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REAL ESTATE TAX SUMMARY

1) Lopatcong - The I 78 Logistics Park includes approximately100 acres in Lopatcong Township. Taxes on this parcel are currently being charged as farmland.
The farmland tax is nominal. Once construction commences on a building the taxes will include a rollback of taxes for the years the land was being used as a farm.
Real Estate taxes paid in 2016 were 4,843.44. The rollback taxes will be (will get this number).

2) Phillipsburg – Opus KTV owns approximately 300 acres in Phillipsburg. Taxes had been reassessed three years ago. Opus KTV met with the Phillipsburg
tax assessor Craig Brotens multiple times in the fall of 2016 to present the case that most of the buildings were being taken down. Phillipsburg needed to make an
assessment as of 10/1/16. At that time approximately 50% of the buildings had been demolished. The town agreed that once all the buildings were down a new
assessment is warranted. The new assessment will apply to taxes in 2017. Ownership chose to work with the township as opposed to going through an appeal.
Ownership felt working with the township would result in a timelier reassessment. The building part of the assessment in 2016 was reduced by nearly 7 million dollars.

3) The methodology used by the tax assessor for vacant industrial land is approximately 50,000 per acre. The assessment on the Curtiss Wright property was
based on a 10 % capitalization rate or 3,200,000. The assessor used 30% of the total building sq. footage and applied a $10 per square foot value to arrive at the
remaining empty buildings’ assessment. These are estimates provided by the assessor, not actual formulas applied in arriving at the assessment.

4) Taxes for the 2018 and the second part of 2017 should be reduced due to two factors. One – the balance of the buildings on the main campus will have
been demolished. Second – Opus KTV is in the process of sub-dividing the site. The previous main campus and Curtiss Wright will be part of a subdivided parcel.
Ownership is also donating nearly 100 acres to the townships as part of the townships ‘Green Space’ initiative. The assessments and corresponding real estate taxes
to be paid by ownership should be reduced by nearly 5 million in land value and 2 plus million in building value. If ownership is not satisfied, an appeal is always an
option.

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