A STRATEGIC SOLUTION TO STATE AND LOCAL TAXATION

1. A STRATEGIC SOLUTION TO STATE AND LOCAL TAXATION

2. MISSION National Tax Resource Group (NTRG) delivers property tax expertise and management of the ad valorem appeals and administration processes for national property owners via the expert direction of an efficient, experienced and motivated team of local principals. This innovative approach, combined with our unparalleled in-house technologies, provides our clients a streamlined and seamless communications and reporting process to accommodate the complex task of property tax consulting on a national basis.

3. The rEvolution of the Property Tax Industry in America In the 1970’s, the business of property tax consulting was a very local business indeed. Local practitioners were retained in the event a property owner was unhappy with their tax assessment. By 1985, the business had blossomed in the early days of the real estate “bust” in Texas and throughout the southwest. By June 1990, the real estate recession had even reached the shores of Southern California…and the national property tax industry was born. Fueled by large profits gained in places like Texas and Arizona, tax firms that once had fewer than 20 employees were opening offices in major cities such as Los Angeles, New York, and Washington D.C. The recession continued and large reductions in assessments were widely available in most any large city in America. The height of the industry was the early nineties; and then slowly the economy improved. Once it was evident that market values would once again meet assessments, the large reductions went away and so did the large profits for the national firms. This was the beginning of the decline in large-scale national property tax consulting. During the boom period for consultants in the late eighties, these firms had paid large salaries and bonuses and attracted the most elite professionals in the business. Once the decline in profits set in, these professionals became subject to salary decreases and reduced or eliminated bonus programs. The Big 5, after getting into the industry via acquisitions and mergers, forced key employees to sign contracts and non-compete statements virtually eliminating their right to leave and compete until January 2000. Once those contracts expired, the key players resigned with very few exceptions and all within a month’s time. A “mass exodus” ensued as the elite consultants chose to form their own firms so that they could control their own destiny and compensation. It is estimated that over 90 such firms were started between 1994 and 2000. I personally have knowledge of over 35 such start up companies just in a nine-state region. With very few exceptions, these small firms now provide the “best in class” consultants. These professionals tend to get the best results because they have the best relationships with the local assessor’s office and strive to do the very best job possible. They are typically principals or sole owners of their firms and therefore take “ownership” of their results. In the aftermath of these events, the national consulting team concept was (and is today) very fragmented. For a company with geographically diverse assets it may be necessary to contract with 10 or possibly 20 different consulting firms to get the best results or, in some cases, just to get local expertise. NTRG was formed in 1999 to alleviate this imposition. We are the one firm that provides our clients the service of the best consultants in the industry and consolidates every aspect of the engagement including information flow, invoicing, reporting, communications, and valuation management. NTRG does not compete with other tax firms, instead we hire them where and when they are qualified to provide the “best in class” results. We group the once fragmented team of consultants together again and manage and monitor their success for our clients. Our relationship with these elite professionals is based on performance, trust, and, in most cases, years of personal history.

4. BEST EXPERTISE IN LOCAL FIRMS • rEvolution Timeline • Pre-1980 – Local practitioners control the “market” for property tax services • Mid-80s to Early 90s – The formation of national firms is fueled by the commercial real estate bust • Mid-90s – The beginning of downsizing and elimination of national firms due to increasing property values; there become fewer single-source options for owners of geographically-diverse commercial portfolios • Mid-to-late 90s – Elite professional in the industry begin their migration to smaller groups and start locally-owned firms; local expertise is again available but fragmented and, therefore, cumbersome to manage for many property owners • 1999-Present Day – NTRG introduces and continues to provide a uniquely successful business model that coordinates the fragmented expertise for the benefit of commercial property owners across North America.

5. A PROPERTY TAX MANAGER’S ROLE • Increase overall tax reductions through careful selections of tax consultants in local markets • Increase effectiveness of property tax management by “co-managing” property tax appeals • Take ownership of overall process in reducing and administrating property taxes • Review the outcome of analysis by each consultant to determine likelihood of success and continued appeal(s) • Make annual decisions regarding consultant selection and retention to maximize appeal efforts • Provide status reports to the Asset Management and Financial teams

6. OUR VISION • To increase appeal results and tax savings by utilizing local, qualified expertise for every assignment • To provide our clients with a seamless national tax consulting service offering a “one-point-of-contact” solution • To continue to develop and integrate innovative technologies in order to maintain our superior communication and reporting delivery methods for the benefit of our consultants and our clients • To maintain our position in the industry as the most effective and innovative consulting group of its kind in North America • To increase the benefits received by our clients through the continued examination of valuation methodologies and implementation of new strategies for the reduction of ad valorem taxes on a national basis • To continue to recruit the finest local consultants available in the industry to provide our clients with “best in class” results • To minimize the resources required by the client’s staff in streamlining the entire consulting process Applying our methods in subsequent years has resulted in permanent tax relief for this facility allowing them a net benefit of $280,043 to date. 

7. How is NTRG Different? • We do not compete with other tax firms, we hire them • We are not a “brokerage” firm for tax services, we directly manage the entire process • We have contractual relationships with every consultant and our relationships are based on performance and expertise • Our Online Portfolio Management (OPM) system is a unique and unparalleled feature in our industry • Our “dual review” system has not been replicated by any other firm • We oversee each and every appeal and perform valuation sessions with our client on each asset • We have the real ability to conform our reporting and online data output for each client’s needs • Each consultant team consists of tax firm principals who are motivated and dedicated professionals • Our selection of consultants for each team is not based solely on location, but rather location and expertise

8. THEY... use regional offices to cover wide, geographic areas THEY... typically employ “General Consultants” who are not experts in any particular property type THEY... must operate within the “four walls” of expertise in the firm THEIR... client’s properties are represented by a salaried staff member THEY... in regards to complex and mixed use type properties, use a conventional depreciation method to reduce assessments THEY... assign properties based on consultant availability and work load THEY... have lost many of their best consultants who left to form their own consulting businesses across the United States WE... use local expertise with local relationships WE... engage specialists and experts in specific fields of property valuation based on client needs WE... assemble each team from an unlimited pool of consultants based on expertise and knowledge of each property type OUR... consultants are principals in their own firms and take real ownership of each assignment WE... engage specialists by class of property who have knowledge of the specific valuation issues of complex properties WE... assign properties based on expertise as well as local knowledge WE... utilize these “best in class” consultants across the nation to provide, true, local expertise for our client Conventional Tax Firms vs. NTRGA review of methods and expertise

9. NTRG’s Objectives • Provide the absolute best local consultant and solution for each property in each market • Streamline the entire property tax appeal and administration process through superior technology, pro-active information gathering, and proper management of processes and consultants • Provide our clients with the real ability to have input to the strategy and outcome of each and every appeal from an Executive Level • Provide our clients with access to every aspect of the property tax administration and appeal processes • Provide on-going “best in class” solutions for each term engaged

10. NTRG Consultant Locations

11. Dual Review System – Valuation Process • Information reviewed internally by NTRG and local consultant • Conclusion of value jointly determined • Valuation conclusion communicated to Client • Information logged on NTRG’s Online Portfolio Management (OPM) system “Property taxes are a runaway train in most corporations. The ever changing environment and revenue-hungry taxing jurisdictions call for someone to monitor every move that’s made and to stop any unnecessary windfalls for the local governments.” – Robert Boudreaux, former IRS Valuation Engineer

12. Services Provided NTRG provides a complete range of services designed to effectively minimize our clients’ property tax liability. These services generally include the following: • Securing necessary data from client • Performing a physical inspection / review of each property • Interviewing the asset manager responsible for each asset to discuss specific valuation issues of every property • Formulating an opinion of value for each property using the cost, income, assessment comparable and market methods of valuation • Conducting a “dual” valuation review of each property by the local consultant and in-house NTRG consultants • Establishing “target values” with the asset manager • Filing the required renditions, reports and appeals with assessing authorities • 8. Negotiating the assessment with assessment authority through informal hearings • 9. Preparing and presenting formal appeal to assessment authority or appraisal review board

13. Services Provided (cont’d) 10. Providing litigation support, when necessary 11. Advising client of all available property tax saving strategies to assure minimum tax liability in the future • Providing custom hardcopy reporting to all management and administrative levels • Preparing pre-acquisition tax estimates • Conducting delinquent tax searches • Providing property manager-level administrative services • Conducting teleconference valuation sessions with the Asset Manager or appointed contact(s) for each property

14. Our Approach to Service Process • We personally gather all necessary data directly from the client and our internal resources (public information) • Each property is set up in our OPM system and made available to the client and the designated local professional • Our internal review process begins in concurrence with the local consultant’s review • A conclusion of value discussion is held with the client • Target Values are approved by client • Administrative processes are completed and available to the client via the OPM system • Appeals are filed and concluded while continually notifying the client of our results via the OPM email system • Quarterly Reports are issued in hardcopy to each Asset Manager and client management

15. Benefits • KEY BENEFITS • Provide “best in class” consultants in each market • Provide interactive control of each appeal and “actual” oversight of the appeals process and results • Increased tax savings through proper consultant selection and process management • Client control and input through live valuation discussions on each property • Information access and superior reporting through advanced technology • Decreased client administrative burden through pro-active information gathering process • Eliminate the need for consultant consideration and hiring process • Eliminate consultant interviewing • Provide seamless property tax management processes regarding consultant selection, information flow, appeals, and reporting

16. Increased Effectiveness – a comparison

17. Tax Appeal Effectiveness Comparison A COMPARISON BETWEEN THE EFFECTIVENESS OF PROPERTY TAX REPRESENTATIVES WITH & WITHOUT LOCAL EXPERTISE (using general assumptions)

18. The Advantage of Technology Web-Based Software – NTRG’S Online Portfolio Management (OPM) for Property Tax Data NTRG has developed an in-house and proprietary software package for the exclusive use of its employees, clients and consultants. The OPM is available to select NTRG clients as a way of accessing important property tax data including: • Assessment and Appeal Data • Site Photos • Maps • Property Tax Statements • Tax Savings Information • Property Tax Budgeting Data • Run Reports and Queries • Data Sorts • Site Maps (if available) • Level III Secure Site w/ password authenticity

19. Industry Experience

20. Industry Experience Our consulting teams have a wide variety of experience in the tax valuation of all commercial properties. Property types include the following:  • Office Buildings • Hotels and Resorts • Industrial and Warehouse Properties • Land • Mixed Use Properties • Retail and Mall Properties • Multi-Family • High Tech Manufacturing • Food Processing Facilities • Distribution Facilities  The average NTRG consultant has more than twenty years of experience in the ad valorem tax field. Individuals are ranked not only by location, but by type of property they represent. In many cases, we have several local experts who are distinguished by their ability to work certain property types (e.g., Hotels or Industrial facilities)

21. VANGUARD CORPORATION EQUIS IRON MOUNTAIN CORPORATION CB RICHARD ELLIS INVESTORS TRAMMELL CROW COMPANY AMSTAR REALTY GROUP MACERICH COMPANY CINTAS CORPORATION CalSTRS GREAT WEST LIFE INSURANCE CO KIMBERLY CLARK CORPORATION TRANSWESTERN PROPERTY COMPANY AUTONATION PNL COMPANIES ANC RENTAL CORPORATION REMINGTON HOTEL CORPORATION MIDLAND LOAN SERVICES CRIIMI MAE GENERAL ELECTRIC COMPANY Representative Clients

22. NTRG Clientele