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HomeMy WebLinkAbout11/16/1999, C13 - APPROVAL OF LATHROP PROPERTY PURCHASE FOR EXPANSION OF DAMON-GARCIA SPORTS FIELDS SITE councilovem ovember 16, 199 acEnaa wpout 1�N..6 C13 CITY OF SAN LUIS OBISPO FROM: aul LeSage, Director of Parks and Recreation SUBJECT: APPROVAL OF LATHROP PROPERTY PURCHASE FOR EXPANSION OF DAMON-GARCIA SPORTS FIELDS SITE CAO RECOMMENDATION 1. By resolution, approve a purchase and sales agreement to 'acquire Lot 3 of the Lathrop Property at a cost of$231,000 for the purpose of expanding the Damon-Garcia Sports Fields site. 2. Appropriate$231,000 from the unreserved General Fund balance for this purchase. 3. Authorize the Mayor to sign the purchase and sales agreement. DISCUSSION Background In August of 1999, the City acquired a 23.5-acre parcel on Broad Street for the purpose of developing a multi-field sports complex. On the surface, this would appear to be a sufficient amount of land for the construction of four, multi-use athletic fields and their various support facilities. But, since 3.5 acres of the site is a riparian creek corridor and 3.5 must be set aside for the extension of Prado Road, only 16.5 acres are available for actual development. The Lathrop Property will add additional space as well as provide an entrance to the sports fields at the proposed Broad Street and Industrial Way intersection. The property (Exhibit B of Attachment 2), because of its linear nature, can function as a parking area capable of handling about 50 cars. While this property could be used as a parking area,the actual use is yet to be determined. It will depend on several factors such as the alignment of Prado Road and the ultimate design of the fields. Key Points of the Agreement ■ This is a cash for land transaction. The City will pay $231,000 for acquisition of the approximately .55-acre site. As verified by an independent appraisal, this is a fair and equitable price. ■ The seller will remove all structures from the property prior to the close of escrow. • The purchase price for the property includes the curb, .gutter, sidewalk, and roadway improvements along the street frontage of the property, as noted in Attachment B. In order to insure completion of the improvements, the seller will provide the City with a letter of credit in the amount of the estimated costs of the improvements. However, if the total Lathrop property is not annexed to the City within 12 months of escrow close(which can be extended an additional six months under certain circumstances), the seller's obligation to install the street improvements shall cease. C13-1 Council Agenda Report.=Approval of Lathrop Property Purchase Page 2___ ■ It is contemplated the City will create a legal parcel and annex.the property into the City. FISCAL IlKPACT Funds for this purchase are not included. in the 1999=01 Financial Plan. As such; staff recommends appropriating $231,000 from the unreserved General Fund balance for this purchase. Based on interim results for 1998-99, adequate resources are available to fund this additional appropriation and retain fund balance at minimum policy levels.. Maintenance Based upon maintenance projections for the.Damon-Garcia.Sports Fields.at $9,000 per acre, an additional $5,400 needs to be allocated annually for the maintenance. ATTACffi1ZENTS 1_ Resolution 2. Purchase and Sales Agreement, including_ the following Exhibits: 2-A Legal Description 2-B Property Map A copy of the updated appraisal report-is available at the City Clerk's Office. C13-2 RESOLUTIONNO. (1999 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A PURCHASE AND SALES AGREEMENT WITH SCOTT LATHROP FOR THE ACQUISITION OF A .55-ACRE PORTION OF THE LATHROP PROPERTY AT A COST OF $231,000 WHEREAS, the City of San Luis Obispo (City) is a California Charter Municipal Corporation; and WHEREAS, the City, acting through its City Council, has determined that a .55-acre portion of the Lathrop Property would be a valuable addition to the Damon-Garcia Sports Fields; and WHEREAS, the owner of the property, Scott Lathrop, has agreed to the sale; and WHEREAS,the purchase of the property would serve an important municipal purpose; NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis Obispo hereby approves this purchase and sales agreement. BE IT FURTHER RESOLVED that the Council finds this purchase is exempt under Section 15325 of the California Environmental Quality Act. BE IT FURTHER RESOLVED that the Mayor is authorized to sign the purchase and sales agreement. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 1999. Mayor Allen Settle ATTEST: Lee Price, City Clerk APPROVED AS TO FORM: C)AL A Je ey . Jo ens f ity ttorney C13-3 RECORDING REQUESTED BY CITY OF SAN LUIS OBISPO WHEN RECORDED MAIL TO: City of San Luis Obispo Attn: Paul LeSage 1341 Nipomo Street San Luis Obispo,CA 93401 APN- PURCHASE AND SALE AGREEMENT (Lathrop Property - San Luis Obispo, CA) THE CITY OF SAN LUIS OBISPO ("Buyer") , a California Charter Municipal Corporation, hereby agrees to purchase, and SCOTT LATHROP ( "Seller" ) , hereby agrees to sell, all of Seller' s right, title and interest in that certain real property in the County of San Luis Obispo, together with all easements, rights and appurtenances thereto, as described in Exhibit "A" attached hereto and incorporated by reference. Said property shall hereinafter be referred to as the "Property. " 1. Purchase Price and Terms. The purchase price for the Property shall be Two Hundred Thirty-One Thousand Dollars ($231, 000 . 00) . The purchase price. shall be payable as follows : (a) By Buyer paying the purchase price in the form of a cashier' s or certified check or wire transfer, payable to Escrow Holder, which shall be deposited by Buyer into Escrow not less than two (2) days prior to the Closing Date, as defined below. 2 . Conditions Precedent. All of Buyer' s duties to purchase the Property are expressly conditioned upon the occurrence and satisfaction of each of the following conditions, each of which is deemed exclusively for the benefit of Buyer: (a) Title Report . Buyer' s approval of the exceptions to title set forth in a CLTA preliminary title report for the Property (the "Preliminary Title Report" ) . Buyer shall C13-4 ATTACHMENT 2 have ten (10) days after the receipt of the Preliminary Title Report, and copies of all documents referenced therein, to provide to Seller written notice of Buyer' s disapproval of any title exception. Any title exception. not so disapproved shall be deemed approved, provided that if a Supplemental CLTA title report is issued showing any exception not shown on the Preliminary Title Report, Buyer shall have an additional ten (10) calendar days after receipt of such Supplemental Report to approve or disapprove any such title exception. If Buyer disapproves any title exception, Seller shall have no obligation to cure such disapproval (except that Seller shall be obligated to remove any liens) but Seller may elect, by written notice to buyer within five (5) calendar days after receipt by Seller of such notice of disapproval, to attempt to remove such disapproved items. If Seller is unable within a reasonable time to accomplish such cure or removal, or if Seller elects not to attempt to so cure or remove (which election shall be communicated to buyer within ten (10) days after receipt of Buyer' s notice of disapproval) , then Buyer may elect to (i) terminate its obligations under this Agreement by providing written notice to Seller, or (ii) waive its objections to such exception, or (iii) elect to correct any such disapproved exception itself, in which case Seller shall use its best efforts to assist Buyer whenever Buyer may request in order to cure any such defect, provided that Seller shall incur no monetary obligations in connection with such cure, and provided escrow shall be extended for a reasonable period in which to effect such cure . (b) Inspection and Approval of Property. Buyer' s inspection and approval of the Property and all improvements thereon, including at Buyer' s option and expense, a noise study, a survey, a soils investigation, a Phase I or Phase II environmental report or any other investigation that the Buyer deems necessary. This condition shall be deemed approved if the Buyer does not send written notice of disapproval to Seller within thirty (30) days after the opening of Escrow. If Buyer discovers through its investigations any defects on the Property, or improvements thereon, which it disapproves of, Seller shall have no obligation to cure such defects but Seller may elect, by written notice to Buyer within five (5) calendar days after receipt by Seller of such notice of disapproval, to attempt to cure. such disapproved defects. If Seller is unable within a reasonable time to accomplish such cure, or 2 C13-5 if Seller elects not to attempt to cure said defects (which election shall be communicated to Buyer within ten (10) days after receipt of Buyer' s notice of disapproval) , then Buyer may elect to (i) terminate its obligations under this Agreement by providing written notice to Seller, or (ii) waive its objections to such defects, or (iii) elect to correct any such disapproved defects itself, in which case Seller shall use its best efforts to assist Buyer whenever Buyer may request in order to cure any such defect, provided that Seller shall incur no monetary obligations in connection with such cure, or (iv) the parties may enter into additional negotiations, as may be mutually acceptable, concerning an adjustment to the purchase price, allocation of risk, or contribution to the cots to cure or other matters, and provided escrow shall be extended for a reasonable period of time to effect such negotiations 3 . Escrow and Deposit (a) Closing Date. This purchase and sale shall close upon the recordation of the Grant Deed to Buyer (the "Close of Escrow" ) . The close of Escrow shall occur on or before sixty (60) days (the "Closing Date" ) after a copy of this Agreement (executed by both Buyer and Seller) is deposited with the Escrow Holder, but no later than December 31, 1999, unless extended by mutual agreement of the parties, or as otherwise provided herein. (b) Escrow Holder. Within ten (10) business days after the execution of this Agreement, Seller shall open an Escrow for the consummation of the purchase and sale of the Property with First American Title Company, 899 Pacific St . . , San Luis Obispo, CA 93401 ("Escrow Holder" ) . The Escrow shall be deemed to be "opened" as of the date on which a copy of this Agreement (executed by Buyer and Seller) is deposited with Escrow Holder. (c) Escrow Instructions. Although Escrow Holder may require further written instructions executed by Buyer and Seller to clarify the duties and responsibilities of Escrow Holder, any such further instructions shall not modify or amend the provisions of this Agreement unless any such instructions expressly provide that they are intended to amend or modify the provisions of this Agreement. (d) Title Insurance. Title to the Property shall be conveyed by Grant Deed. Title to the Property shall be 3 C13-6 insured by a CLTA owners policy in the amount of the purchase price, showing title vested in Buyer, subject only to those exceptions specified in the Preliminary Title Report and/or Supplemental Report and accepted by Buyer. Seller shall pay First American Title Company the cost of the CLTA policy. Buyer may elect to have title insured by an ALTA policy of title insurance, provided that the Buyer shall pay that portion of the premium which exceeds the costs of a CLTA standard coverage policy of title insurance. Buyer shall also pay the cost of any survey. (e) Fees and Taxes . Seller agrees to pay all documentary transfer taxes and recording fees . Escrow fees shall be borne equally. Real property taxes shall be prorated as of the close of Escrow, based on the most recently available tax bill. 4. Representations, Warranties, Agreements and Disclaimers (a) Authorized Representative. Buyer and Seller hereby represent and warrant to each other that the persons who sign this Agreement and any other documents required to be executed by such party to perform its obligations hereunder, shall have all requisite power and authority to have entered into this Agreement, and that all authorizations required to be obtained by or on the part of such party to execute and perform this Agreement have been obtained. (b) Proof of Citizenship. Seller is not a foreign person as such term is used in Section 1445 of the Internal Revenue Code. Prior to the close of Escrow, Seller shall deposit in Escrow a non-foreign affidavit as provided under said Section 1445, and the failure to do so shall entitle Buyer to withhold from the purchase price such sums as are required by said Section 1445 . (c) Delivery of Property. Possession of the Property shall be delivered by Seller to. Buyer upon the close of Escrow. Seller shall have the right prior to the close of escrow to remove all personal property and trade fixtures, if any, provided the Property is left in a sound and tenantable condition. (d) Legal Actions. Seller represents and warrants that there are no actions, suits, or legal proceedings 4 C13-7 related to the ownership, use, operation or sale of the Property to which Seller is a party nor has Seller received any notice that any such actions are pending or threatened. (e) Indemnification by Seller. Effective as of the closing date, Seller shall indemnify and hold harmless Buyer from and against any and all claims, damages or liabilities, (whether or not caused by negligence) , including civil or criminal fines, arising out of or relating to any of the following: (i) Any generation, processing, handling, transportation, storage treatment or disposal of solid wastes or hazardous wastes by Seller, including, but not limited to, any of such activities occurring on any of the properties; (ii) Any releases by Seller (including, but not limited to, any releases as defined under the Comprehensive Environmental Response, Compensation and Liability Act of 1980) to the extent occurring or existing prior to closing, including but not limited to such releases to land, groundwater, 'surface water or into the air. (f) Seller' s Knowledge of the Environmental Conditions of the Property. As an inducement to Buyer to enter into this agreement, Seller, to the best of Seller' s knowledge and belief, represents and warrants that : (i) Throughout the period of ownership of the Property by Seller, there have been no notices, directives, violation reports or actions by any local, state or federal department or agency concerning environmental laws or regulations, and the Property is in compliance with all state and federal environmental laws; (ii) The business and operations of Seller have at all times been conducted in compliance with all applicable federal, state, local or foreign laws, ordinances, regulations, orders and other requirements of governmental authorities on matters relating to the environment . (iii) There has been no spill, discharge, release, cleanup or contamination of or by any hazardous or toxic waste or substance used, generated, treated, stored, 5 C13-8 disposed of or handled by the Seller on or around the Property. (iv) There are no underground storage tanks located at, on or under the Property; (v) No hazardous or toxic substances or wastes are located at, or have been located on. or removed from the Property. (vi) All studies, reports, and investigations, known to Seller, concerning any pollution, toxic building materials or toxic hazardous substances or wastes located at, on, or under the Property have been provided or otherwise been disclosed to Buyer prior to the close of Escrow. (vii) There are no soil or geological conditions which might impair or adversely affect the current use or future plans for use of the Property. 5. Notices All notices, communications, consents, approvals and disapprovals required or permitted hereunder must be in writing and shall be delivered by personal delivery, facsimile, or deposited in the United States mail, postage prepaid and addressed as follows: TO BUYER: City of San Luis Obispo Paul LeSage, Parks and Recreation Director 1341 Nipomo St . San Luis Obispo, CA 93401 TO SELLER: Scott Lathrop 1619 LaVineda San Luis Obispo, CA 93401 The foregoing addresses may be changed by written notice. If served personally, or by facsimile, service shall be conclusively deemed made at the time of service. If served by mail, service shall be conclusively deemed made seventy- two (72) hours after the deposit thereof on the United States mail . 6 C13-9 6 . Brokers Buyer and Seller each represent to the other that it knows of no claim for broker' s or finder' s fees or other commissions in connection with this transaction other than as provided in this paragraph. In the event any broker or finder asserts a claim for a commission or finder' s fee, the party through whom the broker or finder makes this claim shall indemnify the other party for any and all costs and expenses (including attorney' s fees) incurred by the other party in defending the same. Seller has an agreement to pay to Rossetti Company a sales commission at the close of escrow. 7. Miscellaneous. This Agreement contains the entire agreement between the parties hereto, and no modification or addition to any term or provision shall be effective unless made in writing and signed by both parties hereto. In the event any litigation is commenced between the parties hereto in connection with this Agreement, the prevailing party in such litigation shall be entitled to a reasonable sum for its attorneys fees and costs. The captions and headings in this Agreement are for reference only and shall not be deemed to define or limit the scope or intent of any of the terms, covenants, conditions or agreements contained herein. 8. Entry With respect to Paragraphs 2 and 5, Buyer, its agents and authorized representatives shall have the right to enter onto the Property during normal business hours, or at such other times as may be mutually agreed to by the parties, which consent to enter shall not be unreasonably withheld. Buyer shall indemnify and defend Seller against and hold Seller harmless from, any and all liability, cost and expense (including without limitation any and all recorded mechanics or other liens) for loss of or damage to any property or injury to or death of any person arising out of or in any way related to the entry by Buyer or Buyer' s agents onto the Property, unless such liability, cost and expense is caused by the sole, active negligence of Seller. In the event of the recording of any claim of lien for materials supplied or labor or professional services performed on behalf of Buyer; Buyer shall promptly 7 C13-10 satisfy and discharge such lien at its sole cost and expense upon demand therefore by Seller. Buyer shall repair any and all damages to the Property caused by any such tests and inspections . 9 . Structures. Seller shall remove all structures from the Property, excluding foundations, prior to close of escrow. "Structures" shall include, but not be limited to, underground tanks or structures, if any. 10. Street Improvements. As part of the consideration for this Agreement, upon annexation of Seller' s remainder property to the City of San Luis Obispo, Seller shall dedicate and construct the street improvements shown on Exhibit A, including but not limited to, a "T" intersection, roadway, and curb, gutter and sidewalk along all street frontages of Buyer' s property, in a manner and according to the standards of the City of San Luis Obispo. In order to insure completion of the above street improvements, Seller shall, prior to the close of escrow, provide Buyer with a letter of credit in a form acceptable to buyer in an amount equal to the estimated actual cost of said improvements. In the event the annexation of the Seller' s remainder property does not occur within twelve months of the close of escrow, through no fault of Seller, and after diligently pursuing said annexation_, then the obligation to install the above- described street improvements shall cease and the letter of credit may be released; provided, if the City of San Luis Obispo is diligently pursuing said annexation in its capacity as a municipal corporation, and the annexation is delayed through no fault of the City, then Seller' s obligation to complete the street improvements and provide a letter of credit shall be extended for an additional six months beyond the initial twelve month period. 11. Creation of Legal Parcel. It is contemplated between the parties that the property described in Exhibit A will be conveyed by way of a government lot, at the sole cost of Seller, or other similar lot division, should the Parties so agree. 8 C13-11 12 . Survival. The warranties, representations and agreements made in this Agreement shall survive the close of escrow. "SEL R" e, OTT LATHROP "BUYER" CITY OF SAN LUIS OBISPO By: Allen K. Settle Mayor of the City of San Luis Obispo Date: ATTEST: John Dunn City Administrative Officer APPROVED AS TO FORM: f y rg sen i At o y 9 C13-12 EXHIBIT "A" LEGAL DESCRIPTION That portion of Lot 85 of the San Luis Obispo Suburban Tract, in the County of San Luis Obispo, State of California, according to the map filed February 6, 1906 in Book 1 at Page 92 of Record of Surveys, in the Office of the County Recorder of said County, excepting therefrom that portion of said.land described in the deed to the State of California recorded April 11, 1975 in Book 1827 at Page 577 of Official Records, more particularly described as follows: Beginning at the intersection of the southwesterly line of the property described in said deed to the State of California with a line offset 30.00 feet northwesterly from the southwesterly prolongation of the centerline of Industrial Way as said road is shown on the map for Tract 2133 filed in Book 17 of Maps at Page 94 in said Recorder's Office; thence parallel with the northwesterly line of said Lot 85 1. South 66035'25" West (record South 65010' West per said Record of Survey) a distance of 328.12 feet to the beginning of a tangent curve concave northerly having a radius of 20.00 feet; thence leaving said parallel line 2. westerly along the arc of said curve through a central angle of 90000'00" an arc length of 31.42 feet; thence 3. North 23024'35" West a distance of 49.62 feet more or less to the northwesterly line of said Lot 85; thence along said northwesterly line 4. North 66035'25" East (record North 65010' East per said Record of Survey) a distance of 351.33 feet more or less to the southwesterly line of the property described in said deed to the State of California and the beginning of a non- tangent curve concave northeasterly having a radius of 7055.00 feet, a radial to said curve bears South 69°31'02" West; thence along said southwesterly line 5. southeasterly along the arc of said curve through a central angle of 0033'58" an arc length of 69.71 feet more or less to the Point of Beginning containing 0.56 acres more or less. Said property is shown graphically in Exhibit "A" page 2 of 2 attached hereto and incorporated herein by reference. v IuHML R.STAt4TON; L.S.5. OF GAL�N Page 1 of 2 EA1999\99442 Lathrop Broad St Annex&rvey\Park legaLdoc 0116'9913 EXHIBIT 2-A BXHIB IT "A 15'� 20• 20'. 20' i Thr-\-,(.-,T 713 17—IM. \pJ0 4 --� co STATEz z ai A HWY 227 " BROAD aP.o.e. STREET i2 — — . . — . . — . . . . . . . _ . . Jol €�•`D=003358':;::'; � � R=7055.00' L=69.71' FUTURE CURB, GUTTER, AND SIDEWALK BY LATHROP <<� 04 �n b M \ J o=90'00'00':::€: GRAPHIC SCALE [ R=20.00' o - 30 so 120 1 inch 1110 feet N232435'W'•': 49.62' R R M D E S I G N G R 0 U P PLAT IrrW3701 South ftuaa Street, Sen Luis 0 ornia 93401 805 /599-179dsaW 4 uiv OF A POR 9, 85 Of Jam lachmL eo;3mm 15 am Mantm Ms 6=. 11-4-99 P99442 PAGE 2 OF 2 EXHIBIT 2—B UPDATED APPRAISAL REPORT OF LATHROP/FALK PROPERTY REVISED LOT 3 - 0.81± NET ACRES WEST LINE OF BROAD STREET, WEST OF INDUSTRIAL WAY SAN LUIS OBISPO, CALIFORNIA for MR. PAUL LESAGE, DIRECTOR PARKS AND RECREATION DEPARTMENT THE CITY OF SAN LUIS OBISPO 1341 NIPOMO STREET SAN LUIS OBISPO, CALIFORNIA 93401 As Of AUGUST 30,1999 SCHENBERGER, TAYLOR, McCORMICK AND JECKER, INC. REAL ESTATE APPRAISERS AND CONSULTANTS P.O. BOX 428 SAN LUIS OBISPO, CALIFORNIA 93406 SCHENBERGER, TAYLOR, McCORMICK & JECKER, Inc. SCHENBERCEtt, TAYLOR, MCCORMICK S JECKER N c 0 R P O R A T E 0 ' Real Estate Appraisers, Consultants and Investment Analysts Founded In 1972 1 September 7,1999 I ' Mr. Paul LeSage, Director Parks and Recreation Department The City of San Luis Obispo 1341 Nipomo Street San Luis Obispo, California 93401 Principals of the Firm Richard L. Schenberger, ARA Gerald C. Taylor, SREA, MAI Rollie A. McCormick, MAI Jerald W. Jecker, SRA Todd Q Murphy, MAI Re: Updated Appraisal Report LathroplT'alk Property Dear Mr. LeSage: ' As you requested, I have completed an updated appraisal of that real property identified as: ' Lathrop/Falk Property 1 Revised Lot 3 - 0.81± Net Acres West Line of Broad Street, West of Industrial Way San Luis Obispo, California Enclosed is my updated report. This updated appraisal report is considered to be an ' addendum to, and wholly inclusive of, our prior appraisal report completed as of March 1, 1999. Therefore, this addendum report is entirely contingent upon all assumptions, conditions, definitions, and other information included in the prior appraisal report. 1 A key assumption to this updated appraisal is that the net parcel size of Lot 3 has been increased from 0.59 acres to 0.81± acres due to the inclusion of an additional triangular-shaped parcel located at the rear of Lot 3. tThe market value of the subject property is detailed on the updated valuation summary which follows for review. i a1411 MARSH STREET, SUITE 107 • SAN LUIS OBISPO • CALIFORNIA • 93401 • (805) 544-2472 • FAX (805) 544-4396 I I I Therefore, the estimated future market value of the subject property, subject to the key assumptions shown on the following page and adjusted for the interim annexation fee, as of August 30, 1999, is: Three Hundred Sixty -Five Thousand Dollars ($365,000) Please contact me with any questions at (805) 5442472, ext. 15. Respectfully submitted, Todd O. Murphy, MAI Principal of the Firm California License #AG002286 TOM:cdj ii SCHENBERGER, TAYLOR, McCORMICK S DECKER, INC. Lathrop/Falk Property Updated Valuation Summary Future Market Value of Subject Property Assuming the following: • annexed to the City of San Luis Obispo and zoned CS • separate legal parcel per recorded tract map - Tract 2334 • access road and offsite improvements completed • sewer, water, and utility lines extended to property Adjusted Market Value Range: $10.50 to $11.25 per square foot Market Value Conclusion $10.75 per square foot Lot 3: 0.81± net acres x $10.75 per square foot 0.81± net acres x 43,560' = 35,284R square feet x $10.75 $379,303 Adjustments to Account for Annexation Less Interim Annexation Fee Costs 0.81± net acres x $17,500 per acre — 14.175 Market Value Adjusted for Annexation Fee $365,128 Net Market Value Adjusted for Annexation Fee $365,128 Rounded $365,000 Square feet per acre R Rounded iii SCHENBERGER, TAYLOR, WCORMICK & JECKER, INC. 1 i 1 1 1 1 1 1 1 1 1 1 Revised Lot 3 - 0.81± Acres Excerpt 'Tract Map 2334 UGHEI . .BSZLs � 7 .15 _ ,00'SSBL � a SSSLfB -v .Ba'L[t M-00,06.ZN '-for.— I I • Bs�u ' 46J (�p ,lpp�yg,(��N 'loN/-j b I .'- .~i� - L[Z 7I'0 C[Bi t13d 1ri3NM3 3.m —p 8nb j� 1+ �I�I f CC IR p�• C6J <� WWd I I O. 1 � a a �F� OFN s ... •cmc III QQQm��� M.B�.Bzczx yo�yVl � M.B C6 C M 1 Y .2BCBC 4� t ao d1 a - 7SE - . O` 46J ,ipO �p 4� fT O '� TP -IG yN N N„`- ej .s A BB _ �p I I • 46J (�p ,lpp�yg,(��N 'loN/-j I �s0 n C6J � a a .Bcrolz s ... •cmc III M.B�.Bzczx � M.B M$I, ww k7 ,(p'bg .2BCBC 4� t 68J �^P O` 46J ,ipO �p 4� fT O '� TP -IG yN N N„`- ej C V ! yi1 O S N ------------------------ -------------ulslut'oi ---- - - 11 - - JOS W9,01 I I �ropB M-Bt,BL[LN as ,toz 1 SCHENBERGER, TAYLOR, McCORMICK & JECKER, Inc. or Q 1 1 1 1 t 1 1 Updated Market Data LAND SALE 8 (LISTING) LOCATION: 231 Bonetti Drive, San Luis Obispo APN: 053-252-054 GRANTOR: Timothy Kelley GRANTEE: Confidential DATE OF TRANSFER: Escrow - June 1999 LISTING PRICE: $625,000 TERMS: Cash to seller RECORDING DATA: n/a DATA SOURCE: Charles Senn, broker/ appraiser's files CONFIRMED BY: Rollie McCormick/Todd O. Murphy PROPERTY DESCRIPTION: Vacant comer lot within Commerce Park PROPERTY SIZE: 69,407 square feet ZONING: C -S -S ACCESS: Paved public street UTILITIES: Full utilities to site TOPOGRAPHY: Level LEGAL PARCELS: One INCOME: n/a UNITS OF COMPARISON: $9.00 per square foot (listing price) 2 SCHENBERGER, TAYLOR, McCORMICK S DECKER, Inc. I 1 LAND SALE S (LISTING), CONTINUED COMMENTS: This is a corner parcel located toward the rear of Commerce Park, off of South Higuera Street and Prado Road. The park is developed with various service commercial, light industrial, and other related uses. The parcel is level and includes curbs and gutters. Sidewalks will have to be added when the site is developed. The broker reports that the property is in escrow at a price at or very close to the listing price. 3 SCHENBERGER, TAYLOR, McCORMICK & JECKER, INC. I 1 1 1 1 1 1 1 I I 1 I Updated Property Description An important change to this updated appraisal is that the net parcel size of Lot 3 has been increased from 0.59 acres to 0.81± acres due to the inclusion of an additional triangular-shaped parcel located at the rear of Lot 3. This is shown on the preceding parcel map excerpt - Tract 2334. Updated Market Data Analysis Roughly six months have elapsed since the original appraisal of the subject property as of March 1, 1999. Since then, there has continued to be a very strong market environment for commercial service/light industrial -zoned properties along Broad Street and in the general "airport" market area.. Several interviews were conducted with active brokers in this area including John Rosetti, Greg Stafford, Jenelle Buttery, and other data sources. Several transactions were considered which are still pending escrows and/or in negotiation. Details of these transactions cannot be disclosed until the sales actually close escrow. These transactions are indicative of increased prices for M - Industrial and CS - Commercial Service -zoned properties. The former Vons site located across Broad Street closed escrow in March 1999 at about $6.64± per square foot for 10.79 acres plus the old grocery store building. However, the substantial size difference results in this sale being not a truly direct comparable. Additional consideration is given to a sale on Roberto Court at $143,500 (October 1998) for 20,000± square feet of net usable land, or $7.18 per square foot net. An additional 2.7± -acre site is a pending sale on Sacramento Drive for $6.00 to $6.50 per square foot. Both of these comparables are zoned "M" which is considered to be inferior to "CS" zoning. They also feature distinctly inferior commercial visibility. Comparable 8 is a current pending escrow which was listed at $9.00 per square foot. Comparables 9 and 10 are current escrows which are shown only in the Updated Comparable Sale Adjustment Grid. However, these are confidential escrow transactions. The details can be disclosed when the escrows close. 4 SCHENBERGER, TAYLOR, McCORMICK D JECKER, INC. I 7 1 The following comparable sale adjustment grid equates several current comparables to the subject property. The Updated Comparable Sale Adjustment Grid is shown as follows: Updated Comparable Sale Adjustment Grid Comparable 8 9 10 Date 6-99L Escrow 8-99 Escrow 8-99 Size 1.59 acres Confidential Confidential Price per Square Foot $9.00 $10.00 $8.03 Adjustments Condition — — — Date — — — Parcel Size +20% +40% +20% Location +25% —15% +20% Zoning — — — Topography - - — Corner — — +10% Shape —20% —20% —20% Net Adjustment +25% + % ±2M Adjusted Price per Square Foot $11.25 $10.50 $10.44 Valuation Conclusions After adjustments, the comparable sale adjustment grid provides an updated market value range of $10.44 to $11.25 per square foot. Based on this data, the updated market value range is estimated to be $10.50 to $11.25 per square foot, with a market value conclusions estimated at $10.75 per square foot for the subject property. The market value is summarized in the following valuation summary table. L Listing 5 SCHENBERGER, TAYLOR, McCORMICK & JECKER, Inc. Lathrop/Falk Property Updated Valuation Summary Future Market Value of Subject Property Assuming the following: • annexed to the City of San Luis Obispo and zoned CS • separate legal parcel per recorded tract map - Tract 2334 • access road and offsite improvements completed • sewer, water, and utility lines extended to property Adjusted Market Value Range: $10.50 to $11.25 per square foot Market Value Conclusion $10.75 per square foot Lot 3: 0.81± net acres x $10.75 per square foot 0.81± net acres x 43,560' = 35,284R square feet x $10.75 $379,303 Adjustments to Account for Annexation Less Interim Annexation Fee Costs 0.81± net acres x $17,500 per acre — 14.175 Market Value Adjusted for Annexation Fee Net Market Value Adjusted for Annexation Fee Rounded ' Square feet per acre R Rounded $365,128 $365,128 $365,000 SCHENBERGER, TAYLOR, McCORMICK S DECKER, INC. -1 J i 1 1 1 1 1 I Certification I certify that, to the best of my knowledge and belief: That I have made an inspection of the subject property and an analysis of the factors affecting its value, That I have no present or prospective interest in the property that is the subject of this update, and I have no personal interest with respect to the parties involved, That I have no bias with respect to the property that is the subject of this update or to the parties involved with this assignment, That my compensation is not contingent upon the reporting of a predetermined value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event, or that the addenda appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approvals of a loan, That the value conclusions reported herein are my own findings, and that these conclusions were reached without collusion, coercion or direction as to value, That I have not revealed the findings and results of this addenda appraisal to anyone other than the proper persons and/or their representatives, and I will not do so until so authorized, or until I am required to do so by due process of law, or until I am released from this obligation by having publicly testified to my findings, That the reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal ' Practice of the Appraisal Institute, To the best of my knowledge and belief, the reported analyses, opinions and conclusions were developed, and this addenda appraisal has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice as adopted by the Appraisal Standards Board of the Appraisal Foundation, That the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives, and As of the date of this report, Todd O. Murphy, MAI, has completed the requirements of the continuing education program of the Appraisal Institute. Appraiser's Competence I, Todd O. Murphy, have had over eighteen years of appraisal experience plus extensive education in appraisal. I believe I have had adequate training and experience to accurately estimate the market value of the subject property in accordance with USPAP. Signature 7 California SCHENBERGER, TAYLOR, McCORMICK & DECKER, INC. Disclosure and Use This report shall be used for its intended purposes only, and by the parties to whom it is addressed. Possession of this report does not include the right of publication. Neither all nor any part of this report shall be conveyed to any person or entity, other than the appraiser's or firm's client, through advertising, solicitation materials, public relations, news, sales, or other media without the written consent and approval of the authors, particularly as to valuation conclusions, the identity of the appraiser or firm with which the appraiser is connected, or any reference to the Appraisal Institute or MAI designation. Further, the appraiser or firm assumes no obligation, liability, or accountability to any third party. If this report is placed in the hands of anyone but the client, client shall make such party aware of all the assumptions and limiting conditions of the assignment. The appraiser is not required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless further arrangements have been previously made and mutually agreed upon. Information estimates, and opinions furnished to the appraiser and contained in this report were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the appraiser can be assumed by the appraiser. The appraiser assumes no responsibility for changes and/or limitations that may be imposed to the subject by the numerous governmental and political entities, which have authority to make decisions that can alter property use, project feasibility, and value. Effective lanuary 1.1991 All professional appraisal reports must also contain the following statement: "The Appraisal Institute conducts a voluntary program of continuing education of its designated members. MAI's and SRA's who meet the standards of this program are awarded periodic educational certification. Todd O. Murphy, MAI, is certified under this program". This report has been prepared in accordance with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The Appraisal Institute has a legal right to review the report. 0 SCHENBERGER, TAYLOR, McCORMICK & DECKER, Inc.