purchase. The
property is located on a busy street.
Comparable 2: Located in the neighborhood west of the subject. The building was built in 1942.
There is a main building with several storage buildings attached. The building is framed
construction, in average condition. There is onsite parking. The most recent use for the property
was a used car lot. The property is located on a busy street.
Comparable 3: Located north west of the subject in the neighborhood. The building was built in
1952. It is currently used for retail. The construction quality is similar to the subject. There is
street parking and some limited rear parking.
Comparable 4: Located in a neighborhood south west of the subject. The property has some
onsite parking. It’s main use is office. There was an additional attached shop on the property.
The access is shared by adjoining properties. The building was built in 1980 and is block
construction.
Comparable 5: Located south west of the subject in a neighboring neighborhood. Included on the
property is a house and two shop buildings with associated office space. Main building was built
in approximately 1960 and has had some remodeling. There is some onsite parking and
additional street parking. It is block construction.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 29 of 44
Sales Comparison Approach Continued:
Sale (Subject) 5 6
Location 1841 E Piper Street Idaho Falls
83401
1801 E Piper Street Idaho Falls
83401
Sale Date 12/2020 01/2021
Sales Price $449,000 $870,000
Land Size (72,614 sq. ft.) 43124 sq. ft. 44997 sq. ft.
Building Size (8,000 sq. ft.) 4,800 sq.ft. 11,200 sq. ft.
Sale Price Per
sq.ft. Of Building
$93.54 $79.02
Adjustments:
Land
Building Office
+59,000
-20%+20%
+55,000
+35%
Indicated
Adjusted Value/per unit
$105.83 $109.78
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 30 of 44
Sales comparison approach continued:
Adjustments were made for differences in features of the comparables when compared to the
subject. Major Adjustments were made for building size, no basement, shops and other storage
buildings as well as site size. No time adjustment was indicated for comparables over 12 months
old. This includes land and all associated improvements.
Giving comparables 1, 2 and 3 the most weight $95.00 per sq. ft. of building area is indicated.
This includes parcel 1 land and all associated improvements.
8,000 sq. ft. at $95.00/ sq. ft. = $760,000
Summary of Sales Comparison $760,000
Parcel 2 Value
61,027 sq. ft. at $2.00 per sq. ft =$122,054
Called $122,000
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 31 of 44
RECONCILIATION AND CONCLUSION:
COST APPROACH $830,000
INCOME APPROACH $810,000
SALES COMPARISON APPROACH $760,000
Parcel 2 $122,000
The Cost Approach was given 25% weight in the value estimate.
The Income Approach is estimated based on the current rent. It appears to be at market.
Expenses were estimated. This approach was given 25% weight in the value estimate.
The Sales Comparison Approach is based on similar sales of property like the subject. They have
similar uses and were considered equal in location. Adjustments were made for land and building
size. This approach was given 50% weight in the value estimate.
The Sales Comparison Approach was given the most weight and reflects the current value of the
subject in the market. The estimated market value of the subject property at 2180 N Deborah
Drive as of May 14, 2021 is $800,000. The above value represents the value of the land and
building improvements only and does not include any personal property. Vacant lot is valued at
$122,000
Total estimated property value $922,000
.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 32 of 44
STATEMENT OF ASSUMPTIONS & LIMITING CONDITIONS:
1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. Theappraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property isappraised on the basis of it being under responsible ownership. The future operation of the property assumes skilled and adequatemanagement but are not represented to be historically based.2. The appraiser may have provided a sketch in the appraisal report to show approximate dimensions of the improvements, and anysuch sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser’s determinationof its size. Unless otherwise indicated, a Land Survey was not performed.3. If so indicated, the appraiser has examined the available flood maps that are provided by the Federal Emergency ManagementAgency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special FloodHazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, expressed or implied, regarding this determination.4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unlessspecific arrangements to do so have been made beforehand.5. If the cost approach is included in this appraisal, the appraiser has estimated the value of the land in the cost approach at its highestand best use, and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. Unless otherwise specifically indicated, the cost approachvalue is not an insurance value, and should not be used as such.6. The appraiser has noted in the appraisal report any adverse conditions (including, but not limited to, needed repairs, depreciation, thepresence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property, or that he or she becameaware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiserhas no knowledge of any hidden or unapparent conditions of the property, or adverse environmental conditions (including, but notlimited to, the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumedthat there are no such conditions and makes no guarantees or warranties, expressed or implied, regarding the condition of the property.The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required todiscover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal reportmust not be considered as an environmental assessment of the property.7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he orshe considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy ofsuch items that were furnished by other parties. All information furnished regarding rental rates, lease terms, or projections of incomeand expense is from sources deemed reliable. No warranty or representation is made as to the accuracy thereof.8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of ProfessionalAppraisal Practice, and any applicable federal, state, or local laws. The information contained in this report is specific to the needs of theclient and for the intended use stated in this report. The appraiser is not responsible for any unauthorized use of this report.9. If this appraisal is indicated as subject to satisfactory completion, repairs, or alterations, the appraiser has based his or her appraisalreport and valuation conclusion on the assumption that completion of the improvements will be performed in a workmanlike manner.10. An appraiser’s client is the party (or parties) who engage an appraiser in a specific assignment. Any other party acquiring this report from the client does not become a party to the appraiser-client relationship. Any persons receiving this appraisal report because of
disclosure requirements applicable to the appraiser’s client do not become intended users of this report unless specifically identified bythe client at the time of the assignment.11. The appraiser’s written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public, through advertising, public relations, news, sales, or by means of any other media, or by its inclusion in a private or public database.12. An appraisal of real property is not a ‘property inspection’ and should not be construed as such. As part of the valuation process, theappraiser performs a non-invasive visual inventory that is not intended to reveal defects or detrimental conditions that are not readily
apparent. The presence of such conditions or defects could adversely affect the appraiser’s opinion of value. Clients with concerns aboutsuch potential negative factors are encouraged to engage the appropriate type of expert to investigate.13. Values for various components of the subject parcel and improvements or the value derived by one or two approaches to value ascontained within this report are valid only when making a summation or final opinion of value and are not to be used independently for
any purpose and must be considered invalid if so used. A separate report on only a part of a whole property, particularly if the reportedvalue exceeds the value that would be derived if the property were considered separately as a whole, must be stated as a fractional report.
14. Forecasts of effective demand for the highest and best use or the best fitting and most appropriate use were based on the bestavailable data concerning the market and are subject to conditions of economic uncertainty about the future.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 33 of 44
APPRAISER’S CERTIFICATION:
I certify that, to the best of my knowledge and belief:
1.The statements of fact contained in this report are true and correct.2.The credibility of this report, for the stated use by the stated user(s), of the reported analyses, opinions, and conclusions arelimited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professionalanalyses, opinions, and conclusions.3.I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect tothe parties involved.4.I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.5.My engagement in this assignment was not contingent upon developing or reporting predetermined results.6.My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined valueor direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, orthe occurrence of a subsequent event directly related to the intended use of this appraisal.7.My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the UniformStandards of Professional Appraisal Practice that were in effect at the time this report was prepared.8.I did not base, either partially or completely, my analysis and/or the opinion of value in the appraisal report on the race, color,religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property,or of the present owners or occupants of the properties in the vicinity of the subject property.9.Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report.10.Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing thiscertification.11.All conclusions and opinions concerning the real estate that are set forth in this report were prepared by the Appraiser(s), whosesignature(s) appears on this report. No change of any item in this report shall be made by anyone other than the Appraiser, andthe Appraiser shall have no responsibility for any such unauthorized change.
In compliance with the 2014-2015 Revisions to the USPAP Ethics Rule, unless otherwise noted I have performed no prior service, as an appraiser, regarding the property that is the subject of this report within the three year period immediately preceding acceptance of this assignment.
SUPERVISORY APPRAISER’S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she
certifies and agrees that: I directly supervised the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser’s certifications numbered 3 through 8 above, and am taking full responsibility for the appraisal and the appraisal report.
ADDRESS OF PROPERTY APPRAISED: 2180 N Deborah Dr
SUPERVISORY APPRAISER (if required):
Signature:________________________________
Name:___________________________________
Date Signed:______________________________
State Certification #:_______________________
or State License #:_________________________
State:__________________________________
APPRAISER:
Signature: _________________________________________
Name: Curtis J. Boam
Date Signed:______06/22/2021
State Certification #: CGA #51
or State License #:___________________________
State: Idaho
Expiration Date of Certification or License: 11/09/2021 Expiration Date of Certification or License:______
____ Did ____ Did Not Inspect Property
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 34 of 44
HAZARDOUS SUBSTANCES
STATEMENT
Unless otherwise noted in this report, the existence of hazardous substances, including without limitation
asbestos, polychlorinated biphenyls, petroleum leakage or agricultural chemicals, which may or may not
be present on the property, or other environmental conditions, were not called to the attention of nor did
the appraiser become aware of such during the appraiser's inspection. The appraiser has no knowledge of
the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is
not qualified to test such substances or conditions. If the presence of such substances, such as asbestos,
urea formaldehyde foam insulation, or other hazardous substances or environmental conditions affect the
value of the property, the value estimate is predicated on the assumption that there is no such condition on
or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is
assumed for any such conditions, or for any expertise or engineering knowledge required to discover
them.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 35 of 44
[e-mail]
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 36 of 44
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 37 of 44
LIMITING CONDITIONS
1-The Americans with Disabilities Act (ADA) became effective January 26, 1992. I have not made a
specific compliance survey and analysis of this property to determine whether or not the subject property
is in conformity with the various detailed requirements of the ADA. It is possible that a compliance
survey of the property together with a detailed analysis of the requirements of the ADA could reveal that
the property is not in compliance with one or more of the requirements of the act. If so, this fact could
have a negative effect upon the value of the property. Since I have no direct evidence relating to this
issue, I did not consider possible noncompliance with the requirements of ADA in estimating the value of
the property.
2-By this notice, all persons, companies, or corporations using or relying on this report in any manner
bind themselves to accept these Contingent and Limiting conditions, and all other contingent and limiting
conditions contained elsewhere in this report. Do not use any portion of this report unless you fully accept
all Contingent and Limiting conditions contained throughout this document.
3-The “Subject” of “Subject Property” refers to the real property that is the subject of this report. An
Appraiser is defined as an individual person who is licensed to prepare real estate appraisal-related
services in the State of Idaho and affixes his signature to this document
4-These contingent and Limiting Conditions are an integral part of this report along with all
certifications, definitions, descriptions, facts, statements, assumptions, disclosures, hypotheses, analyses
and opinions.
5-All contents of this report are prepared solely for the explicitly identified client and other explicitly
identified intended users. The liability of the Appraiser is limited solely to the client. There is no
accountability, obligation, or liability to any other third party. Other intended users may read but not reply
on this report. The Appraiser’s maximum liability relating to services rendered under this engagement
(regardless of form of action, whether in contract, negligence or otherwise) is limited to the fee paid to
Boam and Associates Appraisal Company for that portion of their services, or work product giving rise to
liability. In no event shall the Appraiser b liable for consequential, special, incidental or punitive loss,
damages or expense (including without limitation, lost profits, opportunity costs, etc.) even if advised of
their possible existence. If this report is placed in the hands of anyone other than the client, the client shall
make such party aware of all contingent and limiting conditions, assumptions, and disclosures. Use of this
report by third parties shall be solely at the risk of the third party.
6-This document communicates the results of an appraisal assignment. This communication is not an
inspection, engineering, construction, legal, or architectural report. It is not an examination or survey of
any kind. Expertise in these areas is not implied. The Appraiser is not responsible for any costs incurred
to discover, or correct any deficiency in the property.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 38 of 44
7-As part of this appraisal, information was gathered and analyzed to form opinion(s) that pertain solely
to one or more explicitly identified effective value dates. The effective value date is the only point in time
that the value applies. Information about the subject property, neighborhood, comparables, or other topics
discussed in this report was obtained from sensible sources. In accordance with the extent of research all
information cited herein was examined for accuracy, is believed to be reliable, and is assumed reasonably
accurate. However, no guaranties or warranties are made for this information. No liability or
responsibility is assumed for any inaccuracy which is outside the control of the Appraiser, beyond the
scope of work, or outside reasonable due diligence of the Appraiser.
8-Real estate values are affected by many changing factors. Therefore, any value opinion expressed
herein is considered credible only on the effective value date. Every day that passes thereafter, the degree
of credibility wanes as the subject changes physically, the economy changes, or market conditions
change. The Appraiser reserves the right to amend these analyses and/or value opinion(s) contained
within this appraisal report if erroneous, or more factual-information is subsequently discovered. No
guarantee is made for the accuracy of estimates or opinions furnished by others, and relied upon in this
request.
9-In the case of limited partnerships, syndication offerings, or stock offerings in the real estate, the client
agrees that in case of lawsuit (brought by the lender, partner, or part owner in any form of ownership,
tenant, or any other party), the client will hold Boam and Associates Appraisal Company completely
harmless. Acceptance of, and/or use of this report by the client, or any third party is prima facie evidence
that the user understands and agrees to all these conditions.
10-Unless specifically stated otherwise herein, the Appraiser is unaware of any engineering study made
to determine the bearing capacity of the subject land or nearby lands. Improvements in the vicinity, if any,
appear to be structurally sound. It is assumed soil and subsoil conditions are stable and features that cause
supernormal costs to arise. It is also assumed existing soil conditions of the subject land have proper load
bearing qualities to support the existing improvements, or proposed improvements appropriate for the
site. No investigation for potential seismic hazards were made. This appraisal assumes there are no
conditions of the site, subsoil, or structures, whether latent, patent, or concealed that would render the
subject property less valuable. Unless specifically stated otherwise in this document, no earthquake
compliance report, engineering report, flood zone analysis, hazardous substance determination, or
analysis of these unfavorable attributes was made, or ordered in conjunction with this appraisal report.
The client is strongly urged to retain experts in these fields, if so desired.
11-If this appraisal values the subject as though construction, repairs, alterations, remodeling, renovation,
or rehabilitation will be completed in the future, then it is assumed such work will be completed work is
assumed completed in substantial conformance with plans, specifications, descriptions, or attachments
made referred to herein. It is also assumed all planned, in-progress, or recently completed construction
complies with the zoning ordinance, and all applicable building codes. A prospective value opinion has
an effective value date that is beyond or in the future relative to this report’s preparation date. If this
appraisal includes a prospective valuation, it is understood and agreed the Appraiser is not responsible for
an unfavorable value effect caused by unforeseeable events that occur before completion of the project.
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 39 of 44
12- Electric, heating, cooling, plumbing, water supply, sewer or septic, mechanical equipment, and other
property systems were not tested. No determination was made regarding the operability, capacity, or
remaining physical life of any component in, on, or under the real estate appraised. All building
components are assumed adequate and in good working order unless stated otherwise. Private water wells
and private septic systems are assumed sufficient to comply with federal, state, or local health safety
standards. No liability is assumed for the soundness of structural members since structural elements were
not tested or studied to determine their structural integrity. The rood cover for all structures is assumed
water tight unless otherwise noted. This document is not an inspection, engineering or architectural
report. If the client has a concern regarding structural, mechanical, or protective components of the
improvements, or the adequacy or quality of sewer, water or other utilities, the client should hire an expert
in the appropriate discipline before relying upon this report. No warranties or guarantees of any kind are
expressed or implied regarding the current or future physical condition or operability of any property
component.
13- The allocation of value between the subject’s land and improvements, if any, represents our judgment
only under the existing use of the property. A re-evaluation should be made if the improvements are
removed, substantially altered, or the land is utilized for another purpose.
14-The Client and all intended users agree to all the following (A) This appraisal does not serve as a
warranty on the physical condition or operability of the property appraised. (B) All users of this report
should take all necessary precautions before making any significant financial commitments to or for the
subject. (C) Any estimate for repair or alterations is a non-warranted opinion of the Appraiser.
15-No liability is assumed for matters of legal nature that affect the value of the subject property. Unless
a clear statement to the contrary is made in this report, value opinion(s) formed herein are predicated upon
the following assumptions. (A) The real property is appraised as though, and assumed free from all value
impairments including yet not limited to title defects, liens, encumbrances, title claims, boundary
discrepancies, encroachments, adverse easements, environmental hazards, pest infestation, leases, and
atypical physical deficiencies. (B) All real estate taxes and assessments, of any type are assumed fully
paid. (C0 It is assumed ownership of the property appraised is lawful. (D) It is also assumed the subject
property is operated under competent and prudent management. (E) The subject property was appraised
as though and assumed free of indebtedness. (F) The subject real estate is assumed fully compliant with
all applicable federal, state, and local environmental regulations and laws. (G) The subject is assumed
fully compliant with all applicable zoning ordinances, building codes, use regulations, and restrictions of
all types. (H) All licenses, consents, permits, or other documentation required by any relevant legislative
or governmental authority, private entity, or organization have been obtained, or can be easily obtained or
renewed for a nominal fee.
DATE: __June 22, 2021 APPRAISER(s):________________________________
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 40 of 44
ADDENDUM

EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 41 of 44
Main File No. 05481 Page # 9 of 9
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Comparable Sales Map
2180 N Deborah Dr
Idaho Falls Bonneville ID 83401
Borrower
Lender/Client
Property Address
City County State Zip Code
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 42 of 44
Main File No. 05481 Page # 7 of 9
Form PICPIX.BR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Comparable Photo Page
2180 N Deborah Dr
Idaho Falls Bonneville ID 83401
Comparable 1
Comparable 2
Comparable 3
Borrower
Lender/Client
Property Address
City County State Zip Code
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 43 of 44
Main File No. 05481 Page # 8 of 9
Form PICPIX.BR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Comparable Photo Page
2180 N Deborah Dr
Idaho Falls Bonneville ID 83401
Comparable 4
Comparable 5
Comparable 6
Borrower
Lender/Client
Property Address
City County State Zip Code
EXHIBIT 3 TO APPLICATION
FALLS WATER COMPANY, INC.
Page 44 of 44