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HomeMy WebLinkAboutItem 7a - Recommend Adoption of Resolution of Necessity for Acquisition by Eminent Domain for Public Purposes in Connection with California and Taft Roundabout Item 7a Department: Public Works Cost Center: 9501 For Agenda of: 9/16/2025 Placement: Public Hearing Estimated Time: 60 Minutes FROM: Aaron Floyd, Interim Public Works Director Prepared By: Luke Schwartz, Transportation Manager SUBJECT: RECOMMEND ADOPTION OF RESOLUTION OF NECESSITY FOR THE ACQUISITION BY EMINENT DOMAIN OF CERTAIN REAL PROPERTY INTERESTS (ASSESSOR’S PARCEL NUMBER 001 -043-027) FOR PUBLIC PURPOSES IN CONNECTION WITH THE CALIFORNIA & TAFT ROUNDABOUT PROJECT RECOMMENDATION 1. Adopt a Draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, Declaring Certain Real Property Interests Necessary for Public Purposes and Authorizing the Acquisition Thereof in Connection with the California & Taft Roundabout Project (Certain Real Property Interests on APN 001- 043-027)”, included as Attachment A (“Resolution of Necessity”); and 2. Open and conduct a hearing on the adoption of the proposed Resolution of Necessity, receive the evidence referenced in this Agenda Report (“Report”), take testimony from anyone wishing to address issues A, B, C, and D as outlined in the Report, and consider all evidence presented to determine whether to adopt the proposed Resolution of Necessity; and 3. If the City Council finds, based on the evidence contained and referred to in this Report, the testimony and comments submitted to the City Council, that the evidence warrants the necessary findings with respect to the proposed Resolution of Necessity, then City Staff recommends that the City Council, in the exercise of its discretion, adopt proposed Draft Resolution which requires a 4/5ths vote of the entire City Council, authorizing the acquisition by eminent domain of the real property interests summarized below, described more particularly in the Exhibits to the Resolution of Necessity and referred to collectively as the "subject Property Interests”: 578 California Boulevard, San Luis Obispo, CA (APN 001-043-027) (“Property”) Owned by Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Girit Patel 1992 Revocable Trust o An approximate 2,182 square foot fee portion of the Property for public street and right-of-way purposes, public utilities, drainage, and all uses necessary or convenient thereto in connection with the California & Taft Roundabout Project Page 365 of 615 Item 7a (Project) described more particularly on EXHIBIT “A” and depicted on EXHIBIT “B” to the Resolution of Necessity; and o An approximate 763 square foot temporary construction easement with a term of 18 months on the Property to facilitate the construction of the California & T aft Roundabout Project described more particularly on EXHIBIT “C” and depicted on EXHIBIT “D” to the Resolution of Necessity; and o An approximate 1,614 square foot temporary non -exclusive access easement for a term of 18 months on the Property for ingress and egress and to complete driveway tie-in work and conform driveway to adjacent public street improvements in connection with the construction of the California & Taft Roundabout Project described more particularly on EXHIBIT “E” and depicted on EXHIBIT “F ” to the Resolution of Necessity; and 4. If the City Council adopts the proposed Resolution of Necessity, authorize the City’s legal counsel to file and prosecute eminent domain proceedings for the acquisition of the Subject Property Interests by eminent domain; and 5. Authorize the City Manager to execute all necessary documents; and 6. Authorize the City Clerk to certify the adoption of the Resolution of Necessity; and 7. Authorize the Finance Director or their designee to approve purchases relat ed to legal costs to support eminent domain proceedings up to $400,000; and 8. Authorize the Finance Director or their designee to approve other purchases related to property acquisition efforts for the California & Taft Roundabout Project (Account #2091503), including property purchases within the authorization previously provided by Council in closed session, up to the currently available project budget , and any subsequently amended budget approved by the City Manager . REPORT-IN-BRIEF City Public Works staff have been progressing with plans to construct a roundabout at the intersection of California Boulevard and Taft Street (“Project”) since 2017. The existing unsignalized intersection operates deficiently per the City’s adopted performance thresholds and experiences a high rate of collisions. Installation of a roundabout has been identified as the preferred mitigation strategy to improve operations and safety at this intersection and is consistent with the recommendations of the City’s General Plan Circulation Element, Active Transportation Plan, previous Traffic Safety Reports, and Draft Vision Zero Action Plan. The City cannot construct the Project without the acquisition of the Subject Property Interests from the property at 578 California Boulevard (“Property”). Staff has attempted to negotiate in good faith with the record owners, Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Girit Patel 1992 Revocable Trust (“Record Owners”) since 2017. Specifically, the City obtained a fair market value estimate of the just compensation for the Subject Property Interests and several updates to the fair market value estimate and presented written offers many times since 2017 in accordance with the requirements of Government Code 7627.2. The most recent offer was dated May 28, 2025. Page 366 of 615 Item 7a Despite significant efforts by the City to attempt to reach a negotiated agreement with the Record Owners for the Subject Property Interests, negotiations have been unsuccessful. The Record Owners have not been responsive to the City’s efforts for several years. Based on the timing of the Project, it is necessary that the City consider the adoption of the Resolution of Necessity (Attachment A) at this time. The adoption of a Resolution would authorize initiation of the eminent domain process, but does not preclude the City from continuing to attempt to reach an agreement with the Record Owners for the acquisition of the Subject Property Interests. POLICY CONTEXT The City’s Financial Management Manual establishes policies and procedures governing the acquisition of real property, rights-of-way, and easements. Section 475-B provides that the City Council must authorize all such acquisitions, whether in fee title or by easement, and that these actions are typically programmed through the Financial Plan or Capital Improvement Program (CIP). The Manual further requires that all acquisitions be consistent with adopted City plans and policies and that the Planning Commission review proposed acquisitions for General Plan consistency in accordance with Government Code Section 65402. For the acquisition of right-of-way, the City’s Financial Management Manual specifies that the City follows the State of California Streets and Highways Code for acquisition, vacation, and abandonment procedures, while reserving utility easements as necessary to protect public infrastructure. The City’s Purchasing Policy, Section 200, sets forth requirements for procuring professional services necessary to support real property acquisition, including appraisal, review appraisal, title services, relocation assistance, and right -of-way engineering or negotiation. All such services must be procured in accordance with established thresholds and competitive selection procedures, with City Council approval required for contracts of $200,000 or more. The primary statutes governing the eminent domain process in California are found in the California Code of Civil Procedure (CCP) Sections 1230.010 through 1247.380, which detail the procedures for such actions, including property valuation methods, negotiation requirements, and court proceedings. Additionally, the California Government Code (CGC) Section 7267.2 outlines mandatory steps a public entity must take before acquiring property, such as making a compensation offer and providing an informational pamphlet to the property owner. These policies collectively provide the framework under which the City may proceed with the adoption of a Resolution of Necessity to acquire property interests by eminent domain for public purposes. The California and Taft Roundabout Pro ject is included in the City’s adopted CIP (see pg. 382), and was determined by the Planning Commission to be consistent with the City’s General Plan (see Agenda Item 3b), and requires the acquisition of specific right-of-way and easement interests to proceed. Page 367 of 615 Item 7a INTRODUCTION The City Council has before it a proposed Resolution of Necessity for the acquisition by eminent domain of the Subject Property Interests described above and in the attached Resolution of Necessity in connection with the proposed California & Taft Roundabout Project. The City seeks to acquire the Subject Property Interests described above for public use, namely for public street, roadway, utilities, drainage and all uses necessary or convenient thereto in connection with the Project. The City seeks to construct the Project to alleviate congestion, improve safety for vehicles, bicyclists and pedestrians, increase capacity and improve traffic flow at the intersection of California Boulevard and Taft Street. The intersection of California Boulevard and Taft Street is identified in the City’s General Plan Circulation Element (pg. 2-35) and in the California Polytechnic University (Cal Poly) Housing South Environmental Impact Report (EIR) (pg. 12-14) as operating with levels of traffic congestion and vehicle delay that exceed the City’s adopted performance thresholds. In addition, this intersection has been identified as a high colli sion-rate intersection in the City’s previous Traffic Safety Reports and recent 2025 Draft Vision Zero Action Plan1. The City’s 2021 Active Transportation Plan (ATP) (see pg. 4 of the ATP Project List) also recommends modifications to this intersection to improve bicycle and pedestrian crossings—the need for which has increased with the recent extension of the Railroad Safety Trail along California Boulevard between Taft and Pepper Streets. Reconstruction of this intersection as a single-lane urban roundabout is recommended in each of the planning documents referenced above as the appropriate mitigation measure to improve both traffic operations, pedestrian/bicycle crossings, and safety for all road users. The City’s General Plan Circulation Element and City Engineering Standards also include policies that prioritize roundabouts as the preferred form of intersection control for intersections that may otherwise be considered for signalization or all-way stop control. Despite several years of good faith negotiations, City Public Works staff has been unsuccessful with acquiring the necessary right-of-way needed to support construction of a proposed roundabout at the intersection of California Boulevard and Taft Street. The purpose of this agenda item and public hearing is to request that the City Council consider the adoption of the attached Resolution of Necessity to authorize the acquisition of the Subject Property Interests necessary for the Project by eminent domain. As discussed below, the City has provided to the record owners of the Property the required notice pursuant to Code of Civil Procedure section 1245.235 of their right to appear and be heard regarding the proposed adoption of the Resolution of Necessity. DISCUSSION Background 1 More information on the City’s archived Traffic Safety Reports and Draft Vision Zero Action Plan are available on the City’s Traffic Safety webpage. See pg. 18, A-7, A-10, A-11, A-15 of Vision Zero Action Plan. Page 368 of 615 Item 7a The intersection of California Boulevard & Taft Street is currently unsignalized, with stop control on the side street approach (Taft Street). The intersection serves a high level of vehicle, pedestrian, and bicycle activity due to its proximity to the Cal Poly campus, nearby retail businesses, transit stops, and the Railroad Safety Trail pedestrian and bicycle path, which runs along the west side of California Boulevard. The intersection currently operates deficiently per the City’s adopted level of service (LOS) performance thresholds, and experiences significant congestion and delays during peak traffic periods. The intersection also experiences a high rate of collisions, as reported in previous publications of the City’s Traffic Safety Report and in the City’s recently published Draft Vision Zero Action Plan. In the past 10 years of available collision data (2019 -2023), there have been 34 reported collisions at this intersection, including 18 injury collisions and two (2) collisions resulting in severe injuries. Roughly half (44%) of these incide nts involved head-on or broadside collision types, which are typically reduced with addition of a roundabout, which has been proposed as the preferred mitigation strategy for this intersection. The City Public Works Department has been working on preparat ion of construction plans for a new roundabout at the California Boulevard & Taft Street intersection since 2017, and construction documents are now substantially complete. Figure 1 below illustrates the proposed roundabout design concept, while Attachment B to this report provides a larger size exhibit. Figure 1: California Blvd./Taft St. Roundabout Design Concept Page 369 of 615 Item 7a Due to the footprint of the roundabout, rights -of-way and temporary construction easements are necessary on both the northeast (552 Californ ia Boulevard) and southeast (578 California Boulevard) properties adjacent to the intersection. The City has successfully negotiated the purchase of the necessary real property interests from the real property located at 552 California Boulevard on the northeast corner. As of the date of this Report, however, the City has not reached mutual agreement for the purchase of the Subject Property Interests from the Property located at the southeast corner commonly known as 578 California Boulevard, despite ongoin g negotiations. Based on the need to proceed with the much-needed public street improvements in connection with the Project and the City staff’s attempt to negotiate in good faith with the Record Owners of the Property since 2017, staff recommend that the City Council consider the adoption of the attached Resolution of Necessity to authorize the acquisition of the Subject Property Interests by eminent domain. Further details on the Subject Property and negotiations to date are provided later in this report. Project Benefits and Design Alternatives Considered A roundabout has been proposed as the preferred intersection design for the Project not only because this is consistent with the City’s adopted plans and policies, but because a roundabout is expected to provide superior benefit to the traveling public in terms of traffic operations, lower greenhouse gas emissions, and improved safety compared to other potential intersection-control alternatives. The Federal Highway Administration (FHWA) identifies roundabouts as a Proven Safety Countermeasure because they have been proven to:  Promote lower traffic speeds  Reduce intersection conflict points  Improve traffic operations, reducing congestion, delays and vehicle emissions  Reduce severity of collisions and improve safety According to FHWA, converting a side-street stop-controlled intersection to a roundabout can reduce potential for fatal and severe injury collisions by 82% on average. Other potential intersection-design alternatives, such as installation of a traffic signal or all-way stop control are not recommended for the intersection because these alternatives would not provide the same level of circulation and safety benefits to the public. Based on analysis of these alternatives, an all-way stop configuration would result in deficient traffic operations and a traffic signal would operate less efficiently than a roundabout and provide less safety benefit. For example, FHWA reports that replacing a traffic signal with a roundabout reduces potential for fatal and severe injury collisions by 78%, on average. For the above reasons and for consistency with the City’s adopted circulation and safety plans, City staff recommend that the City Council continue to prioritize construction of a roundabout as the preferred design for the Project. Page 370 of 615 Item 7a Description of the Property and the Subject Property Interests The Property is located at 578 California Boulevard, San Luis Obispo, California, and is identified as County of San Luis Obispo Tax Assessor’s Parcel Number 001-043-027. The Property is 22,216 square feet (0.51 -acre) in size. It is located on the southeast corner of the California Boulevard and Taft Street intersection and is improved with a small multi-tenant retail building. The location of the Property is shown in Figure 2 below. Figure 2: Subject Property Location The Subject Property Interests that are needed from the Property to construct the Project are described below and shown at a larger scale in Attachment C attached hereto and incorporated herein by this reference: 1. An approximate 2,182 square foot portion of the Property in fee for public street/right-of-way purposes. 2. An approximate 763 square foot temporary construction easement (TCE) on the Property for a term of 18 months to facilitate the construction of the Project. 3. An approximate 1,614 square foot temporary non -exclusive access easement on the Property for a term of 18 months for ingress and egress and to complete driveway tie-in work and conform the driveway to adjacent public street improvements. Taft St 578 California Blvd. APN 001-043-027 Page 371 of 615 Item 7a Figure 3: 578 California Blvd. Right-of-Way Needs The approximate 2,182 square foot portion of the Property that the City seeks to acquire in fee from the Property for public street/right-of-way purposes for the roundabout is not anticipated to result in any permanent impacts to the use or function of the retail businesses located on the Property. Access to the retail center will remain available from one driveway on Taft Street and a second driveway on California Boulevard, as exists currently, with no reduction in the number of parking spaces located on the Property. The roundabout construction will require the relocation of an existing monument sign, removal of a portion of the landscaping that currently exists along the property frontage, and removal of at least five (5) on-street public parking spaces located in the City’s public right of way on Taft Street. City’s Actions Pursuant to Government Code Section 7267.2 & Summary of Good Faith Negotiations The City retained Hamner Jewell and Associates as its professional right-of- way/acquisition consultant to assist the City with the City’s good faith negotiations for the acquisition of the Subject Property Interests. The City has been attempting to negotiate with the Record Owners of the Property since 2017. After obtaining independent appraisals of fair market value of the Subject Property Interests, formal written offers were extended consistent with Government Code section 7260, et seq. to the Record Owners of the Property − Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust. Updated appraisals and written offers were extended in 2018, 2019, 2023, 2024, and most recently in May of 2025. The most recent offer dated May 28, 2025, was based on an April 17, 2025, date of value. The May 28, 2025 offer letter (Attachment D) contained an appraisal summary statement that described the zoning, highest and best use of the Property, explained the appraiser’s Page 372 of 615 Item 7a valuation methodology, and included the comparable sales d ata relied on by the appraiser. The offer letter offered to pay the reasonable costs, up to $5,000, of an independent appraisal pursuant to Code of Civil Procedure section 1263.025. Further, the offer letter included an eminent domain pamphlet explaining the eminent domain process and the rights of the Record Owners. The City’s most recent offer letter dated May 28, 2025, is incorporated herein by this reference. In 2017 and 2018, there were productive communications with the Record Owners regarding the Project and the City’s proposed acquisition of the Subject Property Interests, including an on-site meeting and several responses to questions posed by the Record Owners regarding the Project; however, communications ultimately broke down in 2019. The Record Owners have generally not been responsive to the City’s attempts to discuss the Project, the City’s offers to purchase the Subject Property Interests, or the City’s attempts to negotiate in good faith for the acquisition of the Subject Property Interests despite numerous attempts to contact them via phone, email, and by mail. Early in negotiations in 2018, the Record Owners verbally suggested a fair compensation value at an amount more than double the appraised value; however, the City has not yet received from the Record Owners a formal independent appraisal, valuation information to support their verbal counteroffer, or a written counteroffer explaining their justification to support the amount of the verbal counteroffer. Based on initial discussions, the Record Owners were generally opposed to the construction of the roundabout improvements, with specific concerns regarding loss of public street parking located in the City’s existing right of way on Taft Street. Currently, there are eight (8) parking spaces in the public right of way on Taft Street, and the roundabout construction would require elimination of at least five (5) of these public street parking spaces. The Project will not impact any private off-street parking spaces located on the Property itself. The City has not received any response from the Record Owners following subsequent offers or attempts to contact them from 2023 to date, including attempts by staff to reach them via phone and email in 2025 ahead of this hearing. Based on the timing of the Project and because good faith efforts to negotiate on this matter have been unsuccessful and the Record Owners have been non -responsive for multiple years, it is necessary that the City Council consider of the Resolution of Necessity at this time. City’s Actions Pursuant to Code of Civil Procedure Section 1245.235 Pursuant to Code of Civil Procedure section 1245.235, the City sent a letter and a notice by first-class mail dated August 27, 2025, to the Record Owners of the Property − Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust − informing them of the City’s intent to consider at its September 16, 2025, meeting, the adoption of a Resolution of Necessity for the acquisition by eminent domain of the Subject Property Interests in connection with the Project. The notice advised the Record Owners of their right to appear and be heard regarding the City’s proposed adoption of the Resolution of Necessity by filing, within fifteen (15) days of the date the notice was mailed, a written request with the City to appear at the hearing. The notice specifically informed the Record Owners of Property that they have an opportunity to appear before the City Council and raise questions about Page 373 of 615 Item 7a whether the public interest and necessity require the Project; whether the Project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury; and whether the Subject Property Interests the City seeks to acquire from the Record Owners are necessary for the Project. Per CCP Section 1245.235, the City is not obligated to provide the Record Owners an opportunity to appear and be heard if they fail to file a written request to do so within fifteen (15) days of the date the legal notice was mailed. As of September 5th, 2025, City staff has not received any response from the Record Owners. AUTHORIZATION FOR ACQUISITION BY EMINENT DOMAIN OF THE SUBJECT PROPERTY INTERESTS AND FINDINGS REQUIRED FOR ADOPTION OF RESOLUTIONS OF NECESSITY The City seeks to acquire the Subject Property Interests described above for public use, namely for the construction of public street, sidewalk, public utilities, drainage, related improvements, and all uses necessary or convenient thereto in connection with the Project pursuant to the authority conferred upon the City to acquire property by eminent domain by California Constitution, Article 1, section 19, California Government Code sections 37350, 37350.5, 37351, and 40404 , and California Code of Civil Procedure section 1230.010 et seq. (Eminent Domain Law), including but not limited to sections 1240.010 through 1240.050, 1240.110, 1240.120, 1240.510, 1240.610, 1240.650, and by other provisions of law. Pursuant to Code of Civil Procedure section 1245.235 a public entity may not commence an eminent domain proceeding until its governing body has adopted a Resolution of Necessity, which resolution may only be adopted after the governing body has given each party with an interest in the affected property or their representatives reasonable opportunity to appear and be heard on the matters referred to in Code of Civil Procedure section 1240.030. To adopt the proposed Resolution of Necessity for the acquisition by eminent domain of the Subject Property Interests, the City Council must find and determine that: A. The public interest and necessity require the Project; and B. The Project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury; and C. The Subject Property Interests described in the Resolution of Necessity are necessary for the Project; and D. The City has made the offer required by Government Code section 7267.2 to the owner or owners of record of the Subject Property Interests the City seeks to acquire. The amount of just compensation is not an issue before the City Council at this hearing. The hearing relates to issues A, B, C, and D above. The amount of just compens ation Page 374 of 615 Item 7a would be determined in the eminent domain proceeding that the City will file if the City Council, in its sole discretion, adopts the proposed Resolution of Necessity. The above four required findings are discussed below. A. The Public Interest and Necessity Requiring the Project The Project, as planned and designed, is in the public interest and necessity. The Project is consistent with the Circulation Element of the General Plan. It is intended to alleviate congestion, improve safety for vehicles, bicyclists and pedestrians, increase capacity and improve traffic flow operation at the intersection of California Boulevard and Taft Street. As described above, the intersection of California Boulevard and Taft Street currently operates deficiently per the City’s adopted performance thresholds and has a documented history of collisions and traffic safety concerns. Installation of a roundabout at this intersection is recommended in the City’s adopted General Plan Circulation Element, Active Transportation Plan, and multiple safety plans. The Project, which will improve traffic operations, pedestrian and bicycle access, and improve safety for all road users, is in the public interest and necessity. The intersection of California Boulevard and Taft Street is identified in the City’s General Plan Circulation Element and the California Polytechnic University (Cal Poly) Housing South Environmental Impact Report (EIR) as operating with levels of traffic congestion and vehicle delay that exceed the City’s adopted performance thresholds. In addition, this intersection has been identified as a high collision -rate intersection in the City’s previous Traffic Safety Reports and recent 2025 Draft Vision Zero Action Plan. The City’s 2021 Active Transportation Plan (ATP) also recommends modifications to this intersection to improve bicycle and pedestrian crossings—the need for which has increased with the recent extension of the Railroad Safety Trail along California Boulevard between Taft and Pepper Street. The roundabout has been proposed as the preferred intersection design for the Project not only because this is consistent with the City’s adopted plans and policies, but because a roundabout is expected to provide superior benefit to the traveling public in terms of traffic operations, lower greenhouse gas emissions, and improved safety compared to other potential intersection-control alternatives. The Project is in the public interest and necessity because it seeks to improve safety and traffic circulation at the intersection of California Boulevard and Taft Street by constructing a roundabout and related improvements consistent FHWA’s recommendations for such intersections. As noted above, roundabouts are shown to promote lower traffic speeds, reduce intersection conflict points, improve traffic operations, reducing congestion, delays and vehicle emissions, and reduce severity of collisions and improve safety. Base d on analysis of alternative intersection improvements, an all-way stop configuration would result in deficient traffic operations and a traffic signal would operate less efficiently than a roundabout and provide less safety benefit. Reconstruction of this intersection as a single lane urban roundabout, as planned and designed, will help improve both traffic operations, pedestrian/bicycle crossings, and safety for all road users. The City’s General Plan Circulation Element and City Page 375 of 615 Item 7a Engineering Standards also include policies that prioritize roundabouts as the preferred form of intersection control for intersections that may otherwise be considered for signalization or all-way stop control. B. The Project is Planned and Located in the Manner that Will be Most Compatible with the Greatest Public Good and the Least Private Injury The Project is planned and located in the manner that is most compatible with the greatest public good and the least private injury. The Project is planned and designed to construct necessary public street, sidewalk, public utility, drainage, and related improvements to alleviate congestion, improve safety and traffic circulation at the consistent with the Circulation Element of the General Plan. The Project is intended to alleviate congestion, improve safety for vehicles, bicyclists and pedestrians, increase capacity and improve traffic flow operation at the intersection of California Boulevard and Taft Street. The intersection of California Boulevard and Taft Street is identified in the City’s General Plan Circulation Element and California Polytechnic University (Cal Poly) Housing South Environmental Impact Report (EIR) as operating with levels of traffic congestion and vehicle delay that exceed the City’s adopted performance thresholds. In addition, this intersection has been identified as a high collision -rate intersection in the City’s previous Traffic Safety Reports and recent 2025 Draft Vision Zero Action Plan. The City’s 2021 Active Transportation Plan (ATP) also recommends modifications to this intersection to improve bicycle and pedestrian crossings—the need for which has increased with the recent extension of the Railroad Safety Trail along California Boulevard between Taft and Pepper Streets. Reconstruction of this intersection as a single lane urban roundabout, as planned and designed, will help improve both traffic operations, pedestrian/bicycle crossings, and safety for all road users. The City’s General Plan Circulation Element and City Engineering Standards also include policies that prioritize roundabouts as the preferred form of intersection control for intersections that may otherwise be considered for signalization or all-way stop control. In guiding the Project’s design, City staff and engineering design consultants evaluated a variety of design alternatives. For example, the City considered shifting the alignment of the proposed roundabout to the west to avoid impacts to private properties on the east side of the California and Taft intersection; however, this would encroach into the existing Railroad Safety Trail pedestrian/bicycle path and private property owned by Union Pacific Railroad (UPRR). UPRR is not supportive of permanent encroachment into this right-of- way due to proximity to the adjacent active rail corridor and safety concerns. Further, the City evaluated the potential to reduce the size of the proposed roundabout to minimize property impacts; however, the roundabout footprint could not be reduced further while still complying with applicable engineering design standards for safety and functionality. The City also evaluated alternative intersection design strategies other than a roundabout, including all-way stop control and installation of a traffic signal. However, these alternatives would not provide acceptable traffic operations and/or safety benefits to the public commensurate with the proposed Project, nor would these alternatives Page 376 of 615 Item 7a provide consistency with the City’s adopted circulation and safety plans and policies. The Project, as currently proposed, offers the greatest public benefit with the least private detriment. The Project, as planned and located, is also planned and designed to minimize the impact on private parcels. The Subject Property Interests consist of (i) an approximate 2,182 square foot portion of the Property in fee for public street/right -of-way purposes; (ii) an approximate 763 square foot TCE on the Property for a term of 18 months to facilitate the construction of the Project; and (iii) an approximate 1,614 square foot temporary non - exclusive access easement on the Property for a term of 18 months for ingress and egress and to complete driveway tie-in work and conform driveway to adjacent public street improvements. The construction of the Project and acquisition of the Subject Property Interests will not impact the structures or parking on the Property. Further, the construction of the Project and the acquisition of the Subject Property Interests do not require the relocation of any person or business from the Property. Sprint Communications Company retains a telecommunications easement across the Subject Property. However, staff has confirmed with Sprint representatives that no actual facilities are installed on the Subject Property and the roundabout project and proposed easement acquisitions do not conflict with any current or planned Sprint facilities. With this said, the public use for which the City seeks to acquire the Subject Property Interests, namely for public street, public utilities, drainage improvements, and all uses necessary or convenient thereto in connection with the Project is a joint and compatible use and will not unreasonably interfere with or impair the continuance of the public u se to which any easement holders may have appropriated the Subject Property Inte rests (Code of Civil Procedure section 1240.510). The Project will not require the relocation of the interests/facilities of easement holders located in the area of the Subject Property Interests, and the City’s use of the Subject Property Interests for the Project is for a more necessary public use within the meaning of Code of Civil Procedure section 1240.650 than the uses to which said public utility easement holders have app ropriated any easements located in the area of the Subject Property Interests. Accordingly, the City is authorized to acquire the Subject Property Interests pursu ant to Code of Civil Procedure sections 1240.510, 1240.610, and 1240.650. C. The Subject Property Interests are Necessary for the Project The City cannot construct the Project, as planned and designed, without the Subject Property Interests. As described above, the Subject Property Interests consist of (i) an approximate 2,182 square foot portion of the Property in fee for public street/right-of-way purposes; (ii) an approximate 763 square foot TCE on the Property for a term of 18 months to facilitate the construction of the Project; and (iii) an approximate 1,614 square foot temporary non-exclusive access easement on the Property for a term of 18 months for ingress and egress and to complete driveway tie -in work and conform driveway to adjacent public street improvements. The City cannot construct the necessary public street, sidewalk, public utility, drainage and related improvements in connection with the Project without the acquisition of the Subject Property Interests. Page 377 of 615 Item 7a D. The City has Made the Offer Required by Government Code Section 7267.2 to the Record Owner of the Subject Property Interests As previously described, the City has made several formal offers to acquire the Subject Property Interests in accordance with Government Code 7267.2. The City’s most recent offer dated May 28, 2025, was based on an April 17, 2025 date of value. The May 28, 2025 offer letter contained an appraisal summary statement that described the zoning, highest and best use of the Property, explained the appraiser’s valuation methodology, and included the comparable sales data relied on by the appraiser. The offer letter offered to pay the reasonable costs, up to $5,000, of an independent appraisal pursuant to Code of Civil Procedure section 1263.025. Further, the offer letter included an eminent domain pamphlet explaining the eminent domain process and the rights of the Record Owners. Incorporation of Documents The above-referenced documents, including the City’s General Plan, Circulation Element, Project-related documents, including traffic studies and analyses in connection with the Project, Environmental Documents discussed below, the May 28, 2025 offer letter, and the notice sent to the Record Owners pursuant to Code of Civil Procedure section 1245.235 are in the Council Reading File, and are incorporated herein by this reference. Eminent Domain Process and Next Steps If the City Council, in its discretion, adopts the Resolution of Necessity, it authorizes the City’s counsel to initiate an eminent domain proceeding to condemn the Subject Property Interests. The eminent domain process may take more than a year from initiation of proceedings to conclusion of proceedings. In an effort to expedite this process and reduce potential for further delays and escalation of Project costs, staff is proposing that counsel for the City file a motion for an order for prejudgment posses sion to allow the City to take possession and control of the property when the City is ready to commence construction. As part of that process, the City will deposit the probable compensation for the Subject Property Interests set forth in the City’s offer of May 28, 2025. Construction documents for the roundabout are substantially complete and could be ready to bid in 2025; however, considering additional utility coordination required and the likely duration of the eminent domain process, the most realistic date that the Project could be expected to start construction is summer of 2026. Previous Council or Advisory Body Action The City Council met in Closed Session regarding the real property negotiations on the following dates, with no reportable actions taken:  July 9, 2018  January 17, 2023  July 11, 2023  June 18, 2024 Page 378 of 615 Item 7a The Planning Commission reviewed the City’s 2025-27 CIP on May 28, 2025, including the California & Taft Roundabout Project, and determined the project to be consistent with the General Plan. The Active Transportation Committee has discussed the California & Taft Roundabout Project several times over the years, and most recently identified this project as a high-priority budget goal during their November 21, 2024, meeting on budget goals for the 2025-27 Financial Plan. Public Engagement This item is on the Council Agenda for the September 16, 2025 meeting and will follow all required notifications to the Record Owners. The public may have an opportunity to comment on this item at or before the meeting. CONCURRENCE The City Public Works Department, City Attorney’s Office, Finance Department and City Administration have reviewed this staff report and concur with its recommendations. ENVIRONMENTAL REVIEW The Project has been evaluated pursuant to requirements of the California Environmental Quality Act (CEQA) and was found to be Categorica lly Exempt per CEQA Guidelines section 15301 (Class 1 Exemption – Existing Facilities). A Notice of Exemption (NOE) was filed for the Project with the San Luis Obispo County Clerk’s Office on June 2, 2019 , in accordance with Public Resources Code section 21152. No substantial changes to the Project designs have been made since 2019 such that revisions to the pre viously approved NOE would be required. The categorical exemption and NOE are referred to below collectively as the “Environmental Documents”. The environmental effects of the acquisition of the real property interests needed for the Project were studied and analyzed as an integral part of the Environmental Documents for the Project. On July 28, 2025, City staff reviewed the Environmental Documents in connection with the City’s review of the proposed acquisition of the Subject Property Interests and determined that the Project and acquisition of the Subject Property Interest are consistent with the findings in the Environmental Documents. Pursuant to the criteria of section 15162 of the CEQA Guidelines and section 21166 of the Public Resources Code, City staff concluded that no substantial changes have occurred in the Project, no substantial changes have occurred in the circumstances under with the Project is undertaken and the City has not obtained any new information of substantial importance that would require further environmental analysis. These environmental findings are the appropriate findings with respect to the proposed acquisition of the Subject Property Interests for the Project. FISCAL IMPACT Budgeted: Yes Budget Year: 2025-27 Funding Identified: Yes Page 379 of 615 Item 7a Fiscal Analysis: If the Council chooses to adopt the Resolution of Necessity and authorize the acquisition of the Subject Property Interests by eminent domain, actual costs of the legal proceedings are anticipated to range as high as $200,000 or more depending on the ultimate scope and duration of the proceedings. While staff anticipates that a budget of $200,000 is reasonable for legal costs related to eminent domain proceedings, if the Council supports initiating the eminent domain process, staff is recommending that the Council provide authorization at this time for expenditures up to $400,000 to avoid delays if actual costs exceed preliminary estimates. The current available balance in the Project account (Specification No. 20915 03) is $859,124. Staff believes this is sufficient funding to initiate the eminent domain process with an estimated budget of $200,000 for legal support and court fees, while retaining sufficient funds to purchase the Subject Property Interests at the appraised fair market value of $313,000, resulting in a total anticipated expenditure of $513,000 for property acquisition and legal costs. This would leave approximately $346,124 in remaining project contingency funds. Currently, the total estimated cost for Project construction is $3.98 million, which includes direct construction costs, contingencies, construction engineering and contract inspection support, and public communications. In addition to the $346,124 in current funding that is anticipated to remain following property acquisition and legal expenditures, a n additional $3.65 million in new funding is programmed for the project in the 2025-27 Financial Plan for FY2026-27. In total, this will provide $3.99 million in Project funding, which is expected to be sufficient to fund construction. While not currently programmed, it should also be noted that Cal Poly is required to contribute an additional $78,037 in mitigation fees towards construction of the roundabout as a mitigation requirement per the Cal Poly Housing South Project EIR, with payment to be provided when construction begins, which will provide additional funding to support the Project. Cal Poly’s total fair share financial obligation to this project is $97,547, with 20% of this fee already paid towards project pre-construction activities, and the remaining 80% due upon construction initiation. If successful with right-of-way acquisition, staff will return to Council in 2026 to approve final plans and specifications and request authorization to advertise for construction bids. Funding Sources Total Budget Available in Project Account 2091503 Funding Requested for Property Acquisition within Project Account 2091503 Remaining Balance in Project Account 2091503 Capital Outlay (LRM) $359,124 $359,124 $0 Fees: TIF $500,000 $153,876 $346,124 Other: Total $859,124 $513,000 $346,124 Page 380 of 615 Item 7a The table above summarizes existing project funding and anticipated project costs to be incurred for eminent domain legal costs, as well as the ultimate purchase of the required right-of-way and easements. Construction funding is not requested with this action and is thus, not shown in the above table. ALTERNATIVES 1. Council could decide not to adopt a Resolution of Necessity at this time, directing staff to continue negotiations with the 578 California Boulevard property owners. The Record Owners have not been responsive to the City’s attempts to meet with them and engage in good faith negotiations for multiple years, and it is unlikely that a mutual agreement can be reached at this point. This alternative could delay the Project for several more years, while construction co sts continue to escalate. 2. Council could decide not to adopt a Resolution of Necessity at this time, directing staff to pursue alternative intersection designs that may avoid the need for off-site right-of-way acquisition, such as a traffic signal. Staff have evaluated a number of alternative designs as described in this report and have concluded that those alternatives would not provide the same level of circulation and safety benefits to the public as the currently proposed roundabout. Additionally, the current proposed design is consistent with the City’s adopted plans and policies. ATTACHMENTS A - Draft Resolution of Necessity B - Roundabout Design Exhibit C - 578 California Boulevard Right-of-Way Needs Exhibit D - Government Code Offer Letter Page 381 of 615 Page 382 of 615 R ______ RESOLUTION NO. _____ (2025 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY INTERESTS NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF IN CONNECTION WITH THE CALIFORNIA & TAFT ROUNDABOUT PROJECT (CERTAIN REAL PROPERTY INTERESTS ON APN 001-043-027) WHEREAS, the City of San Luis Obispo, California (“City”) seeks to construct the California & Taft Roundabout Project (“Project”) to alleviate congestion, improve safety for vehicles, bicyclists and pedestrians, increase capacity and improve traffic flow operation at the intersection of Calif ornia Boulevard and Taft Street; and WHEREAS, the City seeks to construct public street improvements consisting of a roundabout and related street improvements to improve traffic operations and safety for all road users of the California Boulevard and Taft Street intersection, consistent with the City’s adopted plans and policies; and WHEREAS, the intersection of California Boulevard and Taft Street currently operates deficiently per the City’s adopted performance thresholds and has a documented history of collisions and traffic safety concerns. Installation of a rounda bout at this intersection is recommended in the City’s adopted General Plan Circulation Element, Active Transportation Plan, and multiple safety plans. The construction of the Project will benefit the City and the public because the intersection of Califor nia Boulevard and Taft Street is identified in the City’s General Plan Circulation Element and California Polytechnic University (Cal Poly) Housing South Environmental Impact Report (EIR) as operating with levels of traffic congestion and vehicle delay that exceed the City’s adopted performance thresholds. In addition, this intersection has been identified as a high collision-rate intersection in the City’s previous Traffic Safety Reports and recent 2025 Draft Vision Zero Action Plan. The City’s 2021 Active Transportation Plan (ATP) also recommends modifications to this intersection to improve bicycle and pedestrian crossings—the need for which has increased with the recent extension of the Railroad Safety Trail along California Boulevard between Taft and Pepper Streets; and WHEREAS, the City seeks to construct the Project to improve safety and traffic circulation at the intersection of California Boulevard and Taft Street by constructing a roundabout and related improvements consistent with the Federal Highway Administration’s (FHWA) recommendations for such intersections. Roundabouts are shown to promote lower traffic speeds, reduce intersection conflict points, improve traffic operations, reduce congestion, delays and vehicle emissions, and reduce severity of collisions and improve safety. Based on an analysis of these alternatives, an all-way stop configuration would result in deficient traffic operations and a traffic signal would operate less efficiently than a roundabout and provide less safety benefit . The reconstruction of this intersection as a single-lane urban roundabout is recommended in each of these planning documents as the appropriate mitigation measure to improve both traffic operations, pedestrian/bicycle crossings, and safety for all road users. The City’s General Page 383 of 615 Resolution No. _____ (2025 Series) Page 2 R ______ Plan Circulation Element and City Engineering Standards also include policies that prioritize roundabouts as the preferred form of intersection control for intersections that may otherwise be considered for signalization or all-way stop control; and WHEREAS, the Project requires the acquisition of certain real property interests, consisting of (collectively “Subject Property Interests”) on the real property located at 578 California Boulevard, San Luis Obispo, California, and is identified as County of San Luis Obispo Tax Assessor’s Parcel Number 001-043-027 (“Property”): (a) an approximate 2,182 square foot portion of the Property in fee for public street/right-of-way purposes, public utilities, drainage, and all uses necessary or convenient in connection with the Project described more particularly on EXHIBIT “A” and depicted on EXHIBIT “B” attached hereto and incorporated herein by this reference; (b) an approximate 763 square foot temporary construction easement (TCE) on the Property for a term of 18 months from date of possession of the Property to facilitate the construction of the Project described more particularly on EXHIBIT “C” and depicted on EXHIBIT “D” attached hereto and incorporated herein by this reference; and (c) an approximate 1,614 square foot temporary non-exclusive access easement on the Property for a term of 18 months from date of possession of the Property for ingress and egress and to complete driveway tie- in work and conform driveway to adjacent public street improvements described more particularly on EXHIBIT “E” and depicted on EXHIBIT “F” attached hereto and incorporated herein by this reference; and WHEREAS, the City is authorized to acquire the Subject Property Interests described above and in Section 3 below for the construction of public street, roadway, sidewalk, public utilities, drainage and all uses necessary or convenient thereto in connection with the Project pursuant to the authority conferred upon the City to acquire property by eminent domain by California Constitution, Article 1, Section 19, California Government Code sections 37350, 37350.5, 37351, and 40404, and California Code of Civil Procedure Section 1230.010 et seq. (Eminent Domain Law), including but not limited to Sections 1240.010 through 1240.050, 1240.110, 1240.120, 1240.510, 1240.610, 1240.650, and by other provisions of law; and WHEREAS, the Subject Property Interests were appraised by an independent real estate appraiser and the amount City Council set is just compensation for the Subject Property Interests at the fair market value set forth in the Appraisal . The most recent written offer for the fair market value of the Subject Property Interests was mailed to the owners of record of the Property on May 28, 2025, pursuant to Government Code 7267.2; and WHEREAS, pursuant to Code of Civil Procedure section 1245.235, the City sent a letter and notice by first-class mail dated August 27, 2025, to the record owners of the Subject Property Interests advising the Record Owners, Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Trust (“Record Owners”), regarding the City’s intent to consider at its September 16, 2025, meeting, the adoption of a Resolution of Necessity for the acquisition by eminent domain of the Subject Property Interests in connection with the Project. Page 384 of 615 Resolution No. _____ (2025 Series) Page 3 R ______ NOW, THEREFORE, BE IT RESOLVED, by at least a two-thirds vote of the City Council of the City of San Luis Obispo under Code of Civil Procedure sections 1240.030, 1240.040, 1245.220, 1245.230, and 1245.240, that the City does hereby find and determine as follows: SECTION 1. Incorporation of Findings and Recitals. The City Council hereby specifically finds that all of the facts set forth in the above recitals of this Resolution are true and correct, are incorporated into this Resolution by this reference and constitute a material part of this Resolution. SECTION 2. Compliance with California Code of Civil Procedure. The City has complied with the notice requirements of Code of Civil Procedure section 1245.235. SECTION 3. Compliance with the California Environmental Quality Act. The environmental effects of the Project and the acquisition of the Subject Property Interests needed for the Project were studied and analyzed as an integr al part of the City’s analysis under the California Environmental Quality Act (Public Resources Code sections 21000 et seq.) (CEQA). Specifically, the City determined that the Project was Categorically Exempt pursuant to CEQA Guidelines Section 15301 (Class 1 Exemption – Existing Facilities). A Notice of Exemption (NOE) was duly filed for the Project with the San Luis Obispo County Clerk’s Office on June 2, 2019, in accordance with Public Resources Code section 21152. No substantial changes to the Project designs have been made since 2019 such that revisions to the previously approved NOE would be required. The categorical exemption and NOE are referred to below collectively as the “Environmental Documents”. The environmental effects of the acquisition of the real property interests needed for the Project were studied and analyzed as an integral part of the Environmental Documents for the Project. On July 28, 2025, City Staff reviewed the Environmental Documents in connection with the City’s review of the proposed acquisition of the Subject Property Interests and determined that the Project and acquisition of the Subject Property Interest are consistent with the findings in the Environmental Documents. Pursuant to the criteria of section 15162 of the CEQA Guidelines and section 21166 of the Public Resources Code, City Staff concluded that no substantial changes have occurred in the Project, no substantial changes have occurred in the circumstances under with the Project is undertaken and the City has not obtained any new information of substantial importance that would require further environmental analysis. These environmental findings are the appropriate findings with respect to the proposed acquisition of the Subject Property Interests for the Project. SECTION 4. Adoption of Resolution of Necessity. The City Council hereby adopts Resolution No. ______________, A Resolution of the City Council of the City of San Luis Obispo, California, Declaring Certain Real Property Interests Necessary for Public Purposes and Authorizing the Acquisition Thereof in Connection with the California & Taft Roundabout Project (Certain Real Property Interests on APN 001-043-027) (“Resolution of Necessity”). The City hereby adopts the Resolution of Necessity authorizing the acquisition by eminent domain of the Subject Property Interests described Page 385 of 615 Resolution No. _____ (2025 Series) Page 4 R ______ more particularly in Section 5 below for public use, namely for the construction of public street, sidewalk, public utilities, drainage, related improvements, and all uses necessary or convenient thereto in connection with the Project pursuant to the authority conferred upon the City to acquire property by eminent domain by California Constitution, Article 1, section 19, California Government Code sections 37350, 37350.5, 37351, and 40404, and California Code of Civil Procedure section 1230.010 et seq. (Eminent Domain Law), including but not limited to sections 1240.010 through 1240.050, 1240.110, 1240.120, 1240.510, 1240.610, 1240.650, and by other provisions of law. SECTION 5. Description of Subject Property Interests. The City Council hereby authorizes the acquisition by eminent domain of the following Subject Property Interest on the Property, which is located at 578 California Boulevard, San Luis Obispo, California, and is identified as County of San Luis Obispo Tax Assessor’s Parcel Number 001-043-027: (a) An approximate 2,182 square foot portion of the Property in fee for public street/right-of-way purposes, public utilities, drainage, and all uses necessary or convenient in connection with the Project described more particularly on EXHIBIT “A” and depicted on EXHIBIT “B” attached hereto and incorporated herein by this reference; (b) An approximate 763 square foot temporary construction easement (TCE) on the Property for a term of 18 months to facilitate the construction of the Project described more particularly on EXHIBIT “C” and depicted on EXHIBIT “D” attached hereto and incorporated herein by this reference; and (c) An approximate 1,614 square foot temporary non -exclusive access easement on the Property for a term of 18 months for ingress and egress and to complete driveway tie-in work and conform driveway to adjacent public street improvements described more particularly on EXHIBIT “E” and depicted on EXHIBIT “F” attached hereto and incorporated herein by this reference. SECTION 6. The Public Interest and Necessity Require the Project. The Project, as planned and designed, is in the public interest and necessity. The Project is consistent with the Circulation Element of the General Plan. It is intended to alleviate congestion, improve safety for vehicles, bicyclists and pedestrians, increase capacity and improve traffic flow operation at the intersection of California Boulevard and Taft Street. As described above, the intersection of California Boulevard and Taft Street currently operates deficiently per the City’s adopted performance thresholds and has a documented history of collisions and traffic safety concerns. Installation of a roundabout at this intersection is recommended in the City’s adopted General Plan Circulation Element, Active Transportation Plan, and multiple safety plans. The Project, which will improve traffic operations, pedestrian and bicycle access, and improve safety for all road users, is in the public interest and necessity. Page 386 of 615 Resolution No. _____ (2025 Series) Page 5 R ______ The intersection of California Boulevard and Taft Street is identified in the City’s General Plan Circulation Element and California Polytechnic University (Cal Poly) Housing South Environmental Impact Report (EIR) as operating with levels of traffic congestion and vehicle delay that exceed the City’s adopted performance thresholds. In addition, this intersection has been identified as a high collision -rate intersection in the City’s previous Traffic Safety Reports and recent 2025 Draft Vision Zero Action Plan. The City’s 2021 Active Transportation Plan (ATP) also recommends modifications to this intersection to improve bicycle and pedestrian crossings—the need for which has increased with the recent extension of the Railroad Safety Trail along California Boulevard between Taft and Pepper Streets roundabout has been proposed as the preferred intersection design for the Project not only because this is consistent with the City’s adopted plans and policies, but because a roundabout is expected to provide su perior benefit to the traveling public in terms of traffic operations, lower greenhouse gas emissions, and improved safety compared to other potential intersection -control alternatives. The Project is in the public interest and necessity because it seeks to improve safety and traffic circulation at the intersection of California Boulevard and Taft Street by constructing a roundabout and related improvements consistent FHWA’s recommendations for such intersections. As noted above, roundabouts are shown to promote lower traffic speeds, reduce intersection conflict points, improve traffic operations, reducing congestion, delays and vehicle emissions, and reduce severity of collisions and improve safety. Based on analysis of these alternatives, an all -way stop configuration would result in deficient traffic operations and a traffic signal would operate less efficiently than a roundabout and provide less safety benefit. Reconstruction of this intersection as a single lane urban roundabout, as planned and designed, will help improve both traffic operations, pedestrian/bicycle crossings, and safety for all road users. The City’s General Plan Circulation Element and City Engineering Standards also include policies that prioritize roundabouts as the preferred form of intersection control for intersections that may otherwise be considered for signalization or all-way stop control. SECTION 7. The Project is Planned and Located in the Manner that is Most Compatible with the Greatest Good and the Least Private Injury. The Project is planned and located in the manner that is most compatible with the greatest public good and the least private injury. The Project is planned and designed to construct necessary public street, sidewalk, public utility, drainage, and related improvements to alleviate congestion, improve safety and traffic circulation at the consistent with the Circulation Element of the General Plan. The Project is intended to alleviate congestion, improve safety for vehicles, bicyclists and pedestrians, increase capacity and improve traffic flow operation at the intersection of California Boulevard and Taft Street. The intersection of California Boulevard and Taft Street is identified in the City’s General Plan Circulation Element and California Polytechnic University (Cal Poly) Housing South Environmental Impact Report (EIR) as operating with levels of traffic congestion and vehicle delay that exceed the City’s adopted performance thresholds. In Page 387 of 615 Resolution No. _____ (2025 Series) Page 6 R ______ addition, this intersection has been identified as a high collision -rate intersection in the City’s previous Traffic Safety Reports and recent 2025 Draft Vision Zero Action Plan. The City’s 2021 Active Transportation Plan (ATP) also recommends modifications to this intersection to improve bicycle and pedestrian crossings—the need for which has increased with the recent extension of the Railroad Safety Trail along California Boulevard between Taft and Pepper Streets. Reconstruction of this intersection as a single lane urban roundabout, as planned and designed, will help improve both traffic operations, pedestrian/bicycle crossings, and safety for all road users. The City’s General Plan Circulation Element and City Engineering Standards also include policies that prioritize roundabouts as the preferred form of intersection control for intersections that may otherwise be considered for signalization or all-way stop control. In guiding the Project’s design, City staff and engineering design consultants evaluated a variety of design alternatives. For example, the City considered shifting the alignment of the proposed roundabout to the west to avoid impacts to private properties on the east side of the California and Taft intersection; however, this would encroach into the existing Railroad Safety Trail pedestrian/bicycle path and private property owned by Union Pacific Railroad (UPRR). UPRR is not supportive of permanent encroachment into this right-of-way due to proximity to the adjacent active rail corridor and safety concerns. Further, the City evaluated the potential to reduce the size of the proposed roundabout to minimize property impacts; however, the roundabout footprint could not be reduced further while still complying with applicable engineering design standards for safety and functionality. The City also evaluated alternative intersection design strategies other than a roundabout, including all-way stop control and installation of a traffic signal. However, these alternatives would not provide acceptable traffic operations and/or safety benefits to the public commensurate with the proposed Project, nor would these alternatives provide consistency with the City’s adopted circulation and safety plans and policies. The Project, as currently proposed, offers the greatest public benefit with the least private detriment. The Project, as planned and located, is also planned and designed to minimize the impact on private parcels. The Subject Property Interests consist of (i) an approximate 2,182 square foot portion of the Property in fee for public street/right-of-way purposes; (ii) an approximate 763 square foot TCE on the Property for a term of 18 months to facilitate the construction of the Project; and (iii) an approximate 1,614 square foot temporary non - exclusive access easement on the Property for a term of 18 months for ingress and egress and to complete driveway tie-in work and conform driveway to adjacent public street improvements. The construction of the Project and acquisition of the Subject Property Interests do not require the relocation of any person or business from the Property. Page 388 of 615 Resolution No. _____ (2025 Series) Page 7 R ______ SECTION 8. The Subject Property Interests Described in the Resolution of Necessity are Necessary for the Project. The City cannot construct the Project, as planned and designed, without the acquisition of the Subject Property Interests. SECTION 9. Offer Pursuant to Government Code Section 7627.2. Pursuant to Government Code section 7260, et seq., the City obtained fair market value appraisals of the Subject Property Interests and the Property of which they are a part. The City set just compensation for the Subject Property Interests in accordance with the fair market values. The City extended written offers pursuant to Government Code section 7267.2. The City retained Hamner Jewell and Associate as its professional right -of- way/acquisition consultant to assist the City with the City’s good faith negotiations for the acquisition of the Subject Property Interests. The City has been attempting to negotiate with the Record Owners of the Property since 2017. After obtaining independent appraisals of fair market value of the Subject Property Interests, formal written offers were extended consistent with Government Code section 7267.2 to the Record Owners. Updated appraisals and written offers were extended in 2018, 2019, 2023, 2024 and May 28, 2025. The most recent offer dated May 28, 2025, was based on an April 17, 2025, date of value. The May 28, 2025, offer letter contained an appraisal summary statement that described the zoning, highest and best use of the Property, explained the appraiser’s valuation methodology, and included the comparable sales data relied on by the appraiser. The offer letter offered to pay the reasonable costs, up to $5,000, of an independent appraisal pursuant to Code of Civil Procedure section 1263.025. Further, the offer letter included an eminent domain pamphlet explaining the eminent domain process and the rights of the Record Owners. SECTION 10. Compliance with Notice Requirements Under California Code of Civil Procedure. The City has complied with the notice requirements of Code of Civil Procedure section 1245.235. Pursuant to Code of Civil Procedure section 1245.235, the City sent a letter and notice by first-class mail dated August 27, 2025 to the record owners of the Subject Property Interests advising the Record Owners, Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Trust (“Record Owners”), regarding the City’s intent to consider at its September 16, 2025, meeting, the adoption of a Resolution of Necessity f or the acquisition by eminent domain of the Subject Property Interests in connection with the Project. The notice advised the Record Owners, as shown on the last San Luis Obispo County Assessment Roll, of their right to appear and be heard regarding the City’s proposed adoption of the Resolution of Necessity by filing, within fifteen (15) days of the date the notice was mailed, a written request with the City to appear at the hearing. The notice specifically informed the Record Owners of the Subject Property Interests that the Record Owners have an opportunity to appear before the City Council and raise questions about whether the public interest and necessity require the Project; whether the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; and whether the Subject Property Interests the City seeks to acquire from the owner of record are necessary for the Project. Page 389 of 615 Resolution No. _____ (2025 Series) Page 8 R ______ SECTION 11. Findings. Based on the evidence presented at the hearing on September 16, 2025, regarding the acquisition of the Subject Property Interests for the Project, including the Agenda Report, the documents referenced therein, and any oral or written testimony at the hearing, the City Council hereby finds and determines that: (a) The public interest and necessity require the Project; (b) The Project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury; (c) The Subject Property Interests described more particularly in Section 5 above and in EXHIBIT “A”, EXHIBIT “B”, EXHIBIT “C”, EXHIBIT “D”, EXHIBIT “E” and EXHIBIT “F” attached hereto, are necessary for the Project; and (d) The offer of just compensation required by Section 7267.2 of the Government Code has been made to the property owner(s) of record. SECTION 12. Existing Public Uses. To the extent that the Project will impact interests of easement holders in the area of the Subject Property Interests, the public use for which the City seeks to acquire the Subject Property Interests, namely for public street, public utilities, drainage improvements, and all uses necessary or convenient thereto in connection with the Project is a joint and compatible use and will not unreasonabl y interfere with or impair the continuance of the public use to which any easement holders may have appropriated the Subject Property Interests (Code of Civil Procedure section 1240.510). To the extent that the Project will require the relocation of the interests/facilities of easement holders located in the area of the Subject Property Interests and impacted by the Project, the City’s use of the Subject Property Interests for the Project is for a more necessary public use within the mean ing of Code of Civil Procedure section 1240.650 than the uses to which said public utility easement holders have appropriated any easements located in the area of the Subject Property Interests. Accordingly, the City is authorized to acquire the Subject Property Interests pu rsuant to Code of Civil Procedure sections 1240.510, 1240.610, and 1240.650. SECTION 13. Incorporation of Agenda Report and Documents Referenced Therein. The findings and declarations contained in this Resolution are based upon the record before the City Council, including the Agenda Report, and all documents referenced therein, all of which are incorporated herein by this reference and testimony and/or comments submitted to the City by the Record Owners or their representative(s). These documents include but are not limited to the City of San Luis Obispo’s General Plan, Circulation Element, the Environmental Documents in connection with the Project, most recent offer letter sent to the Record Owners pursuant to Government Code section 7267.2, and notice pursuant to Code of Civil Procedure section 1245.235. SECTION 14. Authorization to File Eminent Domain Proceeding. The City Attorney’s Office and the City’s acquisition counsel are authorized to take all steps necessary to commence and prosecute legal proceedings in a court of com petent Page 390 of 615 Resolution No. _____ (2025 Series) Page 9 R ______ jurisdiction to acquire the Subject Property Interests described more particularly in Section 5 above and in EXHIBIT “A”, EXHIBIT “B”, EXHIBIT “C”, EXHIBIT “D”, EXHIBIT “E” and EXHIBIT “F” attached hereto. SECTION 15. City Manager Authority. The City Manager is authorized to execute all necessary documents in connection with the eminent domain proceeding. SECTION 16. Certification. The City Clerk shall certify the adoption of this Resolution. SECTION 17. Effective Date. This Resolution shall take effect upon adoption. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 20 25. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 391 of 615 Resolution No. _____ (2025 Series) Page 10 R ______ Attachment A1 to the Council Agenda Report (If approved INSERT EXHIBIT “A” - EXHIBIT “F” IN PDF FORM) Page 392 of 615 EXHIBIT “A” LEGAL DESCRIPTION OF FEE RIGHT-OF-WAY AREA Page 393 of 615 Page 394 of 615 Page 395 of 615 EXHIBIT “B” DEPICTION OF FEE RIGHT-OF-WAY AREA Page 396 of 615 Page 397 of 615 EXHIBIT “C” LEGAL DESCRIPTION OF TEMPORARY CONSTRUCTION EASEMENT Page 398 of 615 Page 399 of 615 Page 400 of 615 Page 401 of 615 EXHIBIT “D” DEPICTION OF TEMPORARY CONSTRUCTION EASEMENT Page 402 of 615 Page 403 of 615 EXHIBIT “E” LEGAL DESCRIPTION OF TEMPORARY NON-EXCLUSIVE ACCESS EASEMENT Page 404 of 615 Page 405 of 615 Page 406 of 615 Page 407 of 615 EXHIBIT “F” DEPICTION OF TEMPORARY NON-EXCLUSIVE ACCESS EASEMENT Page 408 of 615 Page 409 of 615 Page 410 of 615 Page 411 of 615 Page 412 of 615 Page 413 of 615 Page 414 of 615 Page 415 of 615 Page 416 of 615 YIELD YIELDYIELD YIELDYIELD YIELDYIELDYIELD YIELDYIELDCALIFORNIA BOULEVARD & TAFT STREETROUNDABOUTCITY SPECIFICATION NO. 11/17/17 DATE:PROJECT TITLE:SHEET TITLE:of SHEET NO. 50 DESIGNED BY: DRAWN BY: CHECKED BY: JWW APPROVED BY: JWW SCALE: PLAN FILE NO. / LOCATION O:\PRJ\2251\2251EX004.dwg 10/27/2017 3:59:13 PM91503 2251EX004.dwg 1 1"=10'RIGHT OF WAY IMPACTS APN 001-043-0272251EX004.DWG SMH SMH 1Page 417 of 615 Page 1 of 5 AP # 001-043-027 APPRAISAL SUMMARY STATEMENT BASIC DATA PROJECT: City of San Luis Obispo – California & Taft Roundabout Project PARCEL NO.: 001-043-027 OWNER: The Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust PROPERTY LOCATION: 578 California Boulevard, San Luis Obispo, CA APPLICABLE ZONING: Neighborhood Commercial (C-N) CURRENT USE OF SUBJECT PROPERTY: Shopping Center HIGHEST AND BEST USE OF SUBJECT PROPERTY: Continued Use as a Retail Center DATE OF VALUATION: April 17, 2025 TOTAL PROPERTY AREA: 22,216 square feet (0.51 acres) PROPERTY TO BE ACQUIRED: ALL [ ] PART [ X ] Fee Simple: Temporary Construction Easement: Temporary Non-Exclusive Access Easement: 2,182 sq. ft. 763 sq. ft. 1,614 sq. ft. IMPROVEMENTS TO BE ACQUIRED: Mature trees (Palms and Oak) BASIS OF APPRAISAL The market value for the property to be acquired is based upon an appraisal done by a certified and state- licensed appraiser, which was prepared in accordance with accepted appraisal principles and procedures. Recent sales of comparable properties, income data, and depreciated replacement costs are utilized as appropriate. Full consideration is given to zoning, development potential, and the income that the subject property is capable of producing. There are three approaches to value: 1. The Market Approach for the subject property is based on the consideration of comparable sales which sold within a reasonable time prior to the date of valuation, at a range of $52 to $152 per square foot. The principal transactions used as comparable sales relied upon as the basis for supporting the determination of value are attached to this Appraisal Summary Statement. 2. The Cost Approach is based in part on a replacement cost new of improvements, less depreciation. This approach was not utilized in this analysis since no structural improvements will be affected. 3. The Income Approach is based upon consideration of the income producing potential of the property. This approach was not utilized in this valuation process as it was deemed inapplicable to this specific case. Page 418 of 615 Page 2 of 5 AP # 001-043-027 VALUATION Fee Simple Land Acquisition: 2,182 sq. ft. @ $105 per sq. ft. x 100% $229,110 Temporary Construction Easement: 763 sq. ft. @ $105 per sq. ft. x 10% x 1.5 yrs. $ 12,016 Temporary Non-Exclusive Access Easement (driveway & parking lot) 1,614 sq. ft. @ $105 per sq. ft. x 10% x 1.5 yrs = $ 25,420 Total Land Value: $266,546 Improvements: Landscaped and asphalt area (2,182 sq. ft. x $8) $17,456 Irrigation System (2,000 sq. ft. x $1.69) $ 3,380 Mature Trees $26,000 (Driveway approaches and v-gutter drainage system will be reconstructed/repaired as construction contract work) Total Improvement Value: $ 46,836 Severance Damages: None $0 Benefits: None $0 Total Net Damages/Benefits: $ 0 $313,382 Total Just Compensation for this Acquisition: rounded $313,000 THREE HUNDRED THIRTEEN THOUSAND DOLLARS ($313,000) This summary of the basis of the amount offered as just compensation is presented in compliance with federal and state laws and has been derived from a formal appraisal prepared by a certified and state- licensed real estate appraiser, which includes supporting sales data and other documentation. The appraisal is hereby confirmed approved and accepted by this agency and a purchase offer based thereon is hereby approved and authorized. City of San Luis Obispo Approved for Purchase Offer and Acquisition: By: _____________________________ Date: ____________________ Name: Title: Att: Comparable Sale List Enc: Deed Luke Schwartz Digitally signed by Luke Schwartz DN: C=US, E=lschwart@slocity.org, O=City of San Luis Obispo, OU=Public Works, CN=Luke Schwartz Date: 2025.05.28 08:38:42-07'00' 5/28/2025 Page 419 of 615 Page 3 of 5 AP # 001-043-027 SUMMARY STATEMENT RELATING TO PURCHASE OF REAL PROPERTY OR AN INTEREST THEREIN Project: City of San Luis Obispo – California & Taft Roundabout Project AP#: 001-043-027 (Patel Trust) The City of San Luis Obispo is proposing to construct a roundabout at the intersection of California Boulevard to improve safety and traffic congestion issues. Your property, located at 578 California Boulevard, San Luis Obispo, California, is within the project area and is identified by your County Assessor as Parcel Numbers 001-043-027. Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the California Relocation Assistance and Real Property Acquisition Guidelines requires that each owner from whom the City purchases real property or an interest therein or each tenant owning improvements on said property be provided with a summary of the appraisal of the real property or interest therein, as well as the following information: 1. You are entitled to receive full payment prior to vacating the real property being purchased unless you have heretofore waived such entitlement. You are not required to pay recording fees, transfer taxes, or the pro rata portion of real property taxes which are allocable to any period subsequent to the passage of title or possession. 2. The City will offer to purchase any remnant(s) considered by the City to be an uneconomic unit(s) which is/(are) owned by you or, if applicable, occupied by you as a tenant and which is/(are) contiguous to the land being conveyed. 3. All buildings, structures, and other improvements affixed to the land described in the referenced document(s) covering this transaction and owned by the grantor(s) herein or, if applicable, owned by you as a tenant, are being conveyed unless other disposition of these improvements has been made. The interests being acquired include 2,182 square feet in fee, 763 square feet in temporary construction easement, and 1,614 square feet in temporary access easement and are described in the enclosed Deed. 4. The market value of the property being purchased is based upon a market value appraisal which is summarized on the attached Appraisal Summary Statement and such amount: a. Represents the full amount of the appraisal of just compensation for the property to be purchased; b. Is not less than the approved appraisal of the fair market value of the property as improved; c. Disregards any decrease or increase in the fair market value of the real property to be acquired prior to the date of valuation caused by the public improvement for which the property is being acquired or by the likelihood that the property would be acquired for such public improvement, other than that due to physical deterioration within the reasonable control of the owner or occupant; and d. Does not reflect any consideration of or allowance for any relocation assistance and payments or other benefits which the owner is entitled to receive under an agreement with the City. Page 420 of 615 Page 4 of 5 AP # 001-043-027 5. Pursuant to Civil Code of Procedure Section 1263.025, should you elect to obtain an independent appraisal, the City will pay for the actual reasonable costs of such an appraisal up to a maximum of $5,000 subject to the following conditions: a. You, not the City, must order the appraisal. Should you enter into a contract with the selected appraiser, the City will not be a party to your contract with an appraiser. b. The selected appraiser must be licensed with the California Office of Real Estate Appraisers (OREA). It is also recommended that such appraiser be experienced and qualified in the appraisal of easements if this offer is to purchase easements rather than the fee interest in your property. c. Within 30 days of your receipt of this offer, you must notify the City of your intent to obtain an independent appraisal. d. Appraisal cost reimbursement requests must be made in writing, and submitted to the City within 30 days of your receipt of the independent appraisal and no later than 120 days of your receipt of this offer. Copies of the contract (if a contract was made), appraisal report, and invoice for completed work by the appraiser must be provided to the City concurrent with submission of the appraisal cost reimbursement request. The appraisal costs must be reasonable and justifiable. 6. No person in the United States of America shall, on the grounds of race, color, national origin, sex, age, or disability be excluded from the participation in, be denied the benefits of, or be otherwise subjected to discrimination under any City programs or activities. If federal funding is being utilized in the project for which your property is being sought, notice is hereby provided that it is the policy of the City to assure full compliance with Title VI of the Civil Rights Act of 1964, the Civil Rights Restoration Act of 1987, and related statutes and regulations, in all programs and activities undertaken by the City. Any person who believes they have been subjected to unlawful discriminatory practice under Title VI has a right to file a formal complaint with the City. 7. The owner of a business conducted on a property to be acquired, or conducted on the remaining property which will be affected by the purchase of the required property, may be entitled to compensation for the loss of goodwill. Entitlement is contingent upon the business owners’ ability to prove such loss in accordance with the provisions of Section 1263.510 and 1263.520 of the Code of Civil Procedure. 8. If you ultimately elect to reject this offer for the purchase of your property, you are entitled to have the amount of compensation determined by a court of law in accordance with the laws of the State of California. Page 421 of 615 Page 5 of 5 AP # 001-043-027 Page 422 of 615 APN: 001-043-027 City of SLO\CA & Taft Roundabout\Patel\Agreement Page 1 of 6 PARCEL NO.: 001-043-027 (Patel) PROJECT: City of San Luis Obispo – California and Taft Roundabout TITLE REPORT NO.: 4001-5452694 RIGHT OF WAY AGREEMENT (WITH ESCROW INSTRUCTIONS) THIS AGREEMENT is made and entered into by and between Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust (hereinafter collectively called “Grantor”), and The City of San Luis Obispo, a municipal corporation and a charter city in the County of San Luis Obispo, State of California (hereinafter called “City”). An instrument in the form of a Grant Deed (“Deed”) covering the property rights particularly described therein (“Property”), has been executed concurrently with this Agreement and delivered to City representatives. In consideration of which, and other considerations hereinafter set forth, it is mutually agreed as follows: 1. The parties have herein set forth the whole of their agreement. The performance of this Agreement constitutes the entire consideration for said document and shall relieve the City of all further obligation or claims on this account, or on account of the location, grade or construction of the proposed public improvement, except as stated in Paragraphs 2.E. and 2.F. below. 2. The City shall: A. PAYMENT - Pay to the order of the Grantor the sum of THREE HUNDRED THIRTEEN THOUSAND DOLLARS ($313,000) as consideration in full for the real property interests conveyed in the Deed, for the loss, replacement and moving of any improvements, and for entering into this Agreement. Said sum shall be paid when title to said real property interest has vested in City free and clear of all liens, encumbrances, assessments, easements and leases recorded or unrecorded, except for recorded public utility easements and public right of way. Grantor and City acknowledge and agree that the Payment Amount and the terms of the Deed and this Agreement represent the full and total consideration for the property interests established by the Deed. With the exception of any rights and obligations created pursuant to this Agreement, Grantor hereby forever releases and discharges City and its respective officials, officers, directors, and employees from any and all claims, demands, causes of action, obligations, and liabilities of every kind and nature which relate to City’s acquisition of the real property interests conveyed in the Deed. It is further understood and agreed that each party Page 423 of 615 APN: 001-043-027 City of SLO\CA & Taft Roundabout\Patel\Agreement Page 2 of 6 hereby waives any and all rights under Section 1542 of the Civil Code of the State of California which reads as follows: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. B. RECORDATION OF INSTRUMENT - Accept the Deed and cause the same to be recorded in the office of the San Luis Obispo County Recorder at such time as when clear title can be conveyed. C. MISCELLANEOUS COSTS - Pay any escrow, title insurance, and recording fees incurred in this transaction. D. CLEARANCE OF BONDS, ASSESSMENTS, OR DELINQUENT TAXES - Have the authority to deduct and pay from the amount shown in Clause 2.A. above any amount necessary to satisfy any bond demands and delinquent taxes due in any year except the year in which this escrow closes, together with penalties and interest thereon, and/or delinquent and unpaid nondelinquent assessments which have become a lien at the close of escrow. E. CONSTRUCTION AND RESTORATION - Shall, at no expense to Grantor, conform Grantor’s driveways, including driveway aprons, curb adjustments, and asphalt, and restore existing parking lot and landscaping in a comparable condition as that which existed prior to City’s access and use, to the extent reasonably practical. City access and use shall be in conformance with all terms and conditions specified in the Deed and as shown in the attached Exhibit 1. F. INDEMNIFICATION - Indemnify and hold harmless Grantor from any and all claims, damages, costs, judgments, or liability proximately caused by City or its officers, employees, contractors, or agents specifically arising from City’s construction and restoration work within the Temporary Construction Easement period. City’s obligation to indemnify and hold harmless Grantor as provided in this Paragraph 2.F shall not extend to any claims, damages, costs, judgments, or liability which arise from or related to the negligent, unlawful or wrongful acts of Grantor or any other person acting in concert with them. 3. The Grantor: A. PAYMENT ON MORTGAGE OR DEED OF TRUST - Agrees that any or all monies payable under this Agreement up to and including the total amount of the unpaid principal and interest on the note(s) secured by mortgage(s) or deed(s) of trust, if any, and all other amounts due and payable in accordance with the terms and conditions of said mortgage(s) or deed(s) of trust, shall upon demand(s) be made payable to the mortgagee(s) or beneficiary(s) entitled thereunder. B. LEASE INDEMNIFICATION - Warrants there are no oral or written leases on the Property that would affect Grantor’s right and ability to convey the Property to City free and clear of tenant interests and claims. Grantor agrees to hold the City harmless and reimburse City Page 424 of 615 APN: 001-043-027 City of SLO\CA & Taft Roundabout\Patel\Agreement Page 3 of 6 for any and all of its losses and expenses occasioned by reason of any lease of said Property held by tenant of Grantor. C. PERMISSION TO ENTER - Hereby grants to the City, its agents and contractors, permission to enter upon the subject lands described in the Deed prior to the close of escrow for the purposes of preparation for construction of the City’s Project, subject to all applicable terms and conditions contained in this Agreement and the associated Deed. D. GRANTOR’S KNOWLEDGE OF THE ENVIRONMENTAL CONDITIONS OF THE PROPERTY - Represents and warrants that to the best of Grantor’s knowledge and belief, that (1) there has been no spill, discharge, release, cleanup or contamination of or by any hazardous or toxic waste or substance on or around the Property at any time, and (2) throughout the period of ownership of the Property by Grantor, no hazardous or toxic material has been used, generated, treated, stored, disposed of or handled in or around the Property. Further, Grantor agrees to disclose to City, prior to the close of escrow, all studies, reports, and investigations known to Grantor concerning any pollution, toxic building materials or toxic hazardous substances or wastes located at, on, or under the Property. E. TAX REPORTING AND WITHHOLDING – The Foreign Investment in Real Property Tax Act of 1980 ("FIRPTA"), as amended by the Tax Reform Act of 1984, places special requirements for tax reporting and withholding on the parties to a real estate transaction where the transferor (Grantor) is a non-resident alien or non-domestic corporation or partnership, or is a domestic corporation or partnership controlled by a non-resident or non-resident corporation or partnership. In accordance with the provisions of Section 1445 of the Internal Revenue Code of 1954, as amended, and any regulations promulgated thereunder, Grantor shall execute an affidavit under penalty of perjury setting forth Grantor's name, address, federal tax identification number, and certifying whether Grantor is a "foreign person" in accordance with the provisions of the Internal Revenue Code. Further, tax withholding may be required in accordance with the California Revenue and Taxation Code Section 18662. It is specifically understood and agreed by Grantor that closing of this escrow is subject to, and contingent upon, deposit into escrow of a FIRPTA Affidavit of Non-Foreign Status and a California Form 593-C, Real Estate Withholding Certificate and associated required paperwork, completed and signed by Grantor, and Escrow Agent is hereby authorized and instructed to withhold from Grantor's proceeds amounts so required by these laws and to forward any amounts withheld to the appropriate taxing authority. 4. The Parties agree: A. ESCROW - At City’s option, to open escrow in accordance with this Agreement at an escrow company of City’s choice. Opening an escrow shall be at City’s sole discretion and City may decide to process this transaction without the use of an escrow agent. However, if an escrow agent is utilized, this Agreement constitutes the joint escrow instructions of City and Grantor, and escrow agent to whom these instructions are delivered is hereby empowered to act under this Agreement. The parties hereto agree to do all acts necessary to close this escrow in the shortest possible time. If an escrow is utilized, as soon as possible after opening of escrow, City will deposit the executed Deed by Grantor, with Certificate of Acceptance attached, with Escrow Agent on Grantor's behalf. City agrees to deposit the purchase price upon demand of Escrow Agent. City Page 425 of 615 APN: 001-043-027 City of SLO\CA & Taft Roundabout\Patel\Agreement Page 4 of 6 and Grantor agree to deposit with Escrow Agent all additional instruments as may be necessary to complete this transaction. All funds received in this escrow shall be deposited with other escrow funds in a general escrow fund account(s) and may be transferred to any other such escrow trust account in any State or National Bank doing business in the State of California. All disbursements shall be made by check or wire transfer from such account. Any taxes which have been paid by Grantor prior to opening of this escrow shall not be pro-rated between City and Grantor, but Grantor shall have the sole right after close of escrow to apply to the County Tax Collector of said County for any refund of such taxes which may be due Grantor for the period after City's acquisition. i) ESCROW AGENT DIRECTIVES - Escrow Agent is authorized to, and shall: a) Pay and charge Grantor for any unpaid delinquent taxes and/or any penalties and interest thereon, and for any delinquent assessments or bonds against that portion of Grantor's property subject to this transaction as required to convey clear title. b) Pay and charge City for any escrow fees, charges and costs payable under Paragraph 2.C. of this Agreement; c) Disburse funds and deliver Deed when conditions of this escrow have been fulfilled by City and Grantor. d) Following recording of Deed from Grantor if recording is instructed by City, provide City with a CLTA Standard Coverage Policy of Title Insurance in the amount of $313,000 issued by First American Title Company showing that title to the herein real property is vested in City, subject only to the following exceptions, and the printed exceptions and stipulations in said policy: 1) Real Property Taxes for the fiscal year in which escrow closes. 2) Public utility easements and public rights of way; 3) Item Nos. 1 through 9 of Schedule B in the Litigation Guarantee issued by First American Title Company dated February 20, 2025, referenced as Guarantee No 50076500-7231312, File No. 4001- 7231312. 4) Other items that may be approved by City in writing in advance of the close of escrow. ii) CLOSE OF ESCROW - The term "close of escrow", if and where written in these instructions, shall mean the date necessary instruments of conveyance are recorded in the office of the County Recorder. Recordation of instruments delivered through this escrow is hereby authorized. B. JUDGMENT IN LIEU OF DEED - In the event Grantor does not deliver title in a reasonable time under the terms of the Agreement, the City may file an action in eminent domain Page 426 of 615 APN: 001-043-027 City of SLO\CA & Taft Roundabout\Patel\Agreement Page 5 of 6 to pursue the acquisition of the real property interests described in the Deed, and this Agreement shall constitute a stipulation which may be filed in said proceedings as final and conclusive evidence of the total amount of damages for the taking, including all of the items listed in Section 1260.230 of the Code of Civil Procedure, regarding said property rights. C. ARTICLE HEADINGS - Article headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants and conditions of this Agreement. D. COMPLETE UNDERSTANDING - This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof, superseding all negotiations, prior discussions, and preliminary agreements or understandings, written or oral. This Agreement may not be amended except in writing by the parties hereto or their successors or assigns. E. CITY COUNCIL APPROVAL - This Agreement is subject to and conditioned upon approval and ratification by the San Luis Obispo City Council. This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity. F. COUNTERPARTS - This Agreement may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same document. G. ELECTRONIC AND FACSIMILE SIGNATURES – In the event that the parties hereto utilize electronic or facsimile documents which include signatures, such documents shall be accepted as if they bore original signatures and shall be fully binding to the same effect as original signatures, provided however that documents requiring acknowledgement before a Notary Public for recordation by the Clerk Recorder must contain original signatures. H. NOTICES - All notices shall be in writing, addressed as set forth below, and deposited in the U.S. Mail, postage prepaid. Any party may change its address for future notices by complying with the provisions of this paragraph. GRANTOR’S MAILING ADDRESS: Kirit C. and Gita K. Patel Post Office Box 1339 Pismo Beach, CA 93449 CITY’S MAILING ADDRESS: City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 93401 No Obligation Other Than Those Set Forth Herein Will Be Recognized. Page 427 of 615 APN: 001-043-027 City of SLO\CA & Taft Roundabout\Patel\Agreement Page 6 of 6 GRANTOR: Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust By: ___________________________________ Date: _________________________ Kirit Chunibhai Patel Trustee By: ___________________________________ Date: _________________________ Gita Kirit Patel Trustee CITY OF SAN LUIS OBISPO, A municipal corporation and charter city By: ___________________________________ Date: _________________________ , Mayor ATTEST: By: _______________________________ City Clerk APPROVED AS TO FORM: APPROVED AS TO CONTENT: By: _______________________________ By: _______________________________ J. Christine Dietrick Name: City At torney Title: Page 428 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed Page 1 Recording requested by: Hamner, Jewell & Associates Government Real Estate Services When recorded, return to: City of San Luis Obispo Department of Public Works 919 Palm Street San Luis Obispo, CA 93401 ______________________________________________________________________________ Exempt from the $75 Building and Jobs Act Fee per Gov’t Code §27388.1(2)(D) Public Agency No Fee pursuant to Gov. Code sec. 6103 No Documentary Transfer Tax per R&T Code sec. 11922 No Recording Fee per Gov. Code sec. 27383 APN: 001-043-027 GRANT DEED (To the City of San Luis Obispo) For a valuable consideration, receipt of which is hereby acknowledged, Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust (hereinafter collectively called “Grantor”), hereby grants to the City of San Luis Obispo, a municipal corporation and a charter city in the County of San Luis Obispo, State of California (hereinafter called “City”), the following described interests in real property located in the City of San Luis Obispo, County of San Luis Obispo, State of California: In Fee: All that certain property described and depicted in Exhibits “A” and “B”, attached hereto and incorporated herein; Together with: Temporary Construction Easement – 18-month duration: A temporary easement for construction (“Temporary Construction Easement”) to facilitate the construction of adjacent public street improvements, including the right to pile earth thereon, Exhibit 1 Exhibit 1 to Agreement, page 1 of 16 Page 429 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed Page 2 store materials, supplies and equipment thereon, and utilize said Temporary Construction Easement for all other related activities and purposes specifically in conjunction with the construction of the adjacent public street improvements. This Temporary Construction Easement shall be in, on, over, under, along, and across that certain property described and depicted in Exhibits “C” and “D” attached hereto and incorporated herein by this reference. Said Temporary Construction Easement shall commence fifteen (15) days after issuance by City of a Notice of Commencement of Construction to Grantor, which shall be issued to Grantor by U.S. Mail, and shall automatically terminate upon completion of City’s construction or eighteen (18) months after the commencement of construction, whichever occurs first. Together with: Temporary Non-Exclusive Access Easement – 18-month duration: A temporary non-exclusive access easement for ingress and egress (Temporary Non-Exclusive Access Easement”) and for completing driveway conforms in conjunction with the construction of adjacent public street improvements. This Temporary Non-Exclusive Easement shall be in, on, over, along, through, and across that certain property described and depicted in Exhibits “E” and “F” attached hereto and incorporated herein. This Temporary Non-Exclusive Easement may be used intermittently for a period not to exceed 2 months within the 18-month Temporary Construction Easement period described in this document. Easement Extension Provisions: City shall have the right to extend the Temporary Easement terms in three (3) additional one (1) month increments if City determines that additional time beyond the initial period is necessary for construction completion. In such case, City shall have the unilateral right to extend the Temporary Construction Easements through construction completion and agrees to compensate Grantor TWO THOUSAND EIGHTY DOLLARS ($2,080) for each 1-month extension term exercised. Payment for any such extensions shall be paid by City to Grantor concurrent with City’s written notice to Grantor of City’s intent to exercise such extension provisions. City shall further evaluate at the time of any extensions whether any increase in value of the temporary rights has occurred since the date this deed was executed by Grantor and if so, shall provide any additional payment based upon the determined just compensation at the time of extension. Upon termination, the Temporary Construction Easements and Temporary Non-Exclusive Access Easement areas will be generally restored by City to a comparable or better condition as that which existed prior to City’s access and use. The provisions hereof shall inure to the benefit of the City, its successors and assigns, and shall bind the heirs, executors, administrators, assigns and successors in interest of the respective parties hereto, and all covenants shall apply to and run with the above-described property. (Signature Page to Follow) Exhibit 1 to Agreement, page 2 of 16 Page 430 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed Page 3 GRANTOR: Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust By: ___________________________________ Kirit Chunibhai Patel Trustee By: ___________________________________ Gita Kirit Patel Trustee Exhibit 1 to Agreement, page 3 of 16 COPY COPY Page 431 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed Page 4 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ____________________ On ______________________ before me, _______________________________________, Notary Public, personally appeared Kirit Chunibhai Patel, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature __________________________ (Seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ____________________ On ______________________ before me, _______________________________________, Notary Public, personally appeared and Gita Kirit Patel, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature __________________________ (Seal) Exhibit 1 to Agreement, page 4 of 16 COPY COPY COPY COPY Page 432 of 615 Exhibit 1 to Agreement, page 5 of 16Page 433 of 615 Exhibit 1 to Agreement, page 6 of 16 Page 434 of 615 Exhibit 1 to Agreement, page 7 of 16 Page 435 of 615 Exhibit 1 to Agreement, page 8 of 16 Page 436 of 615 Exhibit 1 to Agreement, page 9 of 16 Page 437 of 615 Exhibit 1 to Agreement, page 10 of 16 Page 438 of 615 Exhibit 1 to Agreement, page 11 of 16 Page 439 of 615 Exhibit 1 to Agreement, page 12 of 16 Page 440 of 615 Exhibit 1 to Agreement, page 13 of 16 Page 441 of 615 Exhibit 1 to Agreement, page 14 of 16 Page 442 of 615 Exhibit 1 to Agreement, page 15 of 16 Page 443 of 615 APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed CERTIFICATE OF ACCEPTANCE This is to certify that the City of San Luis Obispo, grantee herein, hereby accepts for public purposes the real property, or interests therein, described in the within Grant Deed from Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust, and consents to the recordation thereof. In Witness Whereof, I have hereunto set my hand this ______ day of _______________, 20___. CITY OF SAN LUIS OBISPO, a municipal corporation and charter city ____________________________________ Erica A. Stewart, Mayor ATTEST: __________________________ Teresa Purrington, City Clerk ACKNOWLEDGEMENT STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) On __________________________, before me, Megan Wilbanks, Notary Public, personally appeared Erica A. Stewart, Mayor, CITY OF SAN LUIS OBISPO, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ______________________________ Megan Wilbanks, Notary Public (Official Notary Seal) A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. Exhibit 1 to Agreement, page 16 of 16 COPY COPY COPY Page 444 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed Page 1 Recording requested by: Hamner, Jewell & Associates Government Real Estate Services When recorded, return to: City of San Luis Obispo Department of Public Works 919 Palm Street San Luis Obispo, CA 93401 ______________________________________________________________________________ Exempt from the $75 Building and Jobs Act Fee per Gov’t Code §27388.1(2)(D) Public Agency No Fee pursuant to Gov. Code sec. 6103 No Documentary Transfer Tax per R&T Code sec. 11922 No Recording Fee per Gov. Code sec. 27383 APN: 001-043-027 GRANT DEED (To the City of San Luis Obispo) For a valuable consideration, receipt of which is hereby acknowledged, Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust (hereinafter collectively called “Grantor”), hereby grants to the City of San Luis Obispo, a municipal corporation and a charter city in the County of San Luis Obispo, State of California (hereinafter called “City”), the following described interests in real property located in the City of San Luis Obispo, County of San Luis Obispo, State of California: In Fee: All that certain property described and depicted in Exhibits “A” and “B”, attached hereto and incorporated herein; Together with: Temporary Construction Easement – 18-month duration: A temporary easement for construction (“Temporary Construction Easement”) to facilitate the construction of adjacent public street improvements, including the right to pile earth thereon, Page 445 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed Page 2 store materials, supplies and equipment thereon, and utilize said Temporary Construction Easement for all other related activities and purposes specifically in conjunction with the construction of the adjacent public street improvements. This Temporary Construction Easement shall be in, on, over, under, along, and across that certain property described and depicted in Exhibits “C” and “D” attached hereto and incorporated herein by this reference. Said Temporary Construction Easement shall commence fifteen (15) days after issuance by City of a Notice of Commencement of Construction to Grantor, which shall be issued to Grantor by U.S. Mail, and shall automatically terminate upon completion of City’s construction or eighteen (18) months after the commencement of construction, whichever occurs first. Together with: Temporary Non-Exclusive Access Easement – 18-month duration: A temporary non-exclusive access easement for ingress and egress (Temporary Non-Exclusive Access Easement”) and for completing driveway conforms in conjunction with the construction of adjacent public street improvements. This Temporary Non-Exclusive Easement shall be in, on, over, along, through, and across that certain property described and depicted in Exhibits “E” and “F” attached hereto and incorporated herein. This Temporary Non-Exclusive Easement may be used intermittently for a period not to exceed 2 months within the 18-month Temporary Construction Easement period described in this document. Easement Extension Provisions: City shall have the right to extend the Temporary Easement terms in three (3) additional one (1) month increments if City determines that additional time beyond the initial period is necessary for construction completion. In such case, City shall have the unilateral right to extend the Temporary Construction Easements through construction completion and agrees to compensate Grantor TWO THOUSAND EIGHTY DOLLARS ($2,080) for each 1-month extension term exercised. Payment for any such extensions shall be paid by City to Grantor concurrent with City’s written notice to Grantor of City’s intent to exercise such extension provisions. City shall further evaluate at the time of any extensions whether any increase in value of the temporary rights has occurred since the date this deed was executed by Grantor and if so, shall provide any additional payment based upon the determined just compensation at the time of extension. Upon termination, the Temporary Construction Easements and Temporary Non-Exclusive Access Easement areas will be generally restored by City to a comparable or better condition as that which existed prior to City’s access and use. The provisions hereof shall inure to the benefit of the City, its successors and assigns, and shall bind the heirs, executors, administrators, assigns and successors in interest of the respective parties hereto, and all covenants shall apply to and run with the above-described property. (Signature Page to Follow) Page 446 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed Page 3 GRANTOR: Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust By: ___________________________________ Kirit Chunibhai Patel Trustee By: ___________________________________ Gita Kirit Patel Trustee Page 447 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed Page 4 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ____________________ On ______________________ before me, _______________________________________, Notary Public, personally appeared Kirit Chunibhai Patel, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature __________________________ (Seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ____________________ On ______________________ before me, _______________________________________, Notary Public, personally appeared and Gita Kirit Patel, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature __________________________ (Seal) Page 448 of 615 Page 449 of 615 Page 450 of 615 Page 451 of 615 Page 452 of 615 Page 453 of 615 Page 454 of 615 Page 455 of 615 Page 456 of 615 Page 457 of 615 Page 458 of 615 Page 459 of 615 APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed CERTIFICATE OF ACCEPTANCE This is to certify that the City of San Luis Obispo, grantee herein, hereby accepts for public purposes the real property, or interests therein, described in the within Grant Deed from Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust, and consents to the recordation thereof. In Witness Whereof, I have hereunto set my hand this ______ day of _______________, 20___. CITY OF SAN LUIS OBISPO, a municipal corporation and charter city ____________________________________ Erica A. Stewart, Mayor ATTEST: __________________________ Teresa Purrington, City Clerk ACKNOWLEDGEMENT STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) On __________________________, before me, Megan Wilbanks, Notary Public, personally appeared Erica A. Stewart, Mayor, CITY OF SAN LUIS OBISPO, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ______________________________ Megan Wilbanks, Notary Public (Official Notary Seal) A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. Page 460 of 615 G overnment r eal e state s ervices a division of Beacon inteGrated Professional resources, inc. When a Public Agency Acquires Your Property This booklet describes many of the important features of the California Relocation Assistance and Real Property Acquisition Guidelines specified in Title 25, Division1, Chapter 6 of the California Code of Regulations ("Guidelines") and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, ("Uniform Act"). It also gives general information about public acquisition of real estate (real property) that should be useful to you. Most real property acquisitions by a public agency are covered by the Guidelines, and in the case of federally-funded projects, by the Uniform Act. If you are notified that your property will be acquired for such a project, it is important that you learn your rights. This booklet may not answer all of your questions. If you have more questions about any potential sought purchase of your property by a public agency, please feel free to contact a representative from Hamner, Jewell and Associates. Contact Your Acquisition Agent: Stephen Myrick Hamner, Jewell & Associates Phone (805) 773-1459 Fax (805) 773-2418 SMyrick@hamner-jewell.com Page 461 of 615 Page - 1Hamner, Jewell & Associates Rev. 6/8/18 General Questions What Right Has Any Public Agency To Acquire My Property? The Federal Government and every State and local government have certain powers which are necessary for them to operate effectively. For example, they have the power to levy taxes and the power to maintain order. Another government power is the power to acquire private property for public purposes. This is known as the power of eminent domain. The rights of each of us are protected, however, by the Fifth and Fourteenth Amendments of the United States Constitution and by State constitutions and eminent domain laws which guarantee that if a public agency takes private property it must pay “just compensation” to the owner. Who Made The Decision To Buy My Property? The decision to acquire a property for a public project usually involves many persons and many determinations. The final determination to proceed with the project is made only after a thorough review which may include public hearings to obtain the views of interested citizens. If you have any questions about the project or the selection of your property for acquisition, you should ask your acquisition agent. How Will The Agency Determine How Much To Offer Me For My Property? Before making you an offer, the Agency will obtain at least one appraisal of your property by a competent real property appraiser who is familiar with local property values. The appraiser will inspect your property and state his/her professional opinion of its current fair market value in an appraisal report. After the appraiser has completed the work, the Agency reviews and checks the work to assure that the estimate is fair and the work conforms with professional appraisal standards. The Agency must offer you “just compensation” for your property. This amount cannot be less than the appraised fair market value of the property. “Just compensation” for your property does not take into account your relocation needs. If you are eligible for relocation assistance, it will be additional. What Is Fair Market Value? Fair market value is sometimes defined as that amount of money which would probably be paid for a property in a sale between a willing seller, who does not have to sell, and a willing buyer, who does not have to buy. In some areas, a different term or definition may be used. The fair market value of a property is generally considered to be “just compensation.” Fair market value does not take into account intangible elements such as sentimental value, goodwill, business profits, or any special value that your property may have for you or for the Agency. Page 462 of 615 Page - 2Hamner, Jewell & Associates Rev. 6/8/18 Appraising Your Property How Does An Appraiser Determine The Fair Market Value Of My Property? Each parcel of real property is different, and therefore, no single formula can be devised to appraise all properties. Among the factors an appraiser typically considers in estimating the value of real property is: •How it compares with similar properties in the area that have been sold recently. •How much it would cost to reproduce the buildings and other structures, less any depreciation. •How much rental income it could produce. Will I Have A Chance To Talk To The Appraiser? Yes, you will be contacted and given the opportunity to accompany the appraiser on his/her inspection of your property. You may then inform the appraiser of any special feature which you believe may add to the value of your property. It is in your best interest to provide the appraiser with all the useful information you can in order to ensure that nothing of allowable value will be overlooked. If you are unable to meet with the appraiser, you may wish to have a person who is familiar with your property represent you. When Will I Receive A Written Purchase Offer? Generally, this will depend on the amount of work required to appraise your property and the status of the Agency’s project schedule. After the appraisal has been reviewed (and any necessary correction obtained), the Agency will determine just compensation and give you a written purchase offer in that amount along with a “summary statement,” explaining the basis for the offer. No negotiations are to take place before you receive the written purchase offer and summary statement. What Is In The Summary Statement Of The Basis For The Offer Of Just Compensation? The summary statement of the basis for the offer of just compensation will include: •An accurate description of the property and the interest in the property to be acquired. •A statement of the amount offered as just compensation. (If only part of the property is to be acquired, the compensation for the part to be acquired and the compensation for damages, if any, to the remaining part will be separately stated.) •A list of the buildings and other improvements covered by the offer. (If there is a separately held interest in the property not owned by you and not covered by the offer; e.g., a tenant-owned improvement, it will be so identified.) Must I Accept The Agency’s Offer? No. You are entitled to present your evidence as to the amount you believe is the fair market value of your property and to make suggestions for changing the terms and conditions of the offer. The Agency will consider your evidence and suggestions. When fully justified by the available evidence of value, an increase in the offer price will be made. If you would like to hire your own appraiser, the Agency is required to reimburse you for the actual reasonable costs, not to exceed $5,000, of one independent appraisal of the property interest sought by the Agency. The appraiser you hire must be licensed by the State Office of Real Estate Appraisers. Page 463 of 615 Page - 3Hamner, Jewell & Associates Rev. 6/8/18 May Someone Represent Me During Negotiations? Yes. If you would like an attorney or anyone else to represent you during negotiations, please inform the Agency. However, State Guidelines do not require the Agency to pay the costs of such representations. How Do I Know I Will Be Treated Fairly? No person in the United States of America shall, on the grounds of race, color, national origin, sex, age, or disability be excluded from the participation in, be denied the benefits of, or be otherwise subjected to discrimination under any public programs or activities. If federal funding is being utilized in the project for which your property is being sought, the acquiring agency will assure full compliance with Title VI of the Civil Rights Act of 1964, the Civil Rights Restoration Act of 1987, and related statutes and regulations. Any person who believes they have been subjected to unlawful discriminatory practice under Title VI has a right to file a formal complaint with the acquiring agency. If I Reach Agreement With The Agency, How Soon Will I Be Paid? If you reach a voluntary agreement to sell your property and your ownership (title to the property) is clear, payment will be made at a mutually acceptable time. Generally, this should be possible within 30 to 60 days after you sign a purchase contract. If the title evidence obtained by the Agency indicates that further action is necessary to show that your ownership is clear, you may be able to hasten the payment by helping the Agency obtain the necessary proof. (Title evidence is basically a legal record of the ownership of the property. It identifies the owners of record and lists the restrictive deed covenants and recorded mortgages, liens, and other instruments affecting your ownership of the property.) What Happens If I Don’t Agree To The Agency’s Purchase Offer? If you are unable to reach a voluntary agreement through negotiations, the Agency may file a suit in court to acquire your property through an eminent domain proceeding. Eminent domain proceedings are often called condemnations. If your property is to be acquired by condemnation, the Agency will file the condemnation suit without unreasonable delay. Negotiations Page 464 of 615 Page - 4Hamner, Jewell & Associates Rev. 6/8/18 What Happens After The Agency Condemns My Property? You will be notified of the action. Condemnation procedures vary, and you should learn the procedures which apply in your case. Your acquisition agent can explain these procedures. In most instances, when an Agency files a condemnation suit, it must deposit with the court (or in an escrow account) an amount not less than its appraisal of the fair market value of the property. You should be able to withdraw this amount, less any amounts necessary to pay off any mortgage or other liens on the property and to resolve any special ownership problems. Withdrawal of your share of the money will not affect your right to seek additional compensation for your property. During the condemnation proceeding, you will be provided an opportunity to introduce your evidence as to the value of your property. Of course, the Agency will have the same right. After hearing the evidence of all parties, the court will determine the amount of just compensation. If that amount exceeds the amount deposited by the Agency, you will be paid the difference, plus any interest that may be provided by law. To help you in presenting your case in a condemnation proceeding, you may wish to employ an attorney and an appraiser. However, in most cases the costs of these professional services and other costs which an owner incurs in presenting his or her case to the court must be paid by the owner. What Can I Do If I Am Not Satisfied With The Court’s Determination? If you are not satisfied with the court judgment, you may file an appeal with the appropriate appellate court for the area in which your property is located. If you are considering an appeal, you should check on the applicable time limit for filing the appeal and consult with your attorney on whether you have a basis for the appeal. The Agency may also file an appeal if it believes the amount of the judgment is too high. Will I Have To Pay Any Settlement Costs? You will be responsible for the payment of the balance of any mortgage on your property. Also, if your ownership is not clear, you may have to pay the costs of clearing it. But the Agency is responsible for all reasonable and necessary costs for: •Typical services required to complete the sale, recording fees, revenue stamps, transfer taxes and any similar expenses which are incidental to transferring ownership to the Agency. •Penalty costs and other charges related to prepayment of any recorded mortgage on the property that was entered into in good faith. •Real property taxes covering the period beginning on the date the Agency acquires your property. Whenever possible, the Agency will make arrangements to pay these costs directly. If you must incur any of these expenses yourself, you will be repaid--usually at the time of settlement. If you later discover other costs for which you should be repaid, you should request repayment from the Agency immediately. The Agency will assist you in filing a claim. Finally, if you believe that you were not properly repaid, you may appeal the decision to the Agency. Condemnation Procedures Page 465 of 615 Page - 5Hamner, Jewell & Associates Rev. 6/8/18 May I Keep Any Of The Buildings Or Other Improvements On My Property? Very often many or all of the improvements on the property are not required by the Agency. This might include such items as a fireplace mantel, your favorite shrubbery, or even an entire house. If you wish to keep any improvements, please let the Agency know as soon as possible. If you do arrange to keep any improvement, the Agency will deduct only its salvage value from the purchase price you would otherwise receive. (The salvage value of an item is its probable selling price if offered for sale on the condition that the buyer will remove it at his or her own expense.) Of course, if you arrange to keep any real property improvement, you will not be eligible to receive a relocation payment for the cost of moving it to a new location. Can The Agency Take Only A Part Of My Property? Yes. But if the purchase of only a part of your property reduces the value of the remaining part(s), you will be paid for the loss in value. Also, if any remaining part would have little or no utility or value to you, the Agency will offer to buy that remaining part from you. Occasionally, a public project will increase the value of a remaining part which is not acquired by the agency. Under some eminent domain laws, when this occurs, the amount of the increase in value is deducted from the purchase price the owner would otherwise receive. Will I Have To Pay Rent To The Agency After My Property Is Acquired? If you remain on the property after acquisition, you may be required to pay a fair rent to the Agency. Such rent will not exceed that charged for the use of similar properties in similar areas. How Soon Must I Move? If possible, a mutually agreeable date for the move will be worked out. Unless there is an urgent need for your property (e.g., your occupancy would present a health or safety emergency), you will not be required to move without at least 90 days advance written notice. If you reach a voluntary agreement to sell your property, you will not be required to move before you receive the agreed purchase price. If the property is acquired by condemnation, you cannot be required to move before the estimated fair market value of the property has been deposited with the Court so that you can withdraw your share. If you are being displaced from a dwelling unit, you will not be required to move before a comparable replacement home is available to you. What Happens Next? Page 466 of 615 Page - 6Hamner, Jewell & Associates Rev. 6/8/18 Will I Receive Relocation Assistance? State Guidelines require that certain relocation payments and other assistance be provided to families, individuals, businesses, farms, and nonprofit organizations when they are displaced or their personal property must be moved as a result of certain Agency activities. A full explanation of any relocation assistance to which you may be entitled will be provided to you. If you have any question about such assistance, please contact your relocation representative. In order for the Agency to fulfill its relocation obligations to you, you must keep the Agency informed of your plans. My Property Is Worth More Now. Must I Pay Capital Gains Tax On The Increase? In most cases when a public agency acquires real property for public purposes, the property owner may postpone the payment of Federal capital gains taxes on any profit from the sale if he or she reinvests the profit in similar property within a certain replacement period. To take advantage of this right, you should review the rules and file the details in a statement with your Federal income tax return for the tax year in which you realize the gain. Internal Revenue Service (IRS) Publication 544 explains how the Federal income tax would apply to a gain or loss resulting from the condemnation of real property, or its sale under the threat of condemnation, for public purposes. If you have any questions about the IRS rules, you should discuss your particular circumstances with your personal tax advisor or your local IRS office. I’m A Veteran. How About My VA Loan? After your VA home mortgage loan has been repaid, you will be permitted to obtain another VA loan to purchase another property. Check on such arrangements with your nearest Veterans Administration Office. Is It Possible To Donate Property? Yes. You may donate your property or sell it to the Agency for less than its fair market value. The Agency must obtain an appraisal of the property and offer just compensation for it, unless you release the Agency from these obligations. Additional Information If you have further questions after reading this booklet, please contact: Stephen Myrick Hamner, Jewell & Associates Phone (805) 773-1459 Fax (805) 773-2418 SMyrick@hamner-jewell.com We are available to answer any questions you may have! Money Matters Page 467 of 615 District 1 Equal Employment Opportunity (EEO) Office 1656 Union Street Eureka, CA 95501 (707)441-5814 District 2 EEO Office 1657 Riverside Drive Redding, CA 96001 (530)225-3055 District 3 EEO Office 703 B Street Marysville, CA 95901 (530)741-7130 District 4 EEO Office 111 Grand Avenue Oakland, CA 94612 (510)286-5871 District 5 EEO Office 50 Higuera Street San Luis Obispo, CA 93401 (805)549-3037 District 6 EEO Office 1352 West Olive Avenue Fresno, CA 93728 (559)444-2522 District 7 EEO Offce 100 S. Main Street Los Angeles, CA 90012 (213)897-0797 District 8 EEO Offce 464 West 4th Street San Bernardino, CA 92401 (909)383-4229 District 9 EEO Office 500 S. Main Street Bishop, CA 93514 (760)872-0752 District 10 EEO Office 1976 East Dr. Martin Luther King Jr. Blvd. Stockton, CA 95205 (209)948-3911 District 11 EEO Office 4050 Taylor Street San Diego, CA 92110 (619)688-4249 District 12 EEO Office 1750 East 4th Street, Suite 100 Santa Ana, CA 92705 (657) 328-6596 Headquarters Title VI Coordinator 1823 14th Street Sacramento, CA 95811 (916)324-8379 This publication will be made available in alternative formats: Braille Large print Computer disc Audio version or in a different language upon request by calling the Caltrans Offce of Business & Economic Opportunity (916) 324-8379 711 (TTY) Your Rights Under Title VI and Related Statutes Caltrans & You This brochure is designed to inform you of the requirements of Title VI of the Civil Rights Act of 1964 and your rights under those requirements. April 2019 Page 468 of 615 What is Title VI? Title VI is a statute provision of the Civil Rights Act of 1964. Title VI (Sec. 601) of the Civil Rights Act of 1964 provides: “No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefts of, or be subjected to discrimination under any program or activity receiving Federal fnancial assistance.” (42 U.S.C. Sec. 2000d) Additionally, Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations 1994 provides: “Each Federal agency shall make achieving environmental justice part of its mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of its programs, policies, and activities on minority populations and low- income populations.” Related statutes provide protection against discrimination on the basis of sex, age, or disability by programs receiving federal fnancial assistance. What does this mean? That Caltrans strives to ensure that access to and use of all programs, services, or benefts derived from any Caltrans activity will be administered without regard to race, color, national origin, sex, age, disability or socioeconomic status. Caltrans will not tolerate discrimination by a Caltrans employee or recipients of federal funds such as cities, counties, contractors, consultants, suppliers, universities, colleges, planning agencies, and any other recipients of federal-aid highway funds. Caltrans prohibits all discriminatory practices, which may result in: •Denial to any individual of any service, fnancial aid, or beneft provided under the program to which he or she may be otherwise entitled; •Different standards or requirements for participation; •Segregation or separate treatment in any part of the program; •Distinctions in quality, quantity, or manner in which the beneft is provided; •Discrimination in any activities conducted in a facility built in whole or part with federal funds. To ensure compliance with Title VI, related statutes, and the Presidential Executive Order on Environmental Justice, Caltrans will: •Avoid or reduce harmful human health and environmental effects on minority and low-income populations; •Ensure the full and fair participation by all communities including low-income and minority populations in the transportation decision-making process; •Prevent the denial of, reduction in, or signifcant delay in the receipt of benefts by minority and low-income populations. Additionally, any recipient, including, but not limited to, Metropolitan Planning Organizations and cities and counties, who receive federal fnancial aid bears a responsibility to administer its program and activities without regard to race, color, national origin, sex, age, disability, or socioeconomic status. Benefts and Services Caltrans’ mission is to provide the people of California with a safe, effcient, and effective inter-modal transportation system. All of the work Caltrans performs is intended to assist the transportation needs of all the people of California regardless of race, color, national origin, sex, age, disability, or socioeconomic status. Are your rights being violated? If you believe that you have been discriminated against because of your race, color, national origin, sex, age, or disability, you may fle a written complaint with the Caltrans Equal Employment Opportunity (EEO) Offce. District EEO offces are located statewide. The addresses and telephone numbers are located on the back of this brochure. Title VI complaints are forwarded to Sacramento for investigation by the Caltrans Offce of Business & Economic Opportunity Title VI Program. Who bears the responsibility to Title VI? All of Caltrans employees and its functional programs. The Caltrans Offce of Business & Economic Opportunity Title VI Program provides continuous leadership, guidance, and technical assistance to ensure ongoing compliance with Title VI and the Executive Order on Environmental Justice. Page 469 of 615 RESTRICTED APPRAISAL REPORT SHOPPING CENTER PARTIAL ACQUISITION 578 California Blvd. San Luis Obispo, California 93405 VALUATION DATES Fair Market Value: April 17, 2025 Date of Report: May 2, 2025 PREPARED BY Rachel Unger Michael Burger MAI, R/W-AC Central California Appraisals 4915 Calloway Dr., Suite 101 Bakersfield, CA 93312 File No: 33-S25 PREPARED FOR Lillian D Jewell Hamner, Jewell and Associates 3183 Duncan Rd. Suite E San Luis Obispo, California 93401 Page 470 of 615 4915 Calloway Dr., Suite 101 Bakersfield, CA 93312 CENTRAL CALIFORNIA APPRAISALS 33-S25 May 2, 2025 Lillian D Jewell Hamner, Jewell and Associates 3183 Duncan Rd. Suite E San Luis Obispo, California 93401 RE: Restricted Appraisal Report Shopping Center Partial Acquisition 578 California Blvd., San Luis Obispo, California 93405 Central California Appraisals File No: 33-S25 Ms. Jewell: Central California Appraisals is proud to present the appraisal that satisfies the agreed upon scope of work with Hamner, Jewell and Associates. This appraisal report sets forth the pertinent data gathered, the techniques employed, and the reasoning leading to our value opinions. This letter of transmittal does not constitute an appraisal report and the rationale behind the value opinion(s) reported cannot be adequately understood without the accompanying appraisal report. We developed our analyses, opinions, and conclusions and prepared this report in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; and the requirements of our client as we understand them. This report conforms to the current Uniform Standards of Professional Appraisal Practice (USPAP), the California Code of Civil Procedure and the appraisal guidelines of Hamner, Jewell and Associates. The purpose of this appraisal report is to provide an updated value opinion as of a current date of value. Reference to the original appraisal should be made for property data, characteristics, and appraisal analysis. In this regard, the client reports there have been no substantial changes to the subject property or to the characteristics of the acquisition area. Therefore, this appraisal only considers an updated value based on current sale comparisons. The subject property, located at 578 California Blvd., San Luis Obispo, CA, includes a small shopping center at the northeast quadrant of the Hwy. 101 and California Blvd. interchange. The client has requested fair market value relative to a proposed partial acquisition for roadway improvements. The larger parcel, as referenced above, is located on the southeast corner of California Blvd. and Taft St. and is further identified as Assessor’s Parcel Number (APN) 001-043-027. The property consists of a multi-tenant retail building on a 0.51 acre or 22,216 SF site. As discussed in the original appraisal, as the acquisition does not affect the remainder of the property, and no severance damage is evident, consideration is given only the portion of land being acquired. Page 471 of 615 CENTRAL CALIFORNIA APPRAISALS 33-S25 2 The purpose of this appraisal is to develop an opinion of the Fair Market Value (Fee Simple Estate). The following table conveys the final opinion of value that is developed in this appraisal: MARKET VALUE CONCLUSION VALUATION SCENARIO INTEREST APPRAISED EFFECTIVE DATE VALUE Fair Market Value Fee Simple Estate April 17, 2025 $313,000 The acceptance of this appraisal assignment and the completion of the appraisal report submitted herewith are subject to the General Assumptions and Limiting Conditions contained in the report. The findings and conclusions are further contingent upon the following extraordinary assumptions and/or hypothetical conditions which might have affected the assignment results: EXTRAORDINARY ASSUMPTIONS No Extraordinary Assumptions were made for this assignment. HYPOTHETICAL CONDITIONS The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following: a) the project for which the property is taken: b) the eminent domain proceeding in which the property is taken; and c) any preliminary actions of the plaintiff relating to the taking of the property. [California Code of Civil Procedure, Section 1263.330] If there are any specific questions or concerns regarding the attached appraisal report, or if Central California Appraisals can be of additional assistance, please contact the individuals listed below. Respectfully Submitted, CENTRAL CALIFORNIA APPRAISALS Rachel Unger Certified General Real Estate Appraiser California License No. AG044296 Expiration Date 6/6/2026 661-587-1010 runger@appraisecc.com Michael Burger MAI, R/W-AC Certified General Real Estate Appraiser California License No. AG003817 Expiration Date 5/17/2026 661-410-1014 mburger@appraisecc.com Page 472 of 615 TABLE OF CONTENTS CENTRAL CALIFORNIA APPRAISALS 33-S25 i LETTER OF TRANSMITTAL INTRODUCTION Executive Summary _______________________________________________________________________________________________________ 1 Property Identification ____________________________________________________________________________________________________ 1 Scope of Work ____________________________________________________________________________________________________________ 3 Acquisition Description ___________________________________________________________________________________________________ 9 VALUATION Site Valuation ___________________________________________________________________________________________________________ 13 Certification _____________________________________________________________________________________________________________ 23 ADDENDA 25 Engagement Letter ______________________________________________________________________________________________________ 25 Subject Photographs ____________________________________________________________________________________________________ 26 Acquisition Map _________________________________________________________________________________________________________ 28 Assessor Map ___________________________________________________________________________________________________________ 29 Zone Map _______________________________________________________________________________________________________________ 30 Flood Map _______________________________________________________________________________________________________________ 31 Aerial Photograph _______________________________________________________________________________________________________ 32 Regional Map ___________________________________________________________________________________________________________ 33 Local Map _______________________________________________________________________________________________________________ 34 Easement Grant Deed ___________________________________________________________________________________________________ 35 Sale Data Sheets ________________________________________________________________________________________________________ 36 Qualifications ____________________________________________________________________________________________________________ 37 Page 473 of 615 EXECUTIVE SUMMARY CENTRAL CALIFORNIA APPRAISALS 33-S25 1 PROPERTY IDENTIFICATION Name Shopping Center Property Land - Free Standing Retail Address 578 California Blvd. City, State Zip San Luis Obispo, California 93405 County San Luis Obispo County MSA San Luis Obispo-Paso Robles-Arroyo Grande, CA MSA Market / Submarket San Luis Obispo / Central Geocode 35.290771,-120.659528 Census Tract 06-079-010902 Legal Description A legal description is included in the Addenda. SITE DESCRIPTION Number of Parcels 1 Assessor Parcel Number Land Area Square Feet Acres Total 22,216 0.51 Zoning Neighborhood Commercial (C-N) Shape Irregular Topography Level at street grade Flood Zone Zone X (Unshaded) Seismic Zone Medium Risk QUALITATIVE ANALYSIS Site Quality Good Site Access Average Site Exposure Good Site Utility Average 001-043-027 HIGHEST & BEST USE Proposed Construction No As Vacant As Improved Development to uses allowed by zoning, likely a retail or mixed Continue use as a retail center. PROPERTY IDENTIFICATION – LARGER PARCEL The subject property is located at 578 California Blvd., San Luis Obispo, California 93405. The Assessor Parcel Number is: 001-043-027. PROPERTY IDENTIFICATION – ACQUISITION The acquisition area includes a 2,182 SF portion of the northwest corner of the site that is needed for roadway improvements. Additionally, the property is proposed for an 18 month Temporary Construction Easement on 763 SF adjoining the fee acquisition area, as well as a Temporary Non-Exclusive Access Easement for use of the driveway and parking lot containing 1,614 SF for an 18-month period. LEGAL DESCRIPTION – LARGER PARCEL A legal description is included in the Addenda. LEGAL DESCRIPTION – ACQUISITION A Grant Deed provided by the client, as included in the Addenda, includes legal descriptions of the fee acquisition area as well as the TCE areas. Page 474 of 615 EXECUTIVE SUMMARY (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 2 CLIENT IDENTIFICATION The client of this specific assignment is Hamner, Jewell and Associates. PURPOSE, INTENDED USE & INTENDED USERS The purpose of this appraisal is to develop an opinion of the Fair Market Value (Fee Simple Estate). The purpose of the appraisal is to determine fair market value for eminent domain purposes relative to a partial acquisition. Hamner, Jewell and Associates and the City of San Luis Obispo are the only intended user of this report. PERSONAL PROPERTY & BUSINESS INTANGIBLE There is no personal property (FF&E) included in this valuation. PROPERTY AND SALES HISTORY The subject property is currently under the ownership of Patel Kirit C Trust, according to the San Luis Obispo County records. According to county records there has been no transfer of ownership for the subject property in the past three years and there is no known pending sale or listing of the subject. DEFINITION OF MARKET VALUE The purpose of this appraisal is to estimate the fair market value of the proposed acquisition appraised. Section 1263.320 of the Code of Civil Procedure defines market value as: 1. (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 the property taken for which there is no relevant market is its value on the date of valuation as determined by any method of valuation that is just and equitable. The legal property rights appraised are the fee simple interest existing in the property and the easement interests to be acquired. Fee simple rights are appraised free and unencumbered, subject to existing easements and rights-of-way of record, but excluding the impact of leases or financing. Under eminent domain law (CCP Sec. 1263.330), the fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the follows: 1. The project for which the property is taken. 2. The eminent domain proceeding in which the property is taken. 3. Any preliminary actions of the acquiring authority relating to the taking of the property. This is contrary to USPAP Standards Rule 1-4 (f), which requires “When analyzing anticipated public or private improvements, located on or off the site, an appraiser must analyze the effect on value, if any, of such anticipated improvements to the extent they are reflected in market actions.” In this instance, the California law is followed and this section of USPAP is disregarded. Page 475 of 615 EXECUTIVE SUMMARY (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 3 Eminent Domain: According to the Dictionary of Real Estate Appraisal, Sixth Edition, Appraisal Institute, eminent domain is defined as: "The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as the takings clause, guarantees payment of just compensation upon appropriation of private property." Condemnation: According to the Dictionary of Real Estate Appraisal, Sixth Edition, Appraisal Institute, condemnation is defined as: "The act or process of enforcing the right of eminent domain." Taking: According to "The Dictionary of Real Estate Appraisal," Sixth Edition, as published by the Appraisal Institute: “The acquisition of a parcel of land through condemnation.” State Rule: According to The Dictionary of Real Estate Appraisal, Sixth Edition, published by the Appraisal Institute, "In condemnation, the process of determining just compensation by estimating the value of the portion to be acquired as part of the whole property plus the net damages; may be referred to as a taking plus damages rule." PROPERTY RIGHTS APPRAISED The property rights appraised constitute the fee simple estate Fee Simple Interest Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.1 VALUE SCENARIOS As-Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.2 SCOPE OF WORK The scope of work for this appraisal assignment is outlined below: The appraisal analyzes legal and physical features of the subject including site size, improvement size, flood zone, seismic zone, site zoning, easements, encumbrances, site access and site exposure. The appraisal includes a Highest and Best Use analysis and conclusions have been completed for the highest and best use of the subject property As Vacant and As Improved. The analysis considered legal, locational, physical and financial feasibility characteristics of the subject site and existing improvements. In selecting applicable approaches to value, the appraisers considered the agreed upon appraisal scope and assessed the applicability of each traditional approach given the subject’s characteristics and the 1 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 2 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 Page 476 of 615 EXECUTIVE SUMMARY (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 4 intended use of the appraisal. As a result, this appraisal developed Land Sales Comparison Approach. The values presented represent the Fair Market Value (Fee Simple Estate). The assignment was prepared as an Restricted Appraisal Report in accordance with USPAP Standards Rules 2, with the analysis stated within the document and representing a brief level of analysis. The authors of this report are aware of the Competency Rule of USPAP and meet the standards. ASSISTANCE PROVIDED Cameron Born provided real property appraisal assistance to the appraisers signing this certification. Assistance provided included an exterior inspection and photographs of the subject. SOURCES OF INFORMATION The following sources were contacted to obtain relevant information: INFORMATION PROVIDED Property Assessment & Tax San Luis Obispo County Ass essor Zoning & Land Use Planning City of San Luis Obispo Zoning Site Size San Luis Obispo County Assessor Building Size San Luis Obispo County Assessor Supply & Demand CoStar Flood Map FEMA Demographics STDB On-Line Comparable Information MLS | Public Records | Confirmed by Local Agents Legal Description Preliminary Title Report The lack of unavailable items could affect the results of this analysis. As part of the general assumptions and limiting conditions, the subject is assumed to have no adverse easements, significant items of deferred maintenance, or be impacted by adverse environmental conditions. SUBJECT PROPERTY INSPECTION PROPERTY INSPECTION APPRAISER INSPECTED EXTENT DATE ROLE Rachel Unger No N/A April 17, 2025 Primary Appraiser Michael Burger MAI, R/W-AC Yes Exterior April 17, 2025 Appraiser Cameron Born Yes Exterior April 17, 2025 Inspection Technician The acceptance of this appraisal assignment and the completion of the appraisal report submitted herewith are subject to the General Assumptions and Limiting Conditions contained in the report. The findings and conclusions are further contingent upon the following extraordinary assumptions and/or hypothetical conditions which might have affected the assignment results: EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS No Extraordinary Assumptions were made for this assignment. The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following: a) the project for which the property is taken: b) the eminent domain proceeding in which the property is taken; and c) any preliminary actions of the plaintiff relating to the taking of the property. [California Code of Civil Procedure, Section 1263.330] Page 477 of 615 SITE DESCRIPTION CENTRAL CALIFORNIA APPRAISALS 33-S25 5 Number of Parcels 1 Assessor Parcel Land Area Square Feet Acres Total Land Area 22,216 0.51 Excess/Surplus Land No Corner Yes; Signalized Site Topography Level At street grade Site Shape Irregular Site Grade At street grade Site Quality Good Site Access Average Site Exposure Good Site Utility Average Utilities Full Comments 001-043-027 The site is well located at the on/off-ramp for southbound Hwy. 101. Flood Zone Data: Zone X (Unshaded). This is referenced by Panel Number 06079C1066G, dated November 16, 2012. Zone X (unshaded) is a moderate and minimal risk area. Areas of moderate or minimal hazard are studied based upon the principal source of flood in the area. However, buildings in these zones could be flooded by severe, concentrated rainfall coupled with inadequate local drainage systems. Local storm water drainage systems are not normally considered in a community’s flood insurance study. The failure of a local drainage system can create areas of high flood risk within these zones. Flood insurance is available in participating communities, but is not required by regulation in these zones. Nearly 25% of all flood claims filed are for structures located within these zones. Minimal risk areas outside the 1% and 0.2% annual chance floodplains. No BFEs or base flood depths are shown within these zones. (Zone X (unshaded) is used on new and revised maps in place of Zone C.) Site Improvements: The larger parcel includes an asphalt paved parking lot, landscaping, and exterior lighting. Topography: Level Environmental: The appraiser was not provided an environmental site assessment. It is assumed no hazardous contamination has occurred. Therefore, the cost of clean-up, encasement or removal and its effect on value, have not been considered. SITE DESCRIPTION Page 478 of 615 SITE DESCRIPTION (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 6 Seismic Zone: The property is not located in the Alquist-Priolo Earthquake Fault Zone. The community has adopted a seismic element to the general plan and requires all construction to meet Zone 4 of the Uniform Building Code, which is in consideration of earthquake hazards associated with California. Restrictions: A preliminary title report was provided for a prior appraisal, as prepared by First American Title, dated 9/6/2017. Easements and restrictions are typical of other similar parcels in the area. During the property inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there are no adverse easements present. If questions arise, further research is advised. Site Comments: The subject property consists of one parcel with a total site area of 22,216 SF (0.51 AC) which is based on information obtained from San Luis Obispo County Assessor. It is perceived that there is no surplus or excess land at the subject. For the purposes of this report we have relied on this site area and reserve the right to amend our analysis upon receipt of a formal legal plan. Aerial photographs and other property exhibits can be found in the Addenda of this report. STREET & TRAFFIC DETAIL Street Improvements Type Direction Lanes LightsCurbsSidewalksSignalsMedianParkingCenter LaneBike LaneCalifornia Blvd. Two-Lane Roadway Two-Way 3 x x x Taft St. Connector Two-Way 2 x x Page 479 of 615 SITE DESCRIPTION (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 7 ZONING The subject zoning is Neighborhood Commercial (C-N). The C-N zone is intended to accommodate the establishment and operation of small-scale, pedestrian-oriented, and low-impact retail sales and personal services businesses primarily for the convenience of people in surrounding residential areas, to meet the frequent shopping needs of people living nearby. As summarized below, the Neighborhood Commercial zone allows a variety of retail and commercial uses. ZONING Designation Neighborhood Commercial (C-N) Zoning Authority City of San Luis Obispo Permitted Uses A variety of commercial and retail uses. Current Use Free Standing Retail Current Use Legally Permitted Yes Conforming Use The bulk of the improvements as well as the parking conform to the requirements ordinance. Conforming Lot The bulk of the improvements as well as the parking conform to the requirements ordinance.Zoning Change Not Likely Source: City of San Luis Obispo Planning & Zoning Department The current use for the subject property is free standing retail and is a permitted use based on the current zoning guidelines. A zoning change for the subject does not appear likely. Based on the foregoing, it appears that the subject’s improvements are a legally conforming use of the subject site. SITE RATING Overall, the subject site is considered good as a land site in terms of its location, exposure and access to employment, education and shopping centers, based on its location along a primary arterial with proximity to freeway off-ramps. TAXES & ASSESSMENT In California, Proposition 13 establishes that annual increases of assessed value of real property should not exceed 2% per year except in cases of a change in ownership, completion of new construction, and/or in the case of a value restoration due to a prior year decline in value (Proposition 8) assessment. The total assessment for the subject property for the tax year 2024 is $1,846,617 or $285.72 PSF. There are no exemptions in place. The total tax bill for the property is $20,440 or $3.16 PSF. According to San Luis Obispo County, real estate taxes for the subject property are current as of the date of this report. Based on the scope of this assignment, any pending tax liens are not considered in the value conclusion. Taxes are summarized as follows: ASSESSMENT & TAXES (2024) TAX RATE AREA TAX RATE 1.1069% ASSESSOR PARCEL # LAND IMPROVEMENTS TOTAL EXEMPTIONS TAXABLE BASE TAX 001-043-027 $796,578 $1,050,039 $1,846,617 $0 $1,846,617 $20,440 TOTAL BASE TAX $/GBA / $ TOTAL $3.16 $20,440 Source: San Luis Obispo County Assessment & Taxation Page 480 of 615 IMPROVEMENT DESCRIPTION CENTRAL CALIFORNIA APPRAISALS 33-S25 8 IMPROVEMENTS DESCRIPTION A description of the improvements is provided in the original appraisal. As discussed, no consideration is given the building improvements. Page 481 of 615 ACQUISITION DESCRIPTION CENTRAL CALIFORNIA APPRAISALS 33-S25 9 As discussed in the original appraisal, a portion of the property is being acquired for roadway improvements related to installation of a roundabout at the intersection. The acquisition consists of a 2,182 SF portion located at the northwest corner of the parcel. Additionally, the property is proposed for a Temporary Construction Easement on 763 SF as well as a Temporary Non-Exclusive Access Easement for use of the driveway and parking lot containing 1,614 SF. Site and acquisition areas are further summarized as follows: Acquisition Areas (SF) Fee Simple TCE TNEAE 2,182 763 1,614 The acquisition area includes some small asphalt parking lot area and landscaping. There are also four mature trees in the acquisition area to include the three tall palm trees (which appear to be Mexican Fan Palms), which are grouped near the corner of the property and provide visual relief and aesthetic appeal. These trees are each roughly 50 to 55 feet in height, with roughly a 12-inch trunk diameter. Also to be removed is one of the three mature oaks, roughly 25 feet in height and 16 inches in trunk diameter. This tree is situated a bit east of the palms. Two other mature oak trees will remain. An existing monument sign will be relocated by the condemning agency. The acquisition will not result in the loss of any on-site parking spaces. According to Duane Mathis, Forest Nursery, a mature oak tree can cost between $8,000 and $10,000. Shipping and delivery costs are 20% of tree costs. Randy Kendall, Bob’s Crane Service reports the cost of the crane to plant the trees would be approximately $3,250. The following table provides a summary of the mature tree replacement cost budget on the Patel Trust, et al., property: Mature Tree Replacement Cost Palms: 150’ x $60/linear foot = $ 9,000 165’ x $60/linear foot = $ 9,900 Oak 8,000 to 10,000 Subtotal Trees $17,000 to $19,900 Shipping (20%) 3,400 to 3,980 Planting/Crane Operation 3,250 to 3,250 Total Range $23,650 to $27,130 Rounded $24,000 to $27,000 Conclusion $26,000 Page 482 of 615 ACQUISITION DESCRIPTION (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 10 TCE Acquisitions There are two types of temporary easements that will encumber various areas of the Patel Trust, et al., property. This includes one Temporary Construction Easement (TCE) that will be required for access, staging, and construction-support purposes. This will encumber a level, landscaped area and a portion of the parking lot. An additional temporary easement is identified as a Temporary Non-Exclusive Access Easement (TNEAE), which includes portions of the parking lot and driveway for shared-use access purposes. These temporary easements will be in place for 18 months. The temporary easements affecting the Patel Trust, et al., property are summarized in the following table: TCE Summary Area Required For Affected Land Use Area Affected (SF) Use Period (Months) TCE Construction support Landscaped area and driveway 763 18 TNEAE Access Driveway 1,614 18 Total 2,377 Page 483 of 615 HIGHEST & BEST USE CENTRAL CALIFORNIA APPRAISALS 33-S25 11 The Highest and Best Use of a property is the use that is legally permissible, physically possible, and financially feasible which results in the highest value. An opinion of the highest and best use results from consideration of the criteria noted above under the market conditions or likely conditions as of the effective date of value. Determination of highest and best use results from the judgment and analytical skills of the appraiser. It represents an opinion, not a fact. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. ANALYSIS OF HIGHEST AND BEST USE AS IF VACANT The primary determinants of the highest and best use of the property as if vacant are the issues of (1) Legal permissibility, (2) Physical possibility, (3) Financial feasibility, and (4) Maximum productivity. Legally Permissible The subject zoning is Neighborhood Commercial (C-N). The C-N zone is intended to accommodate the establishment and operation of small-scale, pedestrian-oriented, and low-impact retail sales and personal services businesses primarily for the convenience of people in surrounding residential areas, to meet the frequent shopping needs of people living nearby. The subject site controls the general nature of permissible uses but is appropriate for the location and physical elements of the subject property, providing for a consistency of use with the general neighborhood. The location of the subject property is appropriate for the uses allowed, as noted previously, and a change in zoning is unlikely. Physically Possible The physical attributes allow for a number of potential uses. Elements such as size, shape, availability of utilities, known hazards (flood, environmental, etc.) and other potential influences have been considered. There are no items of a physical nature that would materially limit appropriate and likely development. Financially Feasible The probable use of the site for its existing use as a Free Standing Retail conforms to the pattern of land use in the market area although there have not been new developments in this area recently. Maximally Productive Among the financially feasible uses, the use that results in the highest value (the maximally productive use) is the highest and best use. Considering these factors, the maximally productive use as though vacant is for development to uses allowed by zoning. Conclusion of Highest and Best Use As If Vacant The conclusion of the highest and best use as if vacant is for development allowed by zoning, upon demand. Page 484 of 615 IDENTIFICATION OF ASSIGNMENT (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 12 ANALYSIS OF HIGHEST AND BEST USE AS IMPROVED In determining the highest and best use of the property as improved, the focus is on three possibilities for the property: (1) continuation of the existing use, (2) modification of the existing use, or (3) demolition and redevelopment of the land. Retaining the improvements as they exist meets the tests for physical possibility, legal permissibility and financial feasibility. The improvements are in average condition and any alternative use of the existing improvements is unlikely to be economically feasible. The market value of the property as improved exceeds the combination of vacant site value plus cost of demolition of the improvements. Therefore, demolition and redevelopment of the site is not maximally productive. Conclusion of Highest & Best Use As Improved The highest and best use of the subject property, As Improved, is Continue use as a retail center.. Most Probable Buyer Based on the type of property and the highest and best use, it is our opinion that the most probable buyer for the subject would be an investor. Page 485 of 615 VALUATION CENTRAL CALIFORNIA APPRAISALS 33-S25 13 VALUATION METHODS Based on the agreed upon scope with the client, the subject’s specific characteristics and the interest appraised, this appraisal developed Land Sales Comparison Approach. The values presented represent the Fair Market Value (Fee Simple Estate). SITE VALUATION – LARGER PARCEL This section values the subject site by comparing it with substitute land sales or listings within the local market area or in competitive areas throughout the region. Land value is influenced by a number of factors; most notably development and use potential. These factors, as well as others, are factored in the following analysis. The most relevant unit of comparison for competing land is the $/SF. Adjustments to the comparable sales were considered and made when warranted for expenditures after purchase, property rights transferred, conditions of sale, financing terms, and market conditions. Based on research and interpretation of value trends, the analysis applies an upward market conditions adjustment of 3% annually. The following Land Sales Comparison Table, location map summarize the sales data. Then the sales are adjusted and the site value is concluded. LAND SALES SUMMARY DATE OF SALE LOCATION MUNICIPALITY SF UNADJUSTED SALE PRICE $/SF 1 6/11/2019 1185 Monterey St.San Luis Obispo 12,196 $2,200,000 $180 2 8/13/2020 1121 Montalban St. San Luis Obispo 15,000 $1,850,000 $123 3 12/30/2020 1480 Monterey St. San Luis Obispo 9,180 $850,000 $93 4 5/24/2021 666 Upham St. San Luis Obispo 14,500 $900,000 $62 5 8/25/2022 564 Higuera St. San Luis Obispo 15,766 $2,525,000 $160 6 5/12/2023 424 Higuera St. San Luis Obispo 7,500 $475,000 $63 7 6/7/2024 666 Upham St. San Luis Obispo 14,500 $1,551,000 $107 8 Pending 973 Higuera St.San Luis Obispo 5,227 $1,295,000 $248 Page 486 of 615 VALUATION CENTRAL CALIFORNIA APPRAISALS 33-S25 14 Sales are adjusted for market conditions as well as based on various characteristics as compared with the subject, summarized as follows: Page 487 of 615 VALUATION CENTRAL CALIFORNIA APPRAISALS 33-S25 15 COMPARABLE LABEL ADDRESS MILES FROM SUBJECT COMPARABLE 1 1 1185 Monterey St., San Luis Obispo, CA, 93401 0.5 COMPARABLE 2 2 1121 Montalban St., San Luis Obispo, CA, 93405 0.3 COMPARABLE 3 3 1480 Monterey St., San Luis Obispo, CA, 93405 0.4 COMPARABLE 4 4 666 Upham St., San Luis Obispo, CA, 93401 1.3 COMPARABLE 5 5 564 Higuera St., San Luis Obispo, CA, 93401 1.0 COMPARABLE 6 6 424 Higuera St., San Luis Obispo, CA, 93401 1.2 COMPARABLE 7 7 666 Upham St., San Luis Obispo, CA, 93401 1.3 COMPARABLE 8 8 973 Higuera St., San Luis Obispo, CA, 93401 0.7 7 Page 488 of 615 VALUATION (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 16 LAND VALUE CONCLUSIONS – LARGER PARCEL The comparable land sales indicate an overall unadjusted value range from $62/SF to $248/SF, and average of $130/SF. After adjustments, the comparables indicate a narrower range for the subject site between $50/SF and $148/SF with an average of $99/SF. Based on the subject’s overall locational and physical features, a unit value conclusion of $105/SF is supported. The following table summarizes the comparable land sales analysis and applies the unit value conclusion to the site area to provide an indication of the as-vacant land value.. LAND SALES COMPARISON APPROACH CONCLUSION (SF) TRANSACTION ADJUSTMENT NET GROSS PRICE TRANSACTIONAL¹ ADJUSTED PROPERTY² FINAL ADJ ADJ 1 $180 18% $212 (30%)$148 (18%)48% 2 $123 14% $140 (10%)$126 2% 24% 3 $93 19% $111 (10%)$100 8% 29% 4 $62 11% $69 10% $76 23% 42% 5 $160 (68%)$52 5% $55 (66%)128% 6 $63 6% $67 (25%)$50 (21%)31% 7 $107 3% $110 10% $121 13% 43% 8 $248 0% $248 (55%)$112 (55%)65% HIGH $248 19% $248 10% $148 23% 128% AVG $130 0% $126 (13%)$99 (14%)51% MED $115 9% $111 (10%)$106 (8%)42% LOW $62 (68%)$52 (55%)$50 (66%)24% SUBJECT SF $/SF Usable Land 22,216 x $105 = INDICATED VALUE (ROUNDED TO NEAREST $10,000) $105 ¹Cumulative ²Additive $2,332,680 VALUE $2,330,000 VALUE OF FEE ACQUISITION As discussed, the acquisition area includes some improvements, to include a paved driveway, parking lot, landscaped area and trees. The value of these improvements based on the Marshall and Swift Valuation Guide, as well as the value of the mature trees as already discussed in the Acquisition Description section, is summarized as follows: QTY. PRICE/UNIT TOTAL Landscaped & asphalt area 2,182 SF $8.00 $17,456 Irrigation system 2,000 SF $1.69 $3,380 Mature Trees 1 $26,000 $26,000 Total Value of Site Improvements $46,836 Page 489 of 615 VALUATION (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 17 Adding the value of the improvements within the acquisition area to the underlying fee value results in total value of the acquisition as follows: QTY. PRICE/UNIT TOTAL Land value of acquisition area 2,182 $105.00 $229,110 Value of Site Improvements $46,836 Total Value of Easement Acquisition $275,946 SEVERANCE DAMAGE No Severance Damage could be identified. The utility and function of the site in the After condition remains relatively unchanged from the Before condition. PROJECT BENEFITS Under California Law, Project Benefits may be used to offset Severance Damage. However, no project benefits are evident. COST TO CURE As discussed, the concrete drive approaches along the north property line will be impacted. This appraisal assumes that the condemning agency will reconstruct the driveway approaches as part of the roadway improvements. Further, the v-gutter drainage system adjoining the acquisition area will also be impacted and it is assumed it will be repaired by the condemning agency. No other cost to cure items were identified. VALUE OF TEMPORARY CONSTRUCTION & ACCESS EASEMENTS In order to determine the value of the Temporary Construction and Access Easements, the value of the land rent during the length of time the temporary easements will be in effect is utilized. In this regard, investors typically require an annual 8% to 10% return on the underlying land value with a 10% return considered reasonable. This results in the following market value of the easements: Temporary Construction Easement Value Underlying Land Value Per SF $105.00 Rent at 10% x 10% Rent Per SF. $10.50 Area of TCE x 763 Annual Rent for TCE $8,011 Length of Term (years) x 1.5 Total TCE Value $12,016 Page 490 of 615 VALUATION (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 18 Temporary Non-Exclusive Access Easement Value Underlying Land Value Per SF $105.00 Rent at 10% x 10% Rent Per SF. $10.50 Area of TCE x 1,614 Annual Rent for TCE $16,947 Length of Term (years) x 1.5 Total TCE Value $25,420 TOTAL FAIR MARKET VALUE Based on the values discussed above, this results in total fair market value as follows: Component As-Is Value Type Fair Market Value Property Rights Appraised Fee Simple Effective Date of Value April 17, 2025 Value Conclusions Value of Fee Acquisition $275,946 Damages Less Benefits Zero Cost to Cure Zero Value of TCE $12,016 Value of TNEAE $25,420 Total Fair Market Value $313,382 Round To $313,000 Page 491 of 615 ASSUMPTIONS & LIMITING CONDITIONS CENTRAL CALIFORNIA APPRAISALS 33-S25 19 This appraisal is subject to the following general assumptions and limiting conditions: 1. The legal description – if furnished to us – is assumed to be correct. 2. No responsibility is assumed for legal matters, questions of survey or title, soil or subsoil conditions, engineering, availability or capacity of utilities, or other similar technical matters. The appraisal does not constitute a survey of the property appraised. All existing liens and encumbrances have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management unless otherwise noted. 3. Unless otherwise noted, the appraisal will value the property as though free of contamination. Central California Appraisals will conduct no hazardous materials or contamination inspection of any kind. It is recommended that the client hire an expert if the presence of hazardous materials or contamination poses any concern. 4. The stamps and/or consideration placed on deeds used to indicate sales are in correct relationship to the actual dollar amount of the transaction. 5. Unless otherwise noted, it is assumed there are no encroachments, zoning violations or restrictions existing in the subject property. 6. The appraiser is not required to give testimony or attendance in court by reason of this appraisal, unless previous arrangements have been made. 7. Unless expressly specified in the engagement letter, the fee for this appraisal does not include the attendance or giving of testimony by Appraiser at any court, regulatory or other proceedings, or any conferences or other work in preparation for such proceeding. If any partner or employee of Central California Appraisals is asked or required to appear and/or testify at any deposition, trial, or other proceeding about the preparation, conclusions or any other aspect of this assignment, client shall compensate Appraiser for the time spent by the partner or employee in appearing and/or testifying and in preparing to testify according to the Appraiser’s then current hourly rate plus reimbursement of expenses. 8. The values for land and/or improvements, as contained in this report, are constituent parts of the total value reported and neither is (or are) to be used in making a summation appraisal of a combination of values created by another appraiser. Either is invalidated if so used. 9. The dates of value to which the opinions expressed in this report apply are set forth in this report. We assume no responsibility for economic or physical factors occurring at some point at a later date, which may affect the opinions stated herein. The forecasts, projections, or operating estimates contained herein are based on current market conditions and anticipated short-term supply and demand factors and are subject to change with future conditions. Appraiser is not responsible for determining whether the date of value requested by Client is appropriate for Client’s intended use. 10. The sketches, maps, plats and exhibits in this report are included to assist the reader in visualizing the property. The appraiser has made no survey of the property and assumed no responsibility in connection with such matters. 11. The information, estimates and opinions, which were obtained from sources outside of this office, are considered reliable. However, no liability for them can be assumed by the appraiser. 12. Possession of this report, or a copy thereof, does not carry with it the right of publication. Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to property value, the identity of the appraisers, professional designations, reference to any professional appraisal organization or the firm with which the appraisers are connected), shall be disseminated to the public through advertising, public relations, news, sales, or other media without prior written consent and approval. 13. No claim is intended to be expressed for matters of expertise that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers. We claim no expertise in areas such as, but not limited to, legal, survey, structural, environmental, pest control, mechanical, etc. Page 492 of 615 ASSUMPTIONS & LIMITING CONDITIONS (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 20 14. This appraisal was prepared for the sole and exclusive use of the client for the function outlined herein. Any party who is not the client or intended user identified in the appraisal or engagement letter is not entitled to rely upon the contents of the appraisal without express written consent of Central California Appraisals and Client. The Client shall not include partners, affiliates, or relatives of the party addressed herein. The appraiser assumes no obligation, liability or accountability to any third party. 15. Distribution of this report is at the sole discretion of the client, but third-parties not listed as an intended user on the face of the appraisal or the engagement letter may not rely upon the contents of the appraisal. In no event shall client give a third-party a partial copy of the appraisal report. We will make no distribution of the report without the specific direction of the client. 16. This appraisal shall be used only for the function outlined herein, unless expressly authorized by Central California Appraisals. 17. This appraisal shall be considered in its entirety. No part thereof shall be used separately or out of context. 18. Unless otherwise noted in the body of this report, this appraisal assumes that the subject property does not fall within the areas where mandatory flood insurance is effective. Unless otherwise noted, we have not completed nor have we contracted to have completed an investigation to identify and/or quantify the presence of non-tidal wetland conditions on the subject property. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 19. The flood maps are not site specific. We are not qualified to confirm the location of the subject property in relation to flood hazard areas based on the FEMA Flood Insurance Rate Maps or other surveying techniques. It is recommended that the client obtain a confirmation of the subject property’s flood zone classification from a licensed surveyor. 20. If the appraisal is for mortgage loan purposes 1) we assume satisfactory completion of improvements if construction is not complete, 2) no consideration has been given for rent loss during rent-up unless noted in the body of this report, and 3) occupancy at levels consistent with our “Income and Expense Projection” are anticipated. 21. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them. 22. Our inspection included an observation of the land and improvements thereon only. It was not possible to observe conditions beneath the soil or hidden structural components within the improvements. We inspected the buildings involved, and reported damage (if any) by termites, dry rot, wet rot, or other infestations as a matter of information, and no guarantee of the amount or degree of damage (if any) is implied. Condition of heating, cooling, ventilation, electrical and plumbing equipment is considered to be commensurate with the condition of the balance of the improvements unless otherwise stated. Should the client have concerns in these areas, it is the client’s responsibility to order the appropriate inspections. The appraiser does not have the skill or expertise to make such inspections and assumes no responsibility for these items. 23. This appraisal does not guarantee compliance with building code and life safety code requirements of the local jurisdiction. It is assumed that all required licenses, consents, certificates of occupancy or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value conclusion contained in this report is based unless specifically stated to the contrary. 24. When possible, we have relied upon building measurements provided by the client, owner, or associated agents of these parties. In the absence of a detailed rent roll, reliable public records, or “as-built” plans provided to us, we have relied upon our own measurements of the subject improvements. We follow typical appraisal industry methods; however, we recognize that some factors may limit our ability to obtain accurate measurements including, but not limited to, property access on the day of inspection, basements, fenced/gated areas, grade elevations, greenery/shrubbery, uneven surfaces, multiple story structures, obtuse or acute wall angles, immobile obstructions, etc. Professional building area measurements of the quality, level of detail, or accuracy of professional measurement services are beyond the scope of this appraisal assignment. Page 493 of 615 ASSUMPTIONS & LIMITING CONDITIONS (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 21 25. We have attempted to reconcile sources of data discovered or provided during the appraisal process, including assessment department data. Ultimately, the measurements that are deemed by us to be the most accurate and/or reliable are used within this report. While the measurements and any accompanying sketches are considered to be reasonably accurate and reliable, we cannot guarantee their accuracy. Should the client desire more precise measurement, they are urged to retain the measurement services of a qualified professional (space planner, architect or building engineer) as an alternative source. If this alternative measurement source reflects or reveals substantial differences with the measurements used within the report, upon request of the client, the appraiser will submit a revised report for an additional fee. 26. In the absence of being provided with a detailed land survey, we have used assessment department data to ascertain the physical dimensions and acreage of the property. Should a survey prove this information to be inaccurate, upon request of the client, the appraiser will submit a revised report for an additional fee. 27. If only preliminary plans and specifications were available for use in the preparation of this appraisal, and a review of the final plans and specifications reveals substantial differences upon request of the client the appraiser will submit a revised report for an additional fee. 28. Unless otherwise stated in this report, the value conclusion is predicated on the assumption that the property is free of contamination, environmental impairment or hazardous materials. Unless otherwise stated, the existence of hazardous material was not observed by the appraiser and the appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required for discovery. The client is urged to retain an expert in this field, if desired. 29. The Americans with Disabilities Act (“ADA”) became effective January 26, 1992. We have not made a specific compliance survey of the property to determine if it is in conformity with the various requirements of the ADA. It is possible that a compliance survey of the property, together with an 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 could have a negative effect on the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of ADA in developing an opinion of value. 30. This appraisal applies to the land and building improvements only. The value of trade fixtures, furnishings, and other equipment, or subsurface rights (minerals, gas, and oil) were not considered in this appraisal unless specifically stated to the contrary. 31. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated, unless specifically stated to the contrary. 32. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute prediction of future operating results. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. 33. Any estimate of insurable value, if included within the scope of work and presented herein, is based upon figures developed consistent with industry practices. However, actual local and regional construction costs may vary significantly from our estimate and individual insurance policies and underwriters have varied specifications, exclusions, and non-insurable items. As such, we strongly recommend that the Client obtain estimates from professionals experienced in establishing insurance coverage. This analysis should not be relied upon to determine insurance coverage and we make no warranties regarding the accuracy of this estimate. 34. The data gathered in the course of this assignment (except data furnished by the Client) shall remain the property of the Appraiser. The appraiser will not violate the confidential nature of the appraiser-client relationship by improperly disclosing any confidential information furnished to the appraiser. Notwithstanding the foregoing, the Appraiser is authorized by the client to disclose all or any portion of the appraisal and related appraisal data to appropriate representatives of the Appraisal Institute if such disclosure is required to enable the appraiser to comply with the Bylaws and Regulations of such Institute now or hereafter in effect. Page 494 of 615 ASSUMPTIONS & LIMITING CONDITIONS (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 22 35. You and Central California Appraisals both agree that any dispute over matters in excess of $5,000 will be submitted for resolution by arbitration. This includes fee disputes and any claim of malpractice. The arbitrator shall be mutually selected. If Central California Appraisals and the client cannot agree on the arbitrator, the presiding head of the Local County Mediation & Arbitration panel shall select the arbitrator. Such arbitration shall be binding and final. In agreeing to arbitration, we both acknowledge that, by agreeing to binding arbitration, each of us is giving up the right to have the dispute decided in a court of law before a judge or jury. In the event that the client, or any other party, makes a claim against Central California Appraisals or any of its employees in connections with or in any way relating to this assignment, the maximum damages recoverable by such claimant shall be the amount actually received by Central California Appraisals for this assignment, and under no circumstances shall any claim for consequential damages be made. 36. Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing general assumptions and limiting conditions. Page 495 of 615 CERTIFICATION CENTRAL CALIFORNIA APPRAISALS 33-S25 23 I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions of the signer are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. The signer of this report has 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. Rachel Unger has performed services, specifically as an appraiser, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. The signer is not biased with respect to the property that is the subject of this report or to the parties involved with this assignment. The engagement in this assignment was not contingent upon developing or reporting predetermined results. The 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 this appraisal. The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice, as set forth by the Appraisal Standards Board of the Appraisal Foundation. Rachel Unger did not inspect the property that is the subject of this report. Cameron Born provided significant real property appraisal assistance to the appraisers signing the certification. Rachel Unger Certified General Real Estate Appraiser California License No. AG044296 Expiration Date 6/6/2026 Page 496 of 615 CERTIFICATION (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 24 I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions of the signer are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. The signer of this report has 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. Michael Burger MAI, R/W-AC has performed services, specifically as an appraiser, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. The signer is not biased with respect to the property that is the subject of this report or to the parties involved with this assignment. The engagement in this assignment was not contingent upon developing or reporting predetermined results. The 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 this appraisal. The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice, as set forth by the Appraisal Standards Board of the Appraisal Foundation. Michael Burger MAI, R/W-AC inspected the property that is the subject of this report for a prior appraisal but not for the current assignment. Cameron Born provided significant real property appraisal assistance to the appraisers signing the certification. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, Michael Burger MAI, R/W-AC has completed the continuing education program for Designated Members of the Appraisal Institute. Michael Burger MAI, R/W-AC Certified General Real Estate Appraiser California License No. AG003817 Expiration Date 5/17/2026 Page 497 of 615 ADDENDA CENTRAL CALIFORNIA APPRAISALS 33-S25 25 ADDENDA ENGAGEMENT LETTER Page 498 of 615 Corporate and San Luis Obispo County Office 3183 Duncan Road, Suite E, San Luis Obispo, CA 93401 (805) 773-1459 Ventura County Office 260 Maple Court, Suite 277, Ventura, CA 93003 (805) 658-8844 Central Valley Office 264 Fallbrook, Suite 106, Fresno, CA 93711 (559) 412-8710 HJA / Appraiser Notice to Proceed-2025 AUTHORIZATION TO PROCEED WITH ☒APPRAISAL OR ☐APPRAISAL REVIEW TO: Luke Schwartz, Client Mike Burger, Appraiser, MAI lschwart@slocity.org mburger@appraisecc.com DATE: April 11, 2025 FROM: Stephen Myrick smyrick@hamner-jewell.com Hamner, Jewell & Associates CLIENT: City of San Luis Obispo PROJECT: California and Taft Roundabout Project NUMBER OF PARCELS [1] County of San Luis Obispo • APN 001-043-027 (Patel) RIGHTS TO BE ACQUIRED: ☒ Fee ☒ TCE Term: 18 months (1.5 years) PROPOSAL AMOUNT AND DELIVERY SCHEDULE: (Total Fee) By 4 weeks if engaged prior to 4/14/25 and 8 weeks if engaged after 4/14/25 Per Appraiser’s proposal dated April 9, 2025: Fee ☐ IS ☒ IS NOT within Contract Budget (extra service) INFORMATION ATTACHED: ☒ Title Report(s) ☒ Project Plans/Maps ☒ Legal Descriptions, Plats and Area Calculations ☒ Sample Deed(s) ☒ Copies of NODAs ☒Prior Appraisal FEDERAL MONEY? CALTRANS OVERSIGHT? ☐ Yes ☐ No ☒ Yes ☐ No COMMENTS: Date of value (DOV) to be within two (2) weeks from date of submittal of appraisal report(s) to HJA. IF QUESTIONS, CALL: Stephen Myrick at (805) 773-1459 By accepting this assignment, Appraiser agrees to all provisions of Exhibit A attached hereto and incorporated herein. Client hereby requests and authorizes appraiser to proceed with this assignment and agrees to pay the fee for services as noted herein, 50% within 30 days of this Notice to Proceed and the balance promptly following delivery of Appraisal Report. If as noted above, this request constitutes an extra service, Client hereby acknowledges, authorizes, and agrees to provide the noticed fee payment for such additional services, and if necessary, to provide an associated contract amendment to add these costs. Please review RW Maps and Legal Descriptions to confirm they represent what is to be appraised. For Easement Rights, review and approve Easement Deed(s) and identify TCE durations. Changes after this authorization date may prompt additional change fees. Client Signature: __________________________________________ Date: _______________ Appraiser’s Acceptance: ____________________________________ Date:__________________ HAMNER, JEWELL & ASSOCIATES Government Real Estate Services Right of Way Acquisition ~ Relocation Assistance ~ Real Property Consulting Offices in Ventura, San Luis Obispo and Fresno Counties Writer’s Telephone Number: (805) 773-1459 Writer’s email address: smyrick@hamner-jewell.com 4/11/2025 4/11/2025 Page 499 of 615 Page 500 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 26 SUBJECT PHOTOGRAPHS Looking north along California Blvd. Looking south along California Blvd. View of northeast corner of site and acquisition area Looking east along Taft St. and north property line View of impacted landscaped area and parking View of impacted landscaped area and parking Page 501 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 27 Front view of subject retail center View of westerly driveway Pedestrian sidewalk access Page 502 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 28 ACQUISITION MAP Page 503 of 615 YIELD YIELDYIELD YIELDYIELD YIELDYIELDYIELD YIELDYIELDCALIFORNIA BOULEVARD & TAFT STREETROUNDABOUTCITY SPECIFICATION NO. 11/17/17 DATE:PROJECT TITLE:SHEET TITLE:of SHEET NO. 50 DESIGNED BY: DRAWN BY: CHECKED BY: JWW APPROVED BY: JWW SCALE: PLAN FILE NO. / LOCATION O:\PRJ\2251\2251EX004.dwg 10/27/2017 3:59:13 PM91503 2251EX004.dwg 1 1"=10'RIGHT OF WAY IMPACTS APN 001-043-0272251EX004.DWG SMH SMH 1Page 504 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 29 ASSESSOR MAP Page 505 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 30 ZONE MAP Page 506 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 31 FLOOD MAP Page 507 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 32 AERIAL PHOTOGRAPH Page 508 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 33 REGIONAL MAP Page 509 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 34 LOCAL MAP Page 510 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 35 EASEMENT GRANT DEED Page 511 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed 2024-09-18 Page 1 Recording requested by: Hamner, Jewell & Associates Government Real Estate Services When recorded, return to: City of San Luis Obispo Department of Public Works 919 Palm Street San Luis Obispo, CA 93401 ______________________________________________________________________________ Exempt from the $75 Building and Jobs Act Fee per Gov’t Code §27388.1(2)(D) Public Agency No Fee pursuant to Gov. Code sec. 6103 No Documentary Transfer Tax per R&T Code sec. 11922 No Recording Fee per Gov. Code sec. 27383 APN: 001-043-027 GRANT DEED (To the City of San Luis Obispo) For a valuable consideration, receipt of which is hereby acknowledged, Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust (hereinafter collectively called “Grantor”), hereby grants to the CITY OF SAN LUIS OBISPO (“City”), the following described interests in real property located in the City of San Luis Obispo, County of San Luis Obispo, State of California: In Fee: All that certain property described and depicted in Exhibits “A” and “B”, attached hereto and incorporated herein; Together with: Temporary Construction Easement – 6-month duration: A temporary easement for construction (“Temporary Construction Easement”) to facilitate the construction of adjacent public street improvements, including the right to pile earth thereon, store materials, supplies and equipment thereon, and utilize said Temporary Construction Easement for all other related activities and purposes specifically in conjunction with the Page 512 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed 2024-09-18 Page 2 construction of the adjacent public street improvements. This Temporary Construction Easement shall be in, on, over, under, along, and across that certain property described and depicted in Exhibits “C” and “D” attached hereto and incorporated herein by this reference. Said Temporary Construction Easement shall commence fifteen (15) days after issuance by City of a Notice of Commencement of Construction to Grantor, which shall be issued to Grantor by U.S. Mail, and shall automatically terminate upon completion of City’s construction or six (6) months after the commencement of construction, whichever occurs first. Together with: Temporary Non-Exclusive Access Easement – 2-month duration: A temporary non-exclusive access easement for ingress and egress (Temporary Non-Exclusive Access Easement”) and for completing driveway conforms in conjunction with the construction of adjacent public street improvements. This Temporary Non-Exclusive Easement shall be in, on, over, along, through, and across that certain property described and depicted in Exhibits “E” and “F” attached hereto and incorporated herein. This Temporary Non-Exclusive Easement may be used intermittently for a period not to exceed 2 months within the 6-month Temporary Construction Easement period described in this document. Easement Extension Provisions: City shall have the right to extend the Temporary Easement terms in three (3) additional one (1) month increments if City determines that additional time beyond the initial period is necessary for construction completion. In such case, City shall have the unilateral right to extend the Temporary Construction Easements through construction completion and agrees to compensate Grantor ONE THOUSAND NINE HUNDRED EIGHTY-ONE DOLLARS ($1,981) for each 1- month extension term exercised. Payment for any such extensions shall be paid by City to Grantor concurrent with City’s written notice to Grantor of City’s intent to exercise such extension provisions. City shall further evaluate at the time of any extensions whether any increase in value of the temporary rights has occurred since the date this deed was executed by Grantor and if so, shall provide any additional payment based upon the determined just compensation at the time of extension. Upon termination, the Temporary Construction Easements and Temporary Non-Exclusive Access Easement areas will be generally restored by City to a comparable or better condition as that which existed prior to City’s access and use. The provisions hereof shall inure to the benefit of the City, its successors and assigns, and shall bind the heirs, executors, administrators, assigns and successors in interest of the respective parties hereto, and all covenants shall apply to and run with the above-described property. (Signature Page to Follow) Page 513 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed 2024-09-18 Page 3 GRANTOR: Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust By: ___________________________________ Kirit Chunibhai Patel Trustee By: ___________________________________ Gita Kirit Patel Trustee Page 514 of 615 _____________________________________________________________________________________________ APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed 2024-09-18 Page 4 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ____________________ On ______________________ before me, _______________________________________, Notary Public, personally appeared Kirit Chunibhai Patel, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature __________________________ (Seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ____________________ On ______________________ before me, _______________________________________, Notary Public, personally appeared and Gita Kirit Patel, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature __________________________ (Seal) Page 515 of 615 Page 516 of 615 Page 517 of 615 Page 518 of 615 Page 519 of 615 Page 520 of 615 Page 521 of 615 Page 522 of 615 Page 523 of 615 Page 524 of 615 Page 525 of 615 Page 526 of 615 APN: 001-043-027 City of SLO/CA & Taft Roundabout/Patel/Grant Deed CERTIFICATE OF ACCEPTANCE This is to certify that the City of San Luis Obispo, grantee herein, hereby accepts for public purposes the real property, or interests therein, described in the within Grant Deed from Kirit Chunibhai Patel and Gita Kirit Patel, Trustees of the Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust, and consents to the recordation thereof. In Witness Whereof, I have hereunto set my hand this ______ day of _______________, 20___. CITY OF SAN LUIS OBISPO, a municipal corporation and charter city ____________________________________ Erica A. Stewart, Mayor ATTEST: __________________________ Teresa Purrington, City Clerk ACKNOWLEDGEMENT STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) On __________________________, before me, Megan Wilbanks, Notary Public, personally appeared Erica A. Stewart, Mayor, CITY OF SAN LUIS OBISPO, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ______________________________ Megan Wilbanks, Notary Public (Official Notary Seal) A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. Page 527 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 36 SALE DATA SHEETS Page 528 of 615 Former Repair Facility Comparable 1 Sale Information Buyer Montorosa, LLC Seller SLOQ Properties, LLC Sale Date 6/11/2019 Transaction Status Recorded Listing Price $2,495,000 Sale Price $2,200,000 Sale Price /SF $676.92 /SF GBA $676.92 /SF NRA Adjusted Price $2,200,000 Adjusted Price /SF $676.92 /SF GBA $676.92 /SF NRA Recording Number 19-22663 Rights Transferred Fee Simple Conditions of Sale Typical Property Type Land Gross Building Area (GBA) 3,250 SF Net Rentable Area (NRA) 3,250 SF Buildings 1 Floor(s) Year Built 1946 Land Area 0.2800 Acres (12,196 SF) Usable Land Area 0.2800 Acres (12,196 SF) FAR 0.27 Zoning C-R 1185 Monterey St. San Luis Obispo, CA 93401 County San Luis Obispo APN 002-436-007 Confirmation Name Todd Murphy Date 12/11/2020 Remarks The property is located at the southern corner of Monterey St. and Toro St. in central San Luis Obispo. The 3,250 retail building is older and set to be demolished. The property was reportedly purchased for development of a 44-unit hotel with additional space for commercial uses. The 2019 transaction was under contract for about eight months then sold for $2,200,000 or $50,000 per unit. Page 529 of 615 Residential Land, Commercial Land Comparable 2 Sale Information Buyer Scrap XIX LLC Seller Covelop Holdings LLC Sale Date 8/13/2020 Transaction Status Closed Sale Price $1,850,000 Adjusted Price $1,850,000 Recording Number 2020-068350 Rights Transferred Fee Simple Conditions of Sale Typical Property Type Land Land Area 0.3444 Acres (15,000 SF) Usable Land Area 0.3444 Acres (15,000 SF) Zoning C-T 1121 Montalban St. San Luis Obispo, CA 93405 County San Luis Obispo APN 001-114-034 and -035 Confirmation Name Pat Arnold Company Covelop Phone Number 805-781-3133 Affiliation Seller Date 7/26/2024 Remarks This property fronts the south side of Montalban St., one parcel east of Santa Rosa St. in central San Luis Obispo. This property previously sold in 2018 for $750,000. Reportedly, at the time of the 2020 sale, the site was fully entitled with plans for a 16-unit apartment building. The selling broker, Chris Richardson, reports the site was essentially shovel ready and the buyer only needed to pull permits. Although no specific allocation was made by either party for the entitlements, Mr. Richardson estimates a value of approximately $55,000/unit for entitlements, or a total of $880,000, leaving $970,000 for the unentitled land value. The seller reports that they purchased the raw land, obtained entitlements and then sold it. They decided not to develop it themselves because they were building another complex across town and got a solid price on this property. Page 530 of 615 Commercial Land Comparable 3 Sale Information Buyer The Housing Authority of City of San Luis Obispo Seller Paul Vanderheyden & Lucia M. Cleveland Sale Date 12/30/2020 Transaction Status Closed Listing Price $975,000 Sale Price $850,000 Adjusted Price $850,000 Site Allocation $850,000 $92.59 /SF Recording Number 2020-78518 Rights Transferred Fee Simple Conditions of Sale See comments Property Type Land, Multi-Family Land Area 0.2107 Acres (9,180 SF) Usable Land Area 0.2107 Acres (9,180 SF) Zoning C-R 1480 Monterey St. San Luis Obispo, CA 93405 County San Luis Obispo APN 001-137-013 Confirmation Name Preston Thomas Company Colliers Phone Number 805-544-3900 Affiliation Listing agent Date 12/18/2022 Remarks This vacant lot is irregular configuration with a total size of 9,180 square feet, located on the northeastern corner of the California Blvd./Monterey St. Intersection. The corner parcel has 100 feet of frontage along Monterey Street and 76 feet along California Boulevard. This property is located in an ideal location for a commercial/retail property, being approximately 2 blocks (1,000 feet) from downtown San Luis Obispo, 3 blocks (1,000 feet) from San Luis Obispo High School, and 0.70 miles from Cal Poly San Luis Obispo. This site was formerly a service station site that had been remediated prior to the sale. It is zoned Retail Commercial (C-R). Monterey St. is asphalt-paved with concrete curbs, gutters, sidewalks, and street-lights. The location has very good visibility. Highway access is within easy reach. Monterey St. is a 60-foot-wide, two-way thoroughfare with two lanes of traffic. Unmetered street parking is available along the subject block. California Blvd. is a main street with considerable traffic. It is 60 feet wide with portions that allow street parking, but not in the subject block. This property is zoned Retail Commercial (C-R), which is the city's designation for areas that allow for a wide range of retail sales, business, personal and professional services, as well as recreation, entertainment, transient lodging, and permanent residences. This is in line with the General Plan and the trend in the neighborhood. Maximum density is 36 units per net acre, and maximum lot coverage is 100%. This property does not feature structural improvements. Full utilities are available to the site. This property was listed for sale in September 2019 for $975,000 before selling in December 2020 for $850,000.The buyer plans to use the property for development to low-income housing. The buyer also bought the adjoining parcel to the west, 1422 Monterey St. at the beginning of 2021. The property was originally in contract for $900,000, however, due to a potential issue with clearing up the title to the property, the sale price was discounted by $50,000. Page 531 of 615 Commercial Land Comparable 4 Sale Information Buyer Brittany Tricamo Separate Property Trust Seller Cash to conventional Sale Date 5/24/2021 Transaction Status Closed Sale Price $900,000 Adjusted Price $900,000 Recording Number 2021-47420 Rights Transferred Fee Simple Conditions of Sale Typical Property Type Land Land Area 0.3329 Acres (14,500 SF) Usable Land Area 0.3329 Acres (14,500 SF) Zoning C-N 666 Upham St. San Luis Obispo, CA 93401 County San Luis Obispo APN 003-641-010 Confirmation Name Hal Sweasey Company Re/MAX Del Oro Phone Number 805-781-8101 Affiliation Listing broker Date 7/29/2024 Remarks The property is located one parcel east of the northwestern corner of Upham St. and High St., in southern San Luis Obispo. The site was previously developed to an industrial building which was demolished. This property was listed for sale in October 2020 at $1,349,000 and was later reduced to $989,000 in May 2021. At the time of sale the seller had renderings drawn for a mixed use project. The plans were under permit review by the City. The broker reports that there were no entitlements at the time of sale, just plans and elevations. Since this 2021 sale, the property has sold again in June 2024 for $1,551,000. There was no listing information found for this sale and the listing agent for the 2021 sale did not have any details on the most current sale. Page 532 of 615 Commercial Land Comparable 5 Sale Information Buyer SLO Management, LLC Seller GOM Properties LLC Sale Date 8/25/2022 Transaction Status Closed Listing Price $3,250,000 Sale Price $2,525,000 Adjusted Price $725,000 Recording Number 2022-34628 Rights Transferred Fee Simple Conditions of Sale Typical Property Type Land Land Area 0.5100 Acres (22,216 SF) Usable Land Area 0.3619 Acres (15,766 SF) Zoning C-D 564 Higuera St. San Luis Obispo, CA 93401 County San Luis Obispo APN 002-402-048 Confirmation Name Chris Richardson Company Richardson Properties Phone Number 805-441-4618 Affiliation Listing Agent Date 2/10/2022 Remarks This site fronts the north side of Higuera St. in San Luis Obispo, CA. A portion of the site is located in the San Luis Obispo Creek easement area. Therefore an approximate 6,450+/- SF of the site is unusable resulting in a usable site area of 15,766+/- SF. The property was listed at $3,250,000. The sale was expected to close in late July or early August at $2.6-2.7 million. There was a price concession for parking in-lieu fees owed to the city. The property sold on August 29, 2022 for $2,525,000. The site was entitled for a 36-unit apartment building. The sale price equates to $70,139 per unit or $160 per usable SF. The listing agent could not provide an estimate of the value of the entitlements. However, market participants indicate entitlements can add between $40,000 and $70,000/unit depending on location. Therefore, value of the entitlements is estimated at $50,000/unit, or $1,800,000, leaving $725,000 to the underlying land value, or $32.63/SF. Page 533 of 615 Commercial Land Comparable 6 Sale Information Buyer Gregory F. & Dorothy S. Collins, Christopher Collins Seller Loh Revocable Trust Sale Date 5/12/2023 Transaction Status Closed Sale Price $475,000 Adjusted Price $475,000 Recording Number 2023-13727 Rights Transferred Fee Simple Conditions of Sale Typical Property Type Land Land Area 0.2124 Acres (9,250 SF) Usable Land Area 0.1722 Acres (7,500 SF) Zoning C-R Zoning Jurisdiction City of San Luis Obispo 424 Higuera St. San Luis Obispo, CA 93401 County San Luis Obispo APN 002-511-022 Confirmation Name Erik Berg-Johansen (MLS, public record) Company Richardson Sotheby's Phone Number 805-538-1828 Affiliation listing agent Date 8/29/2024 Remarks This property fronts the west side of S. Higuera St. in San Luis Obispo, CA. San Luis Obispo Creek is adjacent to the west of the property and the site is level with the street. A bridge crossing the creek is parallel to the site at the south property line. This property was listed for sale in February 2023 at $499,000. The MLS listing states nothing about entitlements or approvals at the time of listing. The rear 15' of the parcel is located within San Luis Obispo Creek and there is a 20' setback for development. The site contains 9,250 SF gross. The broker reports the sale was based on a usable site area of 7,500 SF. The buyer reportedly purchased the site for development to a mixed use residential/commercial building. Page 534 of 615 Commercial Land Comparable 7 Sale Information Buyer Demott Family Revocable Trust Seller Brittany Tricamo Separate Property Trust Sale Date 6/7/2024 Transaction Status Closed Sale Price $1,551,000 Adjusted Price $1,551,000 Recording Number 2024-15728 Rights Transferred Fee Simple Conditions of Sale Typical Property Type Land Land Area 0.3329 Acres (14,500 SF) Usable Land Area 0.3329 Acres (14,500 SF) Zoning C-N 666 Upham St. San Luis Obispo, CA 93401 County San Luis Obispo APN 003-641-010 Confirmation Name Hal Sweasey Company Re/MAX Del Oro Phone Number 805-781-8101 Affiliation Listing broker Date 7/29/2024 Remarks The property is located one parcel east of the northwestern corner of Upham St. and High St., in southern San Luis Obispo. The site was previously developed to an industrial building which was demolished. This property sold in June 2024 for $1,551,000. It previously sold about three years prior in July 2021 for $900,000. It was listed on the open market for the 2021. However, the 2024 sale appears to be off market as no marketing material was located. The listing agent for the 2021 sale doesn't know anything about it the 2024 sale. However, the property had plans for a mixed-use project which were in the permitting process with the City in 2021. It is unknown whether approvals/permits were obtained. Page 535 of 615 Commercial Land Comparable 8 Sale Information Seller JCC Monterey Morro LLC Transaction Status Pending Sale Price $1,295,000 Adjusted Price $1,295,000 Rights Transferred Fee Simple Conditions of Sale Typical Property Type Land Land Area 0.1200 Acres (5,227 SF) Usable Land Area 0.1200 Acres (5,227 SF) Zoning C-D Zoning Jurisdiction City of San Luis Obispo 973 Higuera St. San Luis Obispo, CA 93401 County San Luis Obispo APN 002-432-012 Confirmation Name Preston Thomas Company Colliers Phone Number 805-544-3900 Affiliation Broker Date 4/24/2025 Remarks The property includes a parking lot parcel. The buyer intends to develop the site to a mixed-use retail and residential building. The broker reports there were multiple offers and the property is selling at the full asking price. Page 536 of 615 ADDENDA (CONTINUED) CENTRAL CALIFORNIA APPRAISALS 33-S25 37 QUALIFICATIONS Page 537 of 615 MICHAEL C. BURGER, MAI, R/W-AC Central California Appraisals | Michael Burger & Associates mburger@appraisecc.com CONTACT INFORMATION 4915 Calloway Drive, Suite 101 Bakersfield, CA 93312 Main: 661.587.1010 x101 Fax: 661.834-0748 STATE CERTIFICATIONS California Certified General Real Estate Appraiser License AG003817 EDUCATION Bachelor of Science Agricultural Business Management California Polytechnic State University Michael C. Burger, MAI, R/W-AC Senior Managing Director Central California Appraisals EXPERIENCE Senior Managing Director Central California Appraisals (2023 - Present) Senior Managing Director Valbridge Property Advisors | Central California (2013 - 2023) President and Chief Appraiser Michael Burger and Associates (1997 - 2013) Probate Referee State of California (2011 - Present) Area Development Officer and Zone Owner Zone Data Systems | Zaio Inc. (2007- Present) Residential and Commercial Appraiser Bruce Beaudoin Real Estate Appraisers (1987 - 1997) VP Finance Alpha Gamma Rho – San Luis Obispo Chapter (1985 - 1986) Home Builder John K Richardson – General Contractor (1985 - 1986) PROFESSIONAL CREDENTIALS MAI – Appraisal Institute Certified General Appraiser – State of California FHA Approved – U.S. Department of Housing and Urban Development R/W-AC – International Right of Way Association Probate Referee of Kern County, Mono County, Inyo County Department of Veterans Affairs Fee Appraiser ID#5003448 CIVIC, VOLUNTEER AND PROFESSIONAL AFFILIATIONS Director (2013-Present) Friend of Mercy Foundation President (1998) Bakersfield Chapter Appraisal Institute Director (2003) Bakersfield East Rotary Club President and Treasurer (Past) Executive Association of Kern County Class of 2000 Greater Bakersfield Chamber of Commerce Leadership Club Director (Past) Alpha Gamma Rho Alumni Association Director and Secretary (Past) Bakersfield Active 20-30 Club Advisory Team City of Bakersfield Planning Department – Urban Decay Guest Lecturer: Bakersfield College, Cal Poly State University, Bakersfield Board of Realtors, Executive Associate of Kern County, Kern Kiwanis, Kern County Tax Payers Association, KERN Talk Radio, Watson Realty Corporation. Pro Bono Appraisal and Consulting services have been provided to the Bakersfield Police Activities League, Bakersfield Museum of Art, American National Red Cross, Habitat for Humanity, Salvation Army, and Kern Veteran’s Memorial Foundation. www.appraisecc.com Empowering Decisions, Delivering Excellence Page 538 of 615 Michael C. Burger, MAI, R/W-AC Senior Managing Director Central California Appraisals APPRAISAL SPECIALTIES Subdivision Development, Mixed-use, Retail Centers, Professional/Medical Office, Hotel/Motel, Restaurant, Apart- ments, Industrial, Special Use & Going Concern, Hangars, High-rise and Low-rise Condominiums, Gas Stations, Golf Course, Auto Dealerships, Specialty Medical Facilities, Bowling Centers, Self-Storage, Single Family Resi- dential, Right-of-Way/ Condemnation, Investment Analysis, Market Studies, Feasibility & High and Best Use Analysis, Business Valuations, Partial Interest Valuations. REAL ESTATE COURSES Rural Appraisal – Cal Poly University Real Estate Appraisal – Bakersfield College Real Estate Finance – Cal Poly University Advanced Real Estate Appraisal – Bakersfield College Principle of Real Estate – Cal Poly University Partial Interest Valuation APPRAISAL INSTITUTE COURSES (19- TO 40-HOUR COURSES) Real Estate Principles Standards of Professional Practice A & B Basic Valuation Procedures The Appraisers Complete Review Capitalization Theory & Technical A & B Condemnation Appraising Case Studies in Real Estate Valuation Separating Real & Personal Property from Intangible Report Writing & Valuation Analysis Business Assets INTERNATIONAL RIGHT OF WAY COURSES (19- TO 40-HOUR COURSES) The Appraisal of Partial Acquisitions (#401) Business Relocation (#502) Eminent Domain Law (#803) REAL ESTATE APPRAISAL SEMINARS Understanding Limited Appraisals – General The FHA and the Appraisal Process Appraising Complex Residential Properties FHA Appraising for Valuation Professionals Non-Residential Demonstration Appraisal Reports Appraisal of Nonconforming Uses O.R.E.A. Federal & State Laws & Regulations Appraisal of Nursing Facilities Loss Prevention Program for Real Estate Technology and the Appraisal Process Real Estate Appraiser Expert Witness National USPAP Update Trends in the Hospitality Industry Appraising Manufactured Housing Valuation Considerations - Partial Acquisition Litigation Seminar Valuation of Detrimental Conditions Business Practices and Ethics A Review of 1 – 4 Residential Form Vineyard Valuation & Ag Symposium Internet Sources for the California Appraiser Uniform Appraisal Dataset (UAD) Page 539 of 615 Page 540 of 615 Page 541 of 615 Page 542 of 615 California & Taft Roundabout Project: Resolution of Necessity Hearing September 16, 2025 Hearing Purpose 1.Conduct a hearing on the proposed adoption of a Resolution of Necessity 2.Receive evidence referenced in the staff report and staff presentation, and take testimony from anyone wishing to speak on the matter 3.If the Council finds sufficient evidence presented, adopt a Resolution of Necessity authorizing the initiation of eminent domain proceedings (requires 4/5ths vote) Project Background Cal Poly Gr a n d A v e RAILROAD TRAIL PROJECT SITE Project Background Existing Conditions: Intersection operations at deficient Level of Service (LOS) High Crash Rate Past 10 Years: 34 crashes / 18 injury / 2 severe injury) Roundabout recommended per several adopted plans & policies: GP Circulation Element Cal Poly Housing South EIR Traffic Safety Report / Draft Vision Zero Action Plan Active Transportation Plan City’s “Roundabout First” Policy Project Background Project History 2016 – Initiated roundabout planning, environmental and design work, preliminary contact to adjacent property owners 2018 – Initiated formal right-of-way negotiations 2020 – Paused right-of-way negotiations due to lack of progress and shift in City resources/priorities due to COVID 2023 – Reopened right-of-way negotiations 2025 – Hearing on Resolution of Necessity due to lack of progress with good faith right-of-way negotiations Roundabout Right-of-Way Needs 552 California (7-11 Site) **Property Acquisition Complete** 578 California Blvd (Ziggy’s, Boba Stop, etc.) Property Acquisition Unsuccessful Subject Property •578 California Blvd •(APN 001-043-027) •0.51 acres •Existing Use: Multi-tenant retail building •26 off-street parking stalls •Owners: Kirit Chunibhai Patel and Gita Kirit Patel 1992 Revocable Living Trust Taft St 578 California Blvd. APN 001-043-027 Subject Property Subject Property Interests Off-Site Right-of-Way Needed to Construct Roundabout): •2,182 sqft. permanent R/W (red area) •763 sqft. temp. construction easement for 18 mo. (yellow area) •1,614 sqft. temp. non-exclusive access easement for 18 mo. (purple area) Subject Property Interests PROPOSED PUBLIC STREET RIGHT-OF-WAY EXISTING PUBLIC STREET RIGHT-OF-WAY Note: Right-of-way limits shown above are approximate Impacts to Subject Property Permanent Effects: •Reduced landscape area & removal of 4 trees (3 Palms, 1 Oak) •Project to add 20+ new trees in vicinity •Relocation of existing monument sign •Elimination of at least 5 of 8 existing on-street public parking spaces on Taft Street •No reduction in # private off-street parking stalls •Driveway access retained for vehicles •Intersection access and safety improved for vehicles, peds and bikes Offer presented to Subject Property Owners per Government Code 7267.2 (Latest offer in May 2025) Pursuant to California Code of Civil Procedure (CCP) 1245.235, City sent a letter & legal notice via first-class certified mail to the Record Owners of the Subject Property on 8/27/25 of planned Hearing on 9/16/25 City’s Actions to Initiate Potential Eminent Domain Proceedings Findings Required for Adoption of a Resolution of Necessity for Property Acquisition by Eminent Domain Per CCP Section 1240.030, 4 key findings must be made: A.The public interest and necessity require the Project; and B.The Project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury; and C.The Subject Property Interests described in the Resolution of Necessity are necessary for the Project; and D.The City has made the offer required by Government Code section 7267.2 to the owner or owners of record of the Subject Property Interests the City seeks to acquire. A.The public interest and necessity require the Project Project Need – Mitigate deficient traffic operations, improve traffic flow, reduce congestion, address collision trends, improve ped & ped crossing safety Roundabout Project is consistent with several adopted plans: General Plan, Active Transportation Plan, Traffic Safety/Vision Zero Action Plan, Cal Poly Housing South EIR) B.The Project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury Intersection Design Alternatives Considered to Minimize Right-of-Way Impacts: All-way Stop Control Same footprint as existing intersection, very low cost Fails operationally (LOS E) w/ long queues for northbound/southbound Traffic Signal Smaller footprint & lower upfront cost Similar operations/LOS to roundabout (LOS C or better) Less safety benefits and inconsistent with City Plans & Policies B.The Project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury Per USDOT/FHWA Cumulative Cost per Each Fatal Traffic Collision = >$12M C.The Subject Property Interests described in the Resolution of Necessity are necessary for the Project; and City evaluated roundabout design alternatives to try and avoid/minimize encroachment into Subject Property Shift Roundabout to West – Infeasible due to UPRR Railroad & RRST Path Reduce Size of Roundabout – Infeasible to reduce size while still accommodating design vehicles and reducing vehicle speeds per engineering standards Conclusion – Roundabout cannot be designed to avoid R/W impacts at Subject Property D. The City has made the offer required by Government Code section 7267.2 to the owner or owners of record of the Subject Property Interests the City seeks to acquire. City has made multiple formal offers to Subject Property Owners pursuant to Government Code Section 7267.2 in 2018, 2020, 2023, 2024 and most recently in May of 2025. Alternatives If Council cannot make findings required to approve Resolution of Necessity, the following alternatives may be explored: 1.Direct staff to continue good faith negotiations with Subject Property Owners. 2.Direct staff to pursue alternative intersection designs, such as a traffic signal. Next Steps? Questions?