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HomeMy WebLinkAboutItem 7e. Authorization to Purchase and Sell Personal Property for the Mid-Higuera Bypass Project (CoastRiders Powersports) Item 7e Department: Public Works Cost Center: 5301 For Agenda of: 5/7/2024 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Noah Maidrand, Engineer II SUBJECT: AUTHORIZATION TO PURCHASE AND SELL PERSONAL PROPERTY FOR THE MID-HIGUERA BYPASS PROJECT RECOMMENDATION 1. Authorize the Mayor to sign an agreement purchasing personal property associated with the business relocation of CoastRiders Powersports for the Mid-Higuera Bypass Project, as required by the California Government Code, and the re-sale of that personal property back to CoastRiders Powersports at liquidation value for a total payment price to CoastRiders Powersports of $50,717; and 2. Approve the designation of the remaining personal property valued greater than $1,000 as surplus personal property in accordance with Section 480-A of the Financial Management Manual. POLICY CONTEXT The City is obligated to provide relocation assistance to businesses displaced by the City’s real property acquisition in accordance with Article 3 of the California Code of Regulations, Title 25, Chapter 6 (additional requirements for compensation are listed in Article 3 of the California Code of Civil Procedure §1263.210). The City’s Financial Management Manual states that the sale of surplus personal property with an estimated value greater than $1,000 must be approved by City Council. The disposal of surplus personal property is also dictated by the Finan cial Management Manual, which sets forth various disposal requirements, and is delegated to the Department Head or the Director of Finance and Information Technology, depending on the value of the item. DISCUSSION Background The Mid-Higuera Bypass Project (“Project”) was identified in the Council adopted Waterway Management Plan as a way to reduce flooding from San Luis Obispo Creek along the Mid-Higuera Corridor. The Project will increase flood protection by removing sediment from the creek, creating pathways for flood waters in the roadway to return to Page 173 of 270 Item 7e the creek, removing barriers within the creek channel, creating flood bypass channels and graded benches for increased creek capacity, replacing the Bianchi Lane Bridge, removing non-native vegetation, and replanting native trees and shrubs. This Project is being completed in partnership with the Flood Control and Water Conservation District Zone 9 County Advisory Committee. This Project aims to reduce flooding potential caused by a major pinch point of San Luis Obispo Creek where the flow is constricted by two buildings adjacent to the creek banks. This pinch point will be mitigated by the planned demolition of the rear warehouse located at 306 Higuera Street (APN 002-482-027). Staff have already procured the appropriate easements to complete this work with the property owner in accordance with the authority delegated by Council on July 19, 2022. CoastRiders Powersports (CoastRiders) currently leases 306 Higuera Street and operates an auto repair business. The property has a front building and a rear warehouse which were both occupied by CoastRiders prior to the City’s acquisition of the rear warehouse. The Project requires demolition of the rear warehouse. As a result of the City’s easement acquisition, CoastRiders has opted to consolidate their business operations into the front building on the property in lieu of relocating their business entirely. Since the business was partially displaced by the City’s acquisition process, the City is obligated to provide relocation assistance to CoastRiders . This relocation assistance is required as a term of payment for the acquisition of real property rights and is mandated by Article 3 of the California Code of Regulations, Title 25, Chapter 6. As part of the relocation assistance, the City is obligated to provide financial compensation for any improvements pertaining to realty that cannot be reasonably relocated. In order to accurately quantify the improvements pertaining to realty, staff received an appraisal of tenant owned Furniture, Fixtures, and Equipment (Attachment A). While the City is obligated to pay fair market price for the valued improvements based on article 3 of the California Code of Regulations, Title 25, Chapter 6, the tenant may be allowed to buy some of the improvements back at liquidation value or less than what the City paid for the items. This allows for the tenant to recover furniture, fixtures, or equipment that can be moved from the premises after the City has purchased them in accordance with California Code of regulations as well as allows the City to dispose of personal property for which it has no need. Staff have reached a tentative agreement (Attachment B) with CoastRiders titled “Agreement to Acquire Improvements Pertaining to the Realty” which outlines the terms of the sale and buy back of improvements pertaining to realty. This agreement contains an outline of which improvements CoastRiders has opted to purchase back at liquidation value, and sums the total value owed to CoastRiders at $50,717. An associated Bill of Sale (Attachment C) has been prepared to detail the City’s purchase of and payment for Improvements Pertaining to the Realty. Staff are requesting that Council approve this Agreement to Acquire Improvements Pertaining to Realty (Attachment B) as it deviates from the City’s Financial Management Manual, Section 480-A regarding the sale of surplus personal property. Per the Financial Management Manual, Section 480-A the Page 174 of 270 Item 7e standard process would be to sell or dispose of surplus property at auction with a contracted firm to assist in the sale of unique or special property. The firm would also help dispose of any unsaleable property at an approved disposal site. Staff are recommending the City approve the tentative agreement with CoastRiders instead of proceeding with an auction of the surplus property. Staff are additionally requesting Council approve the designation of the remaining personal property acquired (and not bought back by CoastRiders) as “surplus personal property” in accordance with Section 480-A of the Financial Management Manual. Staff will follow the procedures established in the Financial Management Manual when disposing the remaining equipment. Next Steps and Project Status Following this action, staff will proceed with assessing the remaining fixtures and equipment procured from CoastRiders to determine if there is any value to the City. Staff will then proceed with distributing or disposing of these fixtures and equipment in accordance with Section 480-A of the Financial Management Manual. The Mid-Higuera Bypass Project is currently in the final stages of the design process, anticipating the completion of final plans by July of this year. Staff plan to advertise the project by September and award a construction contract by December. The start of construction is anticipated in February of 2025, and continue into early 2026. Previous Council or Advisory Body Action July 19, 2022 – Staff met with Council in Closed Session and were authorized to begin negotiations to acquire property easements associated with the Mid-Higuera Bypass Project at 306 Higuera Street. October 17, 2023 – Staff met with Council in Closed Session and were authorized to continue easement negotiations, including relocation terms with CoastRiders Powersports. CONCURRENCE The recommendations presented in the report have been reviewed and approved by the City Attorney’s office. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Design Easement Acquisition Complete Final PSE Advertise and Award Construction Project Closeout 2026 Mid-Higuera Bypass Current Schedule 2024 2025 Page 175 of 270 Item 7e ENVIRONMENTAL REVIEW The Mid-Higuera Bypass project will be constructed in accordance with the Supplemental Environmental Impact Report (SEIR) and the associated mitigation measures. On August 21, 2018, San Luis Obispo County Board of Supervisors certified the SEIR. SEIR State Clearinghouse Number is SCH2016021077. FISCAL IMPACT Budgeted: Yes Budget Year: 2024-25 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund (Capital Outlay Fund - LRM) $621,612.49 $50,717 $570,895.49 $0 State Grant Funding $6,079,000 $0 $6,079,000 $0 County Zone 9 Funding $1,124,118.30 $0 $1,124,118.30 $0 Water Fund $100,000 $0 $100,000 $0 Total $7,924,730.79 $50,717 $7,874,013.79 $0 The total cost of the improvements pertaining to realty of $50,717 is within the total available budget for the Mid-Higuera Bypass Project, 2090649. The remaining funds in the project account will be used to procure the remaining easements needed for construction, complete utility relocation work, procure construction management and environmental monitoring services, and complete construction. Additional Capital Outlay Funds and County Zone 9 Funds are budgeted for the 2024/25 Fiscal Year and will be used to supplement the existing available budget. ALTERNATIVES Deny Authorization to buy and sell back personal property. Council could decide not to approve the agreement with CoastRiders to buy and sell back improvements pertaining to realty. This action is not recommended as the City is obligated to provide compensation for improvements pertaining to realty to displaced persons and businesses . ATTACHMENTS A - CoastRiders Powersports Furniture, Fixtures, and Equipment Appraisal Report B - CoastRiders Agreement to Acquire Improvements Pertaining to the Realty C - CoastRiders Bill of Sale Page 176 of 270 APPRAISAL REPORT REGARDING THE IMPROVEMENTS PERTAINING TO THE REALTY AND MOVABLE EQUIPMENT OF COASTRIDERS POWERSPORTS LOCATED AT 306 HIGUERA STREET SAN LUIS OBISPO, CALIFORNIA PREPARED FOR THE CITY OF CITY OF SAN LUIS OBISPO Effective Date of Value April 24, 2023 Prepared By DESMOND, MARCELLO & AMSTER 222 Pacific Coast Highway, 10th Floor El Segundo, California 90245 44 Montgomery Street, Suite 300 San Francisco, CA 94104 Tel. (310) 216-1400 www.dmavalue.com Page 177 of 270 May 26, 2023 Ms. Lillian Jewell Managing senior Associate Hamner, Jewell & Associates 530 Paulding Circle, Suite A Arroyo Grande, CA 93420 Re: Appraisal Report of Improvements Pertaining to the Realty and Movable Equipment of Coastriders Powersports Located at 306 Higuera Street, San Luis Obispo, California Prepared for the City of San Luis Obispo Dear Ms. Jewell: As you requested, Desmond, Marcello & Amster (“DM&A”) has made an investigation and analysis of the improvements pertaining to the realty and movable equipment of a business known as Coastriders Powersports located at 306 Higuera Street, San Luis Obispo, California. The effective date of value utilized herein is April 24, 2023. The purpose of this appraisal is to provide an estimate of the replacement cost new, fair market value in place, and forced liquidation value of the items appraised. The intended use or function of this appraisal is to assist the City of Fresno in determining compensation to the owner as a result of the potential partial acquisition of the subject property by the City of San Luis Obispo. Definitions of and compensation for improvements pertaining to the realty are included under Article 3 of the California Code of Civil Procedure, §1263.205 and §1263.210, respectively. Compensation for losses in connection with tangible personal property is included under §6090 and §6092 of the California Administrative Code, Title 25, Chapter 6. A further discussion of these sections is included in the body of the report. Desmond, Marcello & Amster, LLC Valuation and Litigation Consultants 222 Pacific Coast Hwy, 10th Floor El Segundo, CA 90245 44 Montgomery Street, Suite 300 San Francisco, CA 94104 www.dmavalue.com Tel: (310) 216-1400 Page 178 of 270 Ms. Lillian Jewell May 26, 2023 Page Two Based upon our investigation and analysis, and in reliance upon the information provided, a summary of the appraised values of the property considered as of April 24, 2023, is as follows: Replacement Cost New Fair Market Value In Place Forced Liquidation Value Improvements Pertaining to the Realty – Located in Acquisition Area (Coastriders) Improvements Pertaining to the Realty – Located in Remainder (Landlord) Improvements Pertaining to the Realty – Located in Remainder (Coastriders) $25,795 $5,450 $28,570 $19,820 $3,720 $22,350 $540 $0 $1,335 Movable Equipment – Located in Acquisition Area Movable Equipment – Located in Remainder $103,040 $50,730 $35,855 $17,440 $10,285 $5,100 The opinions of value are presented in the Summary and Conclusions section and are contingent upon the analysis, facts and Appraiser Certification and Limiting Conditions set forth in the accompanying report. Respectfully submitted, Desmond, Marcello & Amster DESMOND, MARCELLO & AMSTER MP G:\users\F & E\San Luis Obispo\Report Folder\Appraisal Report - Powersports Coastriders.docx Page 179 of 270 TABLE OF CONTENTS Page LETTER OF TRANSMITTAL APPRAISER CERTIFICATION PROPERTY APPRAISED 1 PURPOSE AND INTENDED USE 1 VALUE DATE/REPORT DATE 1 DEFINITION OF IMPROVEMENTS PERTAINING TO THE REALTY 1 COMPENSATION FOR IMPROVEMENTS PERTAINING TO THE REALTY 1 COMPENSATION FOR MOVABLE EQUIPMENT 2 APPRAISAL DEFINITIONS 2 DESCRIPTION OF THE BUSINESS 3 DESCRIPTION OF THE ASSETS APPRAISED 3 APPRAISAL PROCESS 4 SUMMARY AND CONCLUSIONS 7 ADDENDA IMPROVEMENTS PERTAINING TO THE REALTY MOVABLE EQUIPMENT SUBJECT PHOTOGRAPHS CONTINGENT AND LIMITING CONDITIONS CURRICULUM VITAE Page 180 of 270 APPRAISER CERTIFICATION I certify that, to the best of my knowledge and belief: • the statements of fact contained in this report are true and correct. • I performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • the reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. • I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • my engagement in this assignment was not contingent upon developing or reporting predetermined results. • I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment. • my compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of the appraisal. • my analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation and the Principles of Appraisal Practice and Code of Ethics of the American Society of Appraisers. • I made a personal inspection of the property that is the subject of this report. • Raul Bermudez provided significant personal property appraisal assistance to the person signing this certificate. Dated: May 26, 2023 Marcus Pigrom, ASA Partner Page 181 of 270 1 APPRAISAL REPORT PROPERTY APPRAISED For the purposes of this report, we have prepared an inventory and valuation of certain improvements pertaining to the realty and major movable equipment located at the subject property. The items appraised have been valued assuming a 100% ownership interest without consideration for any encumbrances against the property appraised. PURPOSE AND INTENDED USE The purpose of this appraisal is to set forth our opinion of the replacement cost new, fair market value in place, and forced liquidation value of certain improvements pertaining to the realty and movable equipment together with our rationale and reasoning in estimating the value of the subject assets appraised. It is the intended use or function of this appraisal to provide the City of San Luis Obispo and its representatives with information to assist in the potential acquisition of the property for the potential partial acquisition of the property by the City of San Luis Obispo. VALUE DATE/REPORT DATE The effective date of value utilized in this report, April 24, 2023, corresponds to the completion of our field investigation. The report date on the accompanying letter corresponds to the final date of report preparation. DEFINITION OF IMPROVEMENTS PERTAINING TO THE REALTY Article 3 of the California Code of Civil Procedure, §1263.205 reads as follows: (a) As used in this article, “improvements pertaining to the realty” include any machinery or equipment installed for use on property taken by eminent domain, or on the remainder if such property is part of a larger parcel, that cannot be removed without a substantial economic loss or without substantial damage to the property on which it is installed, regardless of the method of installation. (b) In determining whether a particular property can be removed “without a substantial economic loss” within the meaning of this section, the value of the property in place considered as part of the realty should be compared with its value if it were removed and sold. COMPENSATION FOR IMPROVEMENTS PERTAINING TO THE REALTY Article 3 of the California Code of Civil Procedure §1263.210 provides for compensation for improvements pertaining to the realty as follows: Page 182 of 270 2 (a) Except as otherwise provided by statute, all improvements pertaining to the realty shall be taken into account in determining compensation. (b) Subdivision (a) applies notwithstanding the right or obligation of a tenant, as against the owner of any other interest in real property, to remove such improvements at the expiration of his term. COMPENSATION FOR MOVABLE EQUIPMENT Article 3 of the California Code of Regulations, Title 25, Chapter 6, provides for Relocation Payments to Displaced Persons. The following sections are pertinent. §6090(b)(5) Actual Reasonable Moving Expenses – Displaced Business Concerns and Farm Operations: Where an item of personal property which is used in connection with any business or farm operation is not moved but is replaced with a comparable item, reimbursement in an amount not to exceed (1) the replacement cost, minus any net proceeds received from its sale, or (2) the estimated cost of moving, whichever is less. §6092(b) Determining Actual Direct Loss of Property. Actual direct loss of property shall be determined on the basis of the lesser of the following: (1) The fair market value of the property for continued use at its location prior to displacement. (2) The estimated reasonable cost of relocating the property. APPRAISAL DEFINITIONS Replacement Cost New The current cost of a similar new property having the nearest equivalent utility as the property being appraised, as of a specific date. [Source: American Society of Appraisers, Principles of Valuation] Depreciation A loss in value from all causes, including factors of deterioration and functional and/or economic obsolescence, as of a specific date. [Source: American Society of Appraisers, Principles of Valuation] Fair Market Value in Place In estimating the market value of improvements pertaining to the realty and movable equipment, we have relied upon the definition of fair market value found in Article 4, §1263.320 of the California Code of Civil Procedure, which reads as follows: Page 183 of 270 3 (a) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. (b) The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable. In estimating the fair market value in place, additional costs may be incurred to place the asset in service including installation, freight, sales tax, design, and other acquisition costs. Forced Liquidation Value The estimated gross amount, expressed in terms of money, that could typically be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date. [Source: American Society of Appraisers, Valuing Machinery and Equipment] Effective Age The apparent age of an asset in comparison with a new asset of like kind. It is often calculated by deducting the Remaining Useful Life of an asset from the Normal Useful Life. [Source: American Society of Appraisers, Principles of Valuation] Estimated Remaining Life The period over which an item, or groups of items are estimated to remain in use. [Source: American Society of Appraisers, Principles of Valuation] As Is Value As is consideration is given in lieu of Replacement Cost New on those items where a reasonable, accurate or comparable new cost is indeterminate or misleading. DESCRIPTION OF THE BUSINESS Coastriders Powersports is a motorcycle/scooter sales and services business located at 306 Higuera, San Luis Obispo, California. The business moved to the subject location in 2017 and is owned by Gary White. The business leases the real property. DESCRIPTION OF THE ASSETS APPRAISED Major improvements pertaining to the realty consist of signage, surveillance cameras, slatwall, built-in cabinetry, supplemental electrical, LED light fixtures, compressed air piping, installation of an above ground lift and alarm systems. Major items of movable equipment consist of retail displays, office equipment and motorcycle repair equipment. Page 184 of 270 4 Highest and Best Use It is our opinion that the equipment is currently being used in a capacity for which it was designed, and the highest and best use is the continuation of its present use. Industry Most of the equipment is the current state of the art and can usually be acquired in the secondary marketplace through used equipment dealers. APPRAISAL PROCESS Introduction The appraisal process consists of three phases. These are: 1) identification, inspection and recording of data; 2) research; and 3) valuation analysis resulting in a conclusion of replacement cost new, fair market value in place, and forced liquidation value. Identification, Inspection and Recording of Data The assets valued were first identified by Gary White, the business owner, and subsequently inspected and recorded by the appraiser. The recording included a full description of each asset including, when available, the manufacturer, model, serial number, size and condition of the asset, and any other information that would assist us in the subsequent valuation. The level of maintenance was observed as well as the method of installation. A complete listing of the business assets appraised, together with the quantity, replacement cost new, fair market value in place, and forced liquidation value, is included in the Addenda of this report. Dimensions of assets are described in the Addenda in the following manner: • Three-dimensional assets: width (or length) x height x depth • Two-dimensional assets: width (or length) x depth (or height) Research DM&A has relied upon many sources of information, including, but not limited to, the following: • An inspection of the subject site; • A subsequent identification and inventory of the improvements and equipment; • Review of cost and market data on file in the DM&A library; • Supporting documentation retained in DM&A work files; Page 185 of 270 5 • Communications with and information on file from various individuals and/or companies knowledgeable of the type of assets appraised. They include, but are not limited to, the following: - YWD Contracting - ADT Security - McNamara Electric; • Various publications and websites providing replacement cost new, including, but not limited to: - Marshall Valuation Service - walmart.com - target.com - amazon.com - harborfreight.com - homedepot.com - netgear.com - hdsupply.com - webstaurantstore.com - lowes.com - grainger.com - globalindustrial.com - zoro.com - vevor.com - bendpak.com - staples.com - hdsupplysolutions.com - mactools.com - uline.com - handyindustries.com - bestbuy.com - discountramp.com - revzilla.com - thecarlsoncompany.com - eastwood.com - eautotools.com - nationalbusinessfurniture.com - batteriesplus.com - batterymart.com - vpstirerepair.com - derekweaver.com - redlinestands.com - officedepot.com - machinesales.com - shoppok.com - tiresupplynetwork.com - displays2go.com - eventstable.com - costlesswholesale.com - livingspaces.com Page 186 of 270 6 - mottobatt.us.com.com - noco.com - nationwidesecurity.com - deansafe.com - posglobal.com - cctvsecuritypros.com - townsmarttrailers.com and; • Various publications and websites providing secondary market data, including: - ebay.com - machinerytrader.com - usedprice.com. Valuation Analysis Fair Market Value (in Place) Fair market value in place represents the investment that would be required to replace existing assets in their present form and condition using valuation methodology, which considers the manner in which the equipment is acquired and put in use when a total business is being created or relocated. In other words, fair market value in place is the value of an asset, designed to fit the specific requirement of the business owner, in an amount which ownership would be justified, given alternative investment opportunities, by a prudent investor contemplating retention of the asset in its present economic employment. There are three fundamental techniques applied in the valuation of assets. These techniques are based on the cost to acquire (Cost Approach), the cost at which an asset may change hands in the marketplace (Market Data or Direct Sales Comparison Approach) and the present worth of expected future cash flows (Income Approach). The principle of substitution is important to the development and application of the three approaches.1 This principle provides that a prudent investor will pay no more for an asset, property, or business than he would be required to pay for a replacement serving as a reasonable substitute of equal utility. This appraisal has relied upon the Cost Approach and Market Data Approach methodologies. The Cost Approach uses the concept of replacement based on the principle of substitution. Replacement cost new is used as a basis for the valuation of the assets. The Market Data Approach uses the concept of cost at which an asset may change hands between a willing buyer and willing seller. The Income Approach was considered; however, there is insufficient financial data available to determine the income attributable to each of the assets appraised. Fair market value in place is developed in two phases. The first phase is development of the base acquisition value of an asset, and the second phase is estimating the cost/value associated with the assembly, installation, or construction of that asset. The total value developed in the two phases is considered fair market value in place. The acquisition cost of an asset may be represented by the cost of purchasing the item from a used equipment dealer when the Market Data Approach is used, or the cost of purchasing from a vendor of new machinery when the Cost Approach is used. In both cases, additional costs 1 “The Principle of Substitution” Real Estate Appraisal Terminology, Byrl N. Boyce, Ph. D., Page 201 Page 187 of 270 7 incurred to place the asset in service as part of an integrated operation may be given consideration in estimating fair market value in place. In utilizing the Cost Approach, the fair market value in place of the equipment was based on its estimated replacement cost new less depreciation. Depreciation is based on effective age, remaining economic life, observed physical condition and economic and functional obsolescence. Current replacement cost for similar or equivalent units and installations were developed by contacting manufacturers’ representatives and the utilization of the DM&A reference library. When necessary, these costs were adjusted through industry-accepted practices to reflect the costs of these assets as of April 24, 2023. In estimating the fair market value in place, we have not given consideration to the economic viability of the business and our conclusion assumes that the income supports the valuation. Forced Liquidation Value Forced liquidation values are based on market data on file, including conversations with used equipment vendors and dealers, as well as observations of auction results for the same or similar equipment. SUMMARY AND CONCLUSIONS Improvements Pertaining to the Realty - Located in Acquisition Area (Coastriders) The application of the Cost Approach provides an indication of value. Based upon the application of this approach to the various assets, our opinion of the replacement cost new, fair market value in place, and forced liquidation value as of April 24, 2023, is as follows: Replacement Cost New $25,795 Fair Market Value in Place $19,820 Forced Liquidation Value $540 Improvements Pertaining to the Realty - Located in Remainder (Landlord) The application of the Cost Approach provides an indication of value. Based upon the application of this approach to the various assets, our opinion of the replacement cost new, fair market value in place, and forced liquidation value as of April 24, 2023, is as follows: Replacement Cost New $5,450 Fair Market Value in Place $3,720 Forced Liquidation Value $0 Page 188 of 270 8 Improvements Pertaining to the Realty - Located in Remainder (Coastriders) The application of the Cost Approach provides an indication of value. Based upon the application of this approach to the various assets, our opinion of the replacement cost new, fair market value in place, and forced liquidation value as of April 24, 2023, is as follows: Replacement Cost New $28,570 Fair Market Value in Place $22,350 Forced Liquidation Value $1,335 Movable Equipment – Located in Acquisition Area The application of the Cost and Market Data Approaches provides an indication of value. Based upon the application of these approaches to the various assets, our opinion of the replacement cost new, fair market value in place, and forced liquidation value as of April 24, 2023, is as follows: Replacement Cost New $103,040 Fair Market Value in Place $35,855 Forced Liquidation Value $10,285 Movable Equipment – Located in Remainder The application of the Cost and Market Data Approaches provides an indication of value. Based upon the application of these approaches to the various assets, our opinion of the replacement cost new, fair market value in place, and forced liquidation value as of April 24, 2023, is as follows: Replacement Cost New $50,730 Fair Market Value in Place $17,440 Forced Liquidation Value $5,100 Page 189 of 270 A D D E N D A Page 190 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value 1 1 $320 $240 $15 2 3 1,050 790 45 3 1 200 150 10 4 16 1,800 1,250 60 5 1 2,125 1,600 0 1 Control pad 1 Code pad 4 Motion sensors 3 Door contacts 2 Roll-up door contacts 6 1 1,250 950 0 7 13 2,925 2,350 260 11 4' wide, dual 2 8' wide dual 8 1 3,400 2,725 0 9 205 3,050 2,300 150 10 8 5,750 4,315 0 COASTRIDERS POWERSPORTS IMPROVEMENTS PERTAINING TO THE REALTY - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023 Supplemental electrical power outlets, 7- 120V, including conduit runs and 1- 240V outlet, including Linear feet (estimate) of compressed air piping, 3/4" PVC, wall-mounted, including quick connects Lot of installation, setup and electrical connection for 2 post lifts, including pneumatic connection and floor bolting on 2- 3' x 3' x 3' foundations, concrete Surveillance cameras, 1- exterior, 2- interior, including wall mounts and cabling Yard area floodlight, LED, 3-head, motion activated, electrical LED ceiling strip lights, electrical, ceiling suspended, consisting of: Lot of electrical connection for air compressor, including 240V outlet, conduit run and breaker Alarm system, consisting of: Linear feet of ceiling track lighting, with 12 adjustable spotlights WiFi bridge antenna, manufacturer and model no. not available, metal, wall-mounted 1 Page 191 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS IMPROVEMENTS PERTAINING TO THE REALTY - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023 11 655 3,925 3,150 0 $25,795 $19,820 $540TO THE REALTY -ACQUISITION AREA TOTAL IMPROVEMENTS PERTAINING Square feet of floating concrete floor covering, 0" to 3" high 2 Page 192 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value 12 1 $4,500 $3,150 $0 13 1 950 570 0 $5,450 $3,720 $0 TOTAL IMPROVEMENTS PERTAINING TO THE REALTY - REMAINDER - LANDLORD REPORTEDLY OWNED BY THE LANDLORD COASTRIDERS POWERSPORTS IMPROVEMENTS PERTAINING TO THE REALTY - REMAINDER EFFECTIVE DATE OF VALUE - APRIL 24, 2023 Storage deck, 34' long x 5' deep, wood framing, plywood deck, ceiling supports Utility sink, 42" x 24", wood base, metal top, single nozzle, plumbing 3 Page 193 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value 14 1 $5,200 $3,900 $0 15 2 2,600 2,075 200 16 1 4,675 3,975 300 17 11 1,325 1,060 220 18 283 1,700 1,350 150 19 1 2,400 1,925 0 1 Control panel 1 Code pad 5 Motion sensors 2 Door contacts 2 Window contacts 1 Glass break detector 2 Roll-up door contacts 20 4 1,400 1,050 60 21 108 650 520 0 22 3 840 630 0 23 24 3,225 2,425 250 Ceiling lights, 4' x 2', dual fluorescent, plastic facia, electrical COASTRIDERS POWERSPORTS IMPROVEMENTS PERTAINING TO THE REALTY - REMAINDER EFFECTIVE DATE OF VALUE - APRIL 24, 2023 Sign cabinet, 4' x 6', metal cabinet, single-sided metal facia, vinyl letters, "CoastRiders Powersports/ Sales & Service", wall-mounted Signs, 8' x 4', sheet metal, vinyl letters, "CoastRiders Powersports/ Motorcycles/ ATVs/ PWCs/ Sales & Service, etc.", wall-mounted Sliding glass front door, 10' x 8' overall, 2 sliders, 31" wide, with 2 full view windows LED light fixtures, 4' wide, dual, ceiling suspended, electrical Square feet of slat wall, laminate, wall bolted, white melamine finish Alarm system, Gemini, consisting of: Surveillance camera, manufacturer and model no. not available, including wall mounts and cabling Square feet of slat wall, laminate, grey melamine finish, 4' high, wall bolted Linear feet of built-in parts shelving, 7' high x 9" deep, laminate, 5- to 9- adjustable tiers, wall bolted, custom fit 4 Page 194 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS IMPROVEMENTS PERTAINING TO THE REALTY - REMAINDER EFFECTIVE DATE OF VALUE - APRIL 24, 2023 24 20 1,400 1,050 0 25 2 1,000 800 0 26 4 1,000 750 100 27 3 525 390 45 28 1 430 300 0 29 1 200 150 10 $28,570 $22,350 $1,335 Linear feet of storage decking, 6.5' high x 2' deep, wood framing and construction, 3 plywood decks, painted Supplemental electrical outlets, quad, 120V, including conduit Wall cabinets, 23" x 30" x 15", laminate, single door Open wall cabinets, 24" x 24" x 12", laminate, multiple tiers Chain link security window, 76" x 42", wood frame WiFi bridge antenna, manufacturer and model no. not available, including wall mount and cabling TOTAL IMPROVEMENTS PERTAINING TO THE REALTY - REMAINDER 5 Page 195 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value 30 1 $385 $135 $40 31 2 385 135 40 32 2 215 75 20 33 1 130 45 15 34 2 80 30 10 35 1 2,775 970 280 36 1 220 75 20 37 1 400 140 40 38 1 155 55 15 39 1 620 215 60 40 2 1,200 420 120 41 1 65 25 5 42 5 275 95 30 43 12 860 300 85 44 1 50 20 5 45 1 6,400 2,550 640 46 1 145 50 15 47 1 55 20 5 COASTRIDERS POWERSPORTS Folding stepstool, metal, 2 plastic steps Workbenches, 10' x 24", metal, 2 wood plank decks Shelf, 33" x 38" x 13", plastic, 2-tier Small parts/ bins cabinets, sizes vary, 30- to 50-drawer LED strip lights, 4' wide dual MOVABLE EQUIPMENT - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023 Power washer, Greenworks Pro, 3,000 PSI max. Spill pallets, Eagle, 52" x 6" x 27", plastic Equipment cart, 30" x 23", tubular metal Small parts cleaner, Smart Washer, Model no.: 28-1, 48" x 40" x 36", plastic, electric Above-ground lift, Bend Pak, Model no.: XPR-10A-LP, 10,000 lb. capacity, 10' x 12' Auto creeper, Mac, wood, vinyl padded seat Electrical cord wheel, 9" diameter Drum pumps, manual, rotary type Fire extinguisher, Sentry, 10 lb. Parking cones, Bent Manufacturing, 48" high Gas caddy/ walker, 25 gallon, plastic Cart, 24" x 18", plastic, 2-tier Storage cabinet, 3' x 78" x 24", metal, 2-door 6 Page 196 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023 48 2 185 65 20 49 1 240 85 25 50 1 175 60 20 51 1 70 25 5 52 1 130 45 15 53 1 110 40 10 54 1 110 40 10 55 1 255 90 25 56 1 175 60 20 57 1 1,875 660 190 58 2 1,550 545 155 59 1 990 250 100 60 1 40 15 5 61 1 880 310 90 62 1 45 15 5 63 1 120 40 10 64 1 50 20 5Oscillating desk fan, FM, 18" Bench vise, Larin, 5" wide Workbenches, 10' x 24", wood, 1 under tier, galvanized metal top, Mak, 1- with bench grinder, Ryobi, 6" Computer, Del, Model no.: OptiPlex 790, with monitor, 23", keyboard and mouse Stool wood Toolbox, U.S. General, 26" x 40" x 23", metal, 8-drawer, 1 side cabinet, 15", 7-drawer, 1 top cabinet, 26" high, 8-drawer, 1 top door Wall shelf, 3' x 40" x 8", laminate, 2-tier Shelf, 76" x 6' x 18", metal, 3 plywood decks Shelf, 4' x 7' x 24", boltless metal, 4 plywood decks Commercial fan, Central Machinery, 30" diameter Motorcycle lift, Handy, S.A.M., 1,000 air lift, 24" wide, pneumatic Toolboxes, Craftsman, 41" wide x 41" high, metal, 14-drawer, with upper cabinet, 19" high Tool cabinet, Craftsman, 27" x 39" x 18", metal, 9-drawer, with upper cabinet, 18" high Air hose reel, 16" diameter, metal Folding stepstool, Cosco, metal Floor fan, Patton, 18" diameter Car jack, Pittsburgh, 1.5 ton 7 Page 197 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023 65 1 165 60 15 66 1 385 135 40 67 1 315 110 30 68 1 1,275 445 130 69 1 210 75 20 70 2 155 55 15 71 1 275 95 30 72 1 305 105 30 73 2 165 60 15 74 1 590 205 60 75 1 990 250 100 76 1 900 315 90 77 1 60 20 5 78 2 4,400 1,540 440 79 3 80 30 10 80 1 290 100 30 81 1 315 110 30 Mini-refrigerator, Frigidaire, 2 cubic feet Microwave, Insignia Pedestal vise, 5", metal base/ stand Dual grinder, Motion Pro, 6", with stand Wall shelves, 16" x 7' x 9', laminate, 2- to 3-tier Shelf, 77" x 6' x 18", metal, 3 plywood decks Motorcycle lift, PBI Sprockets, model no. not available, 7' x 4', hydraulic Jack, Drag Specialties, 16" x 9", metal Work light heads, 8" x 8" Motorcycle lifts, Handy, Model no.: 2031, 80" x 4', metal Box fan, Lasko, 2' x 2' Workbench, 15.5' x 24", wood base, single under tier, galvanized metal top Computer, Dell, Model no.: OptiPlex 7010, with monitor, keyboard and mouse Workbench, 8' x 26", wood base, 2 under tiers, galvanized metal top, with work vise, 6" Fire extinguishers, 10 lb. Tool cabinet, Craftsman, 27" wide, metal, 5-drawer, 1 top cabinet, 12" high, 2-drawer Pedestal fan, manufacturer not available, Model no.: LF-30PBC, 30" 8 Page 198 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023 82 1 4,100 1,425 410 83 1 1,075 375 110 84 1 400 140 40 85 1 195 70 20 86 1 330 85 35 87 1 70 25 5 88 1 870 305 85 89 1 75 25 10 90 1 100 35 10 91 1 680 240 70 92 1 360 125 35 93 1 210 75 20 94 1 270 95 25 95 2 6,000 2,100 600 1 K&L, Model no.: MC625R 1 Manufacturer and model no. not available, 7' x 2' 96 2 100 35 10 97 2 460 160 45 98 1 165 60 15 Shelf, 19' x 7' x 26", welded metal, 3 plywood decks Work table, 6' x 30", metal Tool cart, 28" x 30" x 14", metal, 2-drawer, 1 lower door Printer, Brother, Model no.: HL-L6200DW Portable charger, Centech, 3-n-1 Electrical reel, Grayco, Model no.: 801 Fire extinguisher, 10 lb. Shelf, 3' x 7" x 8", laminate, 8-tier Sandblaster cabinet, manufacturer and model no. not available, 26" x 30" x 18", metal Workbench, 61" x 28", wood base, 2-drawer, metal top, 1 vise, 6" Shelf, 17" x 7' x 8", laminate, 6-tier Welder, Miller, Model no.: Millermatic 185 Shelf, 4' x 6' x 2', boltless metal, 5-tier Motorcycle lifts, hydraulic, consisting of: Box fans, 24" x 24" Floor jacks, manufacturer and model no. not available, 3-ton (estimate) Hand truck, metal 9 Page 199 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023 99 5 1,100 385 110 100 1 275 95 30 101 1 65 25 5 102 1 6,600 2,300 660 103 1 290 100 30 104 6 385 135 40 105 1 600 210 60 106 1 135 45 15 107 1 55 20 5 108 1 125 45 15 109 1 4,625 1,625 465 110 1 1,875 660 190 111 1 275 95 30 112 1 6,100 2,135 610 113 1 210 75 20 114 1 225 80 25 115 1 255 90 25 116 3 680 240 70 Tire rack, 55" x 24" x 15", tubular metal, single tier Shop vac, 16 gallon, 5.5 HP Shelves, 3' x7' x 12", metal, 5-tier Tire changer, Hofman, Model no.: Monty 1520 Wheel balancer, Weaver, Model no.: W-957-40, 2020, digital display Shop press, Central Hydraulics, 20-ton, Sku no.: 32879 Tire changer, K&L, Model no.: MC900 Shelf, 77" x 79" x 9", laminate, 7-tier Mini battery chargers/ jumpers Battery charger, Die Hard, Model no.: Gold 6V/ 12V Charger/ tester, Motobatt, Part: MBT Wheel balancer/ truing stand, Bike Master Shelves, 4' x 6' x 18", tubular metal, 4 metal wire tiers Yard blower, Echo, Model no.: PB-231LN Battery charger, Battery Tender Plus, 12V Ultrasonic cleaner, Omegasonics, 20" x 16" x 12", stainless steel, with wood stand Microprocessor controlled automatic battery charger, Battery Tender, 4-station Work desk, 69" x 30", laminate, 2 lower doors, 2-drawer, upper hutch, 6" deep 10 Page 200 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023 117 1 365 130 35 118 1 220 75 20 119 1 1,500 220 65 120 1 75 25 10 121 2 690 240 70 122 1 1,000 350 100 123 1 110 40 10 124 4 205 70 20 125 1 6,000 2,100 630 126 1 85 30 10 127 2 330 115 35 128 6 860 300 85 129 2 90 30 10 130 2 40 15 5 131 1 440 155 45 132 1 820 285 80 133 10 1,425 500 145 134 1 255 90 25 135 1 185 65 20 136 1 1,950 680 195 Gas cans, plastic, 5 gallon Motorcycle wheel balancer, Snap-On, Model no.: WBM200 Floor dolly, 4' x 4', metal, star-shaped, casters Hand trucks, metal, heavy duty Motorcycle wheel dollies, Pittsburgh, 1,000 lb. capacity, 16" x 12" Drill press, King, Model no.: KSD-340M, 1985 Fire extinguisher, 10 lb. Extension ladders, 1- 20' high, 1- 24' high, metal Lot of minor miscellaneous items, in storage, not in use Mop bucket, plastic, with mop squeeze Shelf, 7' x 7' x 2', metal, 3 metal wire tiers Motorcycle lift, Central Hydraulics, 4.5" to 16" Motorcycle dollies, sizes vary, tubular metal, manual Shelf, 4' x 6' x 2', boltless metal, 5-tier Stepladder, Werner, 8' high, metal Heavy duty rack, 8.5' x 6.5' x 3', metal, 3-tier Wheel dollies, 24" x 12", wood construction, carpet covering Gas cans, 19-liter, plastic Shelving unit, 7.5' x 6.5' x 26", wood construction, 2 plywood decks Work table, 8' x 2', tubular metal frame, wood top, casters 11 Page 201 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023 137 1 7,480 2,620 750 138 1 115 40 10 139 1 2,275 800 230 140 1 600 210 60 141 1 460 160 45 142 1 155 55 15 143 1 290 100 30 144 1 430 150 45 145 1 600 210 60 146 1 670 235 65 147 1 770 270 75 148 2 610 215 60 149 1 120 40 10 150 1 195 70 20 $103,040 $35,855 $10,285TOTAL MOVABLE EQUIPMENT - ACQUISITION AREA Pallet rack, 10.5' x 9' x 44", metal, 2 plywood decks Belt sander, Craftsman, 2.5", 1 HP Oil funnel drain tank/ cart, Pittsburgh, 20 gallon, metal Oxy-acetylene torch kit, including cart, tanks and gauges Portable cooler, Luma, Model: Comfort, 26" x 41" x 17", plastic Storage cabinet, 36" x 42" x 24", metal, 2-door Workstation, Craftsman, 54" x 33" x 20", metal, 5 lower drawers, 18" wide, 1 lower door Chainsaw, Echo, Model no.: CS-306 Chainsaw, Rancher, 24" blade Portable air compressor tanks, 1- Cheetah, Model no.: CH5, 1- Midwest Products, model no. not available, 5 gallon Pedestal fan, Patton, 18" Grill, Kenmore Elite, 58" wide, stainless steel, 8-burner Air compressor, IR, Model no.: 2340L5X1, vertical, 175 PSI, 60 gallon, 5 HP Table, 5' x 30", metal top and legs 12 Page 202 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value 151 2 $640 $225 $65 152 1 450 160 45 153 8 310 110 30 154 1 70 25 5 155 1 1,650 500 165 156 1 330 115 35 157 1 40 15 5 158 4 230 80 25 2 4' x 12" 1 6' x 20" 1 8' x 16" 159 1 70 25 5 160 1 80 30 10 161 1 660 230 65 162 1 300 105 30 163 1 140 50 15 164 1 95 35 10 165 1 150 55 15 166 2 120 40 10 167 1 650 225 65 Floor heater, Lasko, Ceramic Element COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - REMAINDER EFFECTIVE DATE OF VALUE - APRIL 24, 2023 Banners, 1- 8' x 3', 1- 8' x 4', vinyl printed décor, Vespa/ Sales & Service" Television, LG, 50", with wall mount Resin chairs, plastic Coffee tables, 21" x 21", wood All-in-one machine, Brother, Model no.: MFC-8950DW Printer, Brother, model no. not available Stand, 20" x 22" x 21", metal, wicker top Wall shelves, metal wire, with wall brackets, consisting of: DVD player Phillips, Model no.: DVP5990 Microwave, Sharp, Carousel Over/under refrigerator, Welbilt, 23" x 55" x 22" Stand/ break room counter, 31" x 55" x 17", stainless steel, 2 under tiers, 1 top shelf, 6" deep Garment stand, 4-way. 48" high, tubular chrome Task stool, plastic base, chrome foot ring, fabric seat and back Guest chair, metal sled base, fabric seat and back Sofa, 92" wide, padded fabric upholstery 13 Page 203 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - REMAINDER EFFECTIVE DATE OF VALUE - APRIL 24, 2023 168 1 55 20 5 169 1 160 55 15 170 1 30 10 5 171 1 60 20 5 172 1 105 35 10 173 1 75 25 10 174 8 440 155 45 175 1 250 90 25 176 1 315 110 30 177 5 990 345 100 178 1 185 65 20 179 1 225 80 25 180 3 1,225 430 125 181 1 2,275 800 230 182 1 3,025 1,050 305 183 1 95 35 10 184 1 70 25 5Bicycle tire stand, T.C.D.D., Inc., Model no.: 173012, metal Tire storage rack, 72" x 63" x 17", tubular metal, 2-tier Pedestal oscillating fan, Lasko, 18" diameter Toolbox, 20" x 16", metal, 1 top door, 4-drawer Folding stepstool, metal, 2 plastic steps Load tester, Motobatt, Part: MBT Battery charger, Shorai, Model no.: SHO-BMS01 Charger, Noco, Model no.: Genius 5 Battery tester leads, sizes vary Tire storage rack, 75" x 84" x 20", tubular metal, 3-tier Tire storage rack, 8' x 84" x 21", tubular metal, 3-tier Tire storage racks, 67" x 62" x 17", tubular metal, 2-tier Tire storage rack, 56" x 85" x 15", tubular metal, 3-tier Storage shelves, 3' x 7' x 8', laminate, 7- and 8-tier, 1- with no shelves Safe, Sargent & Greenleaf, Inc., 38" x 69" x 24", steel, dial entry, single door Safe, American Security Products, 30" x 60" x 24", steel, dial entry Portable air compressor, CH, Model no.: FP202801, 1 gallon, 110 PSI 14 Page 204 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - REMAINDER EFFECTIVE DATE OF VALUE - APRIL 24, 2023 185 2 530 185 55 186 3 890 310 90 187 1 400 140 40 188 1 130 45 15 189 9 1,525 535 155 190 2 70 25 5 191 1 115 40 10 192 1 220 75 20 193 1 475 165 50 194 2 100 35 10 195 2 150 55 15 196 1 195 70 20 197 1 4,625 1,625 465 198 3 4,700 1,400 470 199 2 120 40 10 Stools, wood, 1- swivel top Motorcycle/ scooter ramps, 7" to 12" wide, metal, 4' to 12' long, 6- folding type Storage racks, 4' x 6' x19", boltless metal, 5 laminate tiers Battery display rack, 17" x 63" x 9", tubular metal, 6-tier Display shelf, 25" x 66" x 19", plastic, 5-tier Assorted banners, 4' x 18" to 8' x 4', vinyl, printed graphic décor, vendors vary Fire extinguisher, 10 lb. Sidewalk sign, 31" x 36", plastic base, interchangeable letter sign face Computers, 1- Dell, Model no.: Precision 3431, 1- Gateway, model no. not available, 1- HP, model no. not available, with keyboard, mouse, and monitor, LG, 32", speakers Key lock boxes, 10" x 12", metal and plastic Display case, 2' x 6' x 2', laminate base, clear plastic facias, 4-tier, illuminated Stools, wood Stools, Workpro, tubular metal, vinyl top Yard blower, Milwaukee, Model no.: M18 Reception counter, 20' x 42" x 32", laminate, decorative décor, 4-door, 19-drawer, open under storage 15 Page 205 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - REMAINDER EFFECTIVE DATE OF VALUE - APRIL 24, 2023 200 1 40 15 5 201 1 60 20 5 202 1 155 55 15 203 3 415 145 40 204 1 160 55 15 205 1 430 150 45 206 1 750 265 75 207 1 330 115 35 208 1 255 90 25 209 1 220 75 20 210 1 380 135 40 211 1 590 205 60 212 3 1,825 640 185 213 2 240 85 25 214 1 275 95 30 215 1 360 125 35 216 1 115 40 10 217 1 10,000 3,500 1,000 Fire extinguisher, 10 lb. Forklift, Daewoo, Model no.: GC2SE-3, cushion tires, propane Router, Asus, model no. not available Switch, Linksys, Model no.: SE3005 External hard drive, Rocket Fish, model no. not available Credit card terminals, Ingenico, Model no.: iPP320 Portable telephone, Grandstream Receipt printer, Star, Model no.: TSP700II DVR recorder, Lorex, Model no.: 4K Ultra HP Printer, Brother, Model no.: HL-L6200DW All-in-one machine, Brother, Model no.: MFC-7840W Bill counter, manufacturer and model no. not available File cabinet, Hon, metal, 4-drawer Storage cabinet, 30" x 64" x 12", laminate Back counters, 74" x 36" x 18", laminate, 8" high backsplash Wall shelves, 6' x 12", metal wire Key rack/ board, 30" x 30", wood, 100-hook File cabinet, letter size, metal, 3-drawer 16 Page 206 of 270 Item No.Qty.Description Replacement Cost New Fair Market Value in Place Forced Liquidation Value COASTRIDERS POWERSPORTS MOVABLE EQUIPMENT - REMAINDER EFFECTIVE DATE OF VALUE - APRIL 24, 2023 218 1 2,750 960 275 219 1 1,075 375 110 220 1 495 175 50 $50,730 $17,440 $5,100 Shelf, 99" x 8' x 24", wood, 3 plywood decks Bicycle trailer, Rampless, Model: Basic Black Single, 8' x 50", with winch Tool storage box, Knaack, 4' x 36" x 30", metal, casters TOTAL MOVABLE EQUIPMENT - REMAINDER 17 Page 207 of 270 COASTRIDERS POWERSPORTS SUBJECT PROPERTY SIGNAGE Page 208 of 270 COASTRIDERS POWERSPORTS RETAIL AREA - REMAINDER SLATWALL & UPPER STORAGE DECK Page 209 of 270 COASTRIDERS POWERSPORTS SERVICE COUNTER BUILT-IN SHELVING Page 210 of 270 COASTRIDERS POWERSPORTS TIRE STORAGE ROOM REAR SERVICE REPAIR BUILDING – ACQUISITION AREA Page 211 of 270 COASTRIDERS POWERSPORTS SERVICE AREA MOTORCYLCE LIFTS Page 212 of 270 COASTRIDERS POWERSPORTS ABOVE GROUND LIFT & LED LIGHTS REPAIR WORKBENCHES Page 213 of 270 COASTRIDERS POWERSPORTS TIRE REPAIR EQUIPMENT BATTERY ROOM Page 214 of 270 COASTRIDERS POWERSPORTS STORAGE AREA AIR COMPRESSOR Page 215 of 270 CONTINGENT AND LIMITING CONDITIONS (1) No responsibility can be taken by the appraiser for the inability of the owner(s) of this business to sell the subject assets at the appraised value. (2) No responsibility can be taken for the accuracy of informat ion on the ownership of the assets appraised. All information was provided by the business owner(s) or their representative and is assumed to be correct. No warranty is given as to the accuracy of such information. (3) Disclosure of the contents of this appraisal report is governed by the bylaws and regulations of the American Society of Appraisers and the Uniform Standards of Professional Appraisal Practice (USPAP). (4) No responsibility is assumed for matters legal in nature. (5) No liabilities were considered. Value conclusions are free and clear of liens, easements and encumbrances. (6) The fee for this appraisal report does not contemplate appearance in court or before other governmental agencies as an expert witness. However, Desmond, Marcello & Amster will appear if prior arrangements are made. Expert witness testimony will be compensated for at the appraisers’ professional fee rates. (7) This appraisal and its conclusion are subject to review upon presentation of data which is undisclosed or not available at this writing. (8) Neither all nor any part of the contents of this report, particularly as to the conclusion, the identity of the appraiser, or reference to the American Society of Appraisers, shall be conveyed to the public through advertising, public relations, news or other media without the prior written consent and approval of the appraiser. (9) No responsibility is taken for changes in market conditions and no obligation is assumed to revise the final report to reflect events or conditions which occur subsequent to the date hereof. (10) Full compliance with all applicable federal, state, and local environmental, zoning and similar laws and regulations is assumed, unless otherwise stated. (11) The results of this appraisal including the opinion of value are made only for the stated effective date of value and the purpose stated, and shall not be used for any other purpose. Page 216 of 270 (12) It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any federal, state or local government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. (13) 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 our attention nor were we aware of such during our inspection. We have no knowledge of the existence of such materials on or in the property unless otherwise stated. We are not qualified to test for such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions may 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, nor for any expertise or engineering knowledge required to discover them. (14) You agree to indemnify and hold harmless Desmond, Marcello & Amster from and against any and all liabilities, damages, costs and expenses (including attorneys’ fees) which may be incurred by Desmond, Marcello & Amster as a result of any action(s) brought against us in connection with our report. (15) Acceptance of and/or use of this appraisal report constitutes acceptance of the foregoing general assumptions and limiting conditions. Page 217 of 270 DESMOND, MARCELLO & AMSTER TANGIBLE ASSET VALUATION SPECIALISTS THE FIRM: GENERAL DESCRIPTION Since 1968, Desmond, Marcello & Amster has provided clients in both the public and private sectors with expertise in the valuation of closely-held businesses, professional practices, and specific tangible and intangible assets, such as furniture, fixtures and equipment and goodwill. Since the enact ment of the California Eminent Domain Law of 1976, DM&A has specialized in providing valuation services for eminent domain proceedings. Desmond, Marcello & Amster has completed over one thousand appraisals under the California Eminent Domain Law, for both government agencies and private parties. The valuation analysts at DM&A work in conjunction with condemning agencies, business owners, attorneys, relocation agents, acquisition agents, developers, and real property appraisers to provide defensible value opinions. DM&A is staffed to provide its eminent domain clients a full breadth of valuation services. This multi - disciplinary capability enables DM&A to address complex valuation issues involving furniture, fixtures and equipment. Desmond, Marcello & Amster offers the following eminent domain valuation services:  Exposure estimates of goodwill loss and fixtures and equipment value for budgeting purposes;  Preliminary fixture and equipment and goodwill loss studies;  Comprehensive appraisal reports of goodwill loss, and fixtures and equipment;  Analysis of precondemnation damages and inverse condemnation claims;  Assistance in negotiating settlements;  Expert witness testimony; and  Educational seminars on goodwill loss valuation issues. Litigation support services include:  Assistance in developing questions for depositions and interrogatories;  Review of opposing appraisals;  Assistance in coordinating other key witnesses; Page 218 of 270  Outlining examination for direct testimony and cross examination; and  Development of rebuttal testimony. PROFESSIONAL AFFILIATIONS AND DESIGNATIONS Individual staff members of Desmond, Marcello & Amster are associated with the following: American Society of Appraisers (Members and Candidates) CFA Institute (Member) International Right of Way Association (Member) American Institute of Certified Public Accountants (Member) California Society of Certified Public Accountants (Member) Institute of Management Accountants (Member) PUBLICATIONS DM&A publishes the Compensable Business Loss Review, a technical newsletter first released in 1988. The Review covers a wide array of eminent domain topics including valuation, acquisition, relocation and legal issues. LECTURES AND SEMINARS Firm members regularly conduct seminars for public agencies, professional appraisal organizations and law firms on how to appraise goodwill loss under §1263.510 of the California Eminent Domain Statute. EDUCATION Members of the firm hold graduate and undergraduate degrees from the academic institutions of Harvard, Wharton (University of Pennsylvania), University of Michigan, Claremont McKenna College, Loyola Marymount University, University of Southern California, and California State University, Long Beach. All firm members are regularly involved in continuing education courses in finance, accounting and valuation. 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