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HomeMy WebLinkAboutD-1501 070-241-017 & 070241-018 Recorded 10/25/1999R• .. 0 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Utilities Department CITY OF SAN LUIS OBISPO 990 Palm Street San Luis Obispo, CA 93401 APN: 070 - 241 -017 & 070 - 241 -018 �J ' Doc No: 1999 - 076286 i Official Records San Luis Obispo Co. Julie L. Rodewald Recorder Oct 25, 1999 Time: 15:14 5] Rpt No: 00094801] NF -2 0.00 ;TOTAL THIS SPACE RESERVED FOR RECORDER ONLY (Gov. Code r4'27361.6) AGREEMENT FOR DISCONTINUANCE OF WATER SERVICE, TRANSFER OF WATER RIGHTS AND CONVEYANCE OF REAL PROPERTY and. QUITCLAIM DEED This agreement is entered into this 19th day of October ., 1999, by and between J. Dennis Ahearn and Sandra D. Ahearn, hereafter referred to as "Owner ", and the City of San Luis Obispo, a chartered municipal corporation, hereafter referred to as "City ", collectively referred to as "Parties ". . Parcel 1 of the property transferred from Josephine Garcia. Avila to J. Dennis Ahearn and Sandra D. Ahearn, husband and wife, as community property on December 23, 1977 by Grant Deed recorded in volume 2050 on page 274 of Official Records of San. Luis Obispo County, CA, and identified by assessors parcel numbers 070 - 241 -017 & 070 - 241 -018 is hereinafter referred to as "Subject Parcel ". Water has been supplied by the City to the Subject Parcel from the Hansen - Gularte Pipeline, as stipulated in the Indenture signed November 18, 1912, recorded in volume 95 on page 277 of Deeds, at the San Luis Obispo County Recorders Office. In consideration of the mutual and respective covenants and promises set forth herein and subject to all the terms and conditions hereof, the Parties hereby agree as follows: 1. The City quitclaims, to the Owner, the existing water system consisting of springs, spring boxes and pipelines all of which are on Subject Parcel. The City shall have no further responsibility for that water system and shall have no further right of access for maintenance of that system. 0.00,' pl X01 • • 2. The City quitclaims, to the Owner, the rights of way and easement to lay and maintain pipeline as described 3rd in that certain deed recorded at Vol. 95, page 277 et seq of Deeds. 3. The City quitclaims, to Owner All the right, title and interest of the City of San Luis Obispo in, of and to the waters of the San Luis Obispo Creek, the Axel Hanson Creek and all tributary, or other streams and creeks flowing on, under, to and across the two hundred and eighty (280) acre tract described in that certain deed recorded at Vol. 95, page 277 et seq of Deeds. These rights specifically include any water rights associated with the diversions that were installed before 1914 to appropriate water. City also agrees not to contest or object to the use of said Water Rights on the Subject Parcel, or elsewhere, by Owner or their successors and assigns. City also agrees to execute all future documents necessary to confirm said transfer/ relinquishment of the Water Rights to Owner under this Agreement. The Parties agree and acknowledge that the City provides no warranty or representation with respect to the quality or quantity of the Water Rights quitclaimed to Owner by this Agreement. 4. This deed shall in no way be construed to limit the water rights, riparian, appropriative, or otherwise, retained by the grantors in that certain deed recorded at Vol. 95, page 277 et seq of Deeds and passed by chain of title to Grantee of this deed. 5. The Owner acknowledges receipt of the sum of $10,000.00 as compensation for future costs of maintenance, upkeep and replacement of the water supply system. 6. In consideration for the City's quitclaim to the existing water system and water rights and the specified cash payment, the Owner agrees that the City will have no further obligation to provide water to the Subject Parcel. The maintenance, upkeep or replacement of the water system is the responsibility of the Owner. 7. All notices, statements, requests or other communications that are required either expressly or by implication to be given by either party to the other under this agreement shall be in writing. 8. Any waiver at any time by either party hereto of its rights with respect to a breach or default, or any other matter arising in connection with this agreement,. shall not be deemed to be a waiver with respect to any other breach, default or matter. 9. This agreement shall be binding on the heirs, executors, administrators, successors, agents, lessees and assigns of the respective parties. 10. This agreement is freely and voluntarily entered into by the parties after having had the opportunity to consult with their respective attorneys.. The parties, in entering into this agreement, do not rely on any inducements, promises, or representations made by each other, their representatives, or any other person, other than those inducements, promises, and representations contained in this agreement. This agreement represents the entire agreement of the parties. 11. The City shall record this agreement and shall be responsible for any recording costs. PA • • IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first entered above, at San Luis Obispo, California. CITY OF SAN LUIS OBISPO BY: Mayor Allen k. Set e APPROVED AS TO FORM: City Attorney STATE OF CALIFORNIA COUNTY-OF SAN LUIS-OBISPO Sandra D. Ahearn JACOUELEEN M. I Commission # 12:?5943 Z Z Notary Public - Caii; :'fnia Z: San Luis Obispo Co ,r„y My Comm. Exphz Jun 25, 2003 wl P) PAMELA K KING Commission # 1227306 Notary Public - Callfamb = San' Luis Obispo County r SS. My Comm.. E Ores Jul 2, 2003 On 10/20/99 before me, City Clerk Lee Price, personally appeared Mayor Allen Settle known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. SC; h an d ficial s al. AI LEE PRICE, 'C"Alq%,j, �) . '_7 CITY CLERKS 3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of �h. �. a.,ki 5 Ob 1)D On ( /'1 k f1 , before me, Dale L personally appeared JACQUgEEN ht BWMNETf CommbWon # 1225943 Notary Public - Carfomia San Luis Obispo County MY c,orrim Bphz n 25, 2Qp Place Notary Seal Above -6Pl'A k - and Title of Officer (e.g., "Jane Doe, Notary Public ") ersonally known to me ❑ 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. Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: La ❑ Individual Top of thumb here ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: 0 1997 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313 -2402 Prod. No. 5907 Reorder: Call Toll -Free 1-800- 876 -6827 UL a 0 0 CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT State of California ss. County of SAN LUIS OBISPO On 10111199 before me, PAMELA K. KING, NOTARY PIIBi.Tr Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared JOHN DENNIS AHFARN , Name(s) of Signer(s) ❑ personally known to me ® proved to me on the basis of satisfactory evidence to be the person( whose name(g) isjlM subscribed to the within instrument and acknowledged to me that he / executed PAMELA K. KING the same in his/kalklift authorized Commission # 12276 capacity, and that by hiss NotaryPublic - California signature(E) on the instrument the person(x), or Sam Luis Obispo County 2003 @MY Comm. Expires Jul 2, the entity upon behalf of which the person *) acted, executed the instrument. WI ESS my hand and qffiVial seal. C Place Notary Seal Above Signature of Notary Public OPTIONAL - Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER__. Top of ® 1997 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313 -2402 Prod. No. 5907 Reorder: Call Toll -Free 1 -800 -876 -6827 END OF DOCUMENT HAINER, JEWELL & ASSOPIATES Government Real Estate Services a division of Beacon Integrated Professional Resources, Inc. Ventura County Office: 3639 Harbor Boulevard, Suite 210, Ventura, California 93001 Tel: (805) 658 -8844 Fax: (805) 658 -8859 San Luis Obispo County Office: 340 James Way,-Suite 150, Pismo Beach, California 93449 Tel: (805) 773 -1459 Fax: (805) 773 -2418 DOCUMENT TRANSMITTAL y U.S. Mail TO: Bridget Fraser DATE: 12 -10 -01 Project Engineer City Of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 FROM: David M. Jewell Hamner, Jewell & Associates SUBJECT: City of San Luis Obispo — Santa Barbara St. Widening Project Acq. AP# 003 - 752 -005 ( Conroy) DOCUMENT • Original Fully Executed Purchase and Sale Agreement ENCLOSED: for City files. • Buyer and Sellers Final, Closing Statements for City files. • City's Original Title Policy from Cuesta Title Company for City files. Dear Bridget, Please see the enclosed documents for City files in conjunction with the closing of escrow on the required right of way from Robert and Judith Conroy for the Santa Barbara Street Widening Project. Please don't hesitate to call me at (805) 773 -1459 if you have any questions! Best, Rua RECEIIsT ACKNOWLEDGEMENT: By: Print Name: Date Time .1 .1 _l _1 ,i =1 0 APPRAISAL REPORT OF cT.HE_CONROY PROPERTY --J- SANTA BARBARA STREET WIDENING 2940 SANTA BARBARA STREET SAN LUIS OBISPO, CALIFORNIA PREPARED FOR: TIMOTHY S. BOCHUM DEPUTY PUBLIC WORKS DIRECTOR 955 MORRO STREET, CALIFORNIA PREPARED BY:. REEDER, GILMAN & ASSOCIATES REAL ESTATE APPRAISERS SANTA MARIA, CALIFORNIA J�nuary-3; 2009, .l -J REEDER GILMAN & ASSOCIATES Appraisers and Consultants • Real and Personal. Property l WARREN REEDER. MAI, SR/WA 1101 South Broadway, Suite A, Santa Maria, California 93454 SCREA. CA N AOOM21 jj SeniorMember - AMRAISAL FNSITTUrE P. O. Box 726, Santa Maria, California 93456 1 INTERNATIONAL RIGHT OF WAY ASSOCIATION Telephone: (805) 925 -2603 LESLIE J. GILMAN • MBA, SR/WA SCREA,CAAAG014M Fax: (8051925-0840 I Smw Member - INTERNATIONAL RIGHT OF WAY ASSOCIATION Email: RGA1101@AOL.COM M. LISA BORGQUIST I SMA CAP AM1401 Federal 'Tax ID #177- 0555850 i January 3, 2001 .1 "1 i Mr. Timothy S. Bochum Deputy Public Works Director -J 955 Morro Street I San Luis Obispo, CA 93401 RE: Appraisal — The Conroy Property, Santa Barbara Street Widening 2140 Santa Barbara Street, San Luis Obispo, California Our File No. 6972A- 05 -00 -ED / W146 Dear Mr. Bochum: At your request and authorization, we have completed one of the two appraisals of the properties affected by the proposed widening of the east side of Santa Barbara Avenue between Roundhouse Road and High Street. The purpose of the appraisal is to 1 estimate the just compensation for the acquisition of the new right-of-way. The appraisal is to consider real property only. Items of personal property such as business valuation equipment, etc., are not to be part of this analysis. The opinion of value is based on the fee simple interest in the subject property as if free and clear of all liens, leases, and encumbrances. The function of this appraisal will be its use a guide to value during negotiation for acquisition of the proposed right -of -way. 1 In our opinion, the existing commercial building is unaffected by the project in the after - condition. The acquisition is that of land only, currently in use as a front lawn. ` Therefore, we have appraised land only for this appraisal. The following appraisal report is a result of our inspection of the subject property J and contains descriptive data and analysis on which we have based our opinion of value. • i Our analyses, opinions, and conclusions were developed, and this report has 1 been prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute, and the Uniform 1 Standards of Professional Appraisal Practice. As a result of our investigation and analysis of the factors influencing real estate value, together with our experience in appraising properties in the area, it. is our opinion that the fair market value of the Part Taken of the subject property, as of December 21, 2000, is: T4wLvE THousANVD FmE HUNDRED DOLLARS II II SUBJECT TO the Assumptions and Limiting Conditions contained herein. _i We hereby certify that we have no present nor contemplated' financial interest in the subject property, that the opinion of value expressed herein is our own conclusion and that our fee is not contingent upon the value reported nor "upon anything else except the delivery of this report. Respectfully submitted, REEDER, GILMAN & ASSOCIATES REAL ESTATE APPRAISERS _J j Warren Reeder, MAI, SRWA J Certified General Real Estate Appraiser, CA #AC006521 Certified I Real a Appraiser, CA #AG014431 NOTE' ORIGINAL DOCUMENT IS SIGNED IN BLUE I:LK 1 WRIMLB:jhc REEDER, GILMAN & ASSOCIATES 6972a.doe:WI46 Page 3 REEDER, GILMAN & ASSOCIATES 6972a.doc:W146 Page 4 i TABLE OF CONTENTS INTRODUCTION: _ Title Page ........ .......................................... ............................... _ .............................. 1 Letterof Transmittal ......................................... ............................... ........... ....... 2 ` Table of Contents .. ... Definitions 5 ................................................................................... .......................... 6 Scopeof the Appraisal ............................................................... .......................... ...... -1 AppraisalSummary .................................................................... ............................ . -- 7 APPRAISAL REPORT: ? The Project ................................................................................. ............................... 8 8 Identification of the Larger Parcel .............................................. ............................... Purposeof the Appraisal ............................................................. ............................... 8 Property Rights Appraised ..... .. ...... .......................................... ............................... 8 iProject Aerial Map ............ ........ ............................... ....... ..................... Offer to Accompany Appraisers .................................................. ............................... 9 Dateof Value ............................... .......................... ............................... 9 1 .................. Ownership ........................................................................ 9 . .......................................... Functionof the Appraisal ............................................................ ............................... 9 9 Property History .. . _ General Area Analysis ................................................................ ............................... 9 SubjectProperty Map............. ......................................................................... Market Description and Exposure Time ..................................... ............................... SubjectProperty Data ................................................................ ............................... 10 ZoningMap .................................................................. ............................... ? Highest and Best Use .......................... ........................ .....................:......... ... .... 11 ' Valuation ........................................................... ............................... ..................... 13 Assumptions and Limiting Conditions ............................ I............................................ 17 . Certificates of Appraisers ........................................................... ............................... 19 ADDENDA: _ Land Sales Map ........................................................................... ............................... LandSales Data Sheets ........ ............................... .................. ............................... ' Flood Zone Map ....................................................................... ............................... Subject Property Photographs ............................................... ............................... . TheProject ................................................................................. ............................... Grant Deed ... ............................... -' C -S Zoning Regulations ............................................................. ............................... Offer to Accompany Appraisers .................................................. ............................... Professional Qualifications ......................................................... ............................... REEDER, GILMAN & ASSOCIATES 6972a.doc:W146 Page 4 DEFINITIONS A. FAIR MARKET VALUE 1 (a) 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 i buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all uses and purposes for which the property is reasonably adaptable and available. (b) The Fair Market Value of property taken for which there is no relevant market is its value on the date of, valuation as determined by any method of valuation that is just and equitable. SOURCE: Eminent Domain Law, Title 7, Chapter S, Article 4 Section 1263.320 B. SEVERANCE DAMAGES - In the case of a partial taking, it is the damage to the part not taken which arises by reason of the taking and /or the construction of the f improvements in the manner proposed. C. TAKE OR SUBJECT PROPERTY - All the property which the owner thereof will be deprived the use of, either permanently or temporarily as a result of the construction of this project. D. PARENT PROPERTY OR LARGER PARCEL - The whole of the parcel of which a partial take is being made. E. GENERAL BENEFITS - A gain or appreciation in value arising from a public improvement which affects the entire community, neighborhood or District by reason of nearness to the public improvements. F. HIGHEST AND BEST USE - That which, at the time of appraisal, is the most profitable, likely use to which a property can be put. G. EASEMENT - A non- possessory interest in the land of another which allows the owner of the easement to use that land for a particular purpose. REEDER, GILMAN & ASSOCIATES 6972a.doc:W146 Page 5 SCOPE OF THE APPRAISAL 1 The duties of the appraiser in fulfilling this assignment included: _i A. Inspection of the physical property including the land, improvements, r public utilities and other items considered important. B. Study and evaluation of available publications on relevant data such as economic studies, maps, real estate trends, etc.,, necessary in preparing this appraisal. C. A study of various public records -including data available from the ' County Assessor, the County Recorder and other public agencies. 1 D. Study of the surrounding areas and kcal factors and trends affecting real estate values and the subject property. _i E. Taking photographs of the subject property. F. Securing sufficient data to complete the appraisal. This includes 1 interviews with buyers and sellers of similar properties and interviews with knowledgeable people in the area for the purpose of securing the necessary background data. G. Analyzing all data collected and !processing said data into our opinion of the Market Value of the subject property. H. The market data contained in this report was verified with people familiar with the transaction, typically the Buyer, Seller, Real Estate Broker; or other reliable source. I. This is a limited appraisal and is reported in summary format. :i i REEDER, GILMAN & ASSOCIATES 6972a.doc:W I46 Page 6 _I _1 _l _i -I :l �f APPRAISAL SUMMARY Subject Property Owners: Location: Assessor's Parcel Number: Larger Parcel Area: Part Taken: Remainder: Improvement Area: Zoning: Highest & Best Use: Date of Value: Valuation: Larger Parcel (land only): Part Taken (lariti): Improvements to Land Damages: Special Benefits: Total Compensation: Robert B. and Judith K. Conroy 2140 Santa Barbara Street or 1110 Roundhouse Avenue, San Luis Obispo, California 003- 752 -005 14,066 square feet 690 square feet 13,376 square feet Not affected by the project, not appraised C -S -- Commercial Service Existing use,Commercial Service December 21, 2000 $225,000 x;11,000 $1,500 $0 $0 $12,500 REEDER, GELMAN & ASSOCIATES Y 6972a.doc:W146 Page 7 APPRAISAL REPORT j THE PROJECT: The project includes two parcels, which are located on the east side of Santa ' Barbara Street between Roundhouse Avenue ana High Street. The Take Area is 7 feet wide and runs the length of the street. The Conroy property, which is the subject of this report, is one of two parcels that are affected by the project. The Take Area includes land and front landscaping. The acquisition basically affects the set back area and possible the relocation of the property signage. i IDENTIFICATION OF THE LARGER PARCEL: ' The Larger Parcel is a 14,066- square -foot corner lot located on the northeastern corner of Roundhouse Avenue and Santa Barbara Streat. The property is improved with a retail wood frame building with parking in the rear. Due to the amount of setback the structure already has, the project will not affect the improvements, with the exception of the probable relocation of a sign. -1 PURPOSE OF THE APPRAISAL: ' Tha purpose of the appraisal is to Estimate the fair market value of the subject property. "Fair Market Value" is defined as: 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 y so doing, nor obliged to sell, and a buyer, being willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all uses and purposes for which the property is reasonably adaptable and available. The Fair Market Value of 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. 1 SOURCE: Eminent Domain Law, Titie 7, Chanter 9, Article 4, Section 1263.310 PROPERTY RIGHTS APPRAISED: " The property rights appraised are those of the fee simple interest in the subject property as if free and clear of all liens, leases, and encumbrances. No title report was provided for this assignment. REEDER, GILMAN & ASSOCIATES 6972a.doc:WI46 Page 8 .t �•',,'h::�: .; _`," ..� °i '���• `149 -�•: 7 . 5 is ,: 'i•. ..' i.�'. ".;.�:�.'�.•. .. ... j. •'� ���, `W'tx:if"•'�*�a�'1N� g:f {car � � � �. d'� :. ..�. .� �' ....:" r - J.., or �•t ejLrf� jig' IL Iiij It IP W The property is currency leased to Art Leach and is operated as a bicycle shop. ` However, we have considered land value only due to the fact that it is our opinion that the project does not affect the improvements. OFFER TO ACCOMPANY APPRAISERS: ' The offer to accompany appraisers on the inspection of the ;property was made through a letter mailed July 28, 2000. The property owner accepted the offer and the property was inspected on November 2, 2000, with Robert Conroy (property owner) and Art Leach (tenant) in attendance. DATE OF VALUE: ? The date to which this appraisal applies is:. December 21, 2000 OWNERSHIP: -1 i The presumed owners of the .property are Robert B. and Judith K. Conroy. We have not been provided with a preliminary title report and have relied upon the records j of the San Luis Obispo County Assessors Office. _1 FUNCTION OF THE APPRAISAL: The function of the appraisal will be its use as a guide to value during ? negotiations for acquisition of the proposed right -of -way. 1 PROPERTY HISTORY: It is our understanding that the property has been in the Conroy name for a minimum of 5 years and to our knowledge the property has not been .listed for sale during the past 12 months. _ , GENERAL AREA ANALYSIS: The City of San Luis Obispo is the County seat for San Luis Obispo County. The i City has a population of approximately 43,000 people as of 2000; with growth in the population projected over the next 5 years at less than 1 percent per year. -r REEDER, GILMAN & ASSOCIATES 6972a.doc:Wi46 Page 9 .l .I _ 1 .1 .c _i _i _i l _1 .i _ 1 - I _1 _ I _1 . 1 Metm&an /San Luis Obispo (CA) Owner : Conroy Robert B/ludith K Parcel : 003 752 005 COOwner Land : $176,781 Site : 1110 Roundhouse St San Luis Obispo 93401 Struct : $289,279 Alail : 113 Indio Dr Pismo Beach Ca 93449 Total : $4669060 Afered : 03/30/1995 - Doc 4 : 13152 %lmprvd : 62 Price : $435,000 Full Deed : Grant Deed %Owned : 100 Ln Anti : $300,000 Loan : Seller Exempt Lender : Seller 1n1Tv : Fixed Type 14&7�pe : Communit Ppty Tax Area : 3000 UW : 310 Com,Retail Sales 99-M Tax :$5.177.92 Legal : CY SLO FAIRVW ADD BL A LTS 13 & 14 OwnerPh . AgrtcPry : No Census : Tract : 111.00 Block : 4 Thomas : 654 -672 A5 R. T. S . « 1 I 1 1 _ nr V - - - -s 75 - - -- -.. 1 1 I Rol- IlouolAaAAr w IT�a-; ii A ' A' -r , — , 1 Y i 1 1 • r°ol� C;�N, k -meam O sJ MOM CT. t 00.3-75 '• • 1 I I I 1 1 I ', ' II ?t 114 I 1 1 I 1 1 Oi 11 1 I I I 1 1 1 MIMM AM o v � I 1 S7. i SY S.P.RJL. wx 5116 . PO, 42 ' BUD" VISTA Ap07L RAL SILA , Py 47 cgs) A0WAL: RAL BALA ,' Py.AB SUBJECT PROPERTY MAP The Information Provided is Deemed Reliable. But Is Not Guaranteed. — LT 0 0 0 The City is an important retail sales and tourism center for the County. The City's retail sales for the year 2000 are projected at $700,000,000, which represents 34 percent of the County's retail sales of approximately $2,060,000;000. The median home price in the City of San Luis Obispo is approximately $265,000, 8 percent higher than the County -wide average. of $245,000. Housing stock in the City is projected to rise very slightly, with only 90 units per year anticipated over the next 5 years. _i Overall, the City of San Luis Obispo is considered to be an attractive and desirable place to live and work. Its strong employment base provides work =I opportunities, although escalating home prices require that many workers commute l from other parts of the County where housing is more affordable. Retail sales and tourism are strong in the City and are projected to remain so for the foreseeable future. MARKET DESCRIPTION AND MARKETING TIME: With the economic boom, the real estate sales activity has increased significantly. Sales prices are up, marketing periods are down, and the inventory is 1 significantly reduced. San Luis Obispo County is in the midst of an economic expansion J that surged some time after the Nation's economy began is long expansion. Absorption rates are good, rents are strong, and a steady supply of new space is in process for j development. Currently, user demand is rapidly- expanding in a limited supply of space. 1 Overall vacancies in the City of San Luis Obispo are estimated at less than 5 percent and many new build -to -suit (speculation) developments are under construction. - Demand for vacant commercial land is high. Rarely is this type of property listed and sold through the Multiple Listing Service. The last four MLS sales marketing times 1 ranged form 3 months to almost one year and a 'half. It is our opinion that properly 1 priced and "vacant;" the subject would have required a 3- to 9 -month listing period. SUBJECT PROPERTY DATA: Location: The subject property is located in the southern portion of the City of San Luis Obispo. This area is adjacent the Southern Pacific right -of -way and is one block north i of the intersection of South Street and Broad Street. Santa Barbara Street is a heavily trafficked, two -lane asphalted thoroughfare. However, visibility is only significant from the south due to the location of the improvements to the north of the property. The property has 95 front feet on Santa Barbara Street. REEDER, GILMAN & ASSOCIATES 6972a.doc:W146 Page 10 will -1 't .I a Legal Description: Lots 13 and 14 of Block A, A.M.O.R. 99- 000 -818, recorded in the maps of the County Recorder of San Luis Obispo County, California. Assessor's Data: Assessors Parcel Number: Tax Rate Area: 1999 /2000.Assessed Value: Land Improvement Total - , Total Estimated Property Tax: - ' Zoning: 003 - 752 -005 3000 $176,781 $289.279 $466,060 $5,177.92 The subject property is currently zoned CS, Commercial- Service, by the City of 1 San Luis Obispo. The CS zoning is intended to provide for storage, transportation, and wholesale, as well as certain sales and business services, which may be less 1 appropriate in the City's other commercial zones. It will be applied to areas designated Service Commercial /Light Industrial on a General Plan Map. Typically, those areas have more public exposure along arterial streets than places reserved for manufacturing. A copy of the detailed Zoning regulations is contained in the Addenda. HIGHEST AND BEST USE: "Highest and Best Use" is defined as: "That available use or program for future utilization of a parcel of land that produces the highest present land value." We have completed an investigation and analysis regarding the highest and best use of this property. The most probable use of the property must meet the following criteria. 1. The use must be a lawful one, consistent with the General Plan and prescribed zoning, meeting all governmental regulations. 2. The use must be within the realm of probability in the near future, not a mere possibility, not a speculative use. REEDER, GILMAN & ASSOCIATES 6972a.doc: W 146 Page I I ? 3. There must be a demand for such a use and it must be an effective ' demand backed with purchasing power. 1 4. It must be a use that will produce the highest net return to the land i in the form of money and amenities over the longest period of time. In determining the highest and best use of the subject property, additional factors which should be considered include: 1 1. The use is in an appropriate location to the local market and the existing nearby land uses must support and compliment this use. 2. The use is physically possible. The site is physically adaptable for this use and the necessary public infrastructure exists to support this use. 3. The use is legally permissible. All potential uses must comply with private and public land use restrictions and zoning laws governing the use and building safety of the proposed /existing improvements. 4. The use is socially /politically acceptable. Citizens are taking an ever increasing interest in land use decisions affecting their communities. Almost all major real estate developments involve significant public comment and input. 5. The use must be financially feasible. The use must be probable, 1 profitable, and have adequate market demand. The use must be J economically feasible and not speculative in nature. .i 6. Finally, among all alternate of uses which might meet the previous test, that use which results in the greatest net return or highest property value is considered to be the highest and best use. The subject site is a developed, level parcel, which is adaptable to various commercial service uses. The parcel size of 14,066 square feet is sufficient to accommodate many uses included an area for parking and some storage. Considered as a vacant parcel, the property would best be developed into a commercial service or automotive service in conformance with the Commercial Service zoning. As improved, the current building's improvements contribute to the value of the land. After considering the physical, legal, and economic criteria, it is concluded that the existing improvements will retain their values for the foreseeable future. Therefore, the highest and best use of this property is currently as- improved for commercial service uses. REEDER, GILMAN & ASSOCIATES 6972a.doc:W 146 Page 12 VALUATION: The appraisal of real estate involves three fundamental methods or approaches to arrive at an opinion of the market value of a property: Cost, Sales Comparison, and ` Income Approaches. Each of the approaches is briefly described as follows: Cost Approach to Value: This is the method whereby improvement replacement cost, less depreciation, is added to land value ascertained from vacant land sales. ` he result is an indication of property value. Sales Comparison Approach to Value: This method, formerly known as the Market Approach, considers recent sales of similar properties in the area. These sales are analyzed and compared to the subject property with adjustments for dissimilar characteristics. The result is also an indication of the value of the property. I Income Approach to Value: This method considers a property's income producing capabilities and processes said income into an indication of value through the capitalization process. I The results of the above three approaches, if all are applicable, provide a band 1 of value which is correlated into one final value estimate considering all factors affecting the property. i We have not considered the Cost Approach to Value or the Income Approach to Value applicable due to the opinion that the improvements are not affected by project and we are appraising the land value only. We have relied on the Sales Comparison Approach to Value for our estimation of fair market value. Using the Sales Comparison Approach, we have searched the San Luis Obispo 1 area for similar commercial service and industrial sales. The following is summary of those sales: i REEDER, GILMAN & ASSOCIATES 6972a.doc:W146 Page 13 1 � • LAND SALES ! SALE DATE LOCATION SALE PRICE AREA REMARKS No. Doc. APN ZONING $ /SF 1 6/30 100 205 South St. $550,000 28,292 Possibly can change ! 36823 004-811-014,-034 M $19.44 zoning to CS; old house and bam; value in land ! 2 4/14/00 3229 Broad St. $187,500 13,000 Old house, value in 19820 004 -SM-034 CS $14.42 land; sloping, 2 levels, good visibility; high traffic area j 3 6/16199 1960 Santa Barbara St. $227,000 15,000 Triangular- shaped, old 43342 003 - 651-009 CS $15.13 Improvement; value in land; City purchased for museum 4 4/8199 3249 Broad St. $400,000 50,234 Underimproved lot; 15t 25127 004 -601 -023, 004583 - C-S $7.96 feet below grade; old 030 industrial bldg, auto service 5 511/98 Cross St. $276,000 25,000 Interior lot; offsite 25281 053 - 257 -007 C-S $11.04 included 6 3113198 S. Higuera St. $199,000 1606 Offsite included; old 13752 053 - 181 -041 CS $11.98 Butler Bldg; 6t feet below grade 1 The above sales represent properties similar to the subject. Several of them have improvements; however, they are only of interim use and the properties' basic i value is in the land. Sales 4 and 6 are below street grade and have limited visibility. _ 1 Sale 5 is located in an industrial development with very limited traffic or visibility. Sale 3, 4, 5, and 6 would all require time adjustments due to the date of sale. Sale 4 is larger than the subject. Sale 1 is zoned industrial; however, it is possible that it could be changed to Commercial Service. Details of these sales are contained in the Addenda to this report. 1 i The sales range from $7.96 per square foot to $19.44 per square foot. Considering the above variances with adjustments for differing characteristics, it is our ! opinion that the subject property land has a fair market value of $16 per square foot. i This equates to: ! 14,066 SF @ $16 /SF = $225,056 Rounded: $225,000 1 Out of this, the Take Area is calculated as follows: _i 690 SF @ $16 /SF = $11,040 REEDEF , GILMAN & ASSOCIATES 6972a.doc: W 146 -r Page 14 -1 _1 _i ,1 _1 _i .l The Take Area contains landscaping. The estimated costs of these land improvements is $1,500. We have not considered that the project will cause any damages or special benefits to the property. The current signage of the properly, which is in the new setback, would probably be required to be relocated by the construction contractor at the City's expense. To our knowledge, there are no temporary construction easements . and the property will be accessible during construction. Construction is to take a very minimal amount of time — estimated at 3 months. Compensation is determined as follows: REEDER, GILMAN & ASSOCIATES 6972a.doc:Wl46 Page 15 _i �t .I _1 -r _i _I _i .l .i �1 :j 'I 0 VALUATION SUMMARY 0 ASSESSOR'S PARCEL NUMBER: 003- 762 -005 OWNER: Robert B. and Judith K. Conroy 1. ESTIMATED FAIR MARKET VALUE OF LARGER PARCEL (LAND ONLY): 14,066 SF @ $16 /SF $225,056 Rounded: $225,000 2. FAIR MARKET VALUE OF PART TAKEN: Land - 690 SF @ $16 /SF = $11,040 Improvements to the Land (landscaping) $1,500 TOTAL PART TAKEN $ Rounded: $12,500 3. FAIR MARKET VALUE REMAINDER. (Land Only) $212,500 4. FAIR MARKET VALUE AFTER PROJECT CONSTRUCTION: (Land Only) $212,500 5. DAMAGES: $ 6. SPECIAL BENEFITS: $ 7. TEMPORARY EASEMENT. $0 TOTAL COMPENSATION Land: $12,500 Improvements Damages: Temporary Easement: 0 Grand Total: $12,500 WARREN REEDER, MAI, SRWA Certified General Real Estate Appraiser, CA # AGO06521 r M. LISAWMGW05 Certified General Real Estate Appraiser, CA # AGO14431 NOTE. ORIGINAL DOCUMENT IS SIGNED IN BLU=/NK REEDER, GILMAN & ASSOCIATES 6972a.doc:W146 . Page 16 "1 ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report is subject to the following: 1. It is assumed that title to the property which is the subject of this report is free and clear of liens, leases, and encumbrances and is good and marketable unless otherwise i noted. " 1 2. No responsibility is assumed for matters legal in nature or for facts or conditions which j require specialized knowledge beyond that of a qualified real estate appraiser or that customarily employed by real estate appraisers. This includes, but is not limited to, - structural defects or termite damage not readily apparent, conformance to specific l governmental requirements such as fire, building safety, earthquake, flood, or ' . occupancy codes, soil stability or instability, etc. 1 3. No survey of the subject property was made at the time of appraisal. All references to 1 property size or dimensions were obtained from public records or from data provided this appraiser. Maps and other display material are included only as a guide in 1 emphasizing certain aspects of a property. 4. In preparing this report, certain information was obtained from other persons. This data -' is assumed to be correct, but we assume no responsibility for its accuracy. - 5. We are not required to give testimony or to appear in court or at conferences by reason of this appraisal, with reference to the property in question, unless further arrangements have been previously made and mutually agreed upon. 6. Possession of this report, or a copy thereof, does not cant' with it the right of publication, nor may it be used for any purpose by anyone but the applicant without the previous written consent of the appraiser or the applicant, and then only with proper qualification. 7. The "Highest and Best Use" as indicated by this report, is assumed to be consistent i with Planning and Zoning porcies, and will meet the approval of all local, city, county, state, and federal land use and environmental laws and regulations. We assume no responsibility for changes or limitations imposed by the various governing agencies or political entities that affect a property's use or value. 8. This valuation does not include items of personal property, partial interests, or mineral rights unless specifically incorporated by reference. 9. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. The i 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 petroleum products, asbestos, urea - formaldehyde foam insulation, underground chemicals or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. i REEDER, GILMAN & ASSOCIATES 6972a.doc:W146 Page 17 '1 10. This is a limited appraisal and is reported in summary format. _ 11. The term "Fair Market Value ", as herein used, is defined as 'the highest .price on the ' date of valuation that would be agreed to a seller, being willing to sell but under no i particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy under no particular necessity for so doing, each dealing with the t other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available." (Cal. Code of Civ. Proc., Title 7, Sec. 1263.320) I 12. Because no title report was made available to the appraisers, we assume no responsibility for such items.of record not disclosed by our customary investigation. 13. No consideration has been given in this appraisal as to the value of the property 1 considered by the appraiser to be personal located on the premises, or the cost of i moving or relocating such personal property; only the real estate has been considered. 14. Because our report is in summary form, we will retain the technical appraisal data in our j files. We regard the appraisal analysis as confidential and will release its contents only upon your authorization. 15. Maps, plats, and exhibits included herein are for illustration only as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced, or used apart from this report. 16 The improvements are assumed to be properly designed, engineered, and the - construction techniques correctly applied. 17. We hereby certify that our current nor future employment were not conditioned upon this appraisal producing a specific value nor a value within a specific range nor the j granting of a loan in conjunction with this appraisal ii 18. This is a partial appraisal as improvement values are not included. This is considered 1 appropriate since the improvements are unaffected by the project. 1 19. 9 eminent domain proceedings should occur, we reserve the right to adjust our value ' conclusions to include the structural improvements as required by law. However, in our j opinion they are unaffected by the project and as such not considered in this appraisal. REEDER, GILMAN & ASSOCIATES 6972a.doc:W146 Page 18 CERTIFICATE OF APPRAISER I certify that, to the best of my knowledge and belief: . _i -1 W The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. My 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 Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. 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, I have completed the requirements of the continuing education program of the Appraisal Institute. I have personally inspected the property that is the subject of this report. My value conclusion, as well as other opinions expressed herein are not based on a requested minimum value, a speck value, or approval of a loan. Prior to accepting this assignment I determined that 1 have the professional education, background, and experience necessary to complete this assignment competently. No one provided significant professional assistance to the persons signing this report. DATE: I January 3, 2001 WARREN REEDER, MAI, SRWA Certified General Real Estate Appraiser, CA #AG006521 NOTE: ORIGINAL DOCUMENT IS SIGNED IN BLUElNK Federal Tax ID #77 -0555850 REEDER, GELMAN & ASSOCIATES 6972a.doc:WI46 Page 19 CERTIFICATE OF APPRAISER _ 1 I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. "1 l The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, j opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, _ and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. My 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 Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. I have personally inspected the property that is the subject of this report. My value conclusion, as well as other opinions expressed herein are not based on a requested minimum value, a specific value, or approval of a loan. Prior to accepting this assignment I determined that I have the professional education, background, and experience necessary to complete this assignment competently. ` No one provided significant professional assistance to the persons signing this report. DATE: January 3, 2001 M. LI A R-6dul 1 Certified General Real a Appraiser, CA #AG014431 I NOTE ORIGINAL DOCUMENT IS SIGNED IN BLUE WK Federal Tax ID #77 -055850 REEDER, GILMAN & ASSOCIATES 6972a.doc:Wi46 Page 20 _i _i _1 .I _1 _i • Land Sales Map Land Sales Data Sheets Flood Zone Map Subject Property Photographs The Project Grant Deed C -S Zoning Regulations Offer to Accompany Appraisers Professional Qualifications REEDE& GELMAN & ASSOCIATES 6972a.doe:W146 Page 21 _T 1 NI N _! a :I _1 _1 a 'S a i 4 a _1 �o .1 .1 r I I' �+ca" Im ! Lt11S ,e i •• \ SAN LUI CREEK OPEN PACE �r�••�t\�\ ty �P?`N �` E• ? \J 1 I 6 a • y1p 9d I � A f .pf • CAUFORFaA POLVTEQIEOC srATE UM4[RSf17 �r LAND SALES MAP SUBJECT PROPERTY •Ond P St. Y St �l a new Ob— CITY OF a. ` P SAN LUIS OBISPO J bs �w+rb rcoma '! •wfin comma •s.o �� �• sumleam'u"m+ .wtnora� N rp b b } SPACE u Ave. i to h a tq ORCOTT ROA — } JKANK L FARM ROAD +A= m Ro Road $ rte... �.. t fft•e•4 SAN LUIS OBISPO CQUNTY M 6 AIRPORT �' a .i '1 _i . i. 'i -i .l "1 _i "1 :1 :1 .1 .l . 1 'r _3 • ASSESSOR'S PARCEL NO.: LOCATION' DATE OF SALE: DOCUMENT NO.: PROPERTY DESCRIPTION: Land: Improvements: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SQUARE FOOT: REMARKS: "i LAND SALE NUMBER 1 004-811-034,-014 205 South Street, San Luis Obispo June 30, 2000 36823 IF 28,292 SF (or .65 acre) Old house and barn; value in land $550,000 $550,000 TD with Coast National Bank at variable rate Lender's Choice Network Treder M $19.44 per square foot Buyer plans to utilize structures for interim use. Good access and visibility. Zoned for many possibilities. Structures over 100 years old. 004-81 sl�'t • TII, 671 •.t • Tir f... _ 3 Na / K 1 6is]Y 8, 154 Q I L 3 SEEM sr►EFr} 1 n »� e w VMdod s aadi11m1.&184. BkA.Pp.1t7 an' OF SAN tglM�S Cam ' can rwm a�°ir, ir, 65�. SosM S1n/! .lgeflss- Rlt 81.10. Pd.N ,r' REEDER, GII,MAN & ASSOCIATES 6972a.doc:W146 Page 22 .1 LAND SALE NUMMR 2 ASSESSOR'S PARCEL. NO.: 004583-034 LOCATION: 3229 Broad Street, San Luis Obispo DATE OF SALE: April 14, 2000 DOCUMENT NO.: 19820 PROPERTY DESCRIPTION: Land: 13,000 SF (or .30 acre) Improvements: Old house SALES PRICE: $187,500 TERMS: $102,080 TD with .First Bank of San Luis Obispo at a variable rate GRANTOR: Santos GRANTEE: McCarthy ZONING: C-S PRICE PER SQUARE FOOT: $14.42 per square foot REMARKS: Area is sloping lot, graded at two levels; one is approximately 6 to 8 feet above street grade. Good location, high traffic intersection. Buyer owns adjacent property. earfae raann uw MRA aa.s . Faso 004-58 r �1 LADJ MY or sw LLIS svo 9PUFF" REEDE_ R, GILMAN & ASSOCIATES 6972a.doc: W J 46 Page 23 _T '1 -r -r . 1 "i _1 .1 '1 . l '1 _1 1 _ 1 • ASSESSOR'S PARCEL NO.: LOCATION: DATE OF SALE: DOCUMENT NO.: PROPERTY DESCRIPTION: Land: Improvements: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SQUARE FOOT: REMARKS: s SANTA LAND SALE NUMBER 3 003- 651 -M 1960 Santa Barbara St., San Luis Obispo June 16, 2000 43342 15,000 SF (or .344 acre) Old buildings $227,000 Cash to seller Guidetti City of SLO C-S $15.13 per square foot Lot was purchased for a railroad museum. Lot is triangular in shape and has limited utility. a,\�- zso �t81 \ 003- 65 » ° `�'; `• 8 x-�— MEM WWA AMMM. OLA& AM A. PW 'Of. N - .X IN, REEDER, GILMAN & ASSOCIATES 6972a.doc:WI46 Page 24 "1 _I `1 _1 LAND SALE NUMBER 4 ASSESSOR'S PARCEL NO.: 004. 601 -023; 004583 -30 LOCATION: 3249 Broad Street, San Luis Obispo DATE OF SALE: April 8, 1999 DOCUMENT NO.: 23127 PROPERTY DESCRIPTION: ' Land: 50,234 SF (or 1.15 acres) Improvements: Old industrial auto service building SALES PRICE: $400,000 TERMS: $250,000 TD with seller at a fixed rate GRANTOR: Lockett GRANTEE: McCarthy ZONING: CS PRICE PER SQUARE FOOT: $7.96 per square foot REMARKS: Sloping area with low tot, estimated at 10 to 15 feet below grade. Heavily trafficked area; almost no visibility. MAPS ON FOLLOWING PAGE REEDER, GILMAN 8c ASSOCIAT'ES 6972a.doc:w146 Page 25 _i _I _i YOYO1s1 PONJW ummRA W6 s �pl�rl0 �"/If�YA3 QYR 004-58 e< t /1 B" iAle 01lfp0 4- -60 urr •s�M MUD SIREET aa. _ 1 1 1 � 1 / � / M 1 1 . /B, 1 1 • let A N 1 N M /per t , � p 1 pVp •• /�' 1 1 5 A 1 1 �i�i'>• © 1 I r r .•rw `SS j 1eaa1N IAQllse. IVA. SL A. OV ou Son Into Oblq* 9a01aEm Trod, R.S. BA.1^92 QrY Op SAtf LOS OBISPO rook"" PbWtg Yldb. R.Y.tik.II.P0.B9 AsessAwi Yep M.4 �PfR60 C*Atr of son Lars mIAp4�1. f IueT me. *.k f� 101 37, eCea.,0a AA7f•eM.lulawn�41— .rrl.ru.. 1.•u �w..a Cox h AA. 0.". oJAA.009 a+s� REEDER, GILMAN & ASSOCIATES 6972a:doc:W 146 Page 26 ROCKV1EW urr •s�M MUD SIREET aa. _ 1 1 1 � 1 / � / M 1 1 . /B, 1 1 • let A N 1 N M /per t , � p 1 pVp •• /�' 1 1 5 A 1 1 �i�i'>• © 1 I r r .•rw `SS j 1eaa1N IAQllse. IVA. SL A. OV ou Son Into Oblq* 9a01aEm Trod, R.S. BA.1^92 QrY Op SAtf LOS OBISPO rook"" PbWtg Yldb. R.Y.tik.II.P0.B9 AsessAwi Yep M.4 �PfR60 C*Atr of son Lars mIAp4�1. f IueT me. *.k f� 101 37, eCea.,0a AA7f•eM.lulawn�41— .rrl.ru.. 1.•u �w..a Cox h AA. 0.". oJAA.009 a+s� REEDER, GILMAN & ASSOCIATES 6972a:doc:W 146 Page 26 .I ASSESSOR'S PARCEL NO.: LOCATION: 1 DATE OF SALE: } DOCUMENT NO.: 1 PROPERTY DESCRIPTION: 1 Land: f Improvements: j SALES PRICE: TERMS: GRANTOR: GRANTEE: j . ZONING: PRICE PER SQUARE FOOT: .l REMARKS: .1 _I .1 _I " 9 Mz • LAND SALE NUMBER 5 053 - 257-= 122 Cross Street, San Luis Obispo May 1, 1998 25281 25,008 SF (or .57 acre) None $276,000 $193,200 TD with Heritage Oaks Bank at a variable rate Pankey Idler /Rodgers CS $1.1.04 per square foot The sale included completed site improvements. Buyer wanted this location- 053-257 `J ,t m , , tAr C QV /*-S�U Xw=fiftw IfRID. M _ MA 2701 -r, Rey air. rs , Pti a2•• J 71tACr 2202 - 1 R.N. ak r6 . PQ.2400 VAWEIL MW , a& 94. o1, P¢ 04 're s..s.o..�.ww.....+.,..r. dN OF SAN LiHS 0a6F0 tY Yy 4 710�Kp IiM rr w r ....r r r r. �r ww — �1OR N�Ol3 "OLR rrwwr.... r.A ►wwaerr.�sr � REEDER, GILMAN & ASSOCIATES 6972a.doc:W146 Page 27 "I "1 _i "1 _1 .1 �1 -1 _l _1 • ASSESSOR'S PARCEL NO.: LOCATION: DATE OF SALE: DOCUMENT NO.: PROPERTY DESCRIPTION: Land: Improvements: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SQUARE FOOT: REMARKS: a- . ::: or r..ar• rrt• rats ro - 0 LAND SALE NUMBER 6 053 - 181 -041 3285 S. Higuera Street, San Luis Obispo March 13, 1998 13752 16,606 SF (or .38 acre) Old Butler Building $199,000 $89,000 TD with seller at a fixed rate Newman Anderson CS $11.98 per square foot Site is an estimated 6 feet below street grade 053= 18 \l SAM Lf6 O�S�J 51J�AgBMf 1RACr, 1� Bi.ASt Pa.9? �JJJ V ''Ci .i .I NATIONAL FLOOD INSURANCE PROGRAM _I _t i i .1 _1 . I i i .1 -f .1 r _j FIRM FLOOD INSURANCE RATE MAP CITY OF SAN LUIS OBISP09 CALIFORNIA SAN LUIS OBISPO COUNTY ONLY PANEL - PRINTED COMMUNITY -PANEL PLUMBER 060310 0005 C MAP REVISED: JULY 7, 1981 federal emergency management agency federal insurance administration 0 - KEY TO MAP 500 -Year Flood Boundary 100 -Year Flood Boundary - Zone Designations* 100 -Year Flood Boundary 500 -Year Flood Boundary Base Flood Elevation Line -513 With Elevation In Feet•• Base Flood Elevation In Feet IEL987) Where Uniform Within Zone" Elevation Reference Mark RM7x River Mile • M 1.5 "Referenced to the National Geodetic Vertical Datum of 1929 *EXPLANATION OF ZONE DESIGNATIONS ZONE EXPLANATION A Areas of 100 -year flood; base flood elevations and flood hazard (actors not determined. AO Areas of 100 -year shallow flooding where depths are between one (1) and three (3) feet; average depths of inundation are shown, but no flood hazard lactors are determined. AH Areas of 100 -year shallow floodinX where depths are between one (1) and three (3) feet; base flood elevations are shown, but no flood hazard factors are determined. Al -A30 Areas of 100 -year flood; base flood elevations and flood hazard factors determined. A99 Areas of 100 -year flood to be protected by flood protection system under construction; base flood elevations and flood hazard factors not determined. B Areas between limits of the 100 -year flood and S00- year flood; or certain areas subject to 100-year flood- ing with average depths less than one (1 ) foot or where the contributing drainage area is less than one square mile; or areas protected by levees from the base flood. (Medium shading) C Areas of minimal flooding. (No shading) D Areas of undetermined, but possible, flood hazards. V Areas of 100 -year coastal flood with velocity (wave action); base flood elevations and flood hazard factors not determined. V1 -V30 Areas of 100 -year coastal flood with velocity (wave action); base flood elevations and flood hazard factors determined.. NOTES TO USER Centro areas not in the special flood hazard areas (zones A and V) may protected by flood control structures. This map is for flood insurance purposes only; it does not neces- sarily show all areas subject to flooding in the community or all planimetric features outside special flood hazard areas. ZONE A5 NE By CT a Q W OR tohera ¢ oR ZZ9 Jl1 hEpN Py y Zo o SFRRANO n 225 �) ORIGE °'!I QIIa' s ;3ZONE AS 1 Qti a° ZONE B 1 ZONE AO y (DEPTH 2) Z� a R 2! ALMOND - STREET o 1co! Old Carden Creek = 20 ti ZONE B �eA ZONE ix ' 4 ZONE A14�t 7 I O� v 192 ZONE C� l ZONE FLOOD ZONE MAP. SUBJECT PROPERTY _i ZONE AS ZONE C ZONE Al _ 1 a7o =Q M9 A- .I ZONE Al ' ZONE B H ZONE B . J SANDERC • ` BRANCy , 1 1 a PEW ZONE AC (DEPTH 2) 1 �s r- N 94 TI ZO ° T Brenner ?3 Creek y ZONE A 9 } a ZONE \ A (DEPTH 23 0 T7 NE Al RM23 \ >. C (DEPTH 1) M20 ..�� n 101 L a , FBI y� I ri +1 ►TA Al ^,, R C a� 0 ZO ____w Sl N � H W Z R�1cil a 4 Cr X 2 v H m a i RSKrN oar -w'r SL ti � 1 _ �r .l I .L .l SUBJECT PROPERTY PHOTOGRAPHS TAKEN NOVEMBER 2000 LOOKING SOUTH AT SUBJECT PROPERTY 69m- P.doe:l LOOKING NORTH AT SUBJECT PROPERTY mow' F z w U Z O a o ff 2 N pay I Fri y z Z O W 0m <O � l a m At N m I of 02_ a> Q K Q m a Q m Q 1 F jz IIN I 1 1 ,j i P N n M 0 a 8 O z Q � F Q O m (J 4 10 0 O z W m 9 7 � m i n 0 H O N and 3 s fi N O CLO L � 1 1 er a cxs IMTERL W Z O1sPLAY (�fl90 - - _ j - ym 1. _ .1 d I 1 I.Z 9 1 � 4 � 1 a 1 ID ' _ m J # 1 w mow' F z w U Z O a o ff 2 N pay I Fri y z Z O W 0m <O � l a m At N m I of 02_ a> Q K Q m a Q m Q 1 F jz IIN I 1 1 ,j i P N n M 0 a 8 O z Q � F Q O m (J 4 10 0 O z W m 9 7 � m "1 .i "T _i _l _l _1 t _1 _I .1 -f _i -r . l .l .I • I _ t 1 LJ • • .. REOOMNG REQUESTED BY - Firat Amad:ican TitIA Ins. - C01- Doc No: 1995-013152 Rat: No: 00015046 AND WHEN 'REO MED ML TIRS DEED AND. LPLESS OTHERWISE SHOWN BELOW MAIL TAX official Records :,RF 10.00 STATEMENTS TO: San Luis Obispo Co. ; SLO 478.60 ROBERT B. CONROY Jul is L. ROdeweld •TUDITH R. CONROY 113 INDIO DRIVE MaRecorder : PISlO BEACH, CALIFORNIA 93449 Time: 08:00 , ESCROW NO. Sid- 908476 -ND 21 ;TOTAL 4138.50 T=. ORDER N0. SIR- 908476 -ND SPACE ABOVE ThIS UNE FOR RECOROM USE ".N. 03- 752_°5 DEED GRANT FLLU rte nxrt lie underdgaed STantor(s) dectate(s): 1 Docatnentary transfer ax is S 478.50 ( 8 ) computed on hA value of property conveyed. or ( ) Gwymwd on am talus on vamp of hens and eacitinerances reumutng at time of We. ( ) Unincorporated area: ( X ) City of SAN LUIS OBISPO and By this instruawnt dated EIGHTH DAY O!• FEBRUARY, 1995 , for a valuable a aidsration ALAN A. RICHARDS AND BARBARA J. RICHARD$, TRUSTEES OF TE RICHARDS REVOCABLE PAMTI.Y TRusr .IATF.I) KAY 21.. 1989 hereby GRANTS to ROBERT B. CONROY AND JUDITH K. CONROY, H(ISWND AND WIFE AS COMMUNITY PROPERTY ' the fotbwing described rral property in tbo CITY OF SAN LUIS OBISPO County of SALT LUIS OBISPO side of C?r_-IFORa1Vk SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT 'A'. __. _ ..._.. _ ._ - •• - --ALAV A. RICKARDS ACID BARBARA J. RICHARDS, 'TRUSTEES OF THE RICHARDS S3•q!'E OF MMMMM. ARIZONA REVOCABLE FAMILY TRUST DATED Coorrn Or _rtrm o :L;:.., 1S65 r Oe amE 1ARY If;- I445 _ _ Teton me. 'jgL.t, .",/, J -MAn Holden peraonatg append ALAN A. RICHARDS, TRUSTEE r.nA_�1+ -_ RU!HARr& TMEUFP AAnt RARRARA .1_ RICHAUrtr., ''MFMR pettosaty knor.a tt• ms (ar prmsd is me oa tbs biafa of ntfahetery BALBURA J.. R ICNARDS, TRUSTEE etrtdaee) to be the peraoa(d) whose tume(r)* I we nTSalbed w the n tGl WIM ingbvmnt Md achilowtedjed to me that 7 otuatad AFML the tame in their autborized eapK?(m).w t l 1itP10dtbeU JAME L HUEN tynaturejp) al rSb iartramol the peooa(a), or the entity epos_ 111 Nobry PYEGi -Adt o et rlleh the penon(t) ode& e:eaaed tbs Inatttrmeat. PIMA COUM tvrTmESS nomql o,a dtlldm � �v�+v w°m° Eaor.'see. a t,>aT . -hire MAIL T AISM WIS TO PA_R7Y SHOWN ON POU.OWRIO LINE. IP NO PARTY G SHOWN. MAIL AS OIREC 13D ABOVE. aimLLW (Nuae) (Shed Add.ea) (City a lists) .r "1 _1 _1 .1 _i -1 _J i n I� a • • • first. Am can Title Insurance-- Cgmpany ESCROW NO: SLO- 908476 -ND DATE: FEBRUARY 8, 1995 EXHIBIT "A.' LEGA: DESCRIPTION i LOTS 13 AND 14 IN BLOCK A OF FAIRVIEW ADDITION TO THE CITY OF SAN LUIS OBISPO, IN THE CITY OF SAN LUIS OBISFO, 10 THE COUNTY OF SAN LUIS OBISPO, STATH OF CALIFORNIA, A �ICENG TH8 COUlI4Y RBCORDE BOF ZSAIDICOUNTY. K A, PAGE 48 OF END OF DOCUMENT • .• Chapter 17.46: SERVICE- COMMERCIAL (C -S) ZONE 1 Sections: 17.46.010 Purpose and application. 17.46.020 Property development standards. "T "I "I .i _1 .1 _i -r , 17.46.010 Purpose and application. The C-S zone is intended to provide for storage, . transportation and wholesaling as well as certain retail sales and business services which may be less appropriate in the City's other commercial zones. It will be applied to areas designated "service- commercialflight industrial" on the general plan map, typically those areas with more public exposure along arterial streets than places reserved for manufacturing. (Ord. 941 1 (part), 1982: prior code -9203;12(A)) 17.46.020 Property development standards. The property development standards for the C-S zone are as follows. A. Yards. Minimum street yards shall be: 1. Where no building adjoins, five feet (requirement for parking lots and signs); 2. For buildings 20 feet and less in height, 10 feet; 3. For buildings more than 20 feet in height, 15 feet; 4. Other yards shall be as provided in the zone of any adjacent lot; 5. See also Section 17.16.020. B. Maximum height: 35 feet (see also Section 17.16.020 and 17.16.040). C. Maximum coverage: 75% (see also Section 17.16.030). D. Parking requirements: See Section 17.16.060. E. Off -street loading requirements: Gross Floor Area Number of Spaces ' of Building Required 1,000 to 9,999 none 10,000 to 29,999 1 30,000 to 99,999 2 100,000 and more 3 (See also Performance Standards, Chapter 17.18.) (Ord. 941 - 1 (part), 1982: prior code - 9203.1218)) • • REEDER, GILMAN & ASSOCIATES I Appraisers and Consultants • Real and Personal Property 1 1101 South Broadway, Suite A. Santa Maria, California 93454 WARREN REEDER • MAI. SR/WA ,CWiedOwmdRWFunsAWvi .CA0AOM21 ME AM AMWSAL IN5rr UM INTERNATIONAL RIGFIr OF WAY ASSOCIATION LESLIE J. GILMAN • MBA, SR/WA CatfedOwv"RatpaleAppWW.CA0A0014 BD hM BM — WrERNATIC NAL RIGHT OF WAY ASSWATION July 28, 2000 =1 Robert B. and Judith K. Conroy 1 113 Indio Drive Pismo Beach, CA 93449 P. O. Box 726, Santa Maria, California 93456 RE: 1110 Roundhouse Street, San Luis Obispo, California Our File #6972- 5 -00 -ED Dear Mr. and Mrs. Conroy: Telephone: (805) 925 -2603 Fax: (805) 925 -0840 Federal Tax ID 4 95- 3241465 Our firm has been retained by the City of San Luis Obispo to perform appraisal services related to a street widening. Your property, which is identified above, is one of the properties that is affected. This letter is to inform you of our involvement in the appraisal process and to provide you with an opportunity to meet with us .during the inspection of the property. - 1 If you are interested in accompanying us, please contact us at (805) 925 -2603. Please note that either you or your designated representative can meet with us. Also, if i you wish, details regarding your property can be discussed with us over the phone rather than during the actual property inspection. OFFER TO ACCOMPANY APPRAISERS l _1 Please contact us at any time regarding questi ons related to the appraisal phase of this project. After the appraisal is completed, a representative of the City of San Luis Obispo will contact you concerning the actual acquisition. Sincerely, REEDER, GILMAN & ASSOCIATES REAL ESTATE APPRAISERS WARREN REEDER, MAI, SRWA Certified General Real Estate Appraiser, CA #AG006521 M. LIS OFtGQ Certified General Real Estate Appraiser, CA #AG014431 WR/MLB:jhc cc:. Timothy S. Bochum, Deputy Director of Public Wo City of San Luis Obispo a _1 �a 1 m In rna C^ V m E l m - 05 Q" 'Z 0 m _ d `o 1 Cc W Ko- m `o H W 7 n a C W Z C3 '60IAnS idles!! wn198 Bufon joj not *nU dOPlo 61mw oy{ UO POWIdum Ssaij8ily gg= MCA fl REEDER, GILMAN.& ASSOCIATES Conroy.DOC6972 Page 2 1 • • - REEFER, GIL MAN & ASSOCIATES ' Appraisers and Consultants • Real and Personal Property 1 WARREN REEDER • MAI, SR/WA 1101 South Broadway, Suite A, Santa Maria, California'93454 i SCR A.CARAGMMI SeniorMernber - APPRAISALINS71TITIE P. 0. Box 726, Santa Maria, California 93456 1 INTERNATIONAL RIG14T OF WAY ASSOCIATION Telephone: (805) 925 -2603 LESLIE J. GILMAN • MBA, SR/WA SCRFA�, CA 0 AM14M Senior Member - INTERNATIONAL RIGKr OF WAY ASSOCIATION M. LISA BORGQUIST SCRFA CA i AGD14431 Fax. (805) 925 -0840 Email: RGA1101@AOL.COM Federal Tax ID #77- 0555850 PROFESSIONAL QUALIFICATIONS The firm of .Reeder, Gilman & Associates is an association of appraisers whose practice began in •1946 under the direction of Ellis Rice. Burt Fugate and Robert Chapman joined the firm in 1962 which became Rice, Fugate & Chapman. In 1976, Warren Reeder and Les Gilman associated with the firm which became known as Reeder, Fugate, Chapman & Gilman. In May of 1981, the firm became Reeder, Gilman & Associates to reflect the retirement of Robert Chapman and Burt Fugate from the appraisal profession. Our firm's appraisal capabilities are comprehensive. Appraisals include agricultural, industrial, commercial, residential, business opportunities and special purposes properties as well as involvement in eminent domain procedures. Our clients are varied and include individuals, financial institutions, corporations and government agencies. With our background, experience, and education in the appraisal field, we will continue to offer comprehensive appraisal and consultation services. On the following pages is a partial list of clients and a summary of the individual qualifications of the members of our appraisal organization. PARTIAL LIST OF CLIENTS INDUSTRIES: GENERAL: , Ford Motor Co., Piper Aircraft, Celeron Pipeline Co., Chrysler Corp., Gould Corp., Arrow Automotive Corp.,. Santa Maria Valley Railroad, Quintron, Montgomery Ward, International Telephone and Telegraph, Marian Medical Center, Astrotech Space Operation, Chicago Title Company, McCarthy 1 Steel Company ` I AGRICULTURAL: Union Sugar Co., Gainey Ranch & Winery, Firestone Winery, Zaca Mesa Winery, Central Coast Farm Credit Association, Chandler Ranches, Hearst Ranch, Bixby Ranch Company, Newhall Land and Farming, Alisal Ranch, O.T. Rice & Son, Inc., Santa Maria Berry Farms, Fess Parker 1 Ranch & Winery J OIL COMPANIES: ARCO, Shell, Chevron, Unocal, Texaco, Marathon, Conoco, Exxon, Venoco Inc. UTILITIES: Pacific Gas & Electric, Southern California Gas, Southern California Edison, General ? Telephone L FINANCIAL INSTITUTIONS: i Wells Fargo Bank, Bank of America, Mid -State Bank, Mitsubishi Bank, Union Bank, Bank of Montecito, Lloyds Bank, Hacienda National Bank, Los Padres Savings Bank, Sanwa Bank, Sumitomo Bank, f Commerce Bank, Santa Barbara Bank & Trust, First Bank of San Luis Obispo, Heritage Oaks Bank, Upland Bank, Regency Savings Bank, City Commerce Bank, Southern Pacific Bank GOVERNMENT: UNITED STATES: Federal Aviation Agency, Western White House (Reagan Ranch), Department of Interior, U.S. Postal Service, U.S. Department of Justice, General. Services Administration, F.D.I.C. STATE' California State Coastal Conservancy, California Department of Justice, California' Department of Water Resources, California Department of Parks and Recreation, Central Coast Water Authority COUNTIES Santa Barbara, San Luis Obispo, Ventura, Santa Barbara County Association of Governments (SBCAG) CITIES: Santa Barbara, Santa Maria, San Luis Obispo, Morro Bay, Ventura, Oxnard, Port Hueneme, Lompoc, Arroyo Grande, Grover Beach, Guadalupe, Paso Robles, Atascadero ENVIRONMENTAL: The Nature Conservancy, California State Coastal Conservancy, Land Trust for Santa Barbara County SPECIAL DISTRICTS: Santa Barbara County Flood Control, San Luis Obispo County Flood Control, Santa Barbara Metropolitan Transit, Goleta Water, Santa Ynez River Water Conservation, Solvang Municipal Improvement District, Santa Maria Airport District, Santa Barbara High School District, Cambria Community Services District, Port San Luis Harbor District GENERAL CLIENTS: In addition to the above, our firm serves various clients throughout the Central Coast. These include law firms, private individuals, agricultural, commercial and industrial clients. PQ:OH:p.2 PROFESSIONAL DESIGNATIONS OF APPRAISERS j MAI - MEMBER APPRAISAL INSTITUTE _i SRNVA - SENIOR MEMBER, INTERNATIONAL RIGHT -OF -WAY ASSOCIATION SCREA - STATE CERTIFIED REAL ESTATE APPRAISER INFORMATION ON DESIGNATIONS: _i MAI - The Appraisal Institute is an organization that awards the MAI appraisal designation to 1 qualified individuals. This designation represents years of appraisal experience in varied types of property and is awarded to those individuals who have demonstrated their appraisal ability through the Institute's stringent requirements which include work experience, testing and educational programs. SRIWA - The Senior Member, International Right -of -Way Association, professional designation is awarded to those individuals who have demonstrated through testing and experience, their understanding and ability in the field of right - of -way appraisal, engineering, negotiations and eminent domain law. I SCREA - The Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989 1 requires all states to institute a licensing and certification program for appraisers conducting appraisals for federally- related real estate transactions. In compliance with FIRREA, the Office of Real Estate Appraisers (OREA) was established by the State of California. The title "State Certified Real Estate Appraiser is awarded by the OREA to individuals who have successfully met the minimum requirements for certification. This renewable license authorizes the t appraiser to complete appraisals of all real estate transactions without regard to transaction value or complexity. 1 DESIGNATED STAFF MEMBERS: WARREN REEDER - MAI, SR/WA, SCREA, CA #AG006521 LESLIE J. GILMAN - SR/WA, SCREA, CA #AG014980 M. LISA BORGOUIST - SCREA, CA #AG014431 PQ:OH:p.3 i _ F WARREN E. REEDER, MAI, SR /WA REAL ESTATE APPRAISER RESIDENCE: Santa Maria, Santa Barbara County, California BUSINESS AFFILIATION: Reeder, Gilman &,Associates, Appraisers and Consultants PROFESSIONAL AFFILIATIONS: Member (MAI) - Member Appraisal Institute Senior Member (SR/WA) - International Right of Way Association State Certified Real Estate Appraiser, CA #AG006521 - Office of Real Estate Appraisers EDUCATION: Laverne College Bachelor of Arts Degree American Institute, of Real Estate Appraisers Courses I, II, IV, VI & VII, Investment Analysis, Standards of Professional Practice International Right of Way Association - Varied Courses. Instructor: Income Valuation, Course 402; Easement Valuation, Course 403; Skills of Expert Testimony, Course 214 Certificates in Real Estate, (a) California Real Estate Certificate and (b) University of California Real Estate Certificate with specialization in appraisal COURT TESTIMONY: Qualified as an expert witness in the Superior Court of Santa Barbara, Ventura, and San Luis Obispo Counties and Federal Court,. Los Angeles County and Orange County PROFESSIONAL.APPRAISAL EXPERIENCE: 1981 - Current Reeder, Gilman & Associates 1978-1981 Reeder, Fugate, Chapman & Gilman 1976-1978 Rice, Fugate & Chapman 1967-1976 Senior Real Estate Appraiser - Ventura County Department of Public Works 1963-1967 Associate Appraiser - Ventura County Assessor's Office CONCURRENT EXPERIENCE: Member of Santa Barbara County Assessment Appeals Board, 1992 to Present. Experience gained in the acquisition of real property for public purposes and the leasing of both agricultural and commercial properties for government projects. PQ:OH:p.4 M. LISA BORGOUIST REAL ESTATE APPRAISER RESIDENCE: Grover Beach, San Luis Obispo County, California i BUSINESS AFFILIATION: Reeder, Gilman & Associates, Appraisers and Consultants PROFESSIONAL AFFILIATION: Candidate for MAI Designation - Appraisal Institute ' State Certified Real Estate Appraiser, CA #AG014431 - Office of Real Estate Appraisers EDUCATION: t Santa Monica College - Major Engineering, 2 years Hancock College - MacroEconomics j Appraisal Institute - USPAP, General Applications, Seminars, Advanced Applications Lincoln Graduate Center - Farm & Land Appraisal State Board of Equalization - Course 5, Income Approach, Advanced Income and Sales l Comparison 1 State Board of Equalization (Texas, includes Cost, Market, Income & Tax Law) - Courses 120, 210, 220, 230 & 325 APPRAISAL EXPERIENCE: 2000 - Current Reeder, Gilman & Associates ' 1998-2000 Santa Barbara County Assessor, Santa Maria, CA 1992-1998 Reeder, Gilman & Associates 1 1988-1992 Santa Barbara County Assessor, Santa Maria, CA 1987-1988 Los Angeles County Assessor, Los Angeles, CA 1985-1987 Hidalgo County Appraisal District, Pharr, TX RELEVANT EXPERIENCE: 5/87-10187 Damar Corporation, Los Angeles, CA PQ:OH:p.6 05/29/07 (slo /conroy /agreemt.doc) PROJECT: City of San Luis Obispo Santa Barbara Street Widening PARCEL NO: 003 - 752 -005 OWNER: Robert and Judith Conroy TITLE REPORT NO.:T7800113 ( Cuesta Title Co) AGREEMENT FOR ACQUISITION OF REAL PROPERTY (ESCROW INSTRUCTIONS) THIS AGREEMENT is entered into this d,2ADt` day of "n6i , 2007 by and between The City of San Luis Obispo, A Municipal Corporfii'on and A Charter City in the County of San Luis Obispo, State of California (hereinafter called 'Buyer "), and Robert B. Conroy and Judith K. Conroy, Trustees of "The Robert and Judith Conroy Living Trust dated June 9, 2004 ", (hereinafter called "Seller "), for acquisition by Buyer of certain real property as hereinafter set forth. IT IS HEREBY MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS: 1. AGREEMENT TO SELL AND PURCHASE. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, upon the terms and for the consideration set forth in this Agreement, all those certain real property rights (hereinafter called "Property ") described in that certain Grant Deed executed by Seller concurrently with the execution of this Agreement, a copy of which is attached hereto as Exhibit "A ". 2. PURCHASE PRICE. The total purchase price, payable in cash through escrow, shall be the sum of Sixty Four Thousand Two Hundred Dollars ($64,200). Said sum shall be paid as total consideration for the Property, including, without limitation, all improvements located upon the Property. Said sum shall be paid to Seller upon the close of escrow, which shall occur when title to the Property has vested in Buyer free and clear of all liens, encumbrances, assessments, easements, and leases, other than those specific items identified in Paragraph 3 below. 3. CONVEYANCE OF TITLE. Seller agrees to convey the property rights specified in the attached Grant Deed to Buyer free and clear of all recorded and unrecorded liens, encumbrances, assessments, easements, leases, and taxes, EXCEPT: A. Taxes for the fiscal year in which this transfer occurs. B. Items numbered 1 & 2 of the above numbered title report dated February 13, 2007, issued by Cuesta Title Company. C. Other items that may be approved by Buyer in writing in advance of the close of escrow. 4. TITLE INSURANCE POLICY. Escrow Agent shall, following recording of Deed to Buyer, provide Buyer with a CLTA Standard Coverage Policy of Title Insurance in the amount of 115 05/29/07 (slo/conroy /agreemt.doc) $64,200 issued by Cuesta Title Company showing title to the Property vested in Buyer, subject only to the exceptions set forth in Paragraph 3 above. Buyer agrees to pay the premium charged therefore. 5. LEASE INDEMNIFICATION. Seller represents and warrants that this Agreement and the associated rights granted by Seller to Buyer do not conflict with any lease or leasehold rights applicable to the Property, or if there are such leases, Seller expressly obtained Lessee's consent to this Agreement and further agrees to hold Buyer harmless and reimburse Buyer for any and all expenses occasioned by reason of any lease of said Property. 6. ESCROW. Buyer agrees to open an escrow in accordance with this Agreement at Cuesta Title Company. This Agreement constitutes the joint escrow instructions of Buyer and Seller, 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. Seller has executed and handed the herein referenced Grant Deed to Buyer, concurrently with this Agreement. As soon as possible after opening escrow, Buyer will deposit the executed Deed, with Certificate of Acceptance attached, with Escrow Agent on Seller's behalf. Buyer agrees to deposit the purchase price upon demand of Escrow Agent. Buyer and Seller agree to deposit with Escrow Agent any additional instruments as may be necessary to complete this transaction. Insurance policies for fire, casualty, or liability are not to be transferred, and Seller will modify his own policies after the close of escrow, if appropriate. All funds received in this escrow shall be deposited with other escrow funds in a general escrow trust 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 from such account. ESCROW AGENT IS AUTHORIZED AND INSTRUCTED TO COMPLY WITH THE FOLLOWING TAX ADJUSTMENT PROCEDURE: A. Pay and charge Seller for any unpaid delinquent taxes and /or any penalties and interest thereon, and for any delinquent or non - delinquent assessments or bonds against the Property; B. Escrow is not to be concerned with pro- ration of Seller's property taxes for the current fiscal year. Any taxes which have been paid by Seller, prior to opening of this escrow, shall not be prorated between Buyer and Seller, but Seller shall have the sole right, after the close of escrow, to apply to the County Tax Collector of said County for refund of any such taxes which may be due Seller for the period after Buyer's acquisition pursuant to Revenue and Taxation Code Section 5096.7. 2/5 F 05/29/07 (slo /cony /agreemt.doc) ESCROW AGENT IS AUTHORIZED TO, AND SHALL: A. Pay and charge Seller for any amount necessary to place title in the condition necessary to satisfy Paragraph 3 of this Agreement; B. Pay and charge Buyer and Seller for any escrow fees, charges and costs payable under Paragraph 7 of this Agreement; C. Disburse funds and deliver Deed when conditions of this escrow have been fulfilled by Buyer and Seller. 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 authorized if necessary or proper in the issuance of said policy of title insurance. All time limits within which any matter herein specified is to be performed may be extended by mutual agreement of the parties hereto. Any amendment of, or supplement to, any instructions must be in writing. TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS TO CLOSE AS SOON AS POSSIBLE. If (except for deposit of money by Buyer, which shall be made by Buyer upon demand of Escrow Agent before close of escrow) this escrow is not in a condition to close within 60 days from the date of these instructions, any party who then shall have fully complied with his instructions may, in writing, demand the return of his money or Property; but if none have complied, no demand for return thereof shall be recognized until five (5) days after Escrow Agent shall have mailed copies of such demand to all other parties at their respective addresses shown in these escrow instructions, and if any objections are raised within said five (5) day period, Escrow Agent is authorized to hold all papers or documents until instructed by a court of competent jurisdiction or mutual instructions. If no demands are made, proceed with closing this escrow as soon as possible.. Responsibility of Escrow Agent under this Agreement is expressly limited to Paragraphs 1, 2, 3, 4, 6, 7, 11, 12, and 13 and to its liability under any policy of title insurance issued in regard to this transaction. 7. ESCROW FEES, CHARGES, AND COSTS. Buyer agrees to pay all usual fees, charges and costs which arise in this escrow. 8.. PERMISSION TO ENTER ON PREMISES. Seller hereby grants Buyer, or its authorized agents, permission to enter upon the Property at all reasonable times prior to the close of escrow for the purpose of making necessary or appropriate inspections and preparations for Buyer's project construction, with advance reasonable notification. 3/5 • 05/29/07 (slo /conroy /agreemt.doc) 9. CONSTRUCTION AND RESTORATION - Buyer shall generally restore the surface of the Temporary Construction Easement area depicted in the Deed (Exhibit "A ") to the condition that existed prior to Buyer's project construction, to the extent reasonably practical, at Buyer's expense. During the duration of Buyer's project construction, Buyer agrees to have a Construction Manager meet with Seller and Seller's Tenants bi- weekly to provide project updates and future work schedules. 10. INDEMNIFICATION. Buyer hereby indemnifies and holds harmless Seller from any and all claims, damages, costs, judgments, or liability caused by Buyer or its officers, employees or agents specifically arising from Buyer's Project construction and restoration work on Seller's property. 11. 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 instrument. 12. CLOSING STATEMENT. Seller hereby authorizes and instructs Escrow Agent to release a copy of Seller's closing statement to Buyer; purpose being to ascertain if any reimbursements are due Seller. 13. BINDING EFFECT. The terms, conditions, covenants and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto. 14. JUDGMENT IN LIEU OF DEED. In the event Seller is unable to deliver title in a reasonable time under the terms of this Agreement, Buyer may elect to file an eminent domain action to pursue the acquisition of the Property, 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 the Property. 15. 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 and understandings, written or oral. This Agreement may not be amended except in writing by the parties hereto or their successors or assigns. 16. CITY COUNCIL APPROVAL. This Agreement is subject to and conditioned upon approval and ratification by the City Council of the City of San Luis Obispo. This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity. No Obligation Other Than Those Set Forth Herein Will Be Recognized. 4/5 05/29/07 (slo /conroy /agreemt.doc) IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first set forth hereinabove. MAILING ADDRESS OF SELLER Robert and Judith Conroy 113 Indio Drive Pismo Beach, CA 93449 MAILING ADDRESS OF BUYER: City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 93401 SELLER: The Robert and Judith Conroy Living Trust dated June 9, 2004 By. fZ j3 - - 6 en:�� Robert B. Conroy, Trustee By: J /\ - di K. Conroy, Trustee BUYER: The City of San Luis Obispo By: Name:. A�9 , Title: / �21 By: _ Name: Title: 515 0 EXHIBIT A • 4/11/07 (slo /conroy /deed.doc) Recording requested by: Hamner, Jewell and Associates Government Real Estate Services When recorded, mail to: City of San Luis Obispo . Public Works Department 919 Palm Street San Luis Obispo, CA 93401 No fee per Government Code 6103 GRANT DEED No Documentary Transfer Tax per Revenue Taxation Code 11922 APN: 003 - 752 -005 For a valuable consideration, receipt of which is hereby acknowledged, Robert B. Conroy and Judith K. Conroy, Trustees of "The Robert and Judith Conroy Living Trust dated June 9, 2004 (Grantor) do(es) hereby grant(s) to The City of San Luis Obispo, a Municipal Corporation and A Charter City of the State of California (City) The following interests in real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described below: In Fee:. All that certain real propert y, in fee, in the City of San Luis Obispo, County of San Luis Obispo, State of California, described in Exhibit "A -1" and depicted in Exhibit "A -2 ", attached hereto and incorporated herein. Temporary Construction Easement: A temporary construction easement for the purposes of facilitating construction within and upon the Fee parcel described above, in, on, over, under, along, and across that certain five foot wide strip of land lying immediately easterly, adjacent to and contiguous with that parcel of land described in Exhibit "A -1" and depicted in Exhibit "A -2" and Exhibit `A -3", attached hereto. The temporary construction easement and all access rights related thereto shall automatically terminate at the conclusion of City's construction or by July 31, 2008, whichever occurs first. 4/11/07 (slo /conroy /deed.doc) GRANTOR: The Robert and Judith Conroy Living Trust dated June 9, 2004 By: Robert B. Conroy, Trustee °s State of California County of Judith K. Conroy, Trustee On before me, , Notary Public personally appeared personally known to me (or 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.. WITNESS my hand and official seal Signature 2 (Seal) 4/11/07 (slo /conroy /deed.doc) CERTIFICATE OF ACCEPTANCE, GOVT CODE SECTION 27281 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 deed and consents to the recordation thereof. In Witness Whereof, I have hereunto set my hand this _ day of , 2007. • • EXHIBIT A -1 Right of Way Legal Description A portion of Block A, Fairview Addition to the City,of San Luis Obispo, in the City of San Luis Obispo, in the County of San Luis Obispo, State of California, according to map filed for record October 24, 1887 in Book A, Page 98 of Maps a described more particularly as follows: Beginning at the southwest corner of Lot 14 of Block A of said Fairview Addition; thence North 4° 42' 00" East 95.10 feet along the westerly line; also being .the Easterly line of Santa Barbara Avenue, of said Block A to the northwesterly comer of Lot 13 of said Fairview Addition; thence North 89 °29'04" East 7.03 feet along the northerly line of said Lot 13; thence South 4 042'00" West 76.46 feet along a line easterly of and parallel to said westerly line of said Block A to the beginning of a curve concave to the northeast having a radius of 17.00 feet; thence easterly 28.26 feet along said curve through a central angle of 95 °15'08" to a point on the southerly line of said Lot 14; thence South 89° 26' 52" West 25.66 feet along said southerly line of said Lot 14 line to the point of beginning. Containing 742.2 sq. ft., more or less. The bearings shown hereon was taken from those measured on Survey recorded in Book 78, Page 32 of Recorded Surveys filed in, San Luis Obispo County Recorder's Office, as determined by a line between the centerline monuments of Santa Barbara Avenue, at Roundhouse Avenue and High Street being South 040 42' 00" West. THIS DOCUMENT WAS PREPARED B_ Y ME OR UNDER MY DIRECTION. 0 T A. Robert A. Livick, PLS 8126 exp 12/31/08 Date J No. 8126 EXP. 12/3 Q` OF CAL�FO g:\ projects \cip \activeprojects\street improvementsk904O8 santabarbarawidening \_documents \3 - preconstruction \row \conroylegaldESCription ral.doc a IN O Q m O G I I I N x ' w m CD I I I /r� ' O z jL w ' m � -- I O S89 °2V52"W 25.66' - - M >- 07 w - w p J fs AV ROUNDHOUSE ER _ - m I Z z ao - c�o -�°� O M d I V Q O N W e d U_ Q OD 11 to O m If 11 J Fes- - " - N89 °26'52 'E z I ca (n W , C 'N O O N 11 , - z ' Q O •L£� � T I ti rn N89 °29'04 "E I I � r �~ /'� �✓ 7 ' 1L O '< > 111 m ' Q .� 489 °29'04 "E 7.03' < O to I 'v m I V I V-1 I �� Im- I p I z _ - - 4: r—/,,r 9584 VS R 194 N r I I o a N o I 1 x wm 1 1 � a � 1 w 2 �COz 0 o I I m w Z __ -- °-( � Q z� w, ) Z Ln S89'26'52'W 25.66' W� I Q J U 17.00' - _ RO_ HQUSE AVER o Z w o z Q _�0Q Q < cv lii U w I z Q 17.00' N M O J I ' U m CC Q a rz a: Q _ .0£ -.0£ —, U. p w I I � 1 W I I O O Z N 1 O ? I I Fm ZLL Omf F v � CD o N9 29'4E uj Lo Q m �' Q W C�l co 1 F r 1 ui r ^ • � IQ I Q 1 b Q CN co lcn tlp' I N � i . 1 }{ASKINS STREET (ABANDONED _ 1 - —% - 3584 OR 194 , N , quESTA� ITLE COMPANY 860 Price. Street • Pismo Beach, CA 93449 • (805) 773 -8600 • FAX (805) 773 -4359 October 19, 2007 The City of San Luis Obispo c/o Hamner, Jewell & Associates 340 James Way, Suite 150 Pismo Beach, CA 93449 RE: Escrow Number B7500432 Property Address A ptn ofAPN 003 =752 -005 San Luis Obispo, California 93401 The above escrow closed on 10/19/2007; in connection therewith we enclose the following:. .Final Closing Statement (PLEASE RETAIN FOR TAX PURPOSES) (duplicate of sellers package) Recorded documents to which you are entitled will be mailed to you by the County Recorder's Office: Any other documents to which you may be entitled will be forwarded to you as soon as they are available. Thank you for the opportunity to be of service to you in this transaction. We look forward to working with you again. VIRcerely, u to Ti Compan ee eak VP scrow Officer enclosures Buyer's Final Closing Statement 10/19/07 12:34 PM File 87500432 Cuesta Title Company (805) 544 -1860 Buyer's Final Closing_ Statement Buyer(s) The City of San Luis Obispo, c/o Hamner, Jewell & Associates, 340 James Way, Suite 150, Pismo Beach, CA 93449 Seller(s) Robert B. Conroy, 113 Indio Drive, Pismo Beach, CA 93449 Judith K. Conroy Lender Property A ptn of APN 003 - 752 -005, San Luis Obispo, CA 93401 Closing date 10/19/2007 Proration date 10/30/2007 Bank CNB - City National Bank Escrow Unit 50 - Pismo Beach Escrow Officer Deena Peak Contract Sales Price .. ............................. ............................... Other Adjustments: Pre -paid title credit from The City of San Luis Obispo Title Charges: Settlement or closing fee to Cuesta Title Company .... Title insurance to Cuesta Title Company $466.00...... Owner's coverage to Cuesta Title Company Liability amount $64, 200. 00 .... ............................... Debit Credit 64,200.00 300.00 400.00 ........ ............................... 466.00 Subtotal: 65,066.00 300.00 Balance due from Buyer: 64,766.00 Totals: 65,066.00 65;066.00 Page 1 ' Seller's Final Closing , g S tatement 10/19/07 12:34 PM File 87500432 Cuesta Title Company (805) 544 -1860 Sellers Final Closing Statement Seller(s) Robert B. Conroy, 113 Indio Drive, Pismo Beach, CA 93449 Judith K. Conroy Buyer(s) The City of San Luis Obispo, c/o Hamner, Jewell & Associates, 340 James Way, Suite 150, Pismo Beach, CA 93449 Lender Property A ptn of APN 003 - 752 -005, San Luis Obispo, CA 93401 Closing date 10/19/2007 Proration date 10/30/2007 Bank CNB - City National Bank Escrow Unit 50 - Pismo Beach Escrow Officer Deena Peak Deb_ it Credit ContractSales Price ........................................................ ............................... 64,200.00 Subtotal: 64,200.00 Balance due to Seller: 64,200.00 Totals: 64,200.00 64,200.00 Page 1 UESTA IT LE COMPANY 860 Price Street • Pismo Beach, CA 93449 • (805) 773 -8600 • FAX (805) 773 -4359 November 16, 2007 The City of San Luis Obispo c/o Hamner, Jewell & Associates 340 James Way, Suite 150 Pismo Beach, CA 93449 CT .- sLo RE: File Number B7500432 Property Address A ptn of APN 003- 752 -005 San Luis Obispo, California 93401 We enclose herewith the following in connection with the above referenced file number: Original Owners Policy We appreciate having had this opportunity to be of service to you. Sincerely, Cuesta Title Company Marcus Harmon Title Officer enclosures CLTA Standard Coverage Policy —1990 Order Number: B7500432 POLICY OF TITLE.INSURANCE ISSUED BY STEWART TITLE GUARANTY COMPANY SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, STEWART TITLE GUARANTY COMPANY, a Texas corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described. in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land; and in addition, as to an insured lender only: 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the lien of the insured mortgage; said mortgage being shown in Schedule B in the order of its priority; 7. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule B, or the failure of the assignment shown in Schedule B to vest title to the insured mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. In witness whereof, Stewart Title Guaranty Company has caused this policy to be signed and sealed by its duly authorized officers as of Date of Policy shown in Schedule A. STEWART TITLE GUARANTY COMPANY tit LE c� chaira of the Board ;; + ��— �p,t ISO 8 ;'e Prooidoat TEXA% Countersigned: Authorized Countersignature STEWART TITLE OF CALIFORNIA, INC. Policy No.: 0- 2228 - 310271 Serial No. 0- 2228 - 310271 ;,iy* Page 1 of 10 CLTA Standard Coverage Policy —1990 Order Number: B7500432 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees are expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulations (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a.separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. CONDITIONS AND STIPULATIONS 1. Definition of Terms. The following terms when used in this policy mean: (a) "insured ": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. The term "insured" also includes: (i) the owner of the indebtedness secured by the insured mortgage and each successor in ownership of the indebtedness except a successor who is an obligor under the provisions of Section 12(c) of these.Conditions and Stipulations (reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor insured, unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defect, lien, encumbrance, adverse claim or other matter insured against by this policy as affecting title to the estate or interest in the land); (ii) any governmental agency or governmental instrumentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage, or any part thereof, whether named as an insured herein or not; (iii) the parties designated in Section 2(a) of these Conditions and Stipulations. (b) "insured claimant ": an insured claiming loss or damage: (c) "insured lender ": the owner of an insured mortgage. (d) "insured mortgage ": a mortgage shown in Schedule B, the owner of which is named as an insured in Schedule A. (e) "knowledge" or "known ": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (0 "land ": the land described or referred to in Schedule [A] [C], and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the fines of the area described or referred to in Schedule [A] [C], nor any right, title, interest, estate or Serial No. 0- 2228 - 310271 Page 2 of 10 • CLTA Standard Coverage Policy —1990 • Order Number: B7500432 easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (g) "mortgage ": mortgage, deed of trust, trust deed, or other security instrument. (h) "public records ": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. (i) "unmarketability of the title ": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A or the insured mortgage to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. Continuation of Insurance (a) After Acquisition of Title by Insured Lender. If this policy insures the owner of the indebtedness secured by the insured mortgage, the coverage of this policy shall continue in force as of Date of Policy in favor of (i) such insured lender who acquires all or any part of the estate or interest in the land by foreclosure, trustee's sale, conveyance in lieu of foreclosure, or other legal manner which discharges the lien of the insured mortgage; (ii) a transferee of the estate or interest so acquired from an insured corporation, provided the transferee is the parent or wholly -owned subsidiary of the insured corporation, and their corporate successors by operation of law and not by purchase, subject to any rights or defenses the Company may have against any predecessor insureds; and (iii) any governmental agency or governmental instrumentality which acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage. (b) After Conveyance of Title by an Insured. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from an insured of either (i) an estate or interest in the land, or (ii) an indebtedness secured by a purchase money mortgage given to an insured. (c) Amount of Insurance. The amount of insurance after the acquisition or after the conveyance by an insured lender shall in neither event exceed the least of (i) The amount of insurance stated in Schedule A; (ii) The amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy, interest thereon, expenses of foreclosure, amounts advanced pursuant to the insured mortgage to assure compliance with laws or to protect the lien of the insured mortgage prior to the time of acquisition of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements, but reduced by the amount of all payments made or (iii) The amount paid by an governmental agency or governmental instrumentality, if the agency or the instrumentality is the insured claimant, in the acquisition of the estate or interest in satisfaction of its insurance contract or guaranty. 3. Notice of Claim to be Given by Insured Claimant. An insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest or the lien of the insured mortgage, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest or the lien of the insured mortgage, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company; then as to that insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. Defense and Prosecution of Actions; Duty of Insured Claimant to Cooperate. (a) Upon written request by an insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of such insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of such insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The company will not pay any fees, costs or expenses incurred by an insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to an insured. The Company may take any appropriate action under the terms of this policy,. whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, an insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of such insured for this purpose. Whenever requested by the Company, an insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured. If the Company is prejudiced by the failure of an insured to furnish the required cooperation, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute; or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. Proof of Loss or Damage. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by each insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of an insured claimant to provide the required proof of loss or damage, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. Serial No. 0- 2228 - 310271 Page 3 of 10 • CLTA Standard Coverage Policy —1990 • Order Number: B7500432 In addition, an insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by an insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of an insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that insured for that claim. 6. Options to Pay or Otherwise Settle Claims; Termination of Liability. In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) to pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay; or (ii) in case loss or damage is claimed under this policy by the owner of the indebtedness secured by the insured mortgage, to purchase the indebtedness secured by the insured mortgage for the amount owning thereon together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of purchase and which the Company is obligated to pay. If the Company offers to purchase the indebtedness as herein provided, the owner of the indebtedness shall transfer, assign, and convey the indebtedness and the insured mortgage, together with any collateral security, to the Company upon payment therefor. Upon the exercise by the Company of the option provided for in paragraph a(i), all liability and obligations to the insured under this policy, other than to make the payment required in that paragraph, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. Upon the exercise by the Company of the option provided for in paragraph a(ii) the Company's obligation to an insured Lender under this policy for the claimed loss or damage, other than the payment required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. (b) To Pay or Otherwise Settle with Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs b(i) or b(ii), the Company's obligations to the insured under this, policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. 7. Determination and Extent of Liability. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy to an insured lender shall not exceed the least of (i) the Amount of Insurance stated in Schedule A, or, if applicable, the amount of insurance as defined in Section 2 (c) of these Conditions and Stipulations; (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations or as reduced under Section 9 of theses Conditions and Stipulations, at the time the loss or damage insured against by this policy occurs, together with interest thereon; or (iii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the insured lender has acquired the estate or interest in the manner described in Section 2(a) of these Conditions and Stipulations or has conveyed the title, then the liability of the Company shall continue as set forth in Section 7(a) of these Conditions and Stipulations. (c) The liability of the Company under this: policy to an insured owner of the estate or interest in the land described in Schedule A shall not exceed the least of (i) the Amount of Insurance stated in Schedule A; or, (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (d) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. Limitation of Liability. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, or otherwise establishes the lien of the insured mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, or, if applicable, to the lien of the insured mortgage, as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. (d) The Company shall not be liable to an insured lender for: (i) any indebtedness created subsequent to Date of Policy except for advances made to protect the lien of the insured mortgage and secured thereby and reasonable amounts expended to prevent deterioration of improvements; or (ii) construction loan advances made subsequent to Date of Policy, except construction loan advances made subsequent to Date of Policy for the purpose of Serial No. 0- 2228 - 310271 Page 4 of 10 CLTA Standard Coverage Policy —1990 • Order Number: B7500432 financing in whole or in part the construction of an improvement to the land which at Date of Policy were secured by the insured mortgage and which the insured was and continued to be obligated to advance at and after Date of Policy. 9. Reduction of Insurance; Reduction or Termination of Liability. (a) All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of insurance pro tanto. However, as to an insured lender, any payments made prior to the acquisition of title to the estate or interest as provided in Section 2(a) of these Conditions and Stipulations shall not reduce pro tanto the amount of insurance afforded under this policy as to any such insured, except to the extent that the payments reduce the amount of the indebtedness secured by the insured mortgage. (b) Payment in part by any person of the principal of the indebtedness, or any other obligation secured by the insured mortgage, or any voluntary partial satisfaction or release of the insured mortgage, to the extent of the payment, satisfaction or release, shall reduce the amount of insurance pro tanto. The amount of insurance may thereafter be increased by accruing interest and advances made to protect the lien of the insured mortgage and secured thereby, with interest thereon, provided in no event shall the amount of insurance be greater than the Amount of Insurance stated in Schedule A. (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company to an insured lender except as provided in Section 2(a) of these Conditions and Stipulations. 10. Liability Noncumulative. It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge or hen on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. The provisions of this Section shall not apply to an insured lender, unless such insured acquires title to said estate or interest in satisfaction of the indebtedness secured by an insured mortgage. 11. Payment of Loss. (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 12. Subrogation Upon Payment or Settlement. (a) The Company's Right of Subrogation Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated (i) as to an insured owner, to all rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss; and (ii) as to an insured lender, to all rights and remedies of the insured claimant after the insured claimant shall have recovered its principal, interest, and costs of collection. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against.by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Insured's Rights and Limitations. Notwithstanding the foregoing, the owner of the indebtedness secured by an insured mortgage, provided the priority of the lien of the insured mortgage or its enforceability is not affected, may release or substitute the personal liability of any debtor or guarantor, or extend or otherwise modify the terms of payment, or release a portion of the estate or interest from the lien of the insured mortgage, or release any collateral security for the indebtedness. When the permitted acts of the insured claimant occur and the insured has knowledge of any claim of title or interest adverse to the title to the estate or interest or the priority or enforceability of the lien of an insured mortgage, as insured, the Company shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (c) The Company's Rights Against Non- insured Obligors. The Company's right of subrogation against non - insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. The Company's right of subrogation shall not be avoided by acquisition of an insured mortgage by an obligor (except an obligor described in Section I (a)(ii) of these Conditions and Stipulations) who acquires the insured mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond and the obligor will not be an insured under this policy, notwithstanding Section 1(a)(i) of these Conditions and Stipulations. 13. Arbitration. Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 14. Liability Limited to This Policy; Policy Entire Contract. Serial No. 0- 2228 - 310271 Page 5 of 10 9 CLTA Standard Coverage Policy —1990 0 Order Number: B7500432 (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the lien of the insured mortgage or of the title to the estate or interest covered.hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 15. Severability. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 16. Notices, Where Sent. All notices required to be given the Company and any _statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at P.O. Box 2029, Houston, Texas 77252 -2039, and identify this policy by its printed policy serial number which appears on the bottom of the front of the first page of this policy. STEWART TITLE GUARANTY COMPANY Serial No. 0- 2228 - 310271 Page 6 of 10 0 CLTA Standard Coverage Policy —1990 SCHEDULE A Order No.: B7500432 Amount of Insurance: $64,200.00 Date of Policy: October 19, 2007 at 08:00 am Order Number: B7500432 Policy No.: 0- 2228 - 310271 Premium: $466.00 1. Name of Insured: The City of San Luis Obispo, a Municipal Corporation and a Charter City of the State of California (City) 2. The estate or interest in the land which is covered by this policy is: A Fee 3. Title to the estate or interest in the land is vested in: The City of San Luis Obispo, a Municipal Corporation and a Charter City of the State of California (City) 4. The land referred to in this policy is described as follows: (See Attached Legal Description) Serial No. 0- 2228 - 310271 Page 7 of 10 0 CLTA Standard Coverage Policy —1990 LEGAL DESCRIPTION • Order Number: B7500432 The land. referred to herein is situated in the County of San Luis Obispo, State of California, and is described as follows: A portion of Block A, Fairview Addition to the City of San:Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded October 24, 1887 in Book A, Page 98 of Maps, described more particularly as follows: Beginning at the Southwest corner of Lot 14 of Block A of said Fairview Addition; Thence North 4 °42'00" East, 95,10 feet along the Westerly line, also being the Easterly line of Santa Barbara Avenue, of said Block A to the Northwesterly corner of Lot 13 of said Fairview addition; Thence North 89 °29'04" East, 7.03 feet along the Northerly line of said Lot 13; Thence South 4 942'00" West, 76.46 feet along a line Easterly of and parallel to said Westerly line of said Block A to the beginning of a curve concave to the Northeast having a radius of 17.00 feet; Thence Easterly 28.26 feet along said curve through a central angle of 95 °15'08" to a point on the Southerly line of said Lot 14; Thence South 89 °26'52" West, 25.66 feet along said Southerly line of said Lot 14 line to the Point of Beginning. APN: 003,752,005 Serial No. 0- 2228 - 310271 Page 8 of 10 0 CLTA Standard Coverage Policy —1990 Order Number: B7500432. SCHEDULE B PART EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of the taxing authority that levies taxes or assessments on real property or by the public records. Proceeding by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. Serial No. 0- 2228 - 310271 Page 9 of 10 CLTA Standard Coverage Policy —1990 SCHEDULE B PART 11 Order Number: B7500432 1. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes, to be levied for the fiscal year 2007 - 2008 which are a lien not yet payable. 2. The lien of supplemental taxes; if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the revenue and taxation code of the State of California. 3. Terms and provisions of a lease dated June 21, 1995, executed by Robert B. Conroy and Judith K. Conroy, as lessor, and Leawel, Inc., DBA Art's Cyclery, as lessee as disclosed by a Notice of Non - Responsibility, recorded March 21, 1995, as Instrument/File No. 1995- 025968, of Official Records. The present ownership of the leasehold created by said lease and other matters affecting the interest of the lessee are not shown herein. 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I SLIP 0 W VI w ;j • 0 UESTA IT LE COMPANY 860 Price Street • Pismo Beach. CA 93449 • (805) M -8600 • FAX (805) 713 -4359 Date August 30, 2007 Escrow Officer Deena Peak Escrow Number 137500432 Property Address A ptn of APN 003- 752 -005 San Luis Obispo, California 93401 SUPPLEMENTAL ESCROW INSTRUCTIONS CUESTA TITLE COMPANY IS LICENSED BY THE STATE OF CALIFORNIA UNDER THE DEPARTMENT OF INSURANCE. LICENSE NO. 73459 In accordance with the provisions of that certain Agreement For Acquisition of Real Property (with Escrow Instructions) herein after referred to as the Agreement, by and between Robert B. Conroy and Judith K. Conroy, trustees of "The Robert and Judith Conroy Living Trust, dated June 9, 2004 ", and all successor trustees , as Seller(s) and The City of San Luis Obispo, A Municipal Corporation and A Charter City, in the County of San Luis Obispo, as Buyer(s), Escrow Holder acknowledges receipt of a fully executed copy of Agreement, and agrees to act as Escrow Holder as described in item 6, page 2 of 5 and subject to the terms of Escrow Holder's instructions herein, and General Provisions. All other sections and /or paragraphs of the Agreement are matters between Buyer and Seller in which Escrow Holder shall have no concern and /or liability. The following are hereby added to the agreement for clarification purposes only and the parties hereto agree to be bound by same as far as the escrow is concerned. The intent of the following instructions is not to modify the agreement, only clarify Escrow Holder's duties thereunder. SECTION I CLOSE OF ESCROW will be on or before 10/30/2007. PURCHASE PRICE of the subject property is $64,200.00. LEGAL DESCRIPTION more particularly described as Exhibit A of the Grant Deed dated August 30, 2007. All parties approve the legal description as described in said Deed and instruct Escrow Holder to attach same Deed and /or other documents created in this escrow. SECTION II Upon close of escrow, Escrow Holder is authorized and instructed to charge our respective accounts the costs attributable to each, including, but not limited to the following as indicated below and as described on page 3 of 5 items A., B., and C. of the Agreement. a) The Seller shall pay the costs as described in the agreement . b) The Buyer shall pay the costs as described in the agreement. SECTION III ADDITIONAL INSTRUCTIONS CLOSING STATEMENTS: Escrow Holder is hereby authorized and instructed to provide a complete HUD 1 Settlement Statement and /or Buyer and Seller Closing Statements to all parties to this transaction and to their agents, brokers and /or lenders. PRORATIONS: Escrow Holder is instructed to prorate the following at the close of escrow: No prorations through this escrow Y ®u� COPY Page I of 5 w • 0 GENERAL PROVISIONS 1. DEPOSIT OF FUNDS, OPPORTUNITY TO EARN INTEREST AND PRORATIONS All funds received in this escrow shall be deposited with other escrow funds into one or more non - interest bearing escrow accounts at a financial institution selected by Escrow Agent. Escrow Agent shall not be responsible and shall have no liability for any delay in closing this escrow if the funds deposited are not available for immediate withdrawal as a matter of right pursuant to California Insurance Code Section 12413.1 et. seq. Funds deposited in the financial institution are insured only to the limit provided by the Federal Deposit Insurance Corporation. Escrow Holder shall not be held responsible for lost interest due to wire delays caused by any bank or the Federal Reserve System, and recommends that all parties make themselves aware of banking regulations with regards to placement of wires. You have the opportunity to earn interest on the funds you deposit with us by instructing us to deposit your funds in an interest bearing account. (You do not have an opportunity to earn interest on any funds deposited by a lender) If you elect to earn interest, there is an additional fee in the amount of $50.00 for establishing and maintaining such an account. It is important that you consider this cost as it may exceed the actual interest you earn. Should you not elect to earn interest on your deposit, your funds will be deposited in our General Escrow Account at a financial institution insured by the FDIC. This is a non - interest bearing account; however, Cuesta Title Company may receive certain financial benefits from that financial institution because of the General Escrow Account and its on -going banking relationship. These benefits may include, without limitation, credits allowed by such financial institution on loans to Cuesta Title Company and earnings on investments made with the proceeds of such loans, accounting, reporting and other services and products of such financial institution. We do not have an obligation to account to you in any manner for the value of or to compensate any parry for, any benefit received by Cuesta Title Company. Any such benefits shall be deemed additional compensation of Cuesta Title Company for its services in connection with the escrow. All prorations and /or adjustments called for in this escrow shall be made on the basis of a 30 day month or 360 day year, unless otherwise instructed in writing. Proration of real property taxes including supplementalreal property taxes, will be made on the basis of the latest available figures provided to Escrow Holder. The phrase close of escrow (COE) as used herein means the date on which instruments /documents are recorded. Disbursements from this escrow will bemade by check of Escrow Holder. Unless otherwise instructed in writing, checks will be issued jointly to the parties designated as payees. Signatures (including initials) of principals or their duly authorized agents on any documents /instrument and /or instruction pertaining to this escrow indicate approval of same. 2. SPECIAL RECORDINGS If a "SPECIAL RECORDING" is arranged and completed, meaning recording the documents called for in this escrow, at any time other than the standard recording time for title companies, then all parties hereto represent and warrant that during the period of time between the standard recording time and the time the documents are actually recorded pursuant to the "SPECIAL RECORDING ", no additional liens, encumbrances, or exceptiosito the title whether involuntary or voluntary, of any kind or nature will attach to or be recorded against the subject property, nor will the subject property be otherwise transferred or conveyed. All parties hereby expressly agree to indemnify and hold;scrow Holder harmless from all claims, losses or damages and attorney's fees resulting from any such additional liens, encumbrances, exceptions to title, transfers or conveyances. 3. AUTHORIZATION TO DELIVER If it is necessary, proper or convenient for theconsummation of this escrow, Escrow Holder is authorized to deposit or have deposited funds or documents, or both, handed to Escrow Holder under these escrow instructions with any duly authorized subescrow agent, including, but not limited to, any bank, trust company, title insurance company, title company, savings and loan association, or licensed escrow agent, at or before close of escrow in connection with closing this escrow. Any such deposit shall be deemed a deposit under the meaning of these eserw instructions. 4. AUTHORIZATION TO FURNISH COPIES Furnishing copies of any /all escrow instructions, amendments, supplements, preliminary reports, notices of cancellation and closing statements in this escrow to the real estate broker(s), other principal(s), lenders and /or attorney's representing principals to this escrow is authorized. Escrow holder shall not incur any liability to the parties for delivery of said copies. 5. TIME AND WRITTEN NOTIFICATION Time is of the essence. In the event the conditions cf this escrow have not been complied with at the expiration of the time provided for herein you are permitted, though not required, to complete the same at the earliest possible date thereafter. No notice, demand or change of instructions shall be of any effect to alter, amend,.supplement, or vary the terms of these instructions unless given in writing and signed by all parties affected thereby. 6. CANCELLATION PROVISIONS Any principal instructing Escrow Holder to cancel escrow shall file notice of cancellainn in Escrow Holder's office in writing and so state the reason for cancellation. Upon receipt of same, Escrow Holder shall prepare cancellation instructions for signatures of the principals and shall forward same to the principals. Upon receipt of mutually agreeable cancellation instructions signed by all principals and after payment of Escrow Holder's cancellation charges, Escrow Holder is authorized to comply with such instructions and cancel the escrow. 7. ACTION IN INTERPLEADER OR OTHER COURT OR LEGAL PROCEEDINGS The principals hereto expressly agree that Escrow Holder has the absolute right, at its election, to file an action in interpleader requiring the principals to answer and litigate their several claims and rights among themselves and Escrow Holler is authorized to deposit with the clerk, and the court, all documents, instruments and funds held in escrow. In the event such action is filed, the principals jointly and severally agree to pay Escrow Holder's cancellation charges and costs, expenses and reasonable attorney's fees it is required to expend or incur in such interpleader action, the amount thereof to be fixed and judgment therefore to be rendered by the court. Upon filing of such action, Escrow Holder is thereupon fully released and dischrged from all obligations to further perform any duties or obligations otherwise imposed by the terms of this escrow. 8. PERSONAL PROPERTY TAX Escrow Holder is not responsible for any personal property tax which may be assessed to any former owner of the pirperty that is the subject of this escrow, nor for the corporation or license tax of any corporation as a former owner. No examination or insurance as to the amount of payment of personal taxes is required unless specifically requested. 9. LIMITATION ON DUTY TO INFORM It is agreed by the parties hereto, that so far as Escrow Holder's rights and liabilities are involved, the transaction is an escrow and not any other legal relation and CUESTA TITLE COMPANY is an Escrow Holder only on the within expressed term, and Escrow Holder shall have no responsibility for notifying any of the parties of this escrow of any sale, resale, loan, exchange or other transaction involving any property herein described or of the profit realized by any person, firm or corporation (broker, agent and parties to this and/or other escrow included), in connection therewith, regardless of the fact that such transaction(s) may be handled concurrently by Escrow Holder in this escrow or in another escrow. 10. LEGAL,ADVICE The parties acknowledge and understand that Escrow Holder is not authorized to practice law, nor give financial advice. The parties are hereby advised to seek legal and financial counsel and advice concerning the effect of these escrow instructions. The parties acknowledgeltat no representations are made by Escrow Holder about the legal sufficiency, legal consequences, financial effect or tax consequences of the within escrow instructions. Page 2 of 5 r 0 11. DISCLOSURE OF CONDITIONS PRECEDENT The parties to this escrow, by execution thereof, acknow I edge their duty to Escrow Holder of full disclosure of those matters, which shall effect the transfer of subject property and conditions of title (inclusive of real personal and intangible property, which matters may result in a lien against subject property). Disclosure shall include, but not limited to: water stock, owners association or maintenance dues, contractual obligations not automatically terminated upon sale, notes, deeds of trust and vendors liens. 12. STATEIFEDERAL CODE NOTIFICATION According to Federal law, the Seller(s), when applicable, will be required to complete a 10995 Worksheet that will be utilized to generate a 1099 reporting statement to the Internal Revenue Service. You are released from and shall have no liability, obligatims or responsibility with respect to (a) withholding of funds pursuant to Section 1445 of the Internal Revenue Code of 1984, "Foreign Investors in Real Property Act" (FIRPTA), as amended (b) advising of requirements, (c) determining whether the seller is a foreign person, under such Section, or (d) obtaining a non - foreign affidavit or other exemption from withholding under such Section nor otherwise making any inquiry concerning compliance with such Section by any party to this transaction. IN ACCORDANCE WITH SECTION 18662 OF THE REVENUE AND TAXATION CODE, A BUYER MAY BE REQUIRED TO WITHHOLD AN AMOUNT EQUAL TO 3.1/3 PERCENT OF THE SALE PRICE OR AN ALTERNATIVE WITHHOLDING AMOUNT CERTIFIED BY THE SELLER IN THE CASE OF A DISPOSITION OF CALIFORNIA REAL PROPEA'Y INTEREST BY EITHER: I) A SELLER WHO IS AN INDIVIDUAL, TRUST, ESTATE, OR WHEN THE DISBURSEMENT INSTRUCTIONS AUTHORIZE THE PROCEEDS TO BE SENT TO A FINANCIAL INTERMEDIARY OF THE SELLER, OR 2) A CORPORATE SELLER THAT HAS NO PERMANENT PLACE OF BUSINESS IN CALFORNIA IMMEDIATELY AFTER THE TRANSFER OF TITLE TO THE CALIFORNIA PROPERTY. THE BUYER MAY BECOME SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD AN AMOUNT EQUAL TO THE GREATER OF 10 PERCENT OF THE AMOUNT REQUIRED TO BE WITHHELD OR FIVE HUNDRED DOLLARS ($500.00) HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION INCLUDED IN THE CALIFORNIA STATUTES REFERENCED ABOVE, NO BUYER WILL BE REQUIRED TO WITHHOLD ANY AMOUNT OR BE SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD IF ANY OF THE FOLLOWING APPLY. 1) THE SALE PRICE OF THE CALIFORNIA REAL PROPERTY CONVEYED DOES NOT EXCEED ONE HUNDRED THOUSAND DOLLARS ($100,000). 2) THE SELLER EXECUTES A WRITTEN CERTIFICATE, UNDER THE PENALTY OF PERJURY, CERTIFYING THAT THE SELLER IS A CORPORATION WITH A PERMANENT PLACE OF BUSINESS IN CALIFORNIA. 3) THE SELLER, WHO 1S AN INDIVIDUAL, TRUST, ESTATE OR A CORPORATION WITHOUT A PERMANENT PLACE OF BUSINESS IN CALIFORNIA, EXECUTES A WRITTEN CERTIFICATE, UNDER THE PENALTY OF PERJURY, OF ANY OF THE FOLLOWING: A) THE CALIFORNIA REAL PROPERTY BEING CONVEYED IS THESELLER'S OR DECEDENT'S PRINCIPAL RESIDENCE (WITHIN THE MEANING OF SECTION 121 OF THE INTERNAL REVENUE CODE). B) THE LAST USE OF THE PROPERTY BEING CONVEYED WAS USE BY THE TRANSFEROR AS THE TRANSFEROR'S PRINCIPAL RESIDENCE WITHIN THE MEANING OF SECTION 121 ff THE INTERNAL REVENUE CODE. C) THE CALIFORNIA REAL PROPERTY BEING CONVEYED IS OR WILL BE EXCHANGED FOR PROPERTY OF LIKE KIND (WITHIN THE MEANING OF SECTION 1031 OF THE INTERNAL REVENUE CODE), BUT ONLY TO THE EXTENT OF THE AMOUNT OF GAIN NOT REQUIRED TO BE RECOGNIZED FOR CALIFORNIA INCOME TAX PURPOSES UNDER SECTION 1031 OF THE INTERNAL REVENUE CODE. D) THE CALIFORNIA REAL PROPERTY HAS BEEN COMPULSORILY OR INVOLUNTARILY CONVERTED (WITHIN THE MEANING OF SECTION 1033 OF THE INTERNAL REVENUE CODE) AND THAT THE SELLERINTENDS TO ACQUIRE PROPERTY SIMILAR OR RELATED IN SERVICE OR USE SO AS TO BE ELIGIBLE FOR NONRECOGNITION OF GAIN FOR CALIFORNIA INCOME TAX PURPOSES UNDER SECTION 1033 OF THE INTERNAL REVENUE CODE. E) THE CALIFORNIA REAL PROPERTY TRANSACTION WILL RESULT IN FLOSS OR NET GAIN NOT REQUIRED TO BE RECOGNIZED FOR CALIFORNIA INCOME TAX PURPOSES. THE SELLER IS SUBJECT TO PENALTY FOR KNOWINGLY FILING A FRAUDULENT CERTIFICATE FOR THE PURPOSE OF AVOIDING THE WITHHOLDING REQUIREMENT. 13. NO ACTIVITY If there is no written activity by a principal to this escrow within any six-month period after the time limit date as set forth, in the escrow instructions or written extension thereof, Escrow Holder's obligation shall terminate at Escrow Holder's option. All documents, monietar other items deposited with Escrow Holder shall be returned to the respective parties entitled thereto, less fees and charges herein provided. 14. CAPTIONS AND COUNTERPARTS Captions in these escrow instructions are inserted for convenience of reference on* and do not define, describe or limit the scope of the intent of these instructions or any of the terms hereof. These instructions 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 said counterparts together shall constitute one:and the same instrument. 15. BINDING All terms of these escrow instructions shall be binding upon, inure to the benefit and be enforceable by the parties hereto and their respective leg representatives, successors and assigns. In the event any term, covenant, condition, provision or agreement herein contained is held to be invalid or void by any court of competent jurisdiction, the invalidity of any such term, covenant, condition, prnision or agreement shall in no way affect any other term, covenant, condition, provision or agreement herein contained. 16. USURY Escrow Holder is not to be concemed with any question of usury in any loan or encumbrance involved in the processing of this =sow and is hereby released of any liability or responsibility therefore. 17. CONFLICTING DEMANDSANTERPLEADER NO notice, demand or change of instructions shall be of any effect in this escrow unless given in writing by all parties affected thereby.. If conttting demands are made in connection with this escrow, Escrow Holder shall have the absolute right to either withhold and stop all proceedings, or file suit in the interpleader and obtain an order from the court requiring the parties to interplead their xveral claims and rights amongst themselves. 18. FACSIMILE AND ELECTRONIC MAIL All parties acknowledge that documents and instructions may be transmitted via facsimile (FAX) and /or electronic mail (entail). In the event the principals of this transaction, their agents, or assigns, utilize "facsimile (FAX)" transmitted instructions, Escrow Holder may rely and act upon such instructions in the same manner as if original signed instructions were in the possession of Escrow Holder. 19. DISCRETIONARY TERMINATION At the sole discretion of Escrow Holder, Escrow Holder may elect to terminate its escrow relationship with the principals to the escrow. Funds and documents will be returned upon mutual instructions of the appropriate parties. Page 3 of 5 • • 20. PURCHASE AGREEMENT It is understood that the Purchase agreement or amendment or supplement (collectively "Purchase Agreement ") deposited to this escrow shall be effective only as between the parties signing the Purchase Agreement. Escrow Holder's only duty is to comply with the insoctions set forth in these escrow instructions and the duties described in said Purchase Agreement as hereinabove set forth. Escrow Holder shall not be responsible for interpreting or acting on any other provisions of the Purchase Agreement. In condction with any loan transaction, Escrow Holder is authorized to deliver a copy of any purchase agreement and a copy of all escrow instructions, supplements or amendments to the Lender. 21. ENVIRONMENTAL DISCLOSURE Notwithstanding any actual or other knowledge on the part of Escrow Holder, the parties agree to release Escrow Holder from any and all liability of any kind or nature and to indemnify Escrow Holder of any loss, damages, claims, judgments or costs of any kind or nature resulting from or related to the release or discharge of hazardous or toxic wastes on the subject property whether it occurred in the past or present or may occur in the future which release or discharge is in violation of law, in excess of any state and federal standards, permit regWements and /or disclosure requirements existing at this time or which may exist at a future time. The parties represent that they made their own assessment of the condition of the subject property and have not relied on any of your representations in makhg the assessment. The parties are advised to seek independent legal and technical environmental expert advice in assessing the risks associated with potential hazardous or toxic wastes. 22. ADDITIONAL DOCUMENTS HANDED TO ESCROW HOLDER Parties agree to hand Escrow Holder applicable documentation to establish their authority to act. Those documents may include, but shall not be limited to the following: 1) If an individual` Statement of Information 2) If a corporation: A Corporate resolution signed by the Secretary of the Corporation, authorizing the acquisition, encumbrancing (if applicable), or sale of the subject property, and designating the authorized signatories on behalf of the corporation, together with a copy of the Articles of Incorporation & By -Laws. 3) If a Trust: copy of the Trust Agreement, any amendments thereto and/or a Certificate of Trust. 4) If a General Partnership: An original Statement of Partnership, in recordable form (if not already recorded) to be recorded in the County in which the subject property is located. A copy of the partnership agreement is also requested. 5) If a Limited Partnership: The LRI form, certified by the Secretary of State to record (if not already recorded) in the county in which the subject property is located. A copy ofthe partnership agreement is also requested. 6) If a Joint Venture:' The requirements specified I, 2, and 3 herein will be applicable as it relates to the entities which comprise the Joint Venture. 7) If a Limited Liability Company (LLC): The LLCI certified bythe Secretary of State to record (if not already recorded) in the county in which the subject property is located. The LLCI must reflect an expiration date. One person must be named on the LLCI as managing the LLC, or all members must sign. A copy of the operating agreement is required. The parties further acknowledge that in the event the partners of a partnership are individuals, it may be required that each such partner submit.a completed and executed Statement of Information. If the Principals have any questions regarding the disposition of Unclaimed Funds, in excess of $50.00, the Principals should contact the Controller or successor agency for the State of Califomia.. 23. DESTRUCTION OF RECORDS Escrow Holder is authorized to destroy or otherwise dispose of any and all documents, papers, instructions, correspondence and other materials pertaining to this escrow at the expiration of seven (7) years from the close of escrow or cancellation thereof. 24. GOOD FUNDS California Insurance Code Section 12413.1 regulates the disbursement of escrow and sub-escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds received via wire transfer may be disbursed upon receipt. Funds received via cashier's checks or teller checks drawn on a California Bank -may be disbursed on the next business day after the day of deposit. If funds are received by any other means, recording and/or disbursement may be delayed. CESTA TITLE COMPANY shall not be responsible for accruals of interest or other charges resulting from compliance with the disbursement restrictions imposed by state law. If any check submitted is dishonored upon presentment for payment, you are authorizedto notify all principals and /or their respective agents of such nonpayment. 25. CHANGE IN OWNERSHIP REPORT All parties are aware that a "Preliminary Change in Ownership Form" is to be filed with the office of the County Assessor upon recordation of all transfer documents involving real property. As an accommodation only, Escrow Holder shall provide necessary forms to the purchaser herein and in the event the completed form is deposited into escrow prior to close, Escrow Holder shall deliver same to County As6sor concurrently with recordation of the documents being recorded in this transaction. 26. APPLICATION OF PAYOFF FUNDS Should a check or wire be deemed unacceptable by lenders, creditors, lien holders or beneficiaries of Deeds of Trust, Escrow Holder is athorized to act on our behalf in requesting the funds, as well as any balance in an impound account, be applied towards the balance due. 27. INDEMNITY FOR ATTORNEY'S FEES AND COSTS In the event suit is brought by any party or parties to this escrow, includingCuesta Title Company, as against each other or others, including, Cuesta Title Company, which results in a dismissal of orjudgment in favor of Cuesta Title Company, the parties hereto agree to hold harmless, reimburse and indemnify Cuesta Title Company, its officers and employees, from any loss, expenses, costs and attorney's fees incurred. THIS AGREEMENT IN ALL PARTS APPLIES TO, INURES TO THE BENEFIT OF, AND BINDS ALL PARTIES HERETO, THEIR HEIRS, LEGATEES, DEVISEES, ADMINISTRATORS, EXECUTORS, SUCCESSORSAND ASSIGNS, AND WHENEVER THE CONTEXT SO REQUIRES THE MASCULINE GENDER INCLUDES THE FEMININE AND NEUTER, AND THE SINGULAR NUMBER INCLUDES THE PLURAL. THESE INSTRUCTIONS AND ANY OTHER AMENDMENTS MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH SHALL BE CONSIDERED AS AN ORIGINAL AND BE EFFECTIVE AS SUCH. THE FOREGOING ESCROW INSTRUCTIONS AND GENERAL PROVISIONS HAVE BEEN READ AND ARE UNDERSTOOD AND AGREED TO BY EACH OF THE UNDERSIGNED. Buyer(s): The City of San Luis Obispo By: Page 4 of 5 • Seller(s): Robert B. Conroy, Trustee 0 Judith K. Conroy, Trustee Page 5 of 5 �UESTA [TLE COMPANY 860 Price Street • Pismo Beach, CA 93449 • (805) 773 -8600 • FAX (805) 7734359 TO: Deena Peak Cuesta Title Company 860 Price Street Pismo Beach, California 93449 DATE: September 19, 2007 ESCROW NO: B7500432 PROPERTY ADDRESS: A ptn of APN 003 -752 -005 San Luis Obispo, California 93401 PRELIMINARY REPORT APPROVAL I have read the Preliminary Report dated 8/27/2007, covering the property described in your above numbered escrow, and approve the Policy of Title Insurance to be issued to me as required by my instructions to include as encumbrances therein Item Nos. I - 3 of said report, in addition, to those specific items described in my escrow instructions or created by me. Further, I approve the legal description as being the property which is the subject of this escrow. I hereby acknowledge receipt of copy of said Preliminary Report. Buyer(s): The City of San Luis Obispo By_: Ime."O"L -. r Escrow Number: B7500432 - Pmlim Approval Page 1 of I Buyer's Estimated Closing Statement ® 9/19/07 10:44 AM • File B7500432 Cuesta Title Company (805) 544 -1860 Buyer's Estimated Closing Statement Buyer(s) The City of San Luis Obispo, c/o Hamner, Jewell & Associates, 340 James Way, Suite 150, Pismo Beach, CA 93449 Seller(s) Robert B. Conroy, 113 Indio Drive, Pismo Beach, CA 93449 Judith K. Conroy Lender Property A ptn of APN 003 - 752 -005, San Luis Obispo, CA 93401 Closing date 10/30/2007 Bank CNB - City National Bank Escrow Unit 50 - Pismo Beach Escrow Officer Deena Peak Contract Sales Price ... Other Adjustments: Pre -paid title credit from The City of San Luis Obispo......... Title Charges: Settlement. or closing fee to Cuesta Title Company ... Title insurance to Cuesta Title Company $466.00..... Owner's coverage to Cuesta Title Company Liability amount $64, 200. 00 ... ............................... Proration date 10/30/2007 Debit Credit .......:.. 64,200.00 300.00 400.00 ........ ............................... 466.00 Subtotal: 65,066.00 300.00 Balance due from Buyer: 64,766.00 Totals: 65,066.00 65,066.00 "The parties herein have been advised that the foregoing amounts are estimates only. We therefore, authorize Cuesta Title Company to change estimated amounts to final amounts owing, to satisfy the items authorized, and to close escrow. The City of San Luis Obispo By: By: Page 1 q UESTA ITLE COMPANY 860 Price Street • Pismo Beach, CA 93449 • (805) 773 -8600 -i FAX (805) 773 -4359 September 19, 2007 The City of San Luis Obispo c/o Hamner, Jewell & Associates 340 James Way, Suite 150 Pismo Beach, CA 93449 RE: Escrow Number B7500432 Property Address A ptn of APN 003 - 752 -005 San Luis Obispo, California 93401 Cuesta Title Company would like to take this opportunity to congratulate you on the purchase of your new property and to introduce Deena Peak, your Escrow Officer, and her assistants Renee Brian and Mary Meinert. In order to expedite your transaction, please complete, sign, and return to our office the following: Escrow Instructions Preliminary Change of Ownership Report Preliminary Report Approval Form Buyer's Estimated Closing Statement We are enclosing the following for your records: Copy of Escrow Instructions Preliminary Report dated as of 8/27/2007 Copy of Buyer's Estimated Closing Statement Everyone at Cuesta Title Company is committed to providing you the professionalism and expertise that you desire. Should you have any questions, please do not hesitate to call. Since , Ctl-4,—, ompany ae-, hr, Deena Peak AVP /Escrow Officer enclosures 0 • EXHIBIT A -1 Right of Way Legal Description A portion of Block A, Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, in the County of San Luis Obispo, State of California, according to map filed for record October 24, 1887 in Book A, Page 98 of Maps a described more particularly as follows: Beginning at the southwest corner of Lot 14 of Block A of said Fairview Addition; thence North V 42' 00" East 95.10 feet along the westerly line, also being ,the Easterly line of Santa Barbara Avenue, of said Block A to the northwesterly comer of Lot 13 of said Fairview Addition; thence North 89 °29'04" East 7.03 feet along the northerly line of said Lot 13; thence South 4 042'00" West 76.46 feet along a line easterly of and parallel to said westerly line of said Block A to the beginning of a curve concave to the northeast having a radius of 17.00 feet; thence easterly 28.26 feet along said curve through a central angle of 95° 15'08" to a point on the southerly line of said Lot 14; thence South 89° 26' 52" West 25.66 feet along said southerly line of said Lot 14 line to the point of beginning. Containing 742.2 sq. ft., more or less. The bearings shown hereon was taken from those measured on Survey recorded in Book 78, Page 32 of Recorded Surveys filed in, San Luis Obispo County Recorder's Office, as determined by a line between the centerline monuments of Santa Barbara Avenue, at Roundhouse Avenue and High Street being South 04° 42' 00" West. THIS DOCUMENT WAS PREPARED BY ME OR UNDER MY DIRECTION. I- ND sU A. 41 9L Robert A. Livick, PLS 8126 exp 12/31/08 Date -j No. 8126 M EXP. 12/3 OF CA��F 9:\ projects \cip \activeprojects\street improvements \90408 santabarbarawidening \_documents \3 - preconstruction \row \conroylegaldescription ral.doc I CD i � t I I NI , I � 0 I I I I I , S89 °26 52 "W 25.66RO - U - N — DH = M - M o Q 0 CL ) 11 r aC J N89 °2652 "E m a �— OT LL co w N 00 CV ° II I Co Z io o_ i co Sri N89 °29'04 "E , ti rn WO I I I � t I Z_ ,00'L IA4 L � o Q N89 °29'04 "E 7.03' c Q DO , Q H Z I U) � I I N I i I pB4NDOiVED1 3584 OR 194 N i i a N m O x w m a O ? Z CO w M ° O 3 co w O J Z � Q 0 N a ir O m Q U a CO O O V� S89 ` °26'52' 25,66' 17.00' I I N 17.00' N u I J N � I I II J I Z / O Il/ r U D LL IX CO F m W UUwLo } N 11 �wcc O Q a w w Xx W O O N a v O Z6 Iti o� fV CD r 7.03' ,• I 1 0 Lnn I I I I I. I I O I I � I I c w ? Z I M W W w Rp_ HOUS = E - z ' c fn0Uw I M � �1 11� 1 � I I I I I Ir- I I I I I I I I I I Z Iw Im I � O I L CO �Q< u.i I> I Q ' I� IC. ° I Q i I mo. m I o U � Q m Q I I I Z a en lA 1 N 1 - —� NA MNS-STREET rpgAND010� 3584 OR 194 a I T I i I I 1 I 0 N N O <L m # w 03 z � Q Z m w w 0z3 O O J?fs Z °zFQ O rnz V � U a m Q 'Q 0 .Q U cLc G # ZHH e q UESTA. ITLE PRELIMINARY TITLE REPORT Cuesta Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance of Stewart Title Guaranty Company describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception on Schedule B or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in Exhibit "A " attached. Copies of the Policy forms should be read. They are available from the office which issued this report. Please read the exceptions shown or referred to below and the Exceptions and Exclusions set forth in the attached Exhibit "A" of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are.not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this Preliminary Report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to this land This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. / � 'Ww' Marcus Harmon Title Officer Authorized Signatory File Number: B7500432 UESTA ITLE COMPANY 715 Tank Farm Road, N 120 • San Luis Obispo, CA 93401 • (805) 544 -1860 • FAX (805) 541 -1769 PRELIMINARY REPORT TITLE OFFICER: Marcus Harmon TO: Cuesta Title Company 860 Price Street Pismo Beach, California 93449 ATTN: Deena Peak PHONE NUMBER: (805) 773 -8600 SHORT TERM RATE: No Your Reference : B7500432dp Property Address:, , EFFECTIVE DATE: Monday, August 27, 2007 at 07:30 a.m. The form of Policy or Policies of title insurance contemplated by this report is: California Land Title Association Standard Coverage Policy 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: Robert B. Conroy and Judith K. Conroy, Trustees of "The Robert and Judith Conroy Living Trust dated June 9, 2004 ", and all successor trustees 3. THE LAND REFERRED TO IN THIS REPORT IS SITUATED IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF 9/7/2007 Page 1 of 5 LEGAL DESCRIPTION File Number: B7500432 Lots 13 and 1.4 in Block A of Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded October 24, 1.887 in Book A, Page 98 of Maps. APN: 003,752,005 End of Legal Description Page 2 of 5 File Number: B7500432 SCHEDULE B At the date hereof, exceptions to coverage in addition to the printed exceptions and exclusions contained in said policy or policies would be as follows: 1. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes, to be levied for the fiscal year 2007 - 2008 which are a lien not yet payable. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the revenue and taxation code of the State of California. Terms and provisions of a lease dated June 21, 1995, executed by Robert B. Conroy and Judith K. Conroy, as lessor, and Leawel, Inc., DBA Art's Cyclery, as lessee as disclosed by a Notice of Non- Responsibility, recorded March 21, 1995, as Instrument/File No. 19957025968, of Official Records. The present ownership of the leasehold created by said lease and other matters affecting the interest of the lessee are not shown herein. 4. Any invalidity or defect in the title of the vestees in the event that the trust referred to in the vesting portion of Schedule A is invalid or fails to grant sufficient powers to the trustee(s) or in the event there is a lack of compliance with the terms and provisions of the trust instrument. If title is to be insured in the trustee(s) of a trust, (or if their act is to be insured), this Company will require a copy of the trust instrument creating such trust, and all amendments thereto, together with a written verification by all present trustees that the copy is a true and correct copy of the trust, as it may have amended, that it is in full force and effect and that it has not been revoked or terminated. END OF EXCEPTIONS Page 3 of 5 NOTES 0 File Number: B7500432 Note No. 1: Property taxes for the fiscal year 2006 - 2007 shown below are paid. For proration purposes the amounts are: I" Installment: 2 °d Installment- Exemption- Land: Improvements: Personal Property: Code Area: Assessment No.: Note No. 2: Short Term Rate is not applicable. $2,679.16 $2,679.16 None $202,798.00 $331,854.00 None 003 -000 003,752,005 Page 4 of 5 9 • File Number: B7500432 CALIFORNIA "GOOD FUNDS" LAW California Insurance Code Section 12413.1 regulates the disbursement of escrow and sub - escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds received by Cuesta Title Company via wire transfer may be disbursed upon receipt. Funds received via cashier's checks or teller checks drawn on a California Bank may be disbursed on the next business day after the day of deposit. If funds are received by any other means, recording and /or disbursement may be delayed, and you should contact your title or escrow officer. All escrow and sub - escrow funds received will be deposited with other escrow funds in one or more non - interest bearing escrow accounts in a financial institution selected by Cuesta Title Company. Cuesta Title Company may receive certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance _of such accounts with the financial institution, and Cuesta Title Company shall have no obligation to account to the depositing party in any manner for the value of, or to pay to such party, any benefit received by Cuesta Title Company. Such benefits shall be deemed additional compensation to Cuesta Title Company for its services in connection with the escrow or sub - escrow. If any check, submitted is dishonored upon presentation for payment, you are authorized to notify all principals and/or their respective agents of such nonpayment. WIRING INSTRUCTIONS If you anticipate having funds wired to Cuesta Title Company, our wiring information is as follows: Additional Note: Direct wire transfers to: City National Bank One Centerpoint Drive 9160 La Palma. CA 90623 ABA: 122016066 Account Number: 013- 429707 Credit to: Cuesta Title Company Reference Number: [37500432 When instructing the financial institution to wire funds, it is very important that you reference Cuesta Title Company. Should you have any questions in this regard please contact your Escrow Officer immediately. Page 5 of 5 . /> -./ ) u \) y -30 -D /I-) CL w 3 d �� =cca�o ? (D CD y H 4Q� S N�CL C2 ICD CD ci E cry w Al �oo21 s cm Qom_ °' CD CD ci •vc (D cp cn As • quawwo0 .vi fl :iepvo Z !0 6 : a5ed 9L •V deyy jossessy y0 `odsr90 sm7 ueg : uojguosap I c 00� zzz gx� a >m fo mN- IR 4 �0 V �m I ! a VIA So I y Is 1 1 I I i 1 I 3 I I I n 1 fW - ,-- a- - - -r -- I I I la �o Iv IZ ,� j N � 1 I �ItJ AV& S la So I y Is I� y,l q I I fW I' I I I la �o Iv IZ ,� j N all I I 9so 1 47 I 147 i $ I iezdV max a sr. OM Nis rts 4 6 . 5 0 , 47 1 47 14%7e 147.JV L 1 4 r r3 CZ 1 1 � a v'• Y� i l JJS7e� � LZ R,4C1 AEL sT. J/9.4 — 67 1f� f" oU+ P.M. s7 -ze �J er V I BlblliELL " g G ST. R u I rO. • 1 • Cuesta Title Company Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm - Leach - Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices ofCuesta Title Company. We may collect nonpublic personal information about you from the following sources: • Information we receive from you, such as on applications or other forms. • Information about your transactions we secure from our files, or from our affiliates or others. • Information we receive from a consumer reporting agency. • Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliates third parties permitted by law. We also may disclose this information about our customers or former customers to the following types of non affiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: • Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. • Non - financial companies such as envelope stuffers and other fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. • • EXHIBIT A AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE.POLICY (6 -1 -87) EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or governmental regulation. This includes building and zoning ordinances and also laws and regulations concerning: • land use • improvements on the land • land division environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at policy date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless: • a notice of exercising the right appears in the public records on the Policy.Date • the taking happened prior to the Policy Date and is binding on you if you bought the land without knowledge of the taking Title Risks: • that are created, allowed, or agreed to by you • that are known to you, but not to us, on the Policy Date - unless they appeared in the public records • that result in no loss to you • that first affect your title after the Policy Date — this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks Failure to pay value for your title. Lack of a right: • to any land outside the area specifically described and referred to in Item 3 of Schedule A in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. SCHEDULE B EXCEPTIONS In addition to the Exclusions, you are not insured against loss, costs, attorneys' fees, and the expenses resulting from: 1. Any rights, interests, or claims of parties in possession of the land not shown by the public records. 2. Any easements or liens not shown by the public records. This does not limit the lien coverage in Item 8 of Covered Title Risks. 3. Any facts about the land which a correct survey would disclose and which are not shown by the public records. This does not limit the forced'removal coverage in item 12 of Covered Title Risks. 4. Any water rights or claims or title to water in or under the land, whether or not shown by the public records. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY -1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part, or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the publicirecords at Date of Policy, (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed, or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant, (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or the failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. - 6. Any claim, which arises out of the transaction vesting in the insured.the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of.the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. SCHEDULE B, PART I EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of PART 1 1. Taxes or assessments which are not shown as existing liens by the records of any taxing 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public authority that levies taxes or assessments on real property or by the public records. records. Proceedings by a public agency which may result in taxes or assessments, or notices of such 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other proceedings, whether or not shown by the records of such agency or by the public records. facts which a correct survey would disclose, and which are not shown by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which 5. (a) Unpatented mining claims, (b) reservations or exceptions in patents or in Acts could be ascertained by an inspection of the land or which may be asserted by persons in authorizing the issuance thereof; (c) water rights, claims.or title to water, whether or not the possession thereof. matters excepted under (a), (b), or (c) are shown by the public records. 0 • EXHIBIT A (CONTINUED) AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10- 17 -92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE AND AMERICAN.LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10- 17 -92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land, (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the.land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed, or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy); or (e) resulting in loss or damage which would not have been sustained a the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or the failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceabilityof the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proce eds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer: or (ii) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable. subordination; or (iii) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer, or (b) of such recordation to impart notice to a purchaser for value or a judgement or lien creditor. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10- 17 -92) AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10.17 -92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1, (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part, or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has.been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Dale of Policy which would.be binding on the rights of a purchaser for value without knowledge. Defects, liens, encumbrances, adverse claims. or other matters: (a) created. suffered, assumed or agreed to by the insured claimant, (b) not known to the Company, not recorded in the public records at Dale of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (1) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgement or lien creditor. The above ALTA policy forms may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Genera I Exceptions: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attomeys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public authority that levies taxes or assessments on real property or by the public records. records. Proceedings by a public agency which may result in taxes or assessments, or notices of such 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other proceedings, whether or not shown by the records of such agency or by the public records. facts which a correct survey would disclose, and which are not shown by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts could be ascertained by an inspection of the land or by making inquiry of persons in authorizing the issuance thereof, (c) water rights. claims or title to water, whether or not the possession thereof. matters excepted under (a), (b), or (c) are shown by the public records, EXHIBIT A (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (6 -2 -98) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10- 17 -98) EXCLUSIONS .In addition to the Exceptions in Schedule B, You are not insured against loss, . costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or governmental regulation. This includes ordinances, laws and regulations concerning: a. building b. zoning C. Land use d. improvements on Land e. Land division f. environmental protection This Exclusion does not apply to violations or the enforcement of these matters if notice of the violation or enforcement appears in the Public Records at the Policy Date. This Exclusion does not limit the coverage described in Covered Risk 14, 15, 16, 17 or 24. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to take.the Land by condemning it, unless: a. notice of exercising the right appears in the Public Records at the Policy dale; or b. the taking happened before the Policy Date and is binding on You if You bought the Land without Knowing of the taking. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they appear in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they appear in the Public Records at the Policy Date; C that result in no loss to You; or d. that first occur after the Policy Date — this does not limit the coverage described in Covered Risk 7, 8.d, 22, 23. 24, or 25. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any Land outside the area specifically described and referred to in paragraph 3 of Schedule A. and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described. in Covered. Risk 11 or 18. RESIDENTIAL TITLE INSURANCE POLICY ONE -TO -FOUR FAMILY RESIDENCE ENHANCED VERSION (1997) EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from 1. Governmental police power, . and the existence or violation of any law or governmental .regulation. This includes building and zoning ordinances and also laws and regulations concerning: a. land use: b. improvements on the Land; C. land divisions; or d. environmental protection, This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does not limit the coverage described in Item 12c and d, 13 and 18 of Covered Title Risks. 2. The right.to lake the land by condemning it, unless: a- a notice of exercising the right appears in the public records on the.Policy date: or b. the taking happened before the Policy Date and is binding on you if you bought the land without knowing of the taking. 3. Title Risks: a. that are created, allowed, or agreed to by you; b. that are known to you, but not to us, on the Policy Date — unless they appeared.in the public records; C. that result in no loss to you; or d. that first affect your title after the Policy Date — this does not limit the coverage described in Items 3b, 8, 17, and 19 of Covered Title Risks. 4. Failure to pay value for your title. 5, Lack of a right: (a) to -any land outside the area specifically described and referred to in Item 3 of Schedule A or (b) in streets, alleys, or waterways that touch your land. This exclusion does not limit the coverage described in items.5 and 12a of the Covered Title Risks. CSD H CL y 1 ' Q S CD —� Q N N ay to � r !y C'.0.. n � O < >v m c p'm•a, w =camm � CD (A dt �CO CD � `� N O V► 01 .ys I :;uawwo0 xtJlN repro Z JO t : a8ed 9Z 'E deyV JOSSass y Vo `odsrg0 srn-1 ueg : uggdµosao W— SANTA c I I W a�� I al to I I S `" eUstw ELL p C V I I I I t I o0 ,.% 1 1 I I j 1 I I I 1 I 1 a rrd IO IV IZ ( I k • k r �p r I� oI I I t 1 4 -- —— � ° - - -- (V� I I I I uj t I r I I it I IU of I 1 I I I.c :,nsl l7 1 I ! .17 II�7D i EML.Y b IS.JOI 47 1 1 t 47 co I I� l I" � � t6 I$ ► I I � I I r� a zzz aam CD �i I IQ op IL ti till .I a RACHAEL S7: r o> a 000 I I W a�� I al to I I S `" eUstw ELL p R O �y I IQ op IL ti till .I a RACHAEL S7: r o> a 000 saRaa,QA I ,7.y " *� a a,�, AVE s I I IASfO oil a rrd IO IV IZ ( I k I� oI I I t 1 4 -- —— � ° - - -- (V� I I I I uj t I r I I it I IU of I I i wix �vi.ea � - - --•- I J %6 I I 1 L` U cso �7 47 ♦xso N 5 e \�) ST. --- $ I IQ op IL ti till .I a RACHAEL S7: r o> a 000 a L` U N 5 e \�) --- ^ —�- -- fi m >< si fJ - - -...`— °_ iiv.eo _a -- -- w So ST W v� 8 L�J Page 1 of 4 • AP # 003 - 752 -005 APPRAISAL SUMMARY STATEMENT BASIC DATA PROJECT: City of San Luis Obispo - Santa Barbara Street Widening Project.. PARCEL NO.: 003 -752 -005 OWNER: Robert B. Conroy and Judith K. Conroy, Trustees of "The Robert and Judith Conroy Living Trust dated June 9, 2004 PROPERTY LOCATION: 2140 Santa Barbara Street, San Luis Obispo, California APPLICABLE ZONING: C -S — Commercial Service CURRENT USE OF SUBJECT PROPERTY: Retail Bicycle Store (Arts Cyclery) HIGHEST AND BEST USE OF SUBJECT PROPERTY: DATE OF VALUATION: TOTAL PROPERTY AREA: PROPERTY TO BE ACQUIRED: IMPROVEMENTS TO BE ACQUIRED: BASIS OF APPRAISAL Existing Use — Commercial Service March 14, 2007 14,066 square feet 742.20 square foot fee parcel and approximately 589 square foot Temporary Construction Easement All within Fee parcel, e se 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: . Page 2 of 4 • AP # 003 - 752 -005 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 $27 /sq.ft. to $150 /sq.ft., with a Market Value conclusion of $80 /sq.ft. 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 valuation process as it was deemed inapplicable to this specific case. 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. VALUATION Fee Parcel 742.2 square feet x $80.00 = $59,376 Temporary Easement 589 square feet x $80.00 x 10% _ $ 4,712 Total Market Value (Rounded): $64,200 Total Just Compensation for this Acquisition: Sixty Four Thousand Two Hundred Dollars $6( 4,200) This summary of the basis of the amount offered as just compensation is presented in compliance with federal and state law 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. Approved for Acquisition: City of San Luis Obispo By: _ Name: Title: Date: 1 Page 3 of 4 AP # 003- 752 -005 SUMMARY STATEMENT RELATING TO PURCHASE OF REAL PROPERTY OR AN INTEREST THEREIN Project: City of San Luis Obispo, Santa Barbara Street Widening Project AP #: 003 - 752 -005 The City of San Luis Obispo is proposing to widen and improve Santa Barbara Street in the City of San Luis Obispo, California. Your property, located at 2140 Santa Barbara Street, San Luis Obispo, is within the project area and also identified by your county assessor as Parcel Number 003 - 752 -005. The, City seeks to purchase a small portion of this property for the street widening and improvement project. 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 the purchase of a 742.20 square foot area in Fee and an adjacent Temporary Construction Easement. These interests are described in the enclosed Grant 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. 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 4 of 4 AP # 003 - 752 -005 5. Pursuant to Civil Code of Procedure Section 1263.025, you have a right to. obtain an independent appraisal of the property rights sought by the City and to seek reimbursement 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 the selected appraiser be highly experienced, skilled, and qualified to do this type of appraisal assignment. 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 110 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. 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. 7. If you ultimately elect to reject this offer 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. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 March 21, 2007 APPRAISAL REPORT OF THE CONROY PROPERTY SANTA BARBARA STREET WIDENING 2140 SANTA BARBARA STREET SAN LUIS OBISPO, CALIFORNIA PREPARED FOR: BRIDGET FRASER, PROJECT MANAGER CITY OF SAN LUIS OBISPO 919 PALM STREET SAN LUIS OBISPO, CALIFORNIA PREPARED BY: REEDER, GILMAN & BORGQUIST REAL ESTATE APPRAISERS SANTA MARIA, CALIFORNIA 1 1 r 1 I REEDER, GILMAN & BORGQUIST Appraisers and Consultants • Real and Personal Property WARREN REEDER • MAI, SR/WA 1101 South Broadway, Suite A, Santa Maria, California 93454 SCREA, CA # AGO06521 Senior Member - APPRAISAL INSTITUTE P. O. Box 726, Santa Maria, California 93456 INTERNATIONAL RIGHT OF WAY ASSOCIATION LESLIE J. GILMA.N • MBA, SR/WA SCREA. CA # AGO 14990 Senior Member - INTERNATIONAL RIGHT OF WAY ASSOCIATION M. LISA BORGQUIST SCREA, CA # AGO 14431 March 21, 2007 Ms. Bridget Fraser, Project Manager Public Works 919 Palm Street San Luis Obispo, CA 93401 Telephone: (805) 925 -2603 Fax: (805) 925 -0840 Email: info @rgbappraisers.com Website: WWW.RGBAPPRAISERS.COM Federal Tax ID #77- 0555850 RE: Appraisal — The Conroy Property, Santa Barbara Street Widening 2140 Santa Barbara Street, San Luis Obispo, California Our File No. 7641A- 01 -07 -ED / 229 Dear Ms. Fraser: At your request and authorization, we have completed one of the two appraisals of the properties affected by the proposed widening of the east side of Santa Barbara Avenue between Roundhouse Road and High Street. The purpose of the appraisal is to estimate the just compensation for the acquisition of the new right -of -way. The appraisal is to consider real property only. Items of personal property such as business valuation, equipment, etc., are not to be part of this analysis. The opinion of value is based on the fee simple interest in the subject property as if free and clear of all liens, leases, and encumbrances. The function of this appraisal will be its use a guide to value during negotiation for acquisition of the proposed right -of -way. In our opinion, the existing commercial building is unaffected by the project in the after - condition. The acquisition is that of land only, currently in use as a front lawn. Therefore, we have appraised land only for this appraisal. ' The following appraisal report is a result of our inspection of the subject property and contains descriptive data and analysis on which we have based our opinion of value. 1 1 L 1 1 7 L� Our 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 Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. As a result of our investigation and analysis of the factors influencing real estate value, together with our experience in appraising properties in the area, it is our opinion that the fair market value of the Just Compensation of the subject property, as of March 14, 2007, is: SIXTY -FOUR THOUSAND TWO HUNDRED DOLLARS SUBJECT TO the Assumptions and Limiting Conditions contained herein. We hereby certify that we have no present nor contemplated financial interest in the subject property, that the opinion of value expressed herein is our own conclusion and that our fee is not contingent upon the value reported nor upon anything else except the delivery of this report. Respectfully submitted, REEDER, GILMAN & BORGQUIST REAL ESTATE APPRAISERS M. LISA Q T Certified ral Real Estate `A pr iser, CA #AG014431 NOTE: ORIGINAL DOCUMENT IS SIGNED IN BLUE INK. MLB:ajs REEDER, GILMAN & BORGQUIST 7641:229 Page 3 1 TABLE OF CONTENTS REEDER, GILMAN & BORGQUIST 7641A:229 I Page 4 INTRODUCTION: ' Title Page .................................................................................... ............................... Letterof Transmittal .................................................................... ............................... Tableof Contents ........................................................................ ............................... Definitions.................................................................................... ............................... Scopeof the Appraisal ................................................................ ............................... AppraisalSummary ..................................................................... ............................... ' APPRAISAL REPORT: TheProject .................................................................................. ............................... 8 Identification of the Larger Parcel ................................................ ............................... 8 Purpose of the Appraisal .............................................................. ............................... 8 PropertyRights Appraised ........................................................... ............................... 9 Offer to Accompany Appraisers .................................................. ............................... 9 Dateof Value ............................................................................... ............................... 9 ' Ownership ................................................................................... ............................... 9 Functionof the Appraisal ............................................................. ............................... 9 ' PropertyHistory ........................................................................... ............................... Subject Property Data ................................................................. ............................... 9 10 Assessor's Parcel Map ...................................................... ............................... ' Highestand Best Use .................................................................. ............................... Valuation ..................................................................................... ............................... 12 13 ValuationSummary ...................................................................... ............................... 15 Assumptions and Limiting Conditions ..... :................................................................... Certificate of Appraiser ...................................... ............................... ... ....................... 16 18 ' ADDENDA: Land Sales Data and Map ........................................................... ............................... SubjectAerial Photograph ........................................................... ............................... PartTaken .................................................................................... ............................... Legal Description of Part Taken ................................................... ............................... Temporary Construction Easement .............................................. ............................... ' Zoning Map Flood Map ................................................:................................... ............................... GrantDeed .................................................................................. ............................... Professional Qualifications .......................................................... ............................... REEDER, GILMAN & BORGQUIST 7641A:229 I Page 4 1 1 77 DEFINITIONS A. FAIR MARKET VALUE (a) 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 uses and purposes for which the property is reasonably adaptable and available. (b) The Fair Market Value of property taken for which there is no relevant market is its value on the date of valuation as determined by any method of valuation that is just and equitable. 1 1 L REEDER, GILMAN & BORGQUIST 7641:229 1 Page 5 SOURCE: Eminent Domain Law, Title 7, Chapter 9, Article 4 Section 1263.320 ' B. SEVERANCE DAMAGES - In the case of a partial taking, it is the damage to the part not taken which arises by reason of the taking and /or the construction of the improvements in the manner proposed. ' C. TAKE OR SUBJECT PROPERTY - All the property which the owner thereof will be deprived the use of, either permanently or temporarily as a result of the ' construction of this project. D. PARENT PROPERTY OR LARGER PARCEL - The whole of the parcel of which ' a partial take is being made. E. GENERAL BENEFITS - A gain or appreciation in value arising from a public ' improvement which affects the entire community, neighborhood or District by reason of nearness to the improvements. public F. HIGHEST AND BEST USE - That which, at the time of appraisal, is the most ' profitable, likely use to which a property can be put. G. EASEMENT - A non - possessory interest in the land of another which allows the ' owner of the easement to use that land for a particular purpose. 1 1 L REEDER, GILMAN & BORGQUIST 7641:229 1 Page 5 SCOPE OF THE APPRAISAL The duties of the appraiser in fulfilling this assignment included: A. Inspection of the physical property including the land, improvements, public utilities and other items considered important. ' B. Study. and evaluation of available publications on relevant data such as economic studies, maps, real estate trends, etc., necessary in preparing this appraisal. C. A study of various public records including data available from the ' County Assessor, the County Recorder and other public agencies. D. Study of the surrounding areas and local factors and trends affecting real estate values and the subject property. E. Taking photographs of the subject property. F. Securing sufficient data to complete the appraisal. This includes interviews with buyers and sellers of similar properties and interviews with knowledgeable people in the area for the purpose of securing ' the necessary background data. G. Analyzing all data collected and processing said data into our ' opinion of the Market Value of the subject property. H. The market data contained in this report was verified with people ' familiar with the transaction, typically the Buyer, Seller, Real* Estate Broker, or other reliable source. ' I. This appraisal is reported in summary format. 1 L ' REEDER, GILMAN & BORGQUIST 7641:229 Page 6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 APPRAISAL SUMMARY Subject Property Owners: Location: Assessor's Parcel Number: Larger Parcel Area: Part Taken: Remainder: Temporary Construction Easement: Improvement Area: Zoning: Highest & Best Use: Date of Value: Valuation: Larger Parcel (land only): Part Taken (land): Improvements: Damages: Benefits: Temporary Construction Easement: Total Just Compensation: REEDER, GILMAN & BORGQUIST Robert B. and Judith K. Conroy 2140 Santa Barbara Street or 1110 Roundhouse Avenue, San Luis Obispo, California 003 - 752 -005 14,066 SF 742.20 SF 13,323.80 SF 589 SF Not affected by the project, not appraised C -S — Commercial Service Existing Use, Commercial Service March 14, 2007 $1,125,500 $ 59,500 $ 0 $ 0 $ 0 $ 4,700 $ 64,200 7641:229 Page 7 APPRAISAL REPORT THE PROJECT: The project includes two parcels, which are located on the east side of Santa Barbara Street between Roundhouse Avenue and High Street. The Take Area is 7 feet wide with an area of 742.2 square feet. The temporary construction easement is an ' addition five (5) feet wide, and has an area of 589 square feet. The beginning of the Take is within inches of the beginning of the grass and the end of the sidewalk. Further ' details in maps attached. The Conroy property, which is the subject of this report, is one of two parcels that are affected by the project. The acquisition basically affects the set back area and possible the relocation of the property signage, to be completed at ' agency's expense. ' IDENTIFICATION OF THE LARGER PARCEL: The Larger Parcel is a 14,066- square -foot corner lot located on the northeastern ' corner of Roundhouse Avenue and Santa Barbara Street. The property is improved with a retail wood frame building with parking in the rear. Due to the amount of setback the structure already has, the project will not affect the improvements, with the ' exception of the probable relocation of a sign. ' PURPOSE OF THE APPRAISAL: The purpose of the appraisal is to estimate the fair market value of the subject ' property. "Fair Market Value" is defined as: 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 willing, and able to buy but under no particular necessity for so doing, each dealing with the other ' with full knowledge of all uses and purposes for which the property is reasonably adaptable and available. ' The Fair Market Value of property taken for which there is no re levant market is its value on the date of valuation as determined by any method of valuation that is just and equitable. SOURCE: Eminent Domain Law, Title 7, Chapter 9, Article 4, Section 1263.310 1 REEDER, GILMAN & BORGQUIST 7641:229 1 Page 8 1 PROPERTY RIGHTS APPRAISED: ' The property rights appraised are those of the fee simple interest in the subject property as if free and clear of all liens, leases, and encumbrances. No title report was ' provided for this assignment. The property is currently leased to Art Leach and is operated as a bicycle shop. ' However, we have considered land value only because it is our opinion that the project does not affect the improvements. ' OFFER TO ACCOMPANY APPRAISERS: The offer to accompany appraisers on the inspection of the property was made ' through a letter mailed February 16, 2007. The property owner accepted the offer and the property was inspected on March 14, 2007, with Robert Conroy (property owner) in attendance. DATE OF VALUE: ' The date to which this appraisal applies is: March 14, 2007 OWNERSHIP: The presumed owners of the property are Robert B. and Judith K. Conroy. We ' have not been provided with a preliminary title report and have relied upon the records of the San Luis Obispo County Assessor's Office. IFUNCTION OF THE APPRAISAL: ' The function of the appraisal will be its use as a guide to value during negotiations for acquisition of the proposed right -of -way. IPROPERTY HISTORY: It is our understanding that the property has been in the Conroy name for a ' minimum of 5 years and to our knowledge the property has not been listed for sale during the past 12 months. 1 REEDER, GILMAN & BORGQUIST 7641:229 ' Page 9 SUBJECT PROPERTY DATA: ' Location: The subject property is located in the southern portion of the City of San Luis ' Obispo. This area is adjacent the Southern Pacific right -of -way and is one block north of the intersection of South Street and Broad Street. Santa Barbara Street is a heavily trafficked, two -lane asphalted thoroughfare. However, visibility is only significant from the south due to the location of the improvements to the north of the property. The property has 95 front feet on Santa Barbara Street. Legal Description: Lots 13 and 14 of Block A, A.M.O.R. 99- 000 -818, recorded in the maps of the County Recorder of San Luis Obispo County, California. Assessor's Data: ' Assessor's Parcel Number: 003 - 752 -005 ' Tax Rate Area: 3000 Assessed Value for 2006 -2007: ' Land $202,798 Improvement $331,854 Total $534,652 ' Total Estimated Property Tax: $5,358.32 1 1 Zoning: The subject property is currently zoned CS, Commercial - Service, by the City of San Luis Obispo. The CS zoning is intended to provide for storage, transportation, and wholesale, as well as certain sales and business services, which may be less appropriate in the City's other commercial zones. It will be applied to areas designated Service Commercial /Light Industrial on a General Plan Map. Typically, those areas have more public exposure along arterial streets than places reserved for manufacturing. A copy of the detailed zoning regulations is contained in the Addenda. HIGHEST AND BEST USE: "Highest and Best Use" is defined as: "That available use or program for future utilization of a parcel of land that produces the highest present land value." REEDER, GILMAN & BORGQUIST 7641:229 1 Page 10 1 1 1 1 1 1 1 1 1 1 Me&oScan / San Luis Obispo (CA) Owner : Conroy Robert B Tre Cr % Parcel : 003 752 005 Co -Owner Building # of Site : 1110 Roundhouse Ave 4 I,B�► � � IO �II�O 1 HLiI.O � 74 + I s Land : $202,798 Mail : 113 Indio Dr Pismo Beach Ca 93449 Structure : $331,854 Transferred : 06/14/2004 Doc m :51664 Total : $534,652 Price Deed : 9 % Improved : 62 Loan Amount : Loan % Owned : 100 Vesting Type : Trustltrustee Int Ty Exempt Lender Tvpe Use : 310 Com,Retail Sales Tax Area : 3000 Legal : CY SLO FAIRVW ADD BL A LTS 13 & 14 06 -07 Tax : $5,358.32 Owner Phone Census Tract : 111.02 Block : 4 97illiamson : No R : T S Thomas : 654 A5 Bedrooms : Prkg Space : Stories Const Type FullBaths : Prkg Type BldgSgFt Year Built Half Baths: Pool Acres :33 Foundtn Tot Baths : Fireplaces LotSgFt : 14,504 RoofMa17 TotRooms : HeatMethd : LotDepth Ext Wall Access : Paved Public HeatSource : LotFrntg FloorCvr Utilities : Water Gas Elec Sewer Air Cond Class Cd Topgrphy : Level WSH `s es m i 1 I 5 rr¢ aa:1 r+f i RU A- 47 I I Cr % AM g 4 I,B�► � � IO �II�O 1 HLiI.O � 74 + I s , e Q J I 78 I` - - - - -- P AMIKX r, I : B _o:-it, - �;-- db3- -� - - - -- 05 � - --4 ROtBMMOUa^E RD. I f 78 I - r-- - - - - -- - 56 B __ —_ —_ MTV" I s I ♦ 1 s. R.Y. l-91 j I A4 A. .0 /IL+ I I 1 a a e, SOUTH - 57 YIfOAIT ADD AL., R.M. Sk. 8 Pg. 91 S.P.R.R., R.M. Bk.A Pg.42 ar ns u— MMdr. BUEM VSTA ADOW.. R.M. Bk. A 47 a a r FAUMEW ADD -AL. R.M. Bk. A Pg. 98 MACHAn C Cr % %003-75 V Information compiled from various sources. Real Estate Solutions makes no representations or warranties as to the accuracy or completeness ofinformation contained in this report. C- V Cl1Y OF SAN LUIS OMMOO i °o�s� or 77 1 1 1 We have completed an investigation and analysis regarding the highest and best use of this property. The most probable use of the property must meet the following criteria. 1. The use must be a lawful one, consistent with the General Plan and prescribed zoning, meeting all governmental regulations. 2. The use must be within the realm of probability in the near future, not a mere possibility, not a speculative use. 3. There must be a demand for such a use and it must be an effective demand backed with purchasing power. 4. It must be a use that will produce the highest net return to the land in the form of money and amenities over the longest period of time. In determining the highest and best use of the subject property, additional ' factors, which should be considered, include: 1. The use is in an appropriate location to the local market and the ' existing nearby land uses must support and compliment this use. 2. The use is physically possible. The site is physically adaptable for ' this use and the necessary public infrastructure exists to support this use. ' 3. The use is legally permissible. All potential uses must comply with private and public land use restrictions and zoning laws governing the use and building safety of the proposed /existing improvements. ' 4. The use is socially /politically acceptable. Citizens are taking an ever - increasing interest in land use decisions affecting their ' communities. Almost all major real estate developments involve significant public comment and input. ' S. The use must be financially feasible. The use must be probable, profitable, and have adequate market demand. The use must be economically feasible and not speculative in nature. ' 6. Finally, among all alternate of uses, which might meet the previous test, that use which results in the greatest net return or highest Iproperty value is considered to be the highest and best use. The subject site is a developed, level parcel, which is adaptable to various ' commercial service uses. The parcel size of 14,066 square feet is sufficient to accommodate many uses included an area for parking and some storage. Considered as a vacant parcel, the property would best be developed into a commercial service or REEDER, GILMAN & BORGQUIST 7641:229 Page 11 ' automotive service in conformance with the Commercial Service zoning. As improved, the current building's improvements contribute to the value of the land. After ' considering the physical, legal, and economic criteria, it is concluded that the existing improvements will retain their values for the foreseeable future. Therefore, the highest and best use of this property is currently As Improved, for commercial service uses. VALUATION: The appraisal of real estate involves three fundamental methods or approaches to arrive at an opinion of the market value of a property: Cost, Sales Comparison, and ' Income Approaches. Each of the approaches is briefly described as follows: Cost Approach to Value: ' This is the method whereby improvement replacement cost, less depreciation, is added to land value ascertained from vacant land sales. ' The result is an indication of property value. Sales Comparison Approach to Value: ' This method, formerly known as the Market Approach, considers recent sales of similar properties in the area. These sales are analyzed and compared to the subject property with adjustments for dissimilar characteristics. The result is also an indication of the value of the property. ' Income Approach to Value: This method considers a property's income producing capabilities and processes said income into an indication of value through the capitalization process. ' The results of the above three approaches, if all are applicable, provide a band of value, which is correlated into one final value estimate considering all factors affecting the property. ' We have not considered the Cost Approach to Value or the Income Approach to Value applicable due to the opinion that the improvements are not affected by project ' and we are appraising the land value only. We have relied on the Sales Comparison Approach to Value for our estimation of fair market value. ' Using the Sales Comparison Approach, we have searched the San Luis Obispo area for similar commercial service and industrial sales. The following is summary of those sales: REEDER, GILMAN & BORGQUIST 7641:229 1 Page 12 ' Sale Date Location Doc APN 1 1 5/26/05 43017 2 3/31/05 25632 3 6/30/05 53901 4 2/17/06 11384 5 6/30/06 45963 6 7/25/06 51747 LAND SALES 667 Monterey Street 002 -421 -023, 025 & 027 3229 Broad Street 004 - 583 -030 & 034 1439 Monterey Street 001- 231 -008, 023 & 024 1404 Chorro Street 003 - 537 -024 & 025 22 Chorro Street 052 - 174 -001, 002, 041 1041 Mill Street 002 - 323 -023 Sale Price Zoning $2,360,000 OFC $699,000 CS $2,130,000 CR $1,100,000 R-4 $1,400,000 CN $1,050,000 OFC Area $ /SF 22,703 SF $104 /SF 26,000 SF $27 /SF 28,050 SF $76 /SF 16,509 SF $67 /SF 22,000 SF $64 /SF 7,000 SF $150 /SF Remarks Old house Old house Old commercial buildings Elevation issue; vacant Vacant Vacant The above sales represent properties similar to the subject. Several of them have improvements; however, they are only of interim use and the properties' basic value is in the land. Sale 1 is an old, un- restored Victorian next door to the Children's Museum. Sale 2 is south of town is an area of high -speed traffic. Sale 3 is located near the heart of town, and has several old commercial buildings. Sale 4 is 12 to 20 feet above street grade and is zoned multi - family. Sale 5 is located in a heavily trafficked, commercial district adjacent residential. Sale 6 is in an office use area and is a small lot. Details of these sales are contained in the Addenda to this report. ' The sales range from $27 per square foot to $150 per square foot. Considering the above variances with adjustments for differing characteristics, it is our opinion that ' the subject property land has a fair market value of $80 per square foot. This equates to: ' 14,066 SF @ $80 /SF = $1,125,280 Rounded: $1,125,500 ' Out of this, the Take Area is calculated as follows: 742.2 SF @ $80 /SF = $59,376 ' Rounded = $59,500 REEDER, GILMAN & BORGQUIST 7641:229 Page 13 ' We have not considered that the project will cause any damages or special benefits to the property. The current signage of the property, which is in the new ' setback, would probably be required to be relocated by the construction contractor at the City's expense. ' The temporary construction easement value is based on a one -year land rent at a 10 percent annual return per year. 1 1 1 REEDER, GILMAN & BORGQUIST 7641:229 Page 14 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VALUATION SUMMARY ASSESSORS PARCEL NUMBER: 003 - 752 -005 OWNER: Robert B. and Judith K. Conroy 1. ESTIMATED FAIR MARKET VALUE OF LARGER PARCEL (LAND ONLY): 14,066 SF @ $80. /SF = $1,125,280 Rounded: $1,125,500 2. FAIR MARKET VALUE OF PART TAKEN: Land - 742.2 SF @ $80 /SF = $59,376 (R) $ 59,500 3. FAIR MARKET VALUE REMAINDER: (Land Only) $1,066,000 4. FAIR MARKET VALUE AFTER PROJECT CONSTRUCTION: (Land Only) 13,323.80 SF @ $80 /SF(Rounded) $1,066,000 5. DAMAGES: $ 0 6. BENEFITS: $ 0 7. TEMPORARY EASEMENT: 589 SF @ $80 /SF X 10% per Annum $ 4,700 TOTAL COMPENSATION Land: $59,500 Improvements $ 0 Damages: $ 0 Temporary Easement: 4,700 Grand Total: $64,200 3� 1 V��n� M. LISA G U Certified Gen ral Real Estate ApLir, CA # AGO14431 REEDER, GILMAN & BORGQUIST 7641:229 Page 15 1 I ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report is subject to the following: 1. It is assumed that title to the property, which is the subject of this report, is free and clear of liens, leases, and encumbrances and is good and marketable unless otherwise noted. 2. No responsibility is assumed for matters legal in nature or for facts or conditions which require ' specialized knowledge beyond that of a qualified real estate appraiser or that customarily employed by real estate appraisers. This includes, but is not limited to, structural defects or termite damage not readily apparent, conformance to specific governmental requirements such as ' fire, building safety, earthquake, flood, or occupancy codes, soil stability or instability, etc. 3. No survey of the subject property was made at the time of appraisal. All references to property size or dimensions were obtained from public records or from data provided this appraiser. Maps and other display material are included only as a guide in emphasizing certain aspects of a property. ' 4. In preparing this report, certain information was obtained from other persons. This data is assumed to be correct, but we assume no responsibility for its accuracy. ' 5. We are not required to give testimony or to appear in court or at conferences by reason of this appraisal, with reference to the property in question, unless further arrangements have been previously made and mutually agreed upon. ' 6. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by anyone but the applicant without the previous written consent of the appraiser or the applicant, and then only with proper qualification. 7. The "Highest and Best Use" as indicated by this report, is assumed to be consistent with Planning and Zoning policies, and will meet the approval of all local, city, county, state, and federal land use ' and environmental laws and regulations. We assume no responsibility for changes or limitations imposed by the various governing agencies or political entities that affect a property's use or value. ' 8. This valuation does not include items of personal property, partial interests, or mineral rights unless specifically incorporated by reference. 9. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. 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 petroleum products, asbestos, urea - formaldehyde foam insulation, underground chemicals or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the ' assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. ' 10. This is a limited appraisal and is reported in summary format. REEDER, GILMAN & BORGQUIST 7641:229 1 Page 16 1 1 1 11. The term "Fair Market Value ", as herein used, is defined as "the highest price on the date of valuation that would be agreed to 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 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." (Cal. Code of Civ. Proc., Title 7, Sec. 1263.320) 12. Because no title report was made available to the appraisers, we assume no responsibility for such items of record not disclosed by our customary investigation. 13. No consideration has been given in this appraisal as to the value of the property considered by the appraiser to be personal located on the premises, or the cost of moving or relocating such personal property; only the real estate has been considered. 14. Because our report is in summary form, we will retain the technical appraisal data in our files. We regard the appraisal analysis as confidential and will release its contents only upon your authorization. 15. Maps, plats, and exhibits included herein are for illustration only as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced, or used apart from this report. 16. The improvements are assumed to be properly designed, engineered, and the construction techniques correctly applied. 17. We hereby certify that our current nor future employment were not conditioned upon this appraisal producing a specific value nor a value within a specific range nor the granting of a loan in conjunction with this appraisal. 18. This is a partial appraisal as improvement values are not included. This is considered appropriate since the improvements are unaffected by the project. 19. If eminent domain proceedings should occur, we reserve the right to adjust our value conclusions to include the structural improvements as required by law. However, in our opinion they are unaffected by the project and as such not considered in this appraisal. REEDER, GILMAN & BORGQUIST 7641:229 Page 17 L 1 1 1 1 CERTIFICATE OF APPRAISER 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 are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. My 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 Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. The property owners or their designated representatives were given an opportunity to accompany the appraisers during the inspection of the subject property. The appraisers disregarded any decrease or increase in the Fair Market Value of the real property caused by the project for which the property is to be acquired. I have personally inspected the property that is the subject of this report. My value conclusion, as well as other opinions expressed herein are not based on a requested minimum value, a specific value, or approval of a loan. Prior to accepting this assignment I determined that I have the professional education, background, and experience necessary to complete this assignment competently. No one provided significant professional assistance to the persons signing this report. DATE: March 21, 2007 M. LIS9BCW0(JUt§T Certified Gen Ml Real Estate 74 raiser, CA #AG014431 NOTE: ORIGINAL DOCUMENT IS SIGNED IN BLUE INK. REEDER, GILMAN & BORGQUIST 7641:229 1 Page 18 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 ADDENDA Land Sales Data and Map Subject Aerial Photograph Part Taken Legal Description of Part Taken Temporary Construction Easement Zoning Map Flood Map Grant Deed Professional Qualifications REEDER, GILMAN & BORGQUIST 7641A:229 Page 19 LAND SALE NUMBER 1 ' ASSESSOR'S PARCEL NO.: 002421 -023, 025 and 027 LOCATION: 667 Monterey Street, San Luis Obispo ' DATE OF SALE: May 26, 2005 DOCUMENT NO.: 43017 ' PROPERTY DESCRIPTION: 22,703 SF Land: Improvements: Old house and barn; value in land SALES PRICE: $2,360,000 TERMS: $1,800,000 TD with private lender, fixed rate ' GRANTOR: Holloman GRANTEE: Shear Edge Development ' ZONING: Office PRICE PER SQUARE FOOT: $104 per square foot ' REMARKS: Good access and visibility. Zoned for many possibilities. Structures over 100 years old. 002-42 `4 N 2 42 MONTERBY m .. r ST 8 L m = g 10 m ' R m `f J m /21 :� @ MURRAY a XYRGX ADD'X. XIOUERA 3T. MISSION YINlYARD I II I I I l�l =a • I�s I j a I ei 9 L J = "R! Co r ee i 96 939 r21 O « 9 y 1— — @11s a ' b R ® MARS L _ 1 rl .a \!2;) A1, 90-M DA VOL 3769, PG 900 • m � `/ CITY OF SAN LulS 055P0 mrt r�wo'�so afONiar. E*,FWIY OF OA7 AU$1 a zw REEDER, GILMAN & BORGQUIST 7641:229 Page 20 1 1 1 1 1 1 S 4 LAND SALE NUMBER 2 ASSESSOR'S PARCEL NO.: LOCATION: DATE OF SALE: DOCUMENT NO.: PROPERTY DESCRIPTION: Land: Improvements: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SQUARE FOOT: REMARKS: � I 7 BROAD REEDER, GILMAN & BORGQUIST W- M- 1 003 - 583 -030 and 034 3229 Broad Street, San Luis Obispo March 31, 2005 25632 26,000 SF Old house $699,000 $488,000 TD with Countrywide Home Loans at a variable rate McCarthy Fissell C -S $27 per square foot Area is sloping lot, graded at two levels; one is approximately 6 to 8 feet above street grade. Good location, high traffic intersection. STREET 4— I 1 I I 5 3 h 1 1 I 1 I I � i 1• I I 0 1 7 �,• 0 � 70 I 1/ I ' I d I I I/ � � N � 17 � la i 17 1 ® , I 1/ H •..y I Z M N • I• I® flkK5B M sJ 1 "• 100' CRY OF SAN LUIS OBISPO TRACT 2490 ; R.M. Bk 28. P9.32 -33 y + y epuum o r YOAKUM POULTRY UNITS, R.M. Bk 3. Pg. BH. Baox of a �e 7641:229 Page 21 1 1 1 1 ASSESSOR'S PARCEL NO.: LOCATION: DATE OF SALE: DOCUMENT NO.: PROPERTY DESCRIPTION: Land: Improvements: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SQUARE FOOT: REMARKS: m V! `J v LAND SALE NUMBER 3 001 - 231 -008, 023 and 024 1439 -1459 Monterey Street, San Luis Obispo June 30, 2005 53901 28,050 SF Old buildings $2,130,000 $1,384,000 line of credit with San Luis Trust Bank Forest Schamblin CR $76 per square foot, Old commercial buildings � r1 9T• LJ u c ao 40 L84 an 1 O 'a a s om (!g vOx; 4� - 4 NO 13 12 1 nl B O O O O O I e 001-23 /-I;. ar a w errf Of SAN LUIS OBISPO u nas u4v o vxtawm rmi ASSt'8� �ui+m' OF o} tisa=T rumosu arar. AL 9r}EM,OR VQL.:1t08�PU 300. kC"ort oot v�a['sS REEDER, GILMAN & BORGQUIST 7641:229 Page 22 1 1 1 1 ASSESSOR'S PARCEL NO.: LOCATION: DATE OF SALE: DOCUMENT NO.: PROPERTY DESCRIPTION: Land: Improvements: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SQUARE FOOT: REMARKS: LAND SALE NUMBER 4 003 - 537 -024 and 025 1404 Chorro Street, San Luis Obispo February 17, 2006 11384 16,509 SF Vacant $1,100,000 $715,000 TD with T of 2 at variable rate Swift Development Chorro Street Partners R4 $67 per square foot Sloping area with high lot, estimated at 10 to 20 feet above grade. :,� s -53 �� t IUI� ��I� PI as w m .v Q 0 s a 1 a • a a a G) 2 10 q Q �• 4 i _ ro 49 D p -- — i 1 i__�__ a » ila;talt r tT m av _ w ao •i t i 1 I 1 s sl 1 I s le s I u• o ISLAY a aa•ar a F I m oM1K •.�� 17lP� aLC REEDER, GILMAN & BORGQUIST ST o .F N ST. s C 1 7 1 1 � •Q { tt •..a � ••J O YfI1llltfl!�! r�r ST o .F N 7641:229 Page 23 ST. s C 1 7 1 1 � •Q { tt •..a � ••J O It It sl 0 la a tl /• to • 4 14 ca >' 11 a O t O tt elt la • .v ,� � U g s It e eo s Is e , • ao ST. ti3 MY OF SO LUIS °� WrImirly NOV 0 4 ZOR 7641:229 Page 23 LAND SALE NUMBER 5 ' ASSESSOR'S PARCEL NO.: 052 - 174 -001, 002 and 041 LOCATION: 22 Chorro Street, San Luis Obispo ' DATE OF SALE: June 30, 2006 DOCUMENT NO.: 45963 PROPERTY DESCRIPTION: 22,000 SF Land: Improvements: None ' SALES PRICE: $1,400,000 TERMS: $1,000,000 TD with Private Lender at a fixed ' rate GRANTOR: Doser & Zanchuck GRANTEE: O'Rielly ZONING: CN PRICE PER SQUARE FOOT: $64 per square foot REMARKS: Heavily- trafficked area 041 R7omu 33 BWa 232 ' 00 H n ` r - o 4r • I 6 RY sr ro ro."e 4 •• ®� • ®i ® } ® 5e -17 �•�, I ,.one S L- 1Atf_• nc7 rav u aeemm,r P� ROl M•7• •> � � Q 7 O J. ©� O ♦I � 9 q_ �� J.130 2 O M ' • cam• sa•a 7• ROUOEOT PLACE "'�$. -�-�' Off, O n Bs DO a • go a `/ O N� IQ ID Jg e 35 O O O ® f e O e • 9 a 1 J 14 IS IO I7 IB 9 Jp C O 11 li 1© O `-'•, * n 9 \�i 7B A• 78 YE f $ ' cscmmR�oiEg MGC u7,ur1 .uauuru r AVE. a Do m N 14 40 ti9 19 mrt 6 1 9 4O O . O rig N le yZj Q� �O e Sol 02 Y � - eo © O Do O 07 ' .,0n G7.so-m w -a7 DaaPl 7D / 1� 1��r MAR 1 7 / aw•ezp V `J CITY, 0f SAN LUIS OBIS',' SAN LUIS OBISPO GOU7" ' REEDER, GILMAN & BORGQUIST 7641:229 ' Page 24 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ASSESSOR'S PARCEL NO.: LOCATION: DATE OF SALE: DOCUMENT NO.: PROPERTY DESCRIPTION: Land: Improvements: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SQUARE FOOT: REMARKS: LAND SALE NUMBER 6 002 - 323 -023 1041 Mill Street, San Luis Obispo July 25, 2006 51747 7,000 SF Vacant $1,050,000 Cash to Seller Monterey & Johnson San Luis Obispo Council of Gov't Office $150 per square foot L 002-32 L a EK8 iUED1Y1810N W 25 � z4 u O Q a @B 161 1 = a n I ie I to a;2 rx lyi'M 44 2a selao ar lap » all j j i a'isa� i i i i I f X41 g PALM k tAeO v�A�LB s r DIYISIOti 8 a°e O 8 ae dilnr n I covrnr , � - - - - -- GMThWOE r I i IG I 24 foul I I O I I Q � I I I I 1 R I8ONTECIEY N. sv o rm rra aws ww r vainuuu rae •T 9T. lb- � o i i r 'x 6T. w r ,J n i 7, ,R O i F io CITY OF SAN LUIS OBISPC �uoa•s _ c a- l"W. M n REEDER, GILMAN & BORGQUIST 7641:229 Page 25 a a coal : , yw. t! �3 7 m� a° `I GI y `• gg w r 9 il aer°Aaea aw°a Sa M �G a ' ew 'morca•Y C Via' r ,i•• r E a n e • n• ! 1 I 1 ' Cerro Son Luis Obispo I CO n 'e.rm CBllt� Rp erw 1 r S �I �la \� r AND SAN LUIS OBISPO �.� UGUNA %�`1I LANs ` gURtl Reaa 11 �r d' 9 •, a r i I�e � � . i eurrur /8/ mss• � � - J° r�aiO1Oi/ d `v% coon nl b5 G � ,p7A\,v]6plA9 -.a \% � g Sut re ti shier Mg, Jul � ��. a ST Ism A 0 ; q Pat r/rtc,a/• � I / rqq AM '= asron u If f Q; �wror°oi 5 c PROVO r Ia ,sawn i'•1 Q . lef r ■ee�eA ,wer. t rarer 4.. � G e� era•A J 9 q« •``; �� _ - - -- � •, IMSafrlara ` mliasaN � � 1 cnwei \ fiat � root c . r � , a � � n a raa• a s* ` x d/� `8 _ 1C n gL dal fi e W,- s •aa1OV • C $I9 _ °a0i0 Ltl1 " aLmr�aa' •vuogcam C � e Foam= as o•ntMOUrx °.L '�e uRum% �.� �ru4tea e. ew _ �e ,ae •� s !iA WA OOrAD an a a coal : , yw. t! �3 7 m� a° `I GI y `• gg w r 9 il aer°Aaea aw°a Sa M �G a ' ew 'morca•Y C Via' r ,i•• r E a n e • n• ! 1 I 1 ' Cerro Son Luis Obispo I CO n 'e.rm CBllt� Rp erw 1 r S �I �la \� r AND SAN LUIS OBISPO �.� UGUNA %�`1I LANs ` gURtl Reaa 11 �r d' 9 •, a r i I�e � � . i eurrur /8/ mss• � � - J° r�aiO1Oi/ d `v% coon nl b5 G � ,p7A\,v]6plA9 -.a \% � g Sut re ti shier Mg, Jul � ��. a ST Ism A 0 ; q Pat r/rtc,a/• � I / rqq AM '= asron u If f Q; �wror°oi 5 c PROVO r Ia ,sawn i'•1 Q . lef r ■ee�eA ,wer. t rarer 4.. � G e� era•A J 9 q« •``; �� _ - - -- � •, IMSafrlara ` mliasaN � � 1 cnwei \ fiat � root c . r � , a � � n a raa• a s* ` x d/� `8 _ 1C n gL dal fi e ''$ w\ •aa1OV • C $I9 _ °a0i0 Ltl1 " aLmr�aa' •vuogcam C � e e s` \ o raA lua uRum% �.� �ru4tea ''$ w\ •aa1OV • - e ,� ` ,ae •� s !iA WA OOrAD an .sue Sams nlar -mmrar LA °a Naas a ' . x. �;,.. 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'y' _ S � ' "4 1OI11, J L` V l� SB9 °26'522" �. ih - � °D �o o N � W r o o II U') N C M 1 1 1 1 1 1 1 1 1 1 1 1 ZIE N O ACV cu CV ti ° II Cl) N < T .00'L 1 I 1 1 I O � I , I I N ' I I I 0 I I I , - o M I m _ - o o I O "' a a Nji 2652 "E i.1 1 ;11 � IeA 1� �l � I N I - — HAM NS STRUT OONEQ) - 3594 OR 194 N , I I 1 I I I I I I I I , — 19 I , 4z I W m I L o w m '> Q I 3 Q I p CN IOp I co i W 1� I Qr Z I Q I C'I 1 I tl- Q a F- N m O X W m O O Z a- Z W O 3 !- (1) w W.5 0Z E Z Q O can a U L O cc m Q U a O C- i+r O V cn I EXHIBIT A -1 ' Right of Way Legal Description ' A portion of Block A, Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, in the County of San Luis Obispo, State of California, according to map filed for record October 24, 1887 in Book A, Page 98 of Maps a described more particularly as follows: Beginning at the southwest corner of Lot 14 of Block A of said Fairview Addition; thence North 4° 42' 00" East 95.10 feet along the westerly line, also being the Easterly line of Santa Barbara ' Avenue, of said Block A to the northwesterly corner of Lot 13 of said Fairview Addition; thence North 89 °29'04" East 7.03 feet along the northerly line of said Lot 13; thence South 4 °42'00" West 76.46 feet along a line easterly of and parallel to said westerly line of said Block A to the ' beginning of a curve concave to the northeast having a radius of 17.00 feet; thence easterly 28.26 feet along said curve through a central angle of 95 °15'08" to a point on the southerly line of said Lot 14; thence South 89° 26' 52" West 25.66 feet along said southerly line of said Lot 14 line to ' the point of beginning. Containing 742.2 sq. ft., more or less. ' The bearings shown hereon was taken from those measured on Survey recorded in Book 78, Page 32 of Recorded Surveys filed in, San Luis Obispo County Recorder's Office, as determined by a line between the centerline monuments of Santa Barbara Avenue, at Roundhouse Avenue and High Street being South 040 42' 00" West. THIS DOCUMENT WAS PREPARED BY ME ' OR UNDER MY DIRECTION. 1 1 Robert A. Livick, PLS 8126 exp 12/31/08 Date I \ ro ects \ci \active ro ects \street im rovements \90408 santabarbarawidenin \ documents \3 - reconstruction \row \conro le aldescri tion ral.doc 9 P 1 P P 1 P 9_ P Y 9 P 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 S89'26'52'W 25.66' ,7.00' N 17.O0' III o N J fV II 7.03' I ' I CD I I I!"1 I N' I I 0 ,} I w o� I z I I 0 0 cu U x r LL I ' IW � o Z F CO 2 m W rn HOU= S� —g n Io 021 0 v } u �wQ II I I m Uj m O �O v IL w 7.03' I ' I CD I I I!"1 I N' I I 0 •,e, 1� I N I IDOWM - d - —� HASKIAS OR 194 N ,} I II I r I I I I z oo I z I I I I LL I ' IW Zw I I > I HOU= S� —g n Io RO_ mw ow o ,Q I m I Q I •,e, 1� I N I IDOWM - d - —� HASKIAS OR 194 N 0 0 N N 0 m W cw Oz� 0 (O F J Zia V u- 8 021 i O O O� V t� ;j lji I! III' � g I I I --,o£ .o£ I I II I r I I I I I ' 9 I I z I I aW�a m LL I ' IW I I > I 'm 1 Io la 'Q ICI) i ' ,Q I m I Q I II I I Z I Q Cl) I I I I I f I I 1 0 0 N N 0 m W cw Oz� 0 (O F J Zia V u- 8 021 i O O O� V t� ;j lji I! III' � g L -7 NATIONAL FLOOD INSURANCE PROGRAM FIRM FLOOD INSURANCE RATE MAP CITY OF SAN LUIS OBISP09 CALIFORNIA SAN LUIS OBISPO COUNTY ONLY PANEL PRINTED COMMUNITY -PANEL NUMBER 060310 0005 C MAP REVISED: JULY 7, 1981 federal emergency management agency federal insurance administration KEY TO MAP 500 -Year Flood Boundary 100 -Year Flood Boundary Zone Designations* 100 -Year Flood Boundary 500 -Year Flood Boundary Base Flood Elevation Line With Elevation In Feet ** Base Flood Elevation in Feet Where Uniform Within Zone ** 513 (E L 9871 Elevation Reference Mark RM7X River Mile • M1.5 * *Referenced to the National Geodetic Vertical Datum of 1929 *EXPLANATION OF ZONE DESIGNATIONS ZONE EXPLANATION A Areas of 100 -year flood; base flood elevations and flood hazard factors not determined. Areas of 100 -year shallow flooding where depths ,AO are between one (1) and three (3) feet;dverdgt depths of inundation are shown, but no flood hazard factors are determined. AH Areas of 100 -year shallow flooding where depths are between one (1) and three (3) feet; base flood elevations are shown, but no flood hazard factors are determined. Al -A30 Areas of 100 -year flood; base flood elevations and flood hazard factors determined. A99 Areas of 100 -year flood to be protected by flood protection system under construction; base flood elevations and flood hazard factors not determined. B Areas between limits of the 100-year flood and 500 - year flood; or certain areas subject to 100 -year flood- ing with average depths less than one (1 ) foot or where the contributing drainage area is less than one square mile; or areas protected by levees from the base flood. (Medium shading) c Areas of minimal flooding. (No shading) D Areas of undetermined, but possible, flood hazards. V Areas of 100 -year coastal flood with velocity (wave action); base flood elevations and flood hazard factors not determined. V1 -V30 Areas of 100 -year coastal flood with velocity (wave action); base flood elevations and flood hazard factors determined. NOTES TO USER Ceresin areas not in the special flood hazard areas (zones A and V) may be protected by flood control structures. This map is for flood insurance purposes only; it does not neces- sarily show all areas subject to flooding in the community or all planimetric features outside special flood hazard areas. C r i DRS Q 3 y p W .LONETq Q' ' R 201 ' SERRANO a 2fJ ?I all DRI�E Ira �e a =rl� a43ZONEA8 X10 1 Q ZONE B a B ZONE AO '�,- (DEPTH 2) ' % Rm - zR 125 ALMOND, p 0 ro Old Carden Creek 20 LV ZONEB sec �. 'It ZONEB 01 ZONE A14 \\ , � 192 ZONE C --- ' f ZONE B ' FLOOD ZONE MAP JLA� SUBJECT PROPERTY ZUNE A8 ' ZONE C ZONE A14 wti p __¢ RM9 / W 9� ZONE Alt ZONE B h ZONE B I ' SANDER( eRAlYCH Sol X RM8 ' EI(POSITII DRIVE .0 1 ZONE B Slenne► �+ , X38 Creek 9 ZONE A8 v = ZONE A( ZONE B -- (DEPTH 3) s 23 9U sr'4 R11A23 ZQNE Al 3 230 225Z'OgN�E A6' C r" ST co ZONE C. X05 \ StR�t Q RN122 .0 P"ILLIP 0 Zp0 .2 h zt - t RMI ONE AO R pA 9 ,A%�� NEB� P v o. ,� od ZONE J (DEPTH 2) Sf. F y .tn J al l NE O u W Q W St N Sr h 3 Q u H ST Q REET ,r L y r FUNS 1 V 0y !; 5��a ;IIICALD,L ZONEC w,,W r �,►� WIL sr S y- / V E Al ZONE DNE B q p Z( 1 S1 y f- .1 y h W H _ 3 J y s RACHEL W a a Cr = u ylr C W Irr HASKIN �� p__ r ��r_ jI` �FL_ErCHER 4 -+ T vE SAN CAA �L 1�4yE L 1 L� 1 1 1 1 1 I� ° RECORDING REQUESTED BV n First American Title Ina. CO- . AND WHEN RECORDED MAIL THIS DEED AND. UNLESS OTHERWISE SHOWN BELOW. MAIL TAX STATEMENTS TO! ROBERT B. CONROY • 7UDITH K. CONROY 113 INDIO DRIVE PISKO BEACH, CALIFORNIA 93449 ESCROW NO. SID- 9011476 -ND 7171E ORDER NO. SLO- 908476 -ND A.P.N. 03- 7S2 -05 Doe No: 1995-013152 Ree No: 00016046 Official Records ;RF 10.00 San Luis Obispo Co. .SLO 478.50 Julie L. Rodewald Recorder Mar 30, 1995 ; Time: 08:00 ; [ 21 ;TOTAL 488.fi0 SPACE ABOVE THIS LINE FOR RECORDER'S USE GRANT DEED t Nti �,�,a•- ry� t T- X lie undersigned grantor(s) dedare(s): �Documentary tnumfer tax is S 478.50 ) computed on full value of property eomyed, or ( ) computca on run value teas s e of item ano encumbrances remaining at time of ate. ( ) Unincorporated area: ( X ) City of SAN LUIS OBISPO and By this insttumrat dated EIGHTH DAY OF FEBRUARY, 1995 , for a valuable consideration ALAN A. RICHARDS AND BARBARA J. RICHARDS, TRUSTEES OF THE RICHARDS REVOCABLE FANTLY TRIIRT DATRD NAY 25. 1999 hereby GRANTS to ROBERT B. CONROY AND JUDITH K. CONROY, HUSBAND AND WIFE AS COMMUNITY PROPERTY the following described real property in the CITY OF SAN LUIS OBISPO County of SAN LUIS OBISPO State of CALIFORNIA SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE. A PART HEREOF AS EXHIBIT "A". STA•f E OF A, ARIZI24A ll COUrITY or —rm 1� Dtt FFRMRY 16. 199x+ before me. prraotnly appeared .L A_a A_RTCHAkM 9'RIIR'rt.F ANt1 -- BARBARA 1 RTrMAmng TRIr.I'Fl._ - ALAN A. RICHARDS AND BARBARA J. RICHARDS, TRUSTEES OF THE RICHARDS REVOCABLE FAMILY TRUST DATED ��, i7 5.ni o wn AL/ANN A. RICHARDS. TRUSTEE y- it y" !/11 �Y • /!K //, fiA►62.1)A .1. R 1CHARDS, TRUSTEE pemeauy known jr me (or proved tome on tha basis of eaWactory evWence ) to be the person(s) when names) 31p I are subscribed to the Gil. WA within iert"ant and achnmirdaed to me that y outated the mine in 1 their sumom rapacitypes).ar t at heir JACKIE L HOLDEN wramreQ s Isrtrameah pceron(a), or tke andty on chair Nobry Public •ArizeGna of which tM peraan(s) acted. eaacoted the InatrumeM. PIMA COUMY gIRPfPSS m and oRldal � ay tawna Etpha I%L IL 1997 atatumn NAIL TA Af13tWNra TO PANTY aHOtAN ON Pouowrteta Limit; IV ND PARTY N SHOWN. MAIL AS DIRRCTBD ABOVE. Menem INttnte) (street Address) (City a state) r �I �o REEDER, GILMAN & BORGQUIST Appraisers and Consultants • Real & Personal Property WARREN REEDER a N AI, SR /WA 1101 South Broadway, Suite A, Santa Maria, California 93454 SCItEA, CA # Ac006521 Senior Member - APPRAISAL INSTITUTE P. O. Box 726, Santa Maria, California 93456 INTERNATIONAL RIGHT OF WAY ASSOCIATION phone: (805) 925 -2603 LESLIE I. GILMAN • MBA, SR /WA SCREA, C. # AGO14980 Far: (805) 95 -0840 Senior Member - INTERNATIONAL RIGHT OF WAY ASSOCIAT ION M. LISA BORGUIST Email: info @rgbappraisers.com SCREA. CA # AG0144 1 Website: WWW.RGBAPPRAISERS.COM PROFESSIONAL. QUALIFICATIONS The firm of Reeder, Gilman & Borgquist is an association of appraisers whose practice began in 1946 under the direction of Ellis Rice. Burt Fugate and Robert Chapman joined the firm in 1962, which became Rice, Fugate & Chapman. In 1976, Warren. Reeder and Les Gilman associated with the firm, which became known as Reeder, Fugate, Chapman & Gilman. In May of 1981, the firm became. Reeder, Gilman & Associates to reflect the retirement of Robert. Chapman and Burt Fugate from the appraisal profession. In October of 2000, Lisa Borgquist became partner in the firm, and the firm name is now Reeder, Gilman & Borgquist. Our firm's appraisal capabilities are comprehensive. Appraisals include agricultural, industrial, commercial, residentiali business opportunities and special purpose properties, as well as involvement in eminent domain procedures. Our clients are varied and include individuals, financial institutions, corporations, and government agencies. The geographic area we service encompasses the tri- county areas of San Luis Obispo, Santa Barbara, and Ventura. counties. With our background, experience, and education in the appraisal field, we will continue to offer comprehensive appraisal and consultation services. The .following pages include our real estate appraisal specialties, a partial list of clients, the professional designations of our appraisers, and a summary of the qualifications of the individuals of our appraisal organization. REAL ESTATE APPRAISAL SPECIALTIES 1 1 ASSEMBLY, SPORTS & ENTERTAINMENT APPRAISAL SERVICES • • Appraisal Reviews ' • Condemnation / Eminent Domain • • Consulting- Feasibility Studies ' Club / Lounge Community Consulting- Highest and Center Best Use Studies • • Consulting- Market Analysis ' • Estates • • Evaluations • Reception Hall / Banquet Facility Land Use Studies ' • Litigation / Expert Testimony • • Mortgage ' Theatre — Indoor Screen Multiplex Other Zoning • Other 1 ' ASSEMBLY, SPORTS & ENTERTAINMENT • Auditorium ' • Bowling Alley • Campground / RV Trailer Camp ' • • Club / Lounge Community Center • Equestrian Facility ' Golf Course / Country Club • Health / Athletic Club / Spa • Reception Hall / Banquet Facility ' Religious Facility • Theater — Drive In ' • Theatre — Indoor Screen Multiplex Other r COMMERCIAL / RETAIL • Bar / Nightclub / Tavern / Brewery • Car Wash — Full Service • Car Wash — Self Service • Community Store • Convenience Store — Gas • Convenience Store — No Gas • Convenience / Strip Center • Day Care Facility / Nursery • Factory Outlet Center / Mall • Financial Institution • Funeral Home / Mortuary • Garden Center • Neighborhood Strip Mall • Parking Garage / Surface • Power Center • Restaurant — Fast Food • Restaurant — Limited Service • Restaurant — Sit Down Full Table Service • Service Station / Gas Station / Quick Lubes • Single Tenant Building • Vehicle Dealership • Other 1 1 1 1 o� REAL ES'T'A'T'E APPRAISAL SPECIALTIES AGRICULTURAL • Dairy Farm • Dryland Farm • Greenhouse / Nursery • Horse Farm • Irrigated Crop Land • Irrigated Pasture • Livestock Auction Market / Stockyard • Livestock Farm / Ranch • Livestock Feed Processing Facility • Livestock Feedlot • Orchards / Groves • Poultry Facility • Vineyard • Winery • Other MIXED USE • Hotel — Office • Hotel — Office — Residential • Retail — Office • Retail — Residential • Other RESIDENTIAL • Multi - Family — Garden Apartments • Multi - Family — Low Income Housing • Subsidized Housing • Multi - Family — Low -Rise Apartments • Student Housing — Apartment • Student Housing — Dorm • PUDs • Subdivisions • Mansions / Luxury Homes • Other SENIOR HOUSING • Assisted Living • Continuing Care Retirement Center • Independent Living r REAL ESTATE APPRAISAL SPECIALTIES OFFICE • Office Building — Single Tenant • Office Building — Multi -Tenant • Office Park / Campus • Office Condo • Other LODGING / HOSPITALITY • All Suites • Bed & Breakfast / Guest House • Convention • Economy • Full Service • Limited Service • Resort / Spa • Other GOVERNMENT / MUNCIPAL • Airport / Airport Hangar • Governmental Building • Libraries • Police / Fire Stations • Post Offices • School Buildings / Facilities • Train Station / Bus Terminal • Other INDUSTRIAL • Beverage Processing Plant • Cold Storage Plant • Dock / Distribution Facility • Heavy Manufacturing • Industrial Condo • Industrial Park • Light Manufacturing • Meat Packing / Food Processing Plant • R & D Development / Tech Center • Repair / Maintenance Centers • Self- Storage / Mini- Storage • Single Tenant Special Use • Truck Terminal / Hub / Transit • Warehouse — Distribution • Warehouse — Public Storage • Warehouse — Refrigerated / Cold Storage • Mini Warehouse • Other 1 1 1 1 1 1 1 1 1 1 1 DEAL ESTATE APPRAISAL SPECIALTIES LAND • Bulk Subdivision land • Easements • Industrial Site • Multi- Family Site • Office Site • Park Setting / Open Space / Natural Lands • Residential / Acreage • Retail / Commercial Site • Wetland / Marsh / Flood Zone • Other .ii_ _•` :.ate _ �� � ,� ,i.,., HEALTH CARE • Acute Care / Hospital • Medical Office Building • Nursing Home • Rehabilitation Center • Skilled Care Facility • Other r SPECIAL PURPOSE / OTHER • Cemetery / Mausoleum / Crematory • Corridor / Right of Way • Landfill • Mineral Rights / Quarries / Mining • Museum / Gallery • Outdoor Advertising • Salvage Yard • Towers • Transmission Lines • Oil and Gas Property / Pipelines • Other PARTIAL LIST OF CLIENTS INDUSTRIES: • General.• Ford Motor Co., Granite Construction, Chrysler Corp., Gould Corp., Santa Maria Valley Railroad, Quintron Systems, International Telephone and Telegraph, Marian Medical Center, Chicago Title Company, McCarthy Steel Company • Agricultural.• Gainey Ranch & Winery, Firestone Winery, Zaca Mesa Winery, Central Coast Farm Credit Association, Chandler Ranches, Hearst Ranch, Bixby Ranch Company, Newhall Land and Farming, Alisal Ranch, O.T. Rice & Son, Inc., Santa Maria Berry Farms, Fess Parker Ranch & Winery • Oil Companies: ARCO, Shell, Chevron, Texaco, Marathon, Conoco, Exxon, Venoco Inc. Utilities: Pacific Gas & Electric, Southern California Gas, Southern California Edison, and General Telephone FINANCIAL INSTITUTIONS: ' Wells Fargo Bank, Bank of America, Santa Lucia Bank, Mitsubishi Bank, Union Bank, Bank of Montecito, Lloyds Bank, Cathay Bank, Sanwa Bank, Sumitomo Bank, Commerce Bank, Santa Barbara Bank & Trust, Fast Bank of San Luis Obispo, Heritage Oaks Bank, Upland Bank, ' Regency Savings Bank, City Commerce Bank, Southern Pacific Bank F 1 1 ENVIRONMENTAL: The Nature Conservancy, California State Coastal Conservancy, Land Trust for Santa Barbara County, Morro Bay National Estuary Program, The Trust for Public Land :14 GOVERNMENT: • United States: Federal Aviation Agency, Western White House (Reagan Ranch), Department of Interior, U.S. Postal Service, U.S. Department of Justice, General Services Administration, F.D.I.C., Department of Veterans Affairs • State: Caltrans, California State Coastal Conservancy, California Department of Justice, California Department of Water Resources, California Department of Parks and Recreation, Central Coast Water Authority Y Counties: Santa Barbara, San Luis Obispo, Ventura, and Santa Barbara County Association of Governments (SBCAG) • Cities: Santa Barbara, Santa Maria, San Luis Obispo, Morro Bay, Ventura, Oxnard, Port Hueneme, Lompoc, Arroyo Grande, Grover Beach, Guadalupe, Paso Robles, Atascadero SPECIAL DISTRICTS: Santa Barbara County Flood Control, San Luis Obispo County Flood Control, Santa Barbara Metropolitan Transit, Goleta Water, Santa Ynez River Water Conservation, Solvang Municipal Improvement District, Santa Maria Airport District, Santa Barbara High School District, Cambria Community Services District, Port San Luis Harbor District GENERAL CLIENTS: In addition to the above, our firm serves various clients throughout the Central Coast. These include law firms, private individuals, and agricultural, commercial and industrial clients. 1 1 1 �l PROFESSIONAL DESIGNA'T'IONS OF APPRAISERS MAI - MEMBER APPRAISAL INSTITUTE SR /WA - SENIOR MEMBER, INTERNATIONAL RIGHT -OF -WAY ASSOCIATION SCREA - STATE CERTIFIED REAL ESTATE APPRAISER INFORMATION ON DESIGNATIONS: MAI - The Appraisal Institute is an organization that awards the MAI appraisal designation to qualified individuals. This designation represents years of appraisal experience in varied types of property and is awarded to those individuals who have demonstrated their appraisal ability through the Institute's stringent requirements which include work experience, testing and educational programs. SR /WA - The Senior Member, International Right -of -Way Association professional designation is .awarded to those individuals who have demonstrated through testing and experience, their understanding and ability in the field of right -of -way appraisal, engineering, negotiations and eminent domain law. 1 1 SCREA The Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989 requires all states to institute a licensing and certification program for appraisers conducting appraisals for federally related real estate transactions. In compliance with FIRREA, the Office of Real Estate Appraisers (OREA) was established by the State of California. The title "State Certified Real Estate Appraiser" is awarded by the OREA to individuals who have successfully met the minni um requirements for certification. This renewable license authorizes the appraiser. to complete appraisals of all real estate transactions without regard to transaction value or complexity. DESIGNATED PARTNERS: WARREN REEDER - MAI, SR /WA, SCREA, CA #AG006521 LESLIE J. GILMAN - SR /WA, SCREA, CA #AG014980 M. LISA BORGQUIST - SCREA, CA #AG014431 1 1 1 1 M. LISA BORGQUIST REAL ESTATE APPRAISER RESIDENCE: Oceano, San Luis Obispo County, California BUSINESS AFFILIATION: Reeder, Gilman & Borgquist, Appraisers and Consultants PROFESSIONAL AFFILIATIONS: State Certified Real: Estate Appraiser, CA #AG014431 - Office of Real Estate Appraisers Member _ International Right of Way Association Competent Communicator — Toastmasters International EDUCATION: Hancock College — Associate in Arts Degree Appraisal Institute - USPAP, General Applications, Seminars, Advanced Applications, Litigation Seminar, Evaluating Commercial Construction, Non - conforming Uses, Appraisal Litigation. International Right of Way Association — Environmental Contamination, Acquisitions Seminar, Ethics, Easement Valuation, Legal Aspects of Easements, Eminent Domain Case Update, Detrimental Conditions Seminar Lorman Education Services — Laws of Easements, Advanced Zoning and Land Use Lincoln. Graduate Center - Farm & Land Appraisal State Board of Equalization - Course 5, Income Approach, Advanced Income and Sales Comparison State Board of Equalization (Texas, includes Cost, Market, Income & Tax Law) - Courses 120, 210, 220,.230 & 325 APPRAISAL EXPERIENCE: 2000 - Current 1998-2000 1992-1998 1988-1992 1987-1988 1985-1987 Reeder, Gilman & Borgquist — Santa Maria, CA Santa Barbara County Assessor - Santa Maria, CA Reeder, Gilman & Associates — Santa Maria, CA Santa - Barbara County Assessor - Santa Maria, CA Los Angeles County Assessor - Los Angeles, CA Hidalgo County Appraisal District - Phan, TX RELEVANT EXPERIENCE: 5/87-10/87 Damar Corporation, Los Angeles, CA REEDER, GHMAN & BORGQUIST Appraisers and Consultants • Real and Personal Property 1101 South Broadway, Suite A, Santa Maria, California 93454 Phone (805) 925 -2603, Fax (805) 925 -0840 s REQUEST FOR FUNDS DISBURSEMENT TO: Bridget Fraser Project Engineer City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 FAX #: (805) 781 -7198 PROJECT: Santa Barbara St. Widening Project APN: 003- 752 -007 OWNER: Pacific Coast Home and Garden, LLC CLAIMANT: Patrick and Joy Clemens, Michael and Virginia Clemens, David and Cathy Atkinson (Trustees), Garden Station LLC FOR: Right of Way acquisition for Santa Barbara St. Widening Project PROPERTY LOCATION: 2120 Santa Barbara Street, San Luis Obispo, CA DISBURSEMENTS: TYPE OF CLAIM: Property Acquisition, per Agreement dated November 13, 2007 $141,310.14 (see Buyer's Estimated Closing Statement dated 2/22/08, attached) TOTAL DISBURSEMENT REQUESTED: PAYMENT INSTRUCTIONS: $141,310.14 • Please wire funds in the amount of $141,310.14 to Cuesta Title Insurance Company, Escrow No. 137500488, per the attached Wire Instructions; and • Please send a wire confirmation to Lillian Jewell of Hamner, Jewell and Associates at liewell a,hamner- iewell.com to facilitate follow up with escrow for closing. PREVIOUS CLAIMS PAID: IS THIS A FINAL CLAIM? RECOMMENDED BY: .ems a. Pweec None Yes X No DATE: 2 -21 -08 DISBURSEMENT AUTHORIZED: DATE: 6/14/99(Slo /366 /guidetti /fundsdis.doc) qUESTA ITLE COMPANY 860 Price Street• Pismo Beach, CA 93449: (805) 773 -8600 • FAX (805) 773 -4359 CUESTA TITLE COMPANY WIRING INSTRUCTIONS * *PLEASE NOTE:. All wires must include at least one of the following: Escrow Number, Borrower's last name, Escrow Officer's name ** City National Bank One Centerpoint Drive # 160 La Palma, Ca 90623 ABA: .122016066 Credit to Cuesta Title Company Account Number: 013- 429707 Escrow Number: B7500488 Borrower's Last Name: City of San Luis Obispo Escrow Officer: Deena Peak 6/14/99(Slo /366 /guidetti /fundsdis.doc) Buyer's Estimated Closing Statement 222!08 9:27 AM File B7500488 Cuesta Title Company (805) 544 -1860 3uyets Estimated Closing Staternent Buyer(s) City of San Luis Obispo, c/o Hamner, Jewell & Associates. 340 James Way, . Suite 150, Pismo Beach, CA 93449 Seller(s) Patrick B. Clemens, 316'E. Haley Street, Santa Barbara, CA 93101 Joy Clemens Michael Clemens, 1223 S. Richland Street. Indianapolis, IN 46221 Virgina Clemens David R- Atkinson, 2790 Bella Vista Drive, Santa Barbara -CA 93108 Cathy Atkinson Garden Station LLC, 750 Pismo Street, San Luis Obispo, CA 93401 Lender - .. Property Closing date 10/31/2007 Proration date 1013112107 Bank CNB - City National Bank Escrow Unit 50 - Pismo Beach Escrow Officer Deena Peak Debit Credit Contract Sales Price ................... .. ................................................ :..:............... 137,000.00 _ Prorations: Credit seller and debit buyer ............................................... ......:........................ 3,373.14 Other Adjustments: prepaid title fee from City of San Luis Obispo ..................... ...................... .......... 300.00 Title Charges: Settlement or closing fee to Cuesta Title Company ............ ............:....:............. 400.00 Title insurance to Cuesta Title Company $ 737. 00 .............. ............................... Owner's coverage to Cuesta Title Company Liability amount $ 137, 000. 00 ......................................... ............................... 737.00 multiple package fee to Cuesta Title Company .................. ............................... 100.00 Subtotal: 141,610.14 300.00. Balance due from Buyer: 141,310.14 Totals: 141,610.14 141,610.14 "The parties herein have been advised that the foregoing amounts are estimates only. We therefore, authorize Cuesta Title Company to change estimated amounts to final amounts owing; to satisfy the items authorized, and to close escrow. Cit of S n Luis Oblspo By' t AWm4 G I A4 G; d i s �s 1► �ia�t al�i cam By: Page 1 6/14/99(Slo /366 /guidetti /fundsdis.doc) CTU E-S T A ITL COMPANY 860 Price Strcct • Pismo-Beach, CA 93449-6 (805) 773 -8600 . FAX (805) 773 -4359 Date February 20, 2008 Escrow Officer Deena Peak: Escrow Number 87500488 Property Address AMENDMENT TO ]ESCROW INSTRUCTIONS CUES`rA TITLE COMPANY 19 LICENSED BY THE STATE OF CALIFORNIA UNDER THE DEPARTMENT OF INSURANCE. LICENSE NO- 73459 ESCROW :INSTRUCTIONS DATED OCTOBER 22, 2007 AND ANY AND ALL AMENDMENTS THERETO ARE HEREBY AMENDED IN THE FOLLOWING PARTICULARS ONLY: Escrow holder is instructed to credit the seller and debit the buyer. the sum of $3,373.14. Said sum 'represents the sellers cost for the partial reconveyance obtained for item 7 of the preliminary report dated 10/12/07. All other terms and conditions to reinain the Same. I have received a copy of these instructions as evidenced by my signature below. Patrick B. Clemens Joy Clemens Michael Clemens David R. Atkinson Garden Station LLC By. Virgina Clemens Cathy Atkinson By: Cit of S L i Obispo BY: k-en I �A •N /cr✓r By: 900 /Z00� 65£9 £LL SOB xva LZ t£T aaM SOOZ /OZ /ZO EJAL FROM: council AQEnbA REpoRt CITY OF SAN LUIS OBISPO Jay Walter, Public Works Director Prepared By: Bridget Fraser, Engineer III Meeting Dee October 2 2007 Item Number SUBJECT: SANTA BARBARA AVENUE WIDENING; HIGH TO BROAD, SPECIFICATION NO. 90408 CAO RECOMMENDATION 1. Authorize the purchase of additional right -of -way at 2140 Santa Barbara Avenue (Assessor's Parcel No. 003 - 752 -005), for the sum of $64,200 and authorize the CAO to sign all necessary purchase and escrow documents. 2. Authorize the CAO to approve a Purchase Agreement for additional right -of -way located at 2034 Santa Barbara Avenue (Assessor's Parcel No. 003 - 752 -007), for a sum not to exceed $155,000. 3. Authorize the Mayor to sign the Certificates of Acceptance for additional Santa Barb_ ara Avenue right -of -way acquisitions. 4. Approve plans and specifications for the "Santa Barbara Street Widening; High to Broad Streets, Specification No. 90408" project and authorize staff to advertise for bids for project construction. 5. Authorize CAO to award the contract if lowest responsible bid is, within Engineer's Estimate of $660,000. 6; Approve the transfer of $51,422 from the budgets of several completed projects to the project budget and appropriate $315,000 in approved additional State grant revenue to the project budget and $200,366 from the unreserved General Fund balance to the project budget. DISCUSSION Background In 1999, the City Council authorized staff to hire a consultant to prepare an operational study for Santa Barbara Avenue. The operational study, which was approved by Council in 2000, included a recommendation to Widen Santa Barbara Avenue from Upham to Broad to improve traffic conditions and maintain safety. The portion from Upham to High was widened as part of the Rarig property improvements and as part of the City's Railroad Transportation Center project. In 2001, Council established a new setback line between High and Broad seven feet from the current right -of -way line on the easterly side. This setback was established to prevent any new building within this setback and reserve the additional seven feet for a future street widening. Subsequently, a Capital Improvement Project to purchase the right -of -way and widen this remaining two block section of Santa Barbara Avenue was included in the City's 2003 -05 Financial Plan. Santa Barbara Avenue Widening — High to Broad Street Page 2 Project Description As stated above, the purpose of this project is to improve traffic conditions and maintain safety on this arterial street. The operational study recommended widening the street to 49' between curbs to allow left turn pockets and a center turn lane between High and Roundhouse and allow for a second left turn lane on to Broad while maintaining the existing bike lanes, parking and loading zones..This project will address most, but not all, of the operational study recommendation. This project will add the center turn lane and left turn pockets between High and Roundhouse and will maintain bike lanes on both sides of the street; however, the northerly 200' feet could not be widened the full 49' width due to an existing building on the east side. In order to install the left turn lane onto High and maintain bike lanes, a section of parking on the west side in front of Farris Lighting will be removed. This project will widen the street the full 49' width between Roundhouse and Broad; however, a second left turn lane on to Broad will not be installed with this project. Adding a second left turn lane will require extensive upgrades to the signal at Broad. Funding for this upgrade will be sought and a future project programmed. Even with these short falls, this project still fulfills the overall goal — improving traffic conditions and maintaining safety. Right -of -way Acquisitions This project requires the acquisition of additional right -of -way along the two parcels on the eastside in the block between High and Roundhouse (2034 and 2140 Santa Barbara Avenue). Since the City already owns the parcel between Roundhouse and Broad (Fire Station No. 1) no acquisition of additional right -of —way is required in this block. The City hired the firm Reeder, Gilman & Million of Santa Maria, certified state licensed appraisers, to determine the fair market value for the two needed parcels. The fair market value is determined using recent sales of comparable properties. 1. 2140 Santa Barbara The fair market value for this parcel is $64,200. Based on this fair market value, an acquisition agreement was negotiated with, and found acceptable by the property owner. A copy of the purchase agreement is available for review in the Council office. 2. 2034 Santa Barbara The appraisal for this property was received at the time of writing this report. The City's right -of- way agent will review the appraisal, prepare the appraisal summary and purchase agreement and then present it to staff for review and approval. Upon staff s approval a formal offer will be presented to the owner after which a negotiation period will ensue. Expediting the purchase of this property is necessary in order to secure it before the construction award deadline discussed below. To expedite the purchase of this property staff recommends that the CAO be given authority to authorize and execute the purchase of the property as long as the purchase price does not exceed $155,000. • Santa Barbara Avenue Widening — High to Broad Street Page 3 Grant Status This project is predominantly funded with State Transportation Improvement Plan (STIP) funding. To meet STIP guidelines, the construction contract must be awarded by December 30, 2007 or the City risks losing the $506,000 in STIP construction funds. The contract documents for construction of the widening are now finished and ready for bidding; however, acquisition of the two required properties is pending. The City can not award construction for this project if the needed right -of -way has not been secured. Staff recommends advertising the project to keep it moving forward anticipating that both properties will be secured before the December 30th deadline. CONCURRENCES 1. The Community Development Department has granted this project a Mitigated Negative Declaration in accordance with the California Environmental Quality Act (CEQA) . 2. The Tree Committee approved the application for tree removals associated with this project at their August 27h meeting. 3. The acquisition agreement for Conroy (2140 Santa Barbara) has been reviewed and approved by City Attorney. 4. The pending encroachment permit from Caltrans is expected to be issued within 4 -6 weeks. Any permit requirements will be added to the project by addendum if permit is issued before bid opening or by contract change order if issued after the project is awarded. FISCAL IMPACT The project to widen Santa Barbara Avenue between High and Broad is included in the City's 2003- 05 Financial Plan (pages 139 -141 of Appendix B). The current budget for this project is $461,112. As shown in the table below, the total estimated cost for this project is $1,027,900. One reason for this large discrepancy is that the current project budget does not reflect $315,000 of new 2006 STIP allocations. Originally, STIP funds in the amount of $130,000 for acquisition and $320,000 for construction were allocated for this project as part of the 2002 STIP. Since that time, the project was deferred by the state due to budget issues and then delayed until additional funding could be identified due to rising costs. The project was finally reprogrammed in the 2006 STIP where an additional $129,000 for acquisition and an additional $186,000 for construction were allocated to the project. These additional STIP allocations need to be appropriated into the project budget. After taking into account the additional STIP funding, a budget short fall of $251,788 still remains. As shown in the table below, most of this is due to construction related costs. The original 2003 -05 budget did not account for construction management costs. The current proposed budget allows for $30,000 for costs associated with compaction. testing or possible archaeological monitoring. The original budget was also based on estimates generated for the 2002 STIP application — most likely in 2001. These costs were already 2 -3 years old before entering the 2003 -05 budget. When the project was reprogrammed in the 2006 STIP, a budget shortfall was recognized and there was some attempt made to correct the budget. An additional $186,000 was added at that time to the STIP construction allocation. This new estimate, most likely generated in 2005, is again nearly 3 years old. Although there is some indication that construction prices are leveling off, there have still been significant cost increases in the last three years. 0 • Santa Barbara Avenue Widening— High to Broad Street Page 4 Staff recommends funding this shortfall of $251,788 with a. transfer from several completed projects, and with a new appropriation from the unreserved General Fund balance. Staff recommends transferring $51,422 from various budgets of several completed projects to the project budget. This balance represents the remaining residual funds of five completed General Fund projects (Mission Walkway, Mission Plaza Repairs, Mill Street Curb and Gutter, Emergency Storm Drain, and Damon - Garcia Parking Lot) completed within the last four years. Additionally, staff recommends appropriating $200,366 from the unreserved General Fund balance. As noted in the recent interim financial report for 2006 -07, the City ended last fiscal year in stronger financial shape than we estimated in the 2007 -09 Financial Plan, which was largely due to one -time sources. Given the importance of this project in meeting the City's 2007 -09 major City goal for traffic congestion relief (it is a key component of the adopted work program); staff believes that this is appropriate one -time use of our one -time, stronger reserves. Even with this added appropriation, based on the stronger ending financial position in 2006 707, projected General Fund reserves at the end of 2007 -09 will be 25% of operating expenditures compared with our policy minimum of 20% A summary of the project accounting is shown below: Current Budget I Proposed + New STIP Budget Variance Design $ 11112 $ 12,900 $ 1,788 Surveying $ 10,400 Advertising; Printing and Other Costs $ 2,500 Acquisition $ 259,000 $ 259,000 $ - Right -of -way consultant $ 23,800 Appraisals $ 11,000 Escrow /Closing Costs $ 5,000 Right -of -way: 2140 Santa Barbara $ 64,200 Right -of -way: 2034 Santa Barbara $ 155,000 Current Budget $ 130,000 Additional STIP $ 129,000 Construction $ 506,000 $ 726,000 $ 220,000 Construction Contract $ 660,000 Contingencies at 10% $ 66,000 Current Budget $ 320,000 Additional STIP $ 186,000 Construction Management $ - $ 30000, $ (30,000) Inspection & Testing $ 15,000 Monitoring $ 15,000 TOTAL $ 776,112 $ 1,027 900 $ 251,788 Santa Barbara Avenue Widening —_High to Broad Street Page 5 ALTERNATIVES Defer the project . The project could be deferred until additional grant funding can be obtained. The current STIP construction funding would be forfeited. Staff would need to. reapply for funding in the next STIP cycle where the project would compete against other projects for available funding. In addition, based on past experience, costs are more likely to increase with time. More importantly, traffic congestion will increase and suggested safety improvements will be delayed: ATTACHMENTS 1. Vicinity Map AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE 1. Plans and Specifications 2. Purchase Agreement — City /Conroy- 2140 Santa Barbara. G:\Staff-Reports-Agendas-Minutes\—CAR\2007\CIP\90408 Santabarabarawidening \90408 CAR Advpurchsbwiden- F[NAL.Doc MA 4 A'' t v � 1► r*I' PROJECTV LOCATIOW% l � r � SANTA BARBARA AVENUE C 4�/ O _ WIDENING PROJECT `+9y1 1 uls OBIS PO HIGH CI BROAD STREETS aa??AA1I .J�< 4 7�J SPECIFICATION 90408 Public Works Department 919 Palm Street San Luis Obispo, CA 93401 1 LOCATION/V.ICINITY MAP HAMNER, JEWELL & ASSOCIATES Government Real Estate Services a division of Beacon Integrated Professional Resources, Inc. Ventura County Office: 4476 Market Street, Suite 601, Ventura, California 93003 Tel: (805) 658 -8844 Fax: (805) 658 -8859 ® San Luis Obispo County Office: 340 James Way, Suite 150, Pismo Beach, California 93449 Tel: (805) 773 -1459 Fax: (805) 773 -2418 Writer's e -mail address: mjanderson@hamner-jewell.com DOCUMENT TRANSMITTAL / By U.S. Mail TO: Bridget Fraser DATE: August 21, 2008 Project Engineer City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 93401 FROM: Mary Jo Anderson Hamner, Jewell & Associates SUBJECT: City of San Luis Obispo anta Barbara Street Widening Project Acq. # 003 - 752 -007 (PHIL- Station LL DOCUMENT % Policy of Title Insurance (Order Number b7500488) ENCLOSED: Hi Bridgett, Enclosed for the City's permanent files is a copy of the Title Insurance Policy in the Santa Barbara Street Widening (Garden Station) matter. Please feel free to call on us if you have any questions! Sincerely, Mary Jo A erson Enclosure: Owner's Policy of Title Insurance 0 RECEIVED AUG 2 2 2008 CITY OF SAN LUIS OBISPO PUBLIC WORKS DEPARTMENT CLTA Standard Coverage Policy — 1990 Order Number: b7500488 POLICY OF TITLE INSURANCE ISSUED BY STEWART TITLE GUARANTY COMPANY SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS,. STEWART TITLE GUARANTY COMPANY, a Texas corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the titie; 4. Lack of a right of access to and from the land; and in addition, as to an insured lender only: 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the-lien of the insured mortgage; said mortgage being shown in Schedule B in the order of its priority; 7. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule B, or the failure of the assignment shown in Schedule B to vest title to the insured mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. In witness whereof, Stewart Title Guaranty Company has caused this policy to be signed and sealed by its duly authorized officers as of Date of Policy shown in Schedule A. (-L,.. - �' Chai man of tho Buord Countersigned: Authorized Countersignature STEWART TITLE OF CALIFORNIA, INC. STEWART TITLE GUARANTY COMPANY owva. t �AAFIFJ" fl"A.' j W, mz� President !�• t i U 6. 0 • TEXAS Policy No.: 0- 2228 - 31.0409 Serial No. 0- 2228 - 310409 Page 1 of 10 CLTA Standard Coverage Policy — 1990 Order Number: b7500488 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees are expenses which arise by reason of: I. (a) Any law, ordinance or governmental regulations (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy: (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge: 3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at.Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. .5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. CONDITIONS AND STIPULATIONS 1. Definition of Terms.. The following terms when used in this policy mean: (a) "insured ": the insured named in Schedule A, and', subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. The term "insured" also includes: (i) the owner of the indebtedness secured by the insured mortgage and each successor in ownership of the indebtedness except a successor who is an obligor under the provisions of Section 12(c) of these Conditions and Stipulations (reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor insured, unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defect, lien, encumbrance, adverse claim or other matter insured against by this policy as affecting title to the estate or interest in the land); (ii) any governmental agency or governmental instrumentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage, or any part thereof, whether named as an insured herein or not; (iii) the parties designated in Section 2(a) of these Conditions and Stipulations. (b) "insured claimant ": an insured claiming loss or damage. (c) "insured lender ": the owner of an insured mortgage. (d) "insured mortgage ": a mortgage shown in Schedule B, the owner of which is named as an insured in Schedule A. (e) "knowledge" or "known ": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (f) "land ": the land described or referred to in Schedule [A] [C], and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule [A] [C], nor any right, title; interest, estate or Serial No. 0- 2228 - 310409 Page 2 of 10 CLTA Standard Coverage Policy — 1990 Order Number: b7500488 easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (g) "mortgage ": mortgage, deed of trust, trust deed, or other security instrument. (h) "public records ": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. (i) "unmarketability of the title ": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A or the insured mortgage to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. Continuation of Insurance (a) After Acquisition of Title by Insured Lender. If this policy insures the owner of the indebtedness secured by the insured mortgage, the coverage of this policy shall continue in force as of Date of Policy in favor of (i) such insured lender who acquires all or any part of the estate or interest in the land by foreclosure, trustee's sale, conveyance in lieu of foreclosure, or other legal manner which discharges the lien of the insured mortgage; (ii) a transferee of the estate or interest so acquired from an insured corporation, provided the transferee is the parent or wholly -owned subsidiary of the insured corporation, and their corporate successors by operation of law and not by purchase, subject to any rights or defenses the Company may have against any predecessor insureds; and (iii) any governmental agency or governmental instrumentality which acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage. (b) After Conveyance of Title by an Insured. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from an insured of either (i) an estate or interest in the land, or (ii) an indebtedness secured by a purchase money mortgage given to an insured. (c) Amount of Insurance. The amount of insurance after the acquisition or after the conveyance by an insured lender shall in neither event exceed the least of: (i) The amount of insurance stated in Schedule A; (ii) The amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy, interest thereon, expenses of foreclosure, amounts advanced pursuant to the insured mortgage to assure compliance with laws or to protect the lien of the insured mortgage prior to the time of acquisition of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements, but reduced by the amount of all payments made; or (iii) The amount paid by an governmental agency or governmental instrumentality, if the agency or the instrumentality is the insured claimant, in the acquisition of the estate or interest in satisfaction of its insurance contract or guaranty. 3. Notice of Claim to be Given by Insured Claimant. An insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest or the lien of the insured mortgage, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest or the lien of the insured mortgage; as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to that insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. Defense and Prosecution of Actions; Duty of Insured Claimant to Cooperate.' (a) Upon written request by an insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of such insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of such insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The company will not pay any fees, costs or expenses incurred by an insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to an insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, an insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of such insured for this purpose. Whenever requested by the Company, an insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured. If the Company is prejudiced by the failure of an insured to fumish the required cooperation, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. Proof of Loss or Damage. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by each insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of an insured claimant to provide the required proof of loss or damage, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. Serial No. 0- 2228 - 310409 Page 3 of 10 CLTA Standard Coverage Policy — 1990 Order Number: b7500488 In addition, an insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by an insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of an insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that insured for that claim. 6. Options to Pay or Otherwise Settle Claims; Termination of Liability. In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) to pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay; or (ii) in case loss or damage is claimed under this policy by the owner of the indebtedness secured by the insured mortgage, to purchase the indebtedness secured by the insured mortgage for the amount owning thereon together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of purchase and which the Company is obligated to pay. If the Company offers to purchase the indebtedness as herein provided, the owner of the indebtedness shall transfer, assign, and convey the indebtedness and the insured mortgage, together with any collateral security, to the Company upon payment therefor. Upon the exercise by the Company of the option provided for in paragraph a(i), all liability and obligations to the insured under this policy, other than to make the payment required in that paragraph, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. Upon the exercise by the Company of the option provided for in paragraph a(ii) the Company's obligation to an insured Lender under this policy for the claimed loss or damage, other than the payment required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. (b) To Pay or Otherwise Settle with Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs b(i) or b(ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. 7. Determination and Extent of Liability. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described: (a) The liability of the Company under this policy to an insured lender shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A, or, if applicable, the amount of insurance as defined in Section 2 (c) of these Conditions and Stipulations; (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations or as reduced under Section 9 of theses Conditions and Stipulations, at the time the loss or damage insured against by this policy occurs, together with interest thereon; or (iii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the insured lender has acquired the estate or interest in the manner described in Section 2(a) of these Conditions and Stipulations or has conveyed the title, then the liability of the Company shall continue as set forth in Section 7(a) of these Conditions and Stipulations. (c) The liability of the Company under this policy to an insured owner of the estate or interest in the land described in Schedule A shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or, (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (d) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. Limitation of Liability. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, or otherwise establishes the lien of the insured mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, or, if applicable, to the lien of the insured mortgage, as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. (d) The Company shall not be liable to an insured lender for: (i) any indebtedness created subsequent to Date of Policy except for advances made to protect the lien of the insured mortgage and secured thereby and reasonable amounts expended to prevent deterioration of improvements; or (ii) construction loan advances made subsequent to Date of Policy, except construction loan advances made.subsequent to Date of Policy for the purpose of Serial No. 0- 2228 - 310409 Page 4 of 10 CLTA Standard Coverage Policy — 1990 Order Number: b7500488 financing in whole or in part the construction of an improvement to the land which at Date of Policy were secured by the insured mortgage and which the insured was and continued to be obligated to advance at and after Date of Policy. 9. Reduction of Insurance; Reduction or Termination of Liability. (a) All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of insurance pro Canto. However, as to an insured lender, any payments made prior to the acquisition of title to the estate or interest as provided in Section 2(a) of these Conditions and Stipulations shall not reduce pro tanto the amount of insurance afforded under this policy as to any such insured, except to the extent that the payments reduce the amount of the indebtedness secured by the insured mortgage. (b) Payment in part by any person of the principal of the indebtedness, or any other obligation secured by the insured mortgage, or any voluntary partial satisfaction or release of the insured mortgage; to the extent of the payment, satisfaction or release, shall reduce the amount of insurance pro tanto. The amount of insurance may thereafter be increased by accruing interest and advances made to protect the lien of the insured mortgage and secured thereby, with interest thereon, provided in no event shall the amount of insurance be greater than the Amount of Insurance stated in Schedule A. (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company to an insured lender except as provided in Section 2(a) of these Conditions and Stipulations. 10. Liability Noncumulative. It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring .a mortgage to which exception is taken in Schedule B or which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. The provisions of this Section shall not apply to an insured lender, unless such insured acquires title to said estate or interest in satisfaction of the indebtedness secured by an insured mortgage. . 1 1. Payment of Loss. (a) No payment.shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 12. Subrogation Upon Payment or Settlement. (a) The Company's Right of Subrogation Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, 'compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated (i) as to an insured owner, to all rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss; and (ii) as to an insured lender, to all rights and remedies of the insured claimant after the insured claimant shall have recovered its principal, interest, and costs of collection. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the. amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Insured's Rights and Limitations. Notwithstanding the foregoing, the owner of the indebtedness secured by an insured mortgage, provided the priority of the lien of the insured mortgage or its enforceability is not affected, may release or substitute the personal liability of any debtor or guarantor, or extend or otherwise modify the terms of payment, or release a portion of the estate or interest from the lien of the insured mortgage, or release any collateral security for the indebtedness. When the permitted acts of the insured claimant occur and the insured has knowledge of any claim of title or interest adverse to the title to the estate or interest or the priority or enforceability of the lien of an insured mortgage, as insured, the Company shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (c) The Company's Rights Against Non - insured Obligors. The Company's right of subrogation against non - insured obligors shall exist and shall include; without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. The Company's right of subrogation shall not be avoided by acquisition of an insured mortgage by an obligor (except an obligor described in Section t (a)(ii) of these Conditions and Stipulations) who acquires the insured mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond and the obligor will not be an insured under this policy, notwithstanding Section I (a)(i) of these Conditions and Stipulations. 13. Arbitration. Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 14. Liability Limited to This Policy; Policy Entire Contract. Serial No. 0- 2228 - 310409 Page 5 of 10 CLTA Standard Coverage Policy — 1990 Order Number: b7500488 (a) This policy together with all endorsements, if any, attached ,hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the lien of the insured mortgage or of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, -a Vice President, the Secretary, an Assistant Secretary,.or validating officer or authorized signatory of the Company. 15. Severability. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 16. Notices, Where Sent. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at P.O. Box 2029, Houston, Texas 77252 -2039, and identify this policy by its printed policy serial number which appears on the bottom of the front of the first page of this policy. STEWART TITLE GUARANTY COMPANY Serial No. 0- 2228 - 310409 Page 6 of 10 CLTA Standard Coverage Policy — 1990 SCHEDULE A Order No.: b7500488 Amount of Insurance: $1371000.00 Date of Policy: February 29, 2008 at 08:00 am • Order Number: b7500488 Policy No.: 0- 22287310409 Premium: $737.00 1. Name of Insured: The City of San Luis Obispo, a Municipal Corporation and a Charter City of the State of California 2. The estate or interest in the land which is covered by this policy is: Fee 3. Title to the estate or interest in the land is vested in: The City of San Luis Obispo, a Municipal Corporation and a Charter City of the State of California 4. The land referred to in this policy is described as follows: (See Attached Legal Description) Serial No. 0- 2228 - 310409 Page 7 of 10 CLTA Standard Coverage Policy —1990 LEGAL DESCRIPTION :1 Order Number: b7500488 The land referred to herein is situated in the County of San Luis Obispo, State of California, and is described as follows: A portion of Block A Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded October 24, 1887 in Book A, Page 98 of Maps and a portion of Block 13 of the Buena Vista Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded October 20, 1887 in Book A, Page 47 of Maps, described more particularly as follows: PARCEL 1: That portion of Lot 1, Block 13 of said Map of Buena Vista Addition laying Northwesterly of a curve which is tangent to the North and West lot lines of said Lot 1, having a radius of 8.00 feet a curve length of 11.85 feet and a central angle of 84 °50'19 ". PARCEL 2: Being a strip of land which is parallel and contiguous with the East line of Santa Barbara Avenue and containing the West 7.00 feet of Lots 4, 5 and 6 together with the West 7.00 feet of the West 1.5.91 feet of Lot 3 of Block 13 of said Map of Buena Vista Addition. PARCEL 3: Being a strip of land which is parallel and contiguous with the East lien of Santa Barbara Avenue and containing the West 7.00 feet of Lots 9, 10, 11 and 12 of Block A of said Fairview Addition, excepting East 2.20 feet of the West 9.51 feet of Lot 11 of said 7.00 foot wide strip and the East 2.20 feet of the North 38.76 feet of Lot 12 of said 7.00 foot wide strip. Serial No. 0- 2228 - 310409 Page 8 of 10 CLTA Standard Coverage Policy —1990 • Order Number: b7500488 SCHEDULE B PART I EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which ace not shown as existing liens by the records of the taxing authority that levies taxes or assessments on real property or by the public records. Proceeding by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or other facts which a_ correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in,patents or in acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. Serial No. 0- 2228 - 310409 Page 9 of 10 CLTA Standard Coverage. Policy — 1990 SCHEDULE- B PART II Order Number: b7500488 The lien of supplemental taxes, if any, asses_ sed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the revenue and taxation code of the State of California. 2. Limitations on use of Parcel 3 as contained in Grant Deed recorded June 26, 1961 in Book 1129, Page.582 of Official Records, provide substantially as follows: ... "for a period of twelve years from March 3, 1961, or so long thereafter as the grantees herein, their successors or assigns, continue to use said easement for the.purpose herein stated, provided that in the event the grantees do not exercise this right, within said twelve year period, such rights shall automatically terminate and revert back to the grantor, its hems or assigns." 3. Limitations on use of Parcel 4 as contained in Grant Deeds recorded May 19, 1964 in Book 1298, Page 7 and recorded December 3, 1973 in Book 1755, Page 647 of Official Records, providing substantially as follows: ..." for a period of twelve years from March 3, 1961, or so long thereafter as the grantees herein, their successors or assigns, continue to use said easement for the purpose herein stated, provided that in the event the grantees do not exercise this right, within said twelve year period, such rights shall automatically terminate and revert back to the grantor, its heirs or assigns." 4. An easement for the purpose shown below and rights incidental there_ to as reserved in a document: Reserved by: The City of San Luis Obispo Purpose: Public Sewer and Incidental Purposes Recorded: September 25, 1990, as Instrument.No. 66170, in Book 3584, Page 194 of Official Records Affects: Abandoned Haskin Avenue Terms and provisions of a lease dated October 1, 2004, executed by Garden Station LLC, a California limited liability company, as lessor, and Pacific Coast Home & Garden Center, a California Corporation, as lessee as disclosed by a Subordination and Attornment Agreement, recorded June 22, 2007, as Instrument/File No. 2007042214, of Official Records. (End of Exceptions) Serial No. 0- 2228 - 310409 Page 10 of 10 Stewart Title Guaranty Company Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm - Leach- Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the, privacy policies and practices of Stewart Title Guaranty Company. We may collect nonpublic personal information about you from the following sources: ■ Information we receive from you, such as on applications or other forms. ■. Information about your transactions we secure from our files, or from our affiliates or others. ■ Information we receive from a consumer reporting agency. ■ Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliates third parties permitted by law. We also may disclose this information about our customers or former customers to the following types of non affiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: ■ Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. ■ Non - financial companies such as envelope stuffers and other fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. Cuesta Title Company Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm- Leach - Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In. compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Cuesta Title Company We may collect nonpublic personal information about you from the following sources: ■ Information we receive from you, such as on applications, or other forms. ■ Information about your transactions we secure from our files, or from our affiliates or others. ■ Information we receive from a consumer reporting agency. ■ Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated. otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliates third parties permitted by law.. We also may disclose this information about our customers or former customers to the following types of non affiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: ■ Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. ■ Non - financial companies such as envelope stuffers and other fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. : quaurtuoo a :zap-To ` • Z jo T :abed SL -£ deR so*y yD'odsrgo sFn7 upg :uotad'FsosaQ c:`u� w ED ;ate: = as CD cj It 7 _ m Q C , �c CD o v, o _ C3D 7 C', 1 N• O CD CD N C^ CD �C H A _ Ul O y ¢ Z 2 1 N E e P 10 YT;:) 0 yC 2 N T !)Jim a SG - 7., o A I I � I4sem �I I I I i I 1 1 O ml'm W d' I . I IN I I I it i I I I I I EMILY b su (A - 4a.s01 47 1 47 147. I 10 wwww I _ 2 Z A Z m an16 m �v -0 -0 CO 46 ;• Co OD V N t yip m � �/o.PsN qa j3 u a r /9. <o u9.90 ° c 9 GOB a4RMIRA Nncy °,C^ BUSFWELL10 p Iv P rV o y OSD bm A I i47.ie i i 39.701 yip m � �/o.PsN qa j3 u a r /9. <o u9.90 ° c 9 a4RMIRA 17 , I "- M. - 7./f ware ink 4 ASE o bm A I i47.ie i i 39.701 -wm I. I1b. 1Kiso a I� IW wl Ipe I� 1 la I I� I 1 JR 70 I 1 ' i I JO a 4 IG WI 110, Itl 10 I� of I I l s l 4 w I I I Ive a I I w a Iv 1� iY la I u O CD 1 I I I I rn $ N t l _ _ 1/- - - - -- I T�— T+ —T— I �— I e� 1 I ----- T - - - -- - ti -- I 7. SO I 47 1 47 I17S01 5 0 air E 3W.M V �� sr. 47J0 47 1 47 4 1 15 a. \V� s H 03 °- V 1 I � V I i i x ws I s •re 60 %e P u+ V ofp e al N � a 9.40 � riOO� m I yip m � �/o.PsN qa j3 u a r /9. <o u9.90 ° c 9 w. L w a CD Ln $ N t l _ _ 1/- - - - -- I �— - -- OV \V� °- V 1 0 RECtl$ AUG. CITY OF SAN LUISI3I��` PUBLIC WORKS GE�'A';' HAMMER, JEWELL & ASSOCIATES Government Real Estate Services a division of Beacon Integrated ,Professional Resources, Inc. Ventura County Office: 3639 Harbor Boulevard, Suite 210, Ventura, California 93001 Tel: (805) 658 -8844 Fax: (805) 658 -8859 ® San Luis Obispo County Office: 340 James Way, Suite 150, Pismo Beach, California 93449 Tel: (805) 773 -1459 Fax: (805) 773 -2418 DOCUMENT TRANSMITTAL TO: Bridget Fraser Project Engineer City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 93401 FROM: SUBJECT: DOCUMENTS ENCLOSED: MESSAGE: Hi Bridget! Lillian D. Jewell Hamner, Jewell & Associates By U.S. Mail sus rC _ �Pr City of San Luis Obispo —Santa Barbara Street Widening Project APN 003 -752 -007 (PHIL- Garden Station LLC)) Closing Letter and Statements from Cuesta Title ➢ Four original counterpart Agreements for Acquisition of Real Property I am pleased to inform you that escrow has finally closed on the Santa Barbara Street right of way acquisition from Garden Station LLP (the PHIC property). Enclosed is the closing letter and Buyer's and Seller's closing statements from escrow, for City files. Also enclosed for City files are the original seller- signed Agreements for Acquisition of Real Property. A Policy of Title Insurance from Cuesta Title Company will follow. I have asked Cuesta to provide me with the policy when it is ready, so I can review it first and then forward it on to you for City files. The original recorded Deed should be returned directly to the Public Works Department of the City by the County Recorder's office. This normally takes a few weeks. If you have any questions or need any further assistance on this project, please feel free to call on me. We are pleased to have once again been of service to you and the City of San Luis Obispo! Sincerely, Lillian D. Jewell ESTA Est. FA,f ITLE COMPANY 860 Price Street • Pismo Beach, CA 93449 • (805) 773 -8600 • FAX (805) 773 -4359 February 29, 2008 City of San Luis Obispo c/o Hamner, Jewell & Associates 340 James Way, Suite 150 Pismo Beach, CA 93449 RE: Escrow Number B7500488 Property Address a of 2304 Santa Barbara St. San Luis Obispo, California 93401 The above escrow closed on 2/29/2008; in connection therewith we enclose the following: Final Closing Statement (PLEASE RETAIN FOR TAX PURPOSES) Copy of Sellers closing statement ik you for the opportunity to be of service to you in this transaction. We look forward to working with again. Ct� to Title ompany Peak enclosures Seller's Final Closing Statement 2/29/08 11:26 AM File B7500488 Cuesta Title Company" (805) 544 -1860 Seller's Final Closing Statement Seller(s) Patrick B. Clemens, 316 E. Haley Street, Santa Barbara, CA 93101 - Joy Clemens Michael Clemens, 1223 S. Richland Street, Indianapolis, IN 46221 Virgina Clemens David R. Atkinson, 2790 Bella Vista Drive, Santa Barbara, CA 93108 Cathy Atkinson Garden Station LLC, 750 Pismo Street, San Luis Obispo, CA 93401 Buyer(s) City of San Luis Obispo,'c /o Hamner, Jewell & Associates, 340 James Way, Suite 150, Pismo Beach, CA 93449 Lender Property a of 2304 Santa Barbara St., San Luis Obispo, CA 93401 Closing date 02/29/2008 Proration date 10/3112007 Bank CNB -City National Bank Escrow Unit 50 - Pismo Beach Escrow Officer Deena Peak Debit Credit ContractSales Price. ........................................................ ............................... 137,000.00 Prorations: Credit seller and debit. buyer .......................................... ............................... Additional Charges: 3,373.14 payment per instructions to Pacific Home and Garden .................................... Subtotal: 50,112.00 140,373.14 Balance due to Seller: 90,261.14 Totals: 140,373.14 140,373.14 Page 1 Buyer's Final Closing Statement 2/29/08 11:26 AM File B7500488 Cuesta Title Company (805) 544 -1860 Buyer's Final Closing Statement Buyer(s) City of San'Luis Obispo, c/o Hamner, Jewell & Associates, 340 James Way, Suite 150, Pismo Beach, CA 93449 Seller(s) Patrick B. Clemens, 316 E. Haley Street, Santa Barbara, CA 93101 Joy Clemens Michael Clemens, 1223 S. Richland Street, Indianapolis, IN 46221 Virgina Clemens David R. Atkinson, 2790 Be_ lla Vista Drive, Santa Barbara, CA 93108 Cathy Atkinson Garden Station LLC, 750 Pismo Street, San Luis Obispo, CA 93401 Lender Property a of 2304 Santa Barbara St., San Luis Obispo, CA 93401 Closing date 02/29/2008 Proration date 10/31/2007 Bank CNB - City National Bank Escrow Unit 50 - Pismo Beach Escrow Officer Deena Peak Debit Credit Contract Sales Price ..................... ............... ................. ....... 137,000.00 Additional Credits: Additional Deposit(s) from City of San Luis Obispo ............. .....:......................... 141,310.14 Prorations: Credit seller and debit buyer .................... Other Adjustments: prepaid title fee from City of San Luis Obispo.......... Title Charges: Settlement or closing fee to Cuesta Title Company .. Title insurance .to Cuesta Title Company $737.00.... Owner's coverage to Cuesta Title Company Liability amount $ 137, 000. 00 ............................... multiple package fee to Cuesta Title Company ........ ........ ............................... 3,373.14 300.00 ....... ............................... 400.00 ....... ............................... 737.00 ....... ............................... 100:00 Subtotal: 141,610.14 141,610.14 Balance due to Buyer: Totals: 141,610.14 141,610.14 Page 1 Rev. 10/ 16 /07.(slo /gardenllc /agreemt.doc) PROJECT: City of San Luis Obispo Santa Barbara Street Widening PARCEL NO: 003- 752 -007 OWNER: Garden Station, LLC TITLE REPORT NO.:T7800114 (Cuesta Title Co) AGREEMENT FOR ACQUISITION OF REAL PROPERTY (ESCROW INSTRUCTIONS) THIS AGREEMENT is entered into this 134 day of /V00 -101 b0t✓ , 2007 by and between: 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 "Buyer "), and Patrick B. Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an 25% interest; David R. Atkinson and Cathy Atkinson, Trustee of the Atkinson Family Trust utd February 11, 1991, as to an undivided 25% interest; and Garden Station, LLC, a California limited liability company, as to an undivided 25% interest, as Tenants in Common, (hereinafter collectively called "Seller "), for acquisition by Buyer of certain real property as hereinafter set forth. IT IS HEREBY MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS: 1. AGREEMENT TO SELL AND PURCHASE. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, upon the terms and for the consideration set forth in this Agreement, all those certain real property rights (hereinafter called "Property") described in that certain Grant Deed executed by Seller concurrently with the execution of this Agreement, a copy of which is attached hereto as Exhibit A. 2. PURCHASE PRICE. The total purchase price, payable in cash through escrow, shall be the sum of One Hundred Thirty Seven Thousand Dollars ($137,000). Said sum shall be divided between Sellers and Seller's tenant, Pacific Coast Home & Garden, Inc., a California Corporation ( "PHIC ") as follows: $86,888 credited through escrow to Sellers collectively, divided per the same proportionate interests reflected in the way they hold title; and $50,112 to PHIC. These amounts shall be paid as total consideration for the Property, for the loss, replacement, and moving of any and all affected improvements located upon the Property, for all claims, costs, restoration work by Seller and/or PHIC, damages, goodwill, and any and all other interests and effects resulting from the location, grade, or construction of the proposed public improvements for which the Property is being acquired, and for entering into this Agreement. Said sum(s) shall be paid upon the close of escrow, which shall occur when title to the Property has vested in Buyer free and clear of all liens, encumbrances, assessments, easements, and leases, other than those specific items identified in Paragraph 3 below. 1/7 t .8" t C� Rev. 10/16/07 (slo /gardenllc /agreemt.doc) 3. CONVEYANCE OF TITLE. Seller agrees to convey the propertyrights specified in the attached Grant Deed to Buyer free and clear of all recorded and unrecorded liens, encumbrances, assessments, easements, leases, and taxes, EXCEPT: A. Taxes for the fiscal year in which this transfer occurs. B. Items numbered 1, 2, 3, 4, 6, 7, 8, and 9 of the above numbered title report dated February 13, 2007, issued by Cuesta Title Company. C. Other items that may be approved by Buyer in writing in advance of the close of escrow. 4. TITLE INSURANCE POLICY. Escrow Agent shall, following recording of Deed to Buyer, provide Buyer with a CLTA Standard Coverage Policy of Title Insurance in the amount of $137,000 issued by Cuesta Title Company showing title to the Property vested in Buyer, subject only to the exceptions set forth in Paragraph 3 above. Buyer agrees to pay the premium charged therefore. 5. LEASE INDEMNIFICATION. Seller represents and warrants that this Agreement and the associated rights granted by Seller to Buyer do not conflict with any lease or leasehold rights applicable to the Property, or if there are such leases, Seller expressly obtained Lessee's consent to this Agreement and further agrees to indemnify and hold Buyer harmless and reimburse Buyer for any and all costs, expenses and/or damages, including attorneys' fees, occasioned by reason of any lease of said Property, including, but not limited to, any such amounts arising from or related to any claim made pursuant to California Government Code, section 7260, et seq. 6. ESCROW. Buyer agrees to open an escrow in accordance with this Agreement at Cuesta Title Company. This Agreement constitutes the joint escrow instructions of Buyer and Seller, 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. Seller has executed and handed the herein referenced Grant Deed to Buyer, concurrently with this Agreement. As soon as possible after opening escrow, Buyer will deposit the executed Deed, with Certificate of Acceptance attached, with Escrow Agent on Seller's behalf. Buyer agrees to deposit the purchase price upon demand of Escrow Agent. Buyer and Seller agree to deposit with Escrow Agent any additional instruments as may be necessary to complete this transaction. Insurance policies for fire, casualty, or liability are not to be transferred, and Seller will modify his own policies after the close of escrow, if appropriate. All funds received in this escrow shall be deposited with other escrow funds in a general escrow trust 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 from such account. 2/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) ESCROW AGENT IS AUTHORIZED AND INSTRUCTED TO COMPLY WITH THE FOLLOWING TAX ADJUSTMENT PROCEDURE: A. Pay and charge Seller for any unpaid delinquent taxes and/or any penalties and interest thereon, and for any delinquent or non - delinquent assessments or bonds against the Property; B. Escrow is not to be concerned with pro- ration of Seller's property taxes for the current fiscal. year. Any taxes which have been paid by Seller, prior to opening of this escrow, shall not be prorated between Buyer and Seller, but Seller shall have the sole right, after the close of escrow, to apply to the County Tax Collector of said County for refund of any such taxes which may be due Seller for the period after Buyer's acquisition pursuant to Revenue and Taxation Code Section 5096.7. ESCROW AGENT IS AUTHORIZED TO, AND SHALL: A. Pay and charge Seller for any amount necessary to place title in the condition necessary to satisfy Paragraph 3 of this Agreement; B. Pay and charge Buyer and Seller for any escrow fees, charges and costs payable under Paragraph 7 of this Agreement; C. Disburse funds and deliver Deed when conditions of this escrow have been fulfilled by Buyer and Seller. 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 authorized if necessary or proper in the issuance of said policy of title insurance. All time limits within which any matter herein specified is to be performed may be extended by mutual agreement of the parties hereto. Any amendment of, or supplement to, any instructions must be in writing. TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS TO CLOSE AS SOON AS POSSIBLE. If (except for deposit of money by Buyer, which shall be made by Buyer upon demand of Escrow Agent before close of escrow) this escrow is not in a condition to close within 90 days from the date of these instructions, any party who then shall have fully complied with his instructions may, in writing, demand the return of his money or Property; but if none have complied, no demand for return thereof shall be recognized until five (5) days after Escrow Agent shall have mailed copies of such demand to all other parties at their respective addresses shown in these escrow instructions, and if any objections are raised within said five (5) day period, Escrow Agent is authorized to hold all papers or documents until instructed by a court of competent jurisdiction or mutual instructions. If no demands are made, proceed with closing this escrow as soon as possible. 3/7 • Rev. 10/16/07 (slo /gardenllc /agreemt.doc) Responsibility of Escrow Agent under this Agreement is expressly limited to Paragraphs 1, 2, 3, 4, 6, 7, 10, 11, 12, and 14 and to its liability under any policy of title insurance issued in regard to this transaction. 7. ESCROW FEES, CHARGES, AND COSTS. Buyer agrees to pay all usual and necessary transactional processing fees, charges and costs which arise in this escrow. 8. PERMISSION TO ENTER ON PREMISES. Seller hereby grants Buyer, or its authorized agents, permission to enter upon the Property at all reasonable times prior to the close of escrow for the purpose of making necessary or appropriate inspections, preparations for Buyer's project construction, and for commencement of Project construction. 9. CONSTRUCTION AND PROPERTY RESTORATION PROVISIONS. A. Project Construction. Buyer will construct the proposed permanent Santa Barbara Street improvements ( "Project ") within the area conveyed by Seller to Buyer in Fee per the Deed attached as Exhibit A hereto. Project improvements shall be constructed at Buyer's expense in accordance with the Project plans titled; "Santa Barbara Street Widening, High to Broad, Specification No. 90408" dated October 2007 ( "Project Plans "). B. Restoration of Seller's Property. In exchange for compensation included in the Purchase Price specified in Paragraph 2 of this Agreement, Seller hereby accepts full and complete responsibility for paving and landscaping restoration work on Seller's adjacent property and within the street yard planters. Specifically, Seller shall be solely responsible for restoration of landscaping, irrigation, street yard planters, and parking lot repaving, striping, and improvements. Seller acknowledges that street yard planters and parking lot modifications are subject to review, approval and permitting by the City, of San Luis Obispo, and parking lot modifications shall be designed in accordance with the parking lot standards adopted by the City of San Luis Obispo. C. Street Trees and Landscaping. In conjunction with Seller's landscaping obligations, Seller shall provide landscaping (including six trees) and irrigation in street yard planters. Seller will relocate three existing mature Bradford Pear Trees within existing street yard. Both parties agree that these trees shall not be removed until the Buyer has awarded a contract for the construction of the Street Widening Project. D. Seller's Right to Remove, Retain, and Re -Use Existing Plants and Trees. Seller agrees to remove any plants, trees and other items from the Project area that Seller wishes to retain, in advance of the commencement of Project construction. These items shall be removed by Seller prior to commencement of work by Buyer's contractor, unless arrangements have otherwise been made with Buyer by separate written agreement. Once Project construction commences, unless prearranged by separate written agreement, anything remaining in the existing planters will be removed and disposed of by Buyer's contractor. 4/7 0 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) E. Irrigation. Buyer agrees to relocate the existing irrigation service line to the new planter location shown in Project Plans, and cap, in conjunction with Buyer's Project construction. Actual planter irrigation will be installed by Seller at Seller's expense. F. Concrete and Stairs Removal. At Seller's request, as more particularly described in the Project Plans, the existing concrete that currently lies between the Santa Barbara Street right of way line and the building.on Seller's property (The "Garden Center Building ") will be removed by Buyer's Project contractors and shall not be replaced. Seller also requested, and Buyer has agreed, to remove the existing stairway at the front of the .Garden Center Rental Shop. Both parties agree that these stairs shall be removed by Buyer's contractor and shall not be replaced. Concrete in the immediate vicinity of these removed stairs, where shown on the Project Plans, shall also be removed by Buyer. All concrete removal shall be done at Buyer's expense; all planned conversions of said areas from which concrete is removed to planters shall be done at Seller's sole cost and expense. Before the existing Garden Center Rental Shop stairway is removed, Seller shall remove or permanently block the existing exterior door that leads to such stairway so it becomes infeasible for any occupants of the building to exit through this doorway. G. Storm Drain Improvements. At Sellers request, Buyer shall extend an 18" HDPE storm drain from the proposed storm drain system at the comer of Roundhouse Avenue northerly not more than 160' to accommodate future tie in by Seller. This will be done at no cost to Seller. An additional 15' of HDPE storm drain pipe shall be installed by Buyer from the City storm drain line, under new sidewalk, to just inside Seller's property line, to allow for future tie in of Seller's on site drainage system to City storm drain system. Seller to advise Buyer as to the preferred placement of the 15' storm drain pipe by no later than October 10, 2007. H. CAT5 Computer Cables. Buyer agrees to install a new conduit between the Garden Center's Main Store and the Garden Center Rental Shop, through the planned new planter as shown on the Project Plans, and to install seven (7) new CAT5 computer cables through new conduit. Buyer agrees to make every reasonable effort to ensure that the existing service remains uninterrupted until new conduit is installed and new cables are pulled and ready for tie over. Buyer's contractor shall be allowed to disrupt service for up to 24 hours in order to tie in new computer cables. Buyer's contractor shall coordinate service interruption and tie over with Seller's on -site Store Manager. I. Construction Coordination via Bi- Weekly Meetings. Buyer agrees to have biweekly meetings with Seller's on -site Store Manager to discuss contractor's Project scheduling and progress. 10. 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 instrument. 11. CLOSING STATEMENT. Seller hereby authorizes and instructs Escrow Agent to release a copy of Seller's closing statement to Buyer; purpose being to ascertain if any reimbursements are due Seller. 5/7 0 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) 12. BINDING EFFECT. The terms, conditions, covenants and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto. 13. JUDGMENT IN LIEU OF DEED. In the event Seller is unable to deliver title in a reasonable time under the terms of this Agreement, Buyer may elect to file an eminent domain action to pursue the acquisition of the Property, 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 the Property. 14. 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 and understandings, written. or oral. This Agreement may not be amended except in writing by the parties hereto or their successors or assigns. 15. CITY COUNCIL APPROVAL. This Agreement is subject to and conditioned upon approval and ratification by the City Council of the City of San Luis Obispo. This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity. No Obligation Other Than Those Set Forth Herein Will Be Recognized. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first set forth hereinabove. MAILING ADDRESS OF SELLER Garden Station, LLC C/O Rossi Enterprises 750 Pismo Street, San. Luis Obispo, CA 93401 SELLER: Patrick B. Clemens and Joy Clemens Patrick B. Clemens Joy Clemens Michael Clemens and Virginia Clemens Michael Clemens Virginia Clemens Atkinson Familv Trust utd February 11 1991 David R. Atkinson,. Trustee By: Cathy Atkinson, Trustee 6/7 r� f� MAILING ADDRESS OF BUYER City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 93401 LESSEE CONSENT: Rev. 10/16/07 (slo /gardenilc /agreemt.doc) Nam . R-051N L. t Title. MANAGEQ- BUYER: The City of San Luis Obispo a Name. �V ff4 •� o� cc r� Title: Cdy 67d, M ir1 ,s%u 74c;e 0 Ac, co,_ As Lessee of the property subject to this Agreement, Pacific Coast Home & Garden, Inc., a California. Corporation ( "PHIC "), hereby consents to all terms and conditions of this Agreement. In exchange for the compensation of $50,112, referenced in Paragraph 2 on Page 1 of this Agreement, PHIC hereby waives any and all other claims associated with this purchase and with the Project for which the purchase is made, including, but not limited to, any claims for compensation pursuant to California Goverment Code, section 7260, et seq. PHIC acknowledges that this payment represents full and complete consideration for PHIC's interests in the Property, for the loss, replacement, and moving of any and all affected improvements located upon the Property, for all claims, costs, restoration work by Seller and/or PHIC, damages, goodwill, and any and all other interests and effects resulting from the location, grade, or construction of the proposed public improvements for which the Property is being acquired, and for entering into this Agreement. The undersigned hereby warrants that he is the authorized signatory for PHIC, and by signature hereon, binds PHIC-to this Agreement. This Lessee Consent is signed this 4,15_ day of �> d ro wgg_ , 2007. Pacific Co st Home & Garden, Inc. a California Corporation By: Robi L. Rossi, President 7/7 EXHIBIT A Recording requested by: Hamner, Jewell and Associates Government Real Estate Services When recorded, mail to: City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 934.01 8/30/07 (slo /gardenstation/deed.doc) No fee per Government Code 6103 GRANT DEED No Documentary Transfer Tax per Revenue. Taxation Code 11922 APN: 003 -752 -007 For a valuable consideration; receipt of which is hereby acknowledged, Patrick B Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; David R. Atkinson and Cathy Atkinson, Trustees of the Atkinson Family Trust utd February 11, 1991, as to an undivided 25% interest; and Garden Station, LLC, a California limited liability company, as to an undivided 25% interest; as Tenants in Common. (hereinafter collectively "Grantor") do(es) hereby grant(s) to The City of San Luis Obispo, a Municipal Corporation and A Charter City of the State of California (City) The following interests in real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described below: In Fee: All that certain real property, in fee, in the City of San Luis Obispo, County of San Luis Obispo, State of California, described in Exhibit "A -1" and depicted in Exhibit "A -2 ", attached hereto and incorporated herein. 8/30/07 (slo /gardenstation /deed.doc) Temporary Construction Easements: Temporary Construction Easements for the purposes of facilitating construction within and upon the Fee parcel. described above, in, on, over, under, along, through and across those certain parcels of land identified as "Temporary Construction Easement # 1" and "Temporary Construction Easement # 2" as depicted in Exhibit "A -3", attached hereto and incorporated herein. The Temporary Construction Easements and all access rights related thereto shall automatically terminate at the conclusion of C_ ity's construction or by December 31, 2008, whichever occurs first. This Deed 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 instrument. Signatures on following pages: IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of 2007. GRANTOR: Patrick B. Clemens and Joy Clemens Patrick B. Clemens Joy Clemens State of California County of On before me, , Notary Public personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the with in 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. WITNESS my hand and official seal Signature (Seal) EXHIBIT 4- PAGE C-�-DFJ 2 8/30/07 (slo /gardenstation /deed.doe) IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of 2007. Michael Clemens and Virginia Clemens Michael Clemens Virginia Clemens State of California County of On . before me, Notary Public personally appeared personally known to me (or 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. WITNESS my hand and official seal Signature (Seal) IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of 2007. Atkinson Family Trust utd February 11, 1991 In State of California County of David R. Atkinson, Trustee Cathy Atkinson, Trustee On before me, , Notary Public personally appeared personally known to me (or 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.. WITNESS my hand and official seal Signature (Seal) EXHIBIT A-- PAGE aC�L 8/30/07 (slo /gardenstation /deed.doc) IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of , 2007. Garden Station, LLC By: _ Name: Title: State of California County of On before me, Notary Public personally appeared personally known to me (or proved to the 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. WITNESS my hand and official seal Signature (Seal) CERTIFICATE OF ACCEPTANCE, GOVT CODE SECTION 27281 'This is to certify that the City of San Luis Obispo, grantee herein, hereby accepts forpublic purposes the real property, or interests therein, described in the within deed and consents to the recordation thereof. In Witness Whereof, I have hereunto set my hand this _ day of 52007. 4 EXHIBIT /+ PAGE j0@ EXHIBIT A -1 Right of Way Legal Description A portion of Block A, Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, in the County of San Luis Obispo, State of California, according to map filed for record October 24, 1887 in Book A, Page 98 of Maps and a portion ,of Block 13 of the Buena Vista Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California,- according to map recorded October 20, 1887 in Book A, Page 47 of Maps, in the office of the County Recorder of said County, described more particularly as follows: Parcel 1: That portion of Lot 1., Block 13 of said Map of Buena Vista Addition laying Northwesterly of a curve which is tangent to the North and West lot lines of said Lot 1, having a radius of 8.00 feet a curve length of 11.85 feet and a central. angle of 84 °50' 19 ". Containing 11.1 sq. ft., more or less. Parcel 2- Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the. West 7.00 feet of lots 4, 5 and 6 together with the West 7.00 feet of the South 15.91 feet of Lot 3 of Block 13 of said Map of Buena Vista Addition Containing 942.8 sq. ft., more or less. Parcel 3: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of lots 9, 10 11 and 12 of Block A of said Fairview Addition, excepting East 2.20 feet of the South 9.51 feet of Lot 11 of said 7.00 foot wide strip and the East 2.20 feet of the North 38.76 feet of Lot 12 of said 7.00 foot wide strip. Containing 1,21.8.3 sq. ft., more or less. THIS DOCUMENT WAS PREPARED BY ME OR UNDER MY DIRECTION. -07 Robert A. Livick, PLS 8126 exp .12/31/08 Date D �R A 9 No. 8126 EXP. 12/3 EXHIBIT A ICE? iv---7-- 9Al ecbNdplactivepmJeclsWreet improvements%90406 sania.barbarawidening�- documenls\3• preconstructionl row lgardenstationlegaldescription ral.doc N9'04 "E 1 i N8928'4E'E 7.03' I — C'.4 O n 1 Q O , N m O I I I X ✓+ 1 W m cc •� .,,^ Q w 1 m 1 O I , / T N89.29'04'E 7.01 0 0 `- I Q I J O J m W z 1 LL' Lp 0 1� g Ii O U) W '$ m I LQ O J QZ Z Z I Z _ U3 � H� Q Uul LL Icn W O cc c rn 1 L)` I 1 CL °d rAVWDONEm S'STREET 3584 OR 194 N' I LL Cv) w N85'18909N 7.00 I J 01 , 111 CL W O 1 1(� o �►1 N 1 tu •08'L. �w 1� �� '� d 1 d Ic; SB9'32119•W IL I c� S8g•2W48WW 72T 1 3 W V en o U I -- b p W - . S89.3T19 "W r a. p N S89.3 12 9•w T.3T G HIH STREET _ — - a o EYMBIT —Z:L PAGE —id— a � 9 , CN W& IN C, W z J � ;' W LL J LLI u o LL j! � i 0 LL Z W 2 W LL LL U- ZLoo ° cc O v) Lo CD 0 V chi G) c►� N � II 11 11 U J m LL O W U W ' O U) m LLI W LL O Q M— wwms r� �S 17 n m N N N ik W to LL O N a m 0 N m - � 1 O^ ' Q C\j I m � X i W m IW Q 1 Im I w o z Im J N N w co z LU 3 Z la o cn �� I Qo3» a �I W Z CO cc � 0 wo� Cal U o a- 0 OW I 2 V1 g H W H �o6 I ' U ' � 1 I 1 1 I 1 1 I CD -4 I N I O z Q �Dz O • CL LU z W v w V Cn _ wb z STR_ = -�—N -_- o - = H� — Q o _= In ';tiIBIT PAGE �� t V 7 • • Rev. 10/ 16/07 (slo /gardenllc /agreemt.doc) PROJECT: City of San Luis Obispo Santa Barbara Street Widening PARCEL NO: 003- 752 -007 OWNER: Garden Station, LLC TITLE REPORT NO.:T7800114 (Cuesta Title Co) AGREEMENT FOR ACQUISITION OF REAL PROPERTY (ESCROW INSTRUCTIONS) THIS AGREEMENT is entered into this /? /Aday of /�aiY.y►'� iGY` , 2007 by and between: 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 "Buyer "), and Patrick B. Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an 25% interest; David R. Atkinson and Cathy Atkinson, Trustee of the Atkinson Family Trust utd February 11, 1991, as to an undivided 25% interest; and Garden Station, LLC, a California limited liability company, as to an undivided 25% interest, as Tenants in Common, (hereinafter collectively called "Seller'), for acquisition by Buyer of certain real property as hereinafter set forth. IT IS HEREBY MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS: L. AGREEMENT TO SELL AND PURCHASE. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, upon the terms and for the consideration set forth in this Agreement, all those certain real property rights (hereinafter called "Property") described in that certain Grant Deed executed by Seller concurrently with the execution of this Agreement, a copy of which is attached hereto as Exhibit A. 2. PURCHASE PRICE. The total purchase price, payable in cash through escrow, shall be the sum of One Hundred Thirty Seven 'Thousand Dollars ($137,000). Said sum.shall be divided between Sellers and Seller's tenant, Pacific Coast Home & Garden, Inc., a California Corporation ( "PHIC') as follows: $86,888 credited through escrow to Sellers collectively, divided per the same proportionate interests reflected in the way they hold title; and $50,112 to PHIC. These amounts shall be paid as total consideration for the Property, for the loss, replacement, and moving of any and all affected improvements located upon the Property, for all claims, costs, restoration work by Seller and /or PHIC, damages, goodwill, and any and all other interests and effects resulting from the location, grade, or construction of the proposed public improvements for which the Property is being acquired, and for entering into this Agreement. Said sum(s) shall be paid upon the close of escrow, which shall occur when title to the Property has vested in Buyer free and clear of all liens, encumbrances, assessments, easements, and leases, other than those specific items identified in Paragraph 3 below. 1/7 1 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) 3. CONVEYANCE OF TITLE. Seller agrees to convey the property rights specified in the attached Grant Deed to Buyer free and clear of all recorded and unrecorded liens, encumbrances, assessments, easements, leases, and taxes, EXCEPT: A. Taxes for the fiscal year in which this transfer occurs. B. Items numbered 1, 2, 3, 4, 6, 7, 8, and 9 of the above numbered title report dated February 13, 2007, issued by Cuesta Title Company. C. Other items that may be approved by Buyer in writing in advance of the close of escrow. 4. TITLE INSURANCE POLICY. Escrow Agent shall, following recording of Deed to Buyer, provide Buyer with a CLTA Standard Coverage Policy of Title Insurance in the amount of $137,000 issued by Cuesta Title Company showing title to the Property vested in Buyer, subject only to the exceptions set forth in Paragraph 3 above. Buyer agrees to pay the premium charged therefore. 5. LEASE INDEMNIFICATION. Seller represents and warrants that this Agreement and the associated rights granted by Seller to Buyer do not conflict with any lease or leasehold rights applicable to the Property, or if there are such leases, Seller expressly obtained Lessee's consent to this Agreement and further agrees to indemnify and hold Buyer harmless and reimburse Buyer for any and all costs, expenses and/or damages, including attorneys' fees, occasioned by reason of any lease of said Property, including, but not limited to, any such amounts arising from or related to any claim made pursuant to California Government Code, section 7260, et seq. 6. ESCROW. Buyer agrees to open an escrow in accordance with this Agreement at Cuesta Title Company. This Agreement constitutes the joint escrow instructions of Buyer and Seller, 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. Seller has executed and handed the herein referenced Grant Deed to Buyer, concurrently with this Agreement. As soon as possible after opening escrow, Buyer will deposit the executed Deed, with Certificate of Acceptance attached, with Escrow Agent on Seller's behalf. Buyer agrees to deposit the purchase price upon demand of Escrow Agent. Buyer and Seller agree to deposit with Escrow Agent any additional instruments as may be necessary to complete this transaction. Insurance policies for fire, casualty, or liability are not to be transferred, and Seller will modify his own policies after the close of escrow, if appropriate. All funds received in this escrow shall be deposited with other escrow funds in a general escrow trust 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 from such account. 2/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) ESCROW AGENT IS AUTHORIZED AND INSTRUCTED TO COMPLY WITH THE FOLLOWING TAX ADJUSTMENT PROCEDURE: A. Pay and charge Seller for any unpaid delinquent taxes and/or any penalties _and interest thereon, and for any delinquent or non - delinquent assessments or bonds against the Property; B. Escrow is not to be concerned with pro- ration of Seller's property taxes for the current fiscal year. Any taxes which have been paid by Seller, prior to opening of this escrow, shall not be prorated between Buyer and Seller, but Seller shall have the sole right, after the close of escrow, to apply to the County Tax Collector of said County for refund of any such taxes which may be due Seller for the period after Buyer's acquisition pursuant to Revenue and Taxation Code Section 5096.7. ESCROW AGENT IS AUTHORIZED TO, AND SHALL: A. Pay and charge Seller for any amount necessary to place title in the condition necessary to satisfy Paragraph 3 of this Agreement; B. Pay and charge Buyer and Seller for any escrow fees, charges and costs payable under Paragraph 7 of this Agreement; C. Disburse funds and deliver Deed when conditions of this escrow have been fulfilled by Buyer and Seller. 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 authorized if necessary or proper in the issuance of said policy of title insurance. All time limits within which any matter herein specified is to be performed may be extended by mutual agreement of the parties hereto. Any amendment of, or supplement to, any instructions must be in writing. TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS TO CLOSE AS SOON AS POSSIBLE. If (except for deposit of money by Buyer, which shall be made by Buyer upon demand of Escrow Agent before close of escrow) this escrow is not in a condition to close within 90 days from the date of these instructions, any party who then shall have fully complied with his instructions may, in writing, demand the return of his money or Property; but if none have complied, no demand for return thereof shall be recognized until five (5) days after Escrow Agent shall have mailed copies of such demand to all other parties at their respective addresses shown in these escrow instructions, and if any objections are raised within said five (5) day period, Escrow Agent is authorized to hold all papers or documents until instructed by a court of competent jurisdiction or mutual instructions. If no demands are made, proceed with closing this escrow as soon as possible. 3/7 Rev. 10/16/07 (s10 /gardenllc /agm=t.doc) Responsibility of Escrow Agent under this Agreement is expressly limited to Paragraphs 1, 2, 3, 4, 6, 7, 10, 11, 12, and 14 and to its liability under any policy of title insurance issued in regard to this transaction. 7. ESCROW FEES, CHARGES, AND COSTS. Buyer agrees to pay all usual and necessary transactional processing fees, charges and costs which arise in this escrow. 8. PERMISSION TO ENTER ON PREMISES. Seller hereby grants Buyer, or its authorized agents, permission to enter upon the Property at all reasonable times prior to the close of escrow for the purpose of making necessary or appropriate inspections, preparations for Buyer's project construction, and for commencement of Project construction. 9. CONSTRUCTION AND PROPERTY RESTORATION PROVISIONS. A. Project Construction. Buyer will construct the proposed permanent Santa Barbara Street improvements ( "Project ") within the area conveyed by Seller to Buyer in Fee per the Deed attached as Exhibit A hereto. Project improvements shall be constructed at Buyer's expense in accordance with the Project plans titled; "Santa Barbara Street Widening, High to Broad, Specification No. 90408" dated October 2007 ( "Project Plans "). B. Restoration of Seller's Property. In exchange for compensation included in the Purchase Price specified in Paragraph 2 of this Agreement, Seller hereby accepts full and complete responsibility for paving and landscaping restoration work on Seller's adjacent property and within the street yard planters. Specifically, Seller shall be solely responsible for restoration of landscaping, irrigation, street yard planters, and parking lot repaving, striping, and improvements. Seller acknowledges that street yard planters and parking lot modifications are subject to review, approval and permitting by the City of San Luis Obispo, and parking lot modifications shall be designed in accordance with the parking lot standards adopted by the City of San Luis Obispo. C. Street Trees and Landscaping. In conjunction with Seller's landscaping obligations, Seller shall provide landscaping (including six trees) and irrigation in street yard planters. Seller will relocate three existing mature Bradford Pear Trees within existing street yard. Both parties agree that these trees shall not be removed until the Buyer has awarded a contract for the construction of the Street Widening Project. D. Seller's Right to Remove, Retain, and Re -Use Existing Plants and Trees. Seller agrees to remove any plants, trees and other items from the Project area that Seller wishes to retain, in advance of the commencement of Project construction. These items shall be removed by Seller prior to commencement of work by Buyer's contractor, unless arrangements have otherwise been made with Buyer by separate written agreement. Once Project construction commences, unless prearranged by separate written agreement, anything remaining in the existing planters will be removed and disposed of by Buyer's contractor. 4/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) E. Irrigation. Buyer agrees to relocate the existing irrigation service line to the new planter location shown in Project Plans, and cap, in conjunction with Buyer's Project construction. Actual planter irrigation will be installed by Seller at Seller's expense. F. Concrete and Stairs Removal. At Seller's request, as more particularly described in the Project Plans, the existing concrete that currently lies between the Santa Barbara Street right of way line and the building on Seller's property (The "Garden Center Building ") will be removed by Buyer's Project contractors and shall not be replaced. Seller also requested, and Buyer has agreed, to remove the existing stairway at the front of the Garden Center Rental Shop. Both parties agree that these stairs shall be removed by Buyer's contractor and shall not be replaced. Concrete in the immediate vicinity of these removed stairs, where shown on the Project Plans, shall also be removed by Buyer. All concrete removal shall be done at Buyer's expense; all planned conversions of said areas from which concrete is removed to planters shall be done at Seller's sole cost and expense. Before the existing Garden Center Rental Shop stairway is removed, Seller shall remove or permanently block the existing exterior door that leads to such stairway so it becomes infeasible for any occupants of the building to exit through this doorway. G. Storm Drain Improvements. At Sellers request, Buyer shall extend an 18" HDPE storm drain from the proposed storm drain system at the corner of Roundhouse Avenue northerly not more than 160' to accommodate future tie in by Seller. This will be done at no cost to Seller. An additional 15' of HDPE storm drain pipe shall be installed by Buyer from the City storm drain line, under new sidewalk, to just inside Seller's property line, to allow for future tie in of Seller's on site drainage system to City storm drain system. Seller to advise Buyer as to the preferred placement of the 15' storm drain pipe by no later than October 10, 2007. H. CAT5 Computer Cables. Buyer agrees to install a new conduit between the Garden Center's Main Store and the Garden Center Rental Shop, through the planned new planter as shown on the Project Plans, and to in seven (7) new CAT5 computer cables through new conduit. Buyer agrees to make every reasonable effort to ensure that the existing service remains uninterrupted until new conduit is installed and new cables are pulled and ready for tie over. Buyer's contractor shall be allowed to disrupt service for up to 24 hours in order to tie in new computer cables. Buyer's contractor shall coordinate service interruption and tie over with Seller's on -site Store Manager. I. Construction Coordination via Bi- Weekly Meetings. Buyer agrees to have biweekly meetings with Seller's on -site Store Manager to discuss contractor's Project scheduling and progress. 10. 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 instrument. 11. CLOSING STATEMENT. Seller hereby authorizes and instructs Escrow Agent to release a copy of Seller's closing statement to Buyer; purpose being to ascertain if any reimbursements are due Seller. 5/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) 12. BINDING EFFECT. The terms, conditions, covenants and agreements set forth herein shall . apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto. 13. JUDGMENT IN LIEU OF DEED. In the event Seller is unable to deliver title in a reasonable time under the terms of this Agreement, Buyer may elect to file an eminent domain action to pursue the acquisition of the Property, 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 the Property. 14. 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 and understandings, written or oral. This Agreement may not be amended except in writing by the parties hereto or their successors or assigns. 15. CITY COUNCIL APPROVAL. This Agreement is subject to and conditioned upon approval and ratification by the City Council of the City of San Luis Obispo. This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity. No Obligation Other Than Those Set Forth Herein Will Be Recognized. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first set forth hereinabove. MAILING ADDRESS OF SELLER Garden Station, LLC C/O Rossi Enterprises 750 Pismo Street, San Luis Obispo, CA 93401 SELLER: Patrick B. Clemens and Joy Clemens Patrick B. Clemens Joy Clemens Michael Clemens and Virginia Clemens Michael Clemens Virginia Clemens Atkins rust utd Febru _ 11 1994 By: (A—QiL Davi Atkinson, Trustee By: Cathy Atkins n, Trustee :'7b7 ,r MAILING ADDRESS OF BUYER: City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 93401 LESSEE CONSENT: 0 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) Garden Station; LLC By: _ Name: Title: BUYER: The City of San Luis Obispo c B N e: : a, Title: Ci �{4�.r�inisafirie O�>���o' As Lessee of the property subject to this Agreement, Pacific Coast Home & Garden, Inc., a California Corporation ( "PHIC "), hereby consents to all terms and conditions of this Agreement. In exchange for the compensation of $50,112, referenced in Paragraph 2 on Page 1 of this Agreement, PHIC hereby waives any and all other claims associated with this purchase and with the Project for which the purchase is made, including, but not limited to, any claims for compensation pursuant to California Government Code, section 7260, et seq. PHIC acknowledges that this payment represents full and complete consideration for PHIC's interests in the Property, for the loss, replacement, and moving of any and all affected improvements located upon the Property, for all claims, costs, restoration work by Seller and/or PHIC, damages, goodwill, and any and all other interests and effects resulting from the location, grade, or construction of the proposed public improvements for which the Property is being acquired, and for entering into this Agreement. The undersigned hereby warrants that he is the authorized signatory for PHIC, and by signature hereon, binds PHIC to this Agreement. This Lessee Consent is signed this day of , 2007. Pacific Coast Home & Garden, Inc. a California. Corporation By: Robin L. Rossi, President 7/7 • EXHIBI'T A • 8/30/07 (slo /gardenstation/deed.doc) Recording requested by: Hamner, Jewell and Associates Government Real Estate Services When recorded, mail to: City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 93401 No fee per Government Code 6103 GRANT DEED No Documentary Transfer Tax per Revenue Taxation Code 11922 APN: 003 - 752 -007 For a valuable consideration, receipt of which is hereby acknowledged, Patrick B Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; David R.. Atkinson and Cathy Atkinson, Trustees of the Atkinson Family Trust utd February 11, 1991, as to an undivided 25% interest; and Garden Station, LLC, a California limited liability company, as to an undivided 25% interest; as Tenants in Common. (hereinafter collectively "Grantor ") do(es) hereby grant(s) to The City of San Luis Obispo, a Municipal Corporation and A Charter City of the State of California (City) The following interests in real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described below: .In Fee: All that certain real property, in fee, in the City of San Luis Obispo, County of San Luis Obispo, State of California, described in Exhibit "A -1" and depicted in Exhibit "A -2 ", attached hereto and incorporated herein. ,H1BIT A PAGE 1 OF :�- . 8/30/07 (slo /gardenstation /deed.doc) Temporary Construction Easements: Temporary Construction Easements for the purposes of facilitating construction within and upon the Fee parcel described above, in, on, over, under, along, through and across those certain parcels of land identified as "Temporary Construction Easement # 1" and "Temporary Construction Easement # 2" as depicted in Exhibit "A -3", attached hereto and incorporated herein. The Temporary Construction Easements and all access rights.related thereto shall automatically terminate at the conclusion of City's construction or by December 31, 2008, whichever occurs first. This Deed 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 instrument. Signatures on following pages: IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of , 2007. State of California County of On before me, GRANTOR: Patrick B. Clemens and Joy Clemens Patrick B. Clemens Joy Clemens Notary Public personally appeared personally known to me (or 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(les), 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. WITNESS my hand and official seal Signature (Seal) Ei- .HIBIT � PAGE �®F 2 ,�.' 8/30/07 (slo /gardenstation /deed.doc) IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of 2007. State of California County of AM before me, Michael Clemens and Virginia Clemens Michael Clemens Virginia Clemens Notary Public personally appeared personally known to me (or 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 byhis /her /their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal Signature (Seal) IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of 2007. Atkinson Family Trust utd February 11, 1991 LON David R. Atkinson, Trustee Cathy Atkinson, Trustee State of California County of On before me, Notary Public personally appeared personally known to me (or 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. WITNESS my hand and official seal Signature (Seal) /� 2 3 E2�idIBIT /4 PAGE J OF N 8/30/07 (slo /gardenstation/deed.doc) IN WITNESS WHEREOF, the undersigned have exec_ uted this instrument as of the day of 2007. Garden Station, LLC By: _ Name: Title: State of California County of On before me, personally appeared Notary Public personally known to me (or 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. WITNESS my hand and official seal Signature (Seal) CERTIFICATE OF ACCEPTANCE, GOVT CODE SECTION 27281 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 deed and consents to the recordation thereof. In Witness Whereof, I have hereunto set my hand this _ day of , 2007. 4 i�t"HIBIT / PAGE I OF - ----- 7 EXHIBIT A -1 Right of Way Legal Description A portion of Block A, Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, in the County of San Luis Obispo, State of California, according to map filed for record October 24, 1887 in Book A. Page 98 of Maps and a portion of Block 13 of the Buena Vista Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California,. according to map recorded. October 20, 1887 in Book A, Page 47 of Maps, 'in the office of the County Recorder of said County, described more particularly as follows: Parcel 1: That portion of Lot 1, Block 13 of said Map of Buena Vista Addition laying Northwesterly of a curve which is tangent to the North and West lot lines of said Lot 1, having a radius of 8.00 feet a curve length of 1 1.85 feet and a central angle of 84'50'19". Containing 11.1 sq. ft., more or less. Parcel 2: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of lots 4, 5 and 6 together with the West 7.00 feet of the South 15.91 feet of Lot 3 of Block 13 of said Map of Buena Vista Addition Containing 942.8 sq. ft., more or less. Panel 3: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of lots 9, 10 11 and 12 of Block A of said Fairview Addition, excepting East 2.20 feet of the South 9.51 feet of Lot 1 I of said 7.00 foot wide strip and the East 2.20 feet of the North 38.76 feet of Lot 12 of said 7.00 foot wide strip. Containing 1,218.3 sq. ft., more or less. THIS DOCUMENT WAS PREPARED BY ME OR UNDER MY DIRECTION. Robert A. Livick,.PLS 8126 exp 12/31108 Date +G� LAND SCi A. i F No. 8126 f EXP. 1213'/ 1 F OF CA��FO i ��11B1T a PAGE � OF g: 1projectskdp lactiveprojectslstreel improvements190408 santabarbarawidening \_dxumenlsl9- preconstructionlrow \Wdenstationtegaldescnption ral.doc NW-29'04"E 70 W O o � m Z of N W Z 0 [fir _.—. .Ak F 7.03' I Ip NBWIB90NY m O a O gg9- 32'19"W 4 7.03' ED 0 °r° a m b W v o�c.a SBg�"W m 0 a W .% ter. —4 IA I NI pq�/CnVSSTR 7(mWDOVEM 3,w OR 194 H •- i;9 j^ I ' N N O O ' I I L L N N � I I X X t tL: Q 1 1 1 0 1 CL m Z Z O O 3 3 S Q Q! I L _0 �~ I I 1 Cl) Ln Q Z Z Q p Q I V U z z~ I I 1 i rr<n U 1 I I I I I I 1 All 1 �o I I 4 P 1 I 1 1 J W � 1 589 "32'19 "W _ I N - HIGH =F?EET "0 ' V PAGE OF Y -I: 1 Q ILI 0f s y LU 11 LLI J m 0 U 4 0 W LL r \" i 3 w F- Z W W W U) (n (n Z in O ( (D 0 cn U rn In cr) D cli d' 11 11 N r N Z m m H U Q Q o O ii m LL 0 .; w LL / 2 0 i; oC l LL ,1 0 wN UfA j Y w u o a ii IL al o . U- 0 LL 1 S I c? O 1 Q p ^1 m �9 W � 1 1 m Jy Z > LU %1 Q ww 0 w 0 0 Z fit •� m IQ 1 U i z m J W3 Q /i;Ql o Q m w 3 Z 0zW C IQ♦A o Z ICJ I Q o J ; 1 ~ ~Z a cl co Q ,� I m 1 Ova mm go� U o Z I in U W Q N 0 yASMNS STR� (!A/DONED 3584 OR 194 H z N 0 1 I1 ,or 1- '� 1 ,cr I 1 1 1I In I In 1 1_ I I, 17 / 1 Z TR � W ..� �• �1 a N w 1 4� WSW V cn am __- lif sb 3 _ HIGH =RE= - °;iIRIT PAIt,F �ew Rev. 10/16/07 (slo /gardenllc/agreemt.doc) PROJECT: City of San Luis Obispo Santa Barbara Street Widening PARCEL NO: 003 -752 -007 OWNER: Garden Station, LLC TITLE REPORT NO.:T7800114 (Cuesta Title Co) AGREEMENT FOR ACQUISITION OF REAL PROPERTY (ESCROW INSTRUCTIONS) THIS AGREEMENT is entered into this /?Aday of _POP—rm b-2j , 2007 by and between: 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 'Buyer "), and Patrick B. Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an 25% interest; David R. Atkinson and Cathy Atkinson, Trustee of the Atkinson Family Trust utd February 11, 1991, as to an undivided 25% interest; and Garden Station, LLC, a California limited liability company, as to an undivided 25% interest, as Tenants in Common, (hereinafter collectively called "Seller "), for acquisition by Buyer of certain real property as hereinafter set forth. IT IS HEREBY MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS: 1. AGREEMENT TO SELL AND PURCHASE. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, upon the terms and for the consideration set forth in this Agreement, all those certain real property rights (hereinafter called "Property") described in that certain Grant Deed executed by Seller concurrently with the execution of this Agreement, a copy of which is attached hereto as Exhibit A. 2. PURCHASE PRICE. The total purchase price, payable in cash through escrow, shall be the sum of One Hundred Thirty Seven Thousand Dollars ($137,000). Said sum shall be divided between Sellers and Seller's tenant, Pacific Coast Home & Garden, Inc., a California Corporation ( "PHIC ") as follows: $86,888 credited through escrow to Sellers collectively, divided per the same proportionate interests reflected in the way they hold title; and $50,112 to PHIC. These amounts shall'be paid as total consideration for the Property, for the loss, replacement, and moving of any and all affected improvements located upon the Property, for all claims, costs, restoration work by Seller and /or PHIC, damages, goodwill, and any and all other interests and effects resulting from the location, grade, or construction of the proposed public improvements for which the Property is being acquired, and for entering into this Agreement. Said sum(s) shall be paid upon the close of escrow, which shall occur when title to the Property has vested in Buyer free and clear of all liens, encumbrances, assessments, easements, and leases, other than those specific items identified in Paragraph 3 below. 1/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) 3. CONVEYANCE OF TITLE. Seller agrees to convey the property rights specified in the attached Grant Deed to Buyer free and clear of all recorded and unrecorded liens, encumbrances, assessments, easements, leases, and taxes, EXCEPT: A. Taxes for the fiscal year in which this transfer occurs. B. Items numbered 1, 2, 3, 4, 6, 7, 8, and 9 of the above numbered title report dated February 13, 2007, issued by Cuesta Title Company. C. Other items that may be approved by Buyer in writing in advance of the close of escrow. 4. TITLE INSURANCE POLICY. Escrow Agent shall, following recording of Deed to Buyer, provide Buyer with a CLTA Standard Coverage Policy of Title Insurance in the amount of $137,000 issued by Cuesta Title Company showing title to the Property vested in Buyer, subject only to the exceptions set forth in Paragraph 3 above. Buyer agrees to pay the premium charged therefore. 5. LEASE INDEMNIFICATION. Seller represents and warrants that this Agreement and the associated rights granted by Seller to Buyer do not conflict with any lease or leasehold rights applicable to the Property, or if there are such leases, Seller expressly obtained Lessee's consent to this Agreement and further agrees to indemnify and hold Buyer harmless and reimburse Buyer for any and all costs, expenses and/or damages, including attorneys' fees, occasioned by reason of any lease of said Property, including, but not limited to, any such amounts arising from or related to any claim made pursuant to California Government Code, section 7260, et seq. 6. ESCROW. Buyer agrees to open an escrow in accordance with this Agreement at Cuesta Title Company. This Agreement constitutes the joint escrow instructions of Buyer and Seller, 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. - Seller has executed and handed the herein referenced Grant Deed to Buyer, concurrently with this Agreement. As soon as possible after opening escrow, Buyer will deposit the executed Deed, with Certificate of Acceptance attached, with Escrow Agent on Seller's behalf. Buyer agrees to deposit the purchase price upon demand of Escrow Agent. Buyer and Seller agree to deposit with Escrow Agent any additional instruments as may be necessary to complete this transaction. Insurance policies for fire, casualty, or liability are not to be transferred, and Seller will modify his own policies after the close of escrow, if appropriate. All funds received in this escrow shall be deposited with other escrow funds in a general escrow trust 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 from such account. 2/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) ESCROW AGENT IS AUTHORIZED AND INSTRUCTED TO COMPLY WITH THE FOLLOWING TAX ADJUSTMENT PROCEDURE: A. Pay and charge Seller for any unpaid delinquent taxes and/or any penalties and interest thereon, and for any delinquent or non - delinquent assessments or bonds against the Property, B. Escrow is not to be concerned with pro- ration of Seller's property taxes for the current fiscal year. Any taxes which have been paid by Seller, prior to opening of this escrow, shall not be prorated between Buyer and Seller, but Seller shall have the sole right, after the close of escrow, to apply to the County Tax Collector of said County for refund of any such taxes which may be due Seller for the period after Buyer's acquisition pursuant to Revenue and Taxation Code Section 5096.7. ESCROW AGENT IS AUTHORIZED TO, AND SHALL: A. , Pay and charge Seller for any amount necessary to place title in the condition necessary to satisfy Paragraph 3 of this Agreement; B. Pay and charge Buyer and Seller for any escrow fees, charges and costs payable under Paragraph 7 of this Agreement; C. Disburse funds and deliver Deed when conditions of this escrow have been fulfilled by Buyer and Seller. 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 authorized if necessary or proper in the issuance of said policy of title insurance. All time limits within which any matter herein specified is to be performed may be extended by mutual agreement of the parties hereto. Any amendment of, or supplement to, any instructions must be in writing. TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS TO CLOSE AS SOON AS POSSIBLE. If (except for deposit of money by Buyer, which shall be made by Buyer upon demand of Escrow Agent before close of escrow) this escrow is not in a condition to close within 90 days from the date of these instructions, any party who then shall have fully complied with his instructions may, in writing, demand the return of his money or Property; but if none have complied, no demand for return thereof shall be recognized until five (5) days after Escrow Agent shall have mailed copies of such demand to all other parties at their respective addresses shown in these escrow instructions, and if any objections are raised within said five (5) day period, Escrow Agent is authorized to hold all papers or documents until instructed by a court of competent jurisdiction or mutual instructions. If no demands are made, proceed with closing this escrow as soon as possible. 3/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) Responsibility of Escrow Agent under this Agreement is expressly limited to Paragraphs 1, 2, 3, 4, 6, 7, 10, 11, 12, and 14 and to its liability under any policy of title insurance issued in regard to this transaction. 7. ESCROW FEES, CHARGES, AND COSTS. Buyer agrees to pay all usual and necessary transactional processing fees, charges and costs which arise in this escrow. 8. PERMISSION TO ENTER ON PREMISES. Seller hereby grants Buyer, or its authorized agents, permission to enter upon the Property at all reasonable times prior to the close of escrow for the purpose of making necessary or appropriate inspections, preparations for Buyer's project construction, and for commencement of Project construction. 9. CONSTRUCTION AND PROPERTY RESTORATION PROVISIONS. A. Project Construction. Buyer will construct the proposed permanent Santa Barbara Street improvements ( "Project ") within the area conveyed by Seller to Buyer in Fee per the Deed attached as Exhibit A hereto. Project improvements shall be constructed at Buyer's expense in accordance with the Project plans titled; "Santa Barbara Street Widening, High to Broad, Specification No. 90408" dated October 2007 ( "Project Plans "). B. Restoration of Seller's Property. In exchange for compensation included in the Purchase Price specified in Paragraph 2 of this Agreement, Seller hereby accepts full and complete responsibility for paving and landscaping restoration work on Seller's adjacent property and within the street yard planters. Specifically, Seller shall be solely responsible for restoration of landscaping, irrigation, street. yard planters, and parking lot repaving, striping, and improvements. Seller acknowledges that street yard planters and parking lot modifications are subject to review, approval and permitting by the City of San Luis Obispo, and parking lot modifications shall be designed in accordance with the parking lot standards adopted by the City of San Luis Obispo. C. Street Trees and Landscaping. In conjunction with Seller's landscaping obligations, Seller shall provide landscaping (including six trees) and irrigation in street yard planters. Seller will relocate three existing mature Bradford Pear Trees within existing street yard. Both parties agree that these trees shall not be removed until the Buyer has awarded a contract for the construction of the Street Widening Project. D. Seller's Right to Remove, Retain, and Re -Use Existing Plants and Trees. Seller agrees to remove any plants, trees and other items from the Project area that Seller wishes. to retain, in advance of the commencement of Project construction. These items shall be removed by Seller prior to commencement of work by Buyer's contractor, unless arrangements have otherwise been made with Buyer by separate written agreement. Once Project construction commences, unless prearranged by separate written agreement, anything remaining in the existing planters will be removed and disposed of by Buyer's contractor. 4/7 Rev. 10/16/07 (Mo /gardenllc /agreemt.doc) E. Irrigation. Buyer agrees to relocate the existing irrigation service line to the new planter location shown in Project Plans, and cap, in conjunction with Buyer's Project construction. Actual planter irrigation will be installed by Seller at Seller's expense. F. Concrete and Stairs Removal. At Seller's request, as more particularly described in the Project Plans, the existing concrete that currently lies between the Santa Barbara Street right of way line and the building on Seller's property (The "Garden Center Building ") will be removed by Buyer's Project contractors and shall not be replaced. Seller also requested, and Buyer has agreed, to remove the existing stairway at the front of the Garden Center Rental Shop. Both parties agree that these stairs shall be removed by Buyer's contractor and shall not be replaced. Concrete in the immediate vicinity of these removed stairs, where shown on the Project Plans, shall also be removed by Buyer. All concrete removal shall be done at Buyer's expense; all planned conversions of said areas from which concrete is removed to planters shall be done at Seller's sole cost and expense. Before the existing Garden Center Rental Shop stairway is removed, Seller shall remove or permanently block the existing exterior door that leads to such stairway so it becomes infeasible for any occupants of the building to exit through this doorway. G. Storm Drain Improvements. At Sellers request, Buyer shall extend an 18" HDPE storm drain from the proposed storm drain system at the comer of Roundhouse Avenue northerly not more than 160' to accommodate future tie in by Seller. This will be done at no cost to Seller. An additional 15' of HDPE storm drain pipe shall be installed by Buyer from the City storm drain line, under new sidewalk, to just inside Seller's property line, to allow for future tie in of Seller's on site drainage system to City storm drain system. Seller to advise Buyer as to the preferred placement of the 15' storm drain pipe by no later than October 10, 2007. H. CAT5 Computer Cables. Buyer agrees to install a new conduit between the Garden Center's Main Store and the Garden Center Rental Shop, through the planned new planter as shown on the Project Plans, and to install seven (7) new CAT5 computer cables through new conduit. Buyer agrees to make every reasonable effort to ensure that the existing service remains uninterrupted until new conduit is installed and new cables are pulled and ready for tie over. Buyer's contractor shall be allowed to disrupt service for up to 24 hours in order to tie in new computer cables. Buyer's contractor shall coordinate service interruption and tie over with Seller's on -site Store Manager. Construction Coordination via Bi- Weekly Meetings. Buyer agrees to have biweekly meetings with Seller's on -site. Store Manager to discuss contractor's Project scheduling and progress. 10. 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 instrument. 11. CLOSING STATEMENT. Seller hereby authorizes and instructs Escrow Agent to release a copy of Seller's closing statement to Buyer; purpose being to ascertain if any reimbursements are due Seller. 5/7 • Rev. 10/16/07 (slo /gardenllc /agreemt.doc) 12. BINDING EFFECT. The terms, conditions, covenants and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto. 13. JUDGMENT IN LIEU OF DEED. In the event Seller is unable to deliver title in a reasonable time under the terms of this Agreement, Buyer may elect to file an eminent domain action to pursue the acquisition of the Property, 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 the Property. 14. 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 and understandings, written or oral. This Agreement may not be amended except in writing by the parties hereto or their successors or assigns. 15. CITY COUNCIL APPROVAL. This Agreement is subject to and conditioned upon approval and ratification by the City Council of the City of San Luis Obispo. This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity. No Obligation Other Than Those Set Forth Herein Will Be Recognized. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first set forth hereinabove. MAILING ADDRESS OF SELLER SELLER: Garden Station, LLC C/O Rossi Enterprises Pajjick.B. Clemens, Joy Clemens 750 Pismo Street, San Luis Obispo, CA 93401 . PWZ6&v"� Patrick B. Clemens JFoe s Michael Clemens and Virginia Clemens Michael Clemens Virginia Clemens Atkinson Family Trust utd February 1-1, 1991 David R. Atkinson, Trustee By: Cathy Atkinson,- Trustee 6/7 MAILING ADDRESS OF BUYER: City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 93401 LESSEE CONSENT: • Rev. 10/16/07 (slo /gardenllc /agreemt.doc) Garden Station, LLC By. _ Name: Title: BUY : The City of San Luis Obispo a By: NaAl�'WOVWIZPI Title: n Ay 4C/.tiir7 ,tsAzl- izti a Ut°A �r As Lessee of the property subject to this Agreement, Pacific Coast Home & Garden, Inc., a California Corporation ( "PHIC "), hereby consents to all terms and conditions of this Agreement. In exchange for the compensation of $50,112, referenced in. Paragraph 2 on Page 1 of this Agreement, PHIC hereby waives any and all other claims associated with this purchase and with the Project for which the purchase is made, including, but not limited to, any claims for compensation pursuant to California Government Code, section 7260, et seq. PHIC acknowledges that this payment represents full and complete consideration for PHIC's interests in the Property, for the loss, replacement, and moving of any and all affected improvements located upon the Property, for all claims, costs, restoration work by Seller and/or PHIC, damages, goodwill, and any and all other interests and effects resulting from the location, grade, or construction of the proposed public improvements for which the Property is being acquired, and for entering into this Agreement. The undersigned hereby warrants that he is the authorized signatory for PHIC, and by signature hereon, binds PHIC to this Agreement. This Lessee Consent is signed this day of Pacific Coast Home & Garden, Inc. a California Corporation By:. Robin L. Rossi, President 7/7 , 2007. • EXHIBIT A • 8/30/07 (slo /gardenstation/deed.doc) Recording requested by: Hamner, Jewell and Associates Government Real Estate Services When recorded, mail to: City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 93401. No fee per Government Code 6103 GRANT DEED No Documentary Transfer Tax per Revenue Taxation Code 11922 APN: 003 - 752 -007 For a valuable consideration, receipt of which is hereby acknowledged, Patrick B Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; David R. Atkinson and Cathy Atkinson, Trustees of the Atkinson Family Trust utd February 11, 19911 as to an undivided 25% interest; and Garden Station, LLC, a California limited liability company, as to an undivided 25% interest; as Tenants in Common. (hereinafter collectively "Grantor ") do(es) hereby grant(s) to The City of San Luis Obispo, a Municipal Corporation and A Charter City of the State of California (City) The following interests in real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described below: In Fee: All that certain real property, in fee, in the City of San Luis Obispo, County of San Luis Obispo, State of California, described in Exhibit "A -1" and depicted in Exhibit "A -2 ", attached hereto and incorporated herein. E�"ilBIT PAGE—L/—OF--�_ 8/30/07 (Mo /gardenstation /deed.doc) Temporary Construction Easements: Temporary Construction Easements for the purposes of facilitating construction within and upon the Fee parcel described above, in, on, over, under, along, through and across those certain parcels of land identified as "Temporary Construction Easement # 1" and "Temporary Construction Easement # 2" as depicted in Exhibit "A -3", attached hereto and incorporated herein. The Temporary Construction Easements and all access rights related thereto shall automatically terminate at the conclusion of City's construction or by December 31, 2008, whichever occurs first. This.Deed 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 instrument. Signatures on following pages: IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of .2007. GRANTOR: Patrick B. Clemens and Joy Clemens Patrick B. Clemens Joy Clemens State of California County of On before me, , Notary Public personally appeared personally known to me (or 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.. WITNESS my hand and official seal Signature (Seal) 2 + iIBIT PAGE ;�—OF_! 0 i 8/30/07 (slo /gardenstatibn /deed.doc) IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of 2007. Michael Clemens and Virginia Clemens State of California County of On before me, Michael Clemens Virginia Clemens Notary Public personally appeared personally known to me (or 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. WITNESS my hand and official seal Signature (Seal) ----------------------------------------------------------------------------------------------------- IN WITNESS WHEREOF, the undersigned have executed this instrument as of the .2007. Atkinson Family Trust utd February 11, 1991 By,: David k. Atkinson, Trustee State of California County of _ On before me,. Cathy Atkinson, Trustee day of Notary Public personally appeared personally known to me (or 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. WITNESS my hand and official seal Signature (Seal) 3 PAGE 3 ®F 8/30/07 (slo /gardenstation /deed.doc) IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of 2007. State of California County of On before me, Garden Station, LLC By: _ Name: Title: Notary Public personally appeared , personally known to me (or 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. WITNESS my hand and official seal Signature (Seal) CERTIFICATE OF ACCEPTANCE, GOVT CODE SECTION 27281 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 deed and consents to the recordation thereof. In Witness Whereof, I have hereunto set my hand this _ day of , 2007. 4 t �;BT A PAGE „�®!� I EXHIBIT A -1 Right of Way Legal Description .A portion of Block A, Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, in the County of San Luis Obispo, State of California, according to map filed for record October 24, 1887 in Book A. Page 98 of Maps and a portion of Block 13 of the Buena Vista Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California,-according to map recorded October 20, 1887 in Book A, Page 47 of Maps, in the office of the County Recorder of said County, described more particularly as follows: Parcel 1: That portion of Lot 1, Block 13 of said Map of Buena Vista Addition laying Northwesterly of a curve which is tangent to the North and West lot lines of said Lot 1, having a radius of 8.00 feet a curve length of 11.85 feet and a central angle of 84'50'19". Containing 11.1 sq. ft., more or less. Parcel 2: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of'lots 4, 5 and 6 together with the West 7.00 feet of the South 15.91 feet of Lot 3 of Block 13 of said Map of Buena Vista Addition Containing 942.8 sq. ft., more or less. Parcel 3: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of lots 9. 10 11 and 12 of Block A of said Fairview Addition, excepting East 2.20 feet of the South 9.51 feet of Lot 11 of said 7.00 foot wide strip and the East 2.20 feet of the North 38.76 feet of Lot 12 of said 7.00 foot wide strip. Containing 1,218.3 sq. ft., more or less. THIS DOCUMENT WAS PREPARED BY ME OR UNDER MY DIRECTION.. �� A. s`,pL .3 -/ .0 -+ No. 8126 Robert A. Livick, PLS 8126 exp 12/31/08 Date N EXP. 12/3 MIT _kPAGE 50E-7j g:\projects cip\ ac6vepmjects \streetimprovements19040B santabarbarawidening\_ documents\ 3- preconstruc6on% roMgardenstationtegaldescriptian ral.doc NB9'29,gtE 7 W m om �Z .Do. N w g L10 a 7.oT , —.e -AiVE 7.03' N 9 —o4 E a a Nes-teroo�nr 0 0 � V a�a of Sg9'3 12 9"W 7.31' m 0 a 1� Jn /� �^ yi 0 o a 'll NI p�ppSSTRtET �NOONEDJ - 3SB4 OR f94 r ; IN � I � 11 W 1 U- 0 o IQ m la Im 1 .z. J I Q W CO R' Ii f N O Q O I m N O = x w m II� F� I U LL o 3 i O 5 Q 0 J ~a a z U- M. 0 IX n m a � ' I c� I ' � I I 1 or- - .0£-- —,L£ I EL t4 I 1 ~- I 1 ' N ' I J I W � I O I I J W I - or � L _ �1 CL I '3719"W _ HIGH =F?EET _ _ - o lOT PAGE F- Nt7y w ..-• - Z w LU QlLILU. �1 w LL Cf) U cm 0 0 ZLnoce °a C') U) LL UMa � F- J t0 -� ✓� IN /') Z l0 , ---r c°�aa° ti�1 � •' z� uj o � 11 m LL 0 Q U Z LL J 0 '= l m a 5 LL ZZn U�C-2 `. W II a a O a / f{,4SK1NS STREkE (LtfA =- r N 1'i1 � n 1 O CM a O I m = o X I i W m ll.l Q Im I w a �a c� o rL Z . Q _j m W Ck IF. Z O Z 0 w w WD I Z I � QOJ W ~a� Ln I I o o CO Ix o� U a � O w I fA IL w i woU I U ,0£ I I . /1 - -� I I O -4 I N Z 0, TRW O '� ^1 c Nw Z WSW V to I M1 _. __,LSiT PAGE�__..., s. 9 • Rev. 10/16/07 (slo /gardenllc/agreemt.doc) PROJECT: City of San Luis Obispo Santa Barbara Street Widening PARCEL NO: 003 - 752 -007 OWNER: Garden Station, LLC TITLE REPORT NO.:T7800114 (Cuesta Title Co) AGREEMENT FOR ACQUISITION OF REAL PROPERTY (ESCROW INSTRUCTIONS) THIS AGREEMENT is entered into this 131. day of �(/O(/�m 6Qr� , 2007 by and between: 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 "Buyer "), and Patrick B. Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an 25% interest; David R. Atkinson and Cathy Atkinson, Trustee of the Atkinson Family Trust utd February 11, 1991, as to an undivided 25% interest; and Garden Station, LLC, a California limited liability company, as to an undivided 25% interest, as Tenants in Common, (hereinafter collectively called "Seller "), for acquisition by Buyer of certain real property as hereinafter set forth. IT IS HEREBY MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS: 1. AGREEMENT TO SELL AND PURCHASE. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, upon the terms and for the consideration set forth in this Agreement, all those certain real property rights (hereinafter called "Property") described in that certain Grant Deed executed by Seller concurrently with the execution of this Agreement, a copy of which is attached hereto as Exhibit A. 2. PURCHASE PRICE. The total purchase price, payable in cash through escrow, shall be the sum of One Hundred Thirty Seven Thousand Dollars ($137,000). Said sum shall be divided between Sellers and Seller's tenant, Pacific Coast Home & Garden, Inc., a California Corporation ( "PHIC ") as follows: $86,888 credited through escrow to Sellers collectively, divided per the same proportionate interests reflected in the way they hold title; and $50,112 to PHIC. These amounts shall be paid as total consideration for the Property, for the loss, replacement, and moving of any and all affected improvements located upon the Property, for all claims, costs, restoration work by Seller and /or PHIC, damages, goodwill, and any and all other interests and effects resulting from the location, grade, or construction of the proposed public improvements for which the Property is being acquired, and for entering into this Agreement. Said sum(s) shall be paid upon the close of escrow, which shall occur when title to the Property has vested in Buyer free and clear of all liens, encumbrances, assessments, easements, and leases, other than those specific items identified in Paragraph 3 below. 1/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) 3. CONVEYANCE OF TITLE. Seller agrees to convey the property rights specified in the attached Grant Deed to Buyer free and clear of all recorded and unrecorded liens, encumbrances, assessments, easements, leases, and taxes, EXCEPT: A. Taxes for the fiscal year in which this transfer occurs. B. Items numbered 1, 2, 3, 4, 6, 7, 8, and 9 of the above numbered title report dated February 13, 2007, issued by Cuesta Title Company. C. Other items that may be approved by Buyer in writing in advance of the close of escrow. 4. TITLE INSURANCE POLICY. Escrow Agent shall, following recording of Deed to Buyer, provide Buyer with a CLTA Standard Coverage Policy of Title Insurance in the amount of $137,000 issued by Cuesta Title Company showing title to the Property vested in Buyer, subject only to the exceptions set forth in Paragraph 3 above. Buyer agrees to pay the premium charged therefore. 5. - LEASE INDEMNIFICATION. Seller represents and warrants that this Agreement and the associated rights granted by Seller to Buyer do not conflict with any lease or leasehold rights applicable to the Property, or if there are such leases, Seller expressly obtained Lessee's consent to this Agreement and further agrees to indemnify and hold Buyer harmless and reimburse Buyer for any and all costs, expenses and/or damages, including attorneys' fees, occasioned by reason of any lease of said Property, including, but not limited to, any such amounts arising from or related to any claim made pursuant to California Government Code, section 7260, et seq. 6. ESCROW. Buyer agrees to open an escrow in accordance with this Agreement at Cuesta Title Company. This Agreement constitutes the joint escrow instructions of Buyer and Seller, 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. Seller has executed and handed the herein referenced Grant Deed to Buyer, concurrently with this Agreement. As soon as possible after opening escrow, Buyer will deposit the executed Deed, with Certificate of Acceptance attached, with Escrow Agent on Seller's behalf. Buyer agrees to deposit the purchase price upon demand of Escrow Agent. Buyer and Seller agree to deposit with Escrow Agent any additional instruments as may be necessary to complete this transaction. Insurance policies for fire, casualty, or liability are not to be transferred, and Seller will modify his own policies after the close of escrow, if appropriate. All funds received in this escrow shall be deposited with other escrow funds in a general escrow trust 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 from such account. 2/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) ESCROW AGENT IS AUTHORIZED AND INSTRUCTED TO COMPLY WITH THE FOLLOWING TAX ADJUSTMENT PROCEDURE: A. Pay and charge Seller for any unpaid delinquent taxes and/or any penalties and interest thereon, and for any delinquent or non - delinquent assessments or bonds against the Property, B. Escrow is not to be concerned with pro- ration of Seller's property taxes for the current fiscal year. Any taxes which have been paid by Seller, prior to opening of this escrow, shall not be prorated between Buyer and Seller, but Seller shall have the sole right, after the close of escrow, to apply to the County Tax Collector of said County for refund of any such taxes which may be due Seller for the period after Buyer's acquisition pursuant to Revenue and Taxation Code Section 5096.7. ESCROW AGENT IS AUTHORIZED TO, AND SHALL: A. Pay and. charge Seller for any amount necessary to place title in the condition necessary to satisfy Paragraph 3 of this Agreement; B. Pay and charge Buyer and Seller for any escrow fees, charges and costs payable under Paragraph 7 of this Agreement; C. Disburse funds and deliver Deed when conditions of this escrow have been fulfilled by Buyer and Seller. 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 authorized if necessary or proper in the issuance of said policy of title insurance. All time limits within which any matter herein specified is to be performed may be extended by mutual agreement of the parties hereto. Any amendment of, or supplement to, any instructions must be in writing. TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS TO CLOSE AS SOON AS POSSIBLE. If (except for deposit of money by Buyer, which shall be made by Buyer upon demand of Escrow Agent before close of escrow) this escrow is not in a condition to close within 90 days from the date of these instructions, any party who then shall have fully complied with his instructions may, in writing, demand the return of his money or Property, but if none have complied, no demand for return thereof shall be recognized until five (5) days after Escrow Agent shall have mailed copies of such demand to all other parties at their respective addresses shown in these escrow instructions, and if any objections are raised within said five (5) day period, Escrow Agent is authorized to hold all papers or documents until instructed by a court of competent jurisdiction or mutual instructions. If no demands are made, proceed with closing this escrow as soon as possible. 3/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) Responsibility of Escrow Agent under this Agreement is expressly limited to Paragraphs 1, 2, 3, 4, 6, 7, 10, 11, 12, and 14 and to its liability under any policy of title insurance issued in regard to this transaction. 7. ESCROW FEES, CHARGES, AND COSTS. Buyer agrees to pay all usual and necessary transactional processing fees, charges and costs which arise in this escrow. 8. PERMISSION TO ENTER ON PREMISES. Seller hereby grants Buyer, or its authorized agents, permission to enter upon the Property at all reasonable times prior to the close of escrow for the purpose of making necessary or appropriate inspections, preparations for Buyer's project construction, and for commencement of Project construction. 9. CONSTRUCTION AND PROPERTY RESTORATION PROVISIONS. A. Project Construction. Buyer will construct the proposed permanent Santa Barbara Street improvements ( "Project ") within the area conveyed by Seller to Buyer in Fee per the Deed attached as Exhibit A hereto. Project improvements shall be constructed at Buyer's expense in accordance with the Project plans titled; "Santa Barbara Street Widening, High to Broad, Specification No. 90408" dated October 2007 ( "Project Plans "). B. Restoration of Seller's Property. In exchange for compensation included in the Purchase Price specified in Paragraph 2 of this Agreement, Seller hereby accepts full and complete responsibility for paving and landscaping restoration work on Seller's adjacent property and within the street yard planters. Specifically, Seller shall be solely responsible for restoration of landscaping, irrigation, street yard planters, and parking lot repaving, striping, and improvements. Seller acknowledges that street yard planters and parking lot modifications are subject to review, approval and permitting by the City. of San Luis Obispo, and parking lot modifications shall be designed in accordance with the parking lot standards adopted by the City of San Luis Obispo. C. Street Trees and Landscaping. In conjunction with Seller's landscaping obligations, Seller shall provide landscaping (including six trees) and irrigation in street yard planters. Seller will relocate three existing mature Bradford Pear Trees within existing street yard. Both parties agree that these trees shall not be removed until the Buyer has awarded a contract for the construction of the Street Widening Project. D. Seller's Right to Remove, Retain, and Re -Use Existing Plants and 'frees. Seller agrees to remove any plants, trees and other items from the Project area that Seller wishes to retain, in advance of the commencement of Project construction. These items shall be removed by Seller prior to commencement of work by Buyer's contractor, unless arrangements have otherwise been made with Buyer by separate written agreement. Once Project construction commences, unless prearranged by separate written agreement, anything remaining in the existing planters will be removed and disposed of by Buyer's contractor. 4/7 Rev. 10/16/07 (slo /gardenllc /agreemt.doc) E. Irrigation. Buyer agrees to relocate the existing irrigation service line to the new planter location shown in Project Plans, and cap, in conjunction with Buyer's Project construction. Actual planter irrigation will be installed by Seller at Seller's expense. F. Concrete and Stairs Removal. At Seller's request, as more particularly described in the Project Plans, the existing concrete that currently lies between the Santa Barbara Street right of way line and the building on Seller's property (The "Garden Center Building ") will be removed by Buyer's Project contractors and shall not be replaced. Seller also requested, and Buyer has agreed, to remove the existing stairway at the front of the Garden Center Rental Shop. Both parties agree that these stairs shall be removed by Buyer's contractor and shall not be replaced. Concrete in the immediate vicinity of these removed stairs, where shown on the Project Plans, shall also be removed by Buyer. All concrete removal shall be done at Buyer's expense; all planned conversions of said areas from which concrete is removed to planters shall be done at Seller's sole cost and expense.. Before the existing Garden Center Rental Shop stairway is removed, Seller shall remove or permanently block the existing exterior door that leads to such stairway so it becomes infeasible for any occupants of the building to exit through this doorway. G. Storm Drain Improvements. At Sellers request, Buyer shall extend an 18" HDPE storm drain from the proposed storm drain system at the corner of Roundhouse Avenue northerly not more than 160' to accommodate future tie in by Seller. This will be done at no cost to Seller. An additional 15' of HDPE storm drain pipe shall be installed by Buyer from the City storm drain line, under new sidewalk, to just inside Seller's property line, to allow for future tie in of Seller's on site drainage system to City storm drain system. Seller to advise Buyer as to the preferred placement of the 15' storm drain pipe by no later than October 10, 2007. . H. CAT5 Computer Cables. Buyer agrees to install a new conduit between the Garden Center's Main Store and the Garden Center Rental Shop, through the planned new planter as shown on the Project Plans, and to install seven (7) new CAT5 computer cables through new conduit. Buyer agrees to make every reasonable effort to ensure that the existing service remains uninterrupted until new conduit is installed and new cables are pulled and ready for tie over. Buyer's contractor shall be allowed to disrupt service for up to 24 hours in order to tie in new computer cables. Buyer's contractor shall coordinate service interruption and tie over with Seller's on -site Store Manager. I. Construction Coordination via Bi- Weekly Meetings. Buyer agrees to have biweekly meetings with Seller's on -site Store Manager to discuss contractor's Project scheduling and progress. 10. 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 instrument. 11. CLOSING STATEMENT. Seller hereby authorizes and instructs Escrow Agent to release a copy of Seller's closing statement to Buyer; purpose being to ascertain if any reimbursements are due Seller. 5/7 0 • Rev. 10/16/07 (s10 /garden11c /agreemt.doc) 12. BINDING EFFECT. The terms, conditions, covenants and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto. 13. JUDGMENT IN LIEU OF DEED. In the event Seller is unable to deliver title in a reasonable time under the terms of this Agreement, Buyer may elect to file an eminent domain action to pursue the acquisition of the Property, 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 the Property. 14. 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 and understandings, written or oral. This Agreement may not be amended except in writing by the parties hereto or their successors or assigns. 15. CITY COUNCIL APPROVAL. This Agreement is subject to and conditioned upon approval and ratification by the City Council of the City of San Luis Obispo. This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity. No Obligation Other Than Those Set Forth Herein Will Be Recognized. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first set forth hereinabove. MAILING ADDRESS OF SELLER Garden Station, LLC C/O Rossi Enterprises 750 Pismo Street, San Luis Obispo, CA 93401 SELLER: Patrick B. Clemens and Joy Clemens Patrick B. Clemens Joy Clemens Michwl Clemen Vir 'nia Clemens Michael Cl ens &"�� L2LZ�2� - VirdWa Clemens Atkinson Family Trust utd February 11 1991 Lo David R. Atkinson,'Trustee Cathy Atkinson, Trustee 6/7 MAILING ADDRESS OF BUYER: City of San Luis Obispo Public Works Department 919 Palm Street San Luis Obispo, CA 93401 LESSEE CONSENT: • Rev. 10/16/07 (slo /gardenllc /agreemLdoc) Garden Station, LLC By: _ Name: Title: BUYER: The City of San Luis Obispo By: i Nam r Title: C, .;l a�rH1n �S1�it�e cor As Lessee of the property subject to this Agreement, Pacific Coast Home & Garden, Inc., a California Corporation ( "PHIC'.'), hereby consents to all terms and conditions of this Agreement. In exchange for the compensation of $50,112, referenced in Paragraph 2 on Page 1 of this Agreement, PHIC hereby waives any and all other claims associated with this purchase and with the Project for which the purchase is made, including, but not limited to, any claims for compensation pursuant to California Government Code, section 7260, et seq. PHIC acknowledges that this payment represents full and complete consideration for PHIC's interests in the Property, for the loss, replacement, and moving of any and all affected improvements located upon the Property, for all claims, costs, restoration work by Seller and/or PHIC, damages, goodwill, and any and all other interests and effects resulting from the location, grade, or construction of the proposed public improvements for which the Property is being acquired, and for entering into this Agreement. The undersigned hereby warrants that he is the authorized signatory for PHIC, and by signature hereon, binds PHIC to this Agreement. This Lessee Consent is signed this day of .2007. Pacific Coast Home & Garden, Inc. a California Corporation By: _ Robin L. Rossi, President 7/7 0 EXHIBIT A • 8/30/07 (slo /gardenstation/decd.doc) Recording requested by: Hamner, Jewell and Associates Government Real Estate Services When recorded, mail to: City of San Luis Obispo Public Works Department 919 Palm Street 'San Luis Obispo, CA 93401 No fee, per Government Code 6103 GRANT DEED No Documentary Transfer Tax per Revenue Taxation Code 11922. APN: 003 -752 -007 For a valuable consideration, receipt of which is hereby acknowledged, Patrick B Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; David R. Atkinson and Cathy Atkinson, Trustees of the Atkinson Family Trust utd February 11, 1991, as to an undivided 25% interest; and Garden Station, LLC, a California limited liability company, as to an undivided 25% interest; as Tenants in Common. (hereinafter collectively "Grantor ") do(es) hereby grant(s) to The City of San Luis Obispo, a Municipal Corporation and A Charter City of the State of California (City) The following interests in real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described below: In Fee:. All that certain real property, in fee, in the City of San Luis Obispo, County of San Luis Obispo, State of California, described in Exhibit "A -1" and depicted in Exhibit "A -2 ", attached hereto and incorporated herein. ,HIB1T 1 l E! 0? 7 8/30/07 (slo /gardenstation /deed.doc) Temporary Construction Easements: Temporary Construction Easements for the purposes of facilitating construction within and upon the Fee parcel described above, in, on, over, under, along, through and across those certain parcels of land identified as "Temporary Construction Easement # 1" and "Temporary Construction Easement # 2" as depicted in Exhibit "A -3", attached hereto and incorporated herein. The Temporary Construction Easements and all access rights related thereto shall automatically terminate at the conclusion of City's construction or by December 31, 2008, whichever occurs first. This Deed 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 instrument. Signatures on following pages: IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of , 2007. State of California County of On personally appeared before me, GRANTOR: Patrick B. Clemens and Joy Clemens Patrick B. Clemens Joy Clemens Notary Public personally known to me (or 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. WITNESS my hand and official seal Signature (Seal) 2 7-71 �9i A PAGE c�--®F . 0 • 8/30/07 (slo /gardenstation /deed.doc) IN WITNESS WHEREOF; the undersigned have executed this instrument as of the day of 2007. State of California County of On before me, Michael Clemens and Virginia Clemens Michael Clemens Virginia Clemens Notary Public personally appeared personally known to me (or 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. WITNESS my hand and official seal Signature (Seal) IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of , 2007. Atkinson Family Trust utd February 11, 1991 L-In State of California County of David R. Atkinson, Trustee Cathy Atkinson, Trustee On before me,. , Notary Public personally appeared personally known to me (or 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. WITNESS my hand and official seal Signature (Seal) r "I "] PAGE 3 OF 8/30/07 (slo /gardenstation/deed.doc) IN WITNESS WHEREOF, the undersigned have executed this instrument as of the day of 2007. State of California County of . On before me, Garden Station, LLC By: _ Name: Title: Notary Public personally appeared personally known to me (or 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. WITNESS my hand and official seal Signature (Seal) CERTIFICATE OF ACCEPTANCE, GOVT CODE SECTION 27281 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 deed and consents to the recordation thereof. In Witness Whereof, I have hereunto set my hand this — day of , 2007. 4 i- �Nq9BW PAGE l OF EXHIBIT A -1 Right of Way Legal Description A portion of Block A, Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, in the County of San Luis Obispo, State of Califomia, according to map tiled for record October 24, 1887 in Book A, Page 98 of Maps and a- portion of Block 13 of the Buena Vista Addition to the City of San. Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California.- according to map recorded. October 20, 1887 in Book A, Page 47 of Maps, in the office of the County Recorder of said County, described more particularly as follows: Parcel 1: That portion of Lot 1, Block 13 of said Map of Buena Vista Addition laying Northwesterly of a curve which is tangent to the North and West lot lines of said Lot 1, having a radius of 8.00 feet a curve length of 11.85 feet and a central angle of 84'50'19". Containing 11.1 sq. ft., more or less. Parcel 2: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of lots 4, 5 and 6 together with the West 7.00 feet of the South 15.91 feet of Lot 3 of Block 13 of said Map of Buena Vista.Addition Containing 942.8 sq. ft_,; more or less. Parcel. 3: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of lots 9, 10 11 and 12 of Block A of said Fairview Addition, excepting East 2.20 feet of the South 9.51 feet of Lot 11 of said 7.00 foot wide strip and the East 2.20 feet of the North 38.76 feet of Lot 12 of said 7.00 foot wide strip. Containing 1,218.3 sq. ft., more or less. THIS DOCUMENT WAS PREPARED BY ME 1,AND OR UNDER MY DIRECTION. � A G�p�FO No. 8126 2) Robert A. Livick, PLS 8126 exp 12/31 /08 Date N EXP. 12/3;/d 9 �� OF CA1 -�FDQ, wFJOBIT r7 PAGE _5_ OF 1 g: 1projectslciplactiveprojectslstreet improvements190408 santabarbarawideningt documentsl3• preconstructionlrowlgardenstationlegaldescription ral.doc N89,29.04" 1 Ft4eq-21r4a"E T.03' 1 Q O � I O I 1 X ✓� C7 ' r W om • < I cc 1 •r m 1 I 1 NB9- 29'04•E.7.03' o o / Q , J $ CD. Ig J m Z Q 0 lit 0 L (f) O " IQ I i W2 CID z uj a N 0 m LL �y _j rn a 1 LL Q. uii I Q U ~z I aQ ' c Nes•�evo•w 7_oa I 1 J ^• 1 W � p • a a 3 � � "t£� — W P I O n, �7 r i N 1 I 1 a I m O g89.3 2'19"W se9•ze•ae•w 7.03• � 1� I 1 W v . o U , rf I - ° W� a 589 32'19 "W �a — b N Sg9'3 12 9"W 7.31' - m H STREET _ q� O C 1 a M e�Ge PACE 4a OF Woo ow�omm 2 LLI J 6 n U Q i LL ■ AOL N8°29°E � 9 a w •S Q a U) �� m O wfn0) � I I X Z 00 O a � W m ce rn cri •. Lr� D co LLO CD w In LU E. 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N J • J m W 3 H- Z 0 z W �� IQ O �Fz ,(f) I Q�vU3 o a a CO) W o - 8 " o �� }z Q a cr-o� I O v o� 0 N 0�2 CL W w 1 /; z F1gSIO� p 1 w Z Q o _ tv U Z _I z G ' OWE Y7 IL n 0 o % i Z %;: w 0 �..r oU)u •. azw %,. w OZ Q i-- U w V all _ HIGH THE - - ✓1 — �' =ABIT PAGE--2:0F • • q UMTA G I Y cop,,-, ITLE C��� 7- � �� �; 1 COMPANY 860 Price Street • Pismo Beach, CA 93449 • (805) 773 -8600 • FAX (805)77 Date October 22, 2007 Escrow Officer Deena Peak Escrow Number B7500488 Property Address : SUPPLEMENTAL ESCROW INSTRUCTIONS CUESTA TITLE COMPANY IS LICENSED BY THE STATE OF CALIFORNIA UNDER THE DEPARTMENT OF INSURANCE. LICENSE NO. 73459 In accordance with the provisions of that certain Agreement For Acquisition of Real Property (with Escrow Instructions) herein after referred to as the Agreement, by and between Patrick B. Clemens and Joy Clemens as to an undivided 25% interest; Michael Clemens and Virginia Clemens, husband and wife as community property as to an undivided 25% interest and David R. Atkinson and Cathy Atkinson, trustees of the Atkinson Family trust utd February 11, 1991, as to an undivided 25% interest; Garden Station LLC, a California Limited Liabillity Company as to an undivided 25% interest , as Seller(s) and The City of San Luis Obispo, A Municipal Corporation and A Charter City, in the County of San .Luis Obispo, as Buyer(s), Escrow Holder acknowledges receipt of a fully executed copy of Agreement, and agrees to act as Escrow Holder as described in item 6, page 2 of 5 and subject to the terms of Escrow Holder's instructions herein, and General Provisions. All other sections and /or paragraphs of the Agreement are matters between Buyer and Seller in which Escrow Holder shall have no concern and/or liability. The following are hereby added to the agreement for clarification purposes only and the parties hereto agree to be bound by same as far as the escrow is concerned. The intent. of the following instructions is not to modify the agreement, only clarify Escrow Holder's duties thereunder. SECTION I CLOSE OF ESCROW will be on or before February 1, 2008. PURCHASE PRICE of the subject property is $137,000.00. .LEGAL DESCRIPTION more particularly described as Exhibit A of the Grant Deed dated August 30, 2007. All parties approve the legal description as described in said Deed and instruct Escrow Holder to attach same Deed and/or other documents created in this escrow. SECTION II Upon close of escrow, Escrow Holder is authorized and instructed to charge our respective accounts the costs attributable to each, including; but not limited to the following as indicated below and as described on page 3 of 5 items A., B., and C.. of the Agreement. a) The Seller shall pay the costs as described in the agreement. b) The Buyer shall pay the costs as described in the agreement. SECTION III ADDITIONAL INSTRUCTIONS CLOSING STATEMENTS: Escrow Holder is hereby authorized and instructed to provide a complete HUD 1 Settlement Statement. and/or Buyer and - Seller Closing Statements to all parties to this transaction and to their agents, brokers and/or lenders. DISBURSMENT OF PROCEEDS: Funds shall be disbursed pursuant to the Agreement for Acquisition of Real Property PRORATIONS: Escrow Holder is instructed to prorate the following at the close of escrow: No prorations through this escrow Page 1 of 5 0 0 GENERAL PROVISIONS 1. DEPOSIT OF FUNDS, OPPORTUNITY TO EARN INTEREST AND PRORATIONS All funds received in this escrow shall be deposited with other escrow funds into one or more non - interest bearing escrow accounts at a financial institution selected by Escrow Agent. Escrow Agent shall not be responsible and shall have no liability for any delay in closing this escrow if the funds deposited are not available for immediate withdrawal as a matter of right pursuant to California Insurance Code Section 12413.1 et. seq. Funds deposited in the financial institution are insured only to the limit provided by the Federal Deposit Insurance Corporation. Escrow Holder shall not be held responsible for lost interest due to wire delays caused by any bank or the Federal Reserve System, and recommends that all parties make themselves aware of banking regulations with regards to placement of wires. You have the opportunity to earn interest on the funds you deposit with us by instructing us to deposit your funds in an interest bearing account. (You do not have an opportunity to earn interest on any funds deposited by a lender) If you elect to earn interest, there is an additional fee in the amount of $50.00 for establishing and maintaining such an account. It is important that you consider this cost as it may exceed the actual interest you earn. Should you not elect to earn interest on your deposit, your funds will be deposited in our General Escrow Account at a financial institution insured by the FDIC. This is a non - interest bearing account; however, Cuesta Title Company may receive certain financial benefits from that financial institution because of the General Escrow Account and its on -going banking relationship. These benefits may include, without limitation, credits allowed by such financial institution on loans to Cuesta Title Company and earnings on investments made with the proceeds of such loans, accounting, reporting and other services and products of such financial institution. We do not have an obligation to account to you in any manner for the value of, or to compensate any party for, any benefit received by Cuesta Title Company. Any such benefits shall be deemed additional compensation of Cuesta Title Company for its services in connection with the escrow.. All prorations and/or adjustments called for in this escrow shall be made on the basis of a 30 day month or 360 day year, unless otherwise instructed in writing. Proration of real property taxes including supplemental real property taxes, will be made on the basis of the latest available figures provided to Escrow Holder. The phrase close of escrow (COE) as used herein means the date on which instruments/documents are recorded. Disbursements from this escrow will be made by check of Escrow Holder. Unless otherwise instru ted in writing, checks will be issued jointly to the parties designated as payees. Signatures (including initials) of principals or their duly authorized agents on any documents /instrument and /or instruction pertaining to this escrow indicate approval of same. 2. SPECIAL RECORDINGS If a "SPECIAL RECORDING" is arranged and completed, meaning recording the documents called for in this escrow, at any time other than the standard recording time for title companies, then all parties hereto represent and warrant that during the period of time between the standard recording time and the time the documents are actually recorded pursuant to the "SPECIAL RECORDING ", no additional liens, encumbrances, or exceptions to the title whether involuntary or voluntary, of any kird or nature will attach to or be recorded against the subject property, nor will the subject property be otherwise transferred or conveyed. All parties hereby expressly agree to indemnify and hold Escrow Holder harmless from all claims, losses or damages and attorney's fees resulting from any such additional liens, encumbrances, exceptions to title, transfers or conveyances. 3. AUTHORIZATION TO DELIVER If it is necessary, proper or convenient for the consummation of this escrow, Escrow Holder is authorized to deposit or have deposited funds or documents, or both, handed to Escrow Holder under these escrow instructions with any duly authorized sub - escrow agent, including, but not limited to, any bank, trust company, title insurance company, title company, savings and loan association, or licensed escrow agent, at or before close of escrow in connection with closing this escrow. Any such deposit shall be deemed a deposit under the meaning of these escrow instructions. 4. AUTHORIZATION TO FURNISH COPIES Furnishing copies of any /all escrow instructions, amendments, supplements, preliminary reports, notices of cancellation and closing statements in this escrow to the real estate broker(s), other principal(s), lenders and/or attorney's representing principals to this escrow is authorized. Escrow holder shall not incur any liability to the parties for delivery of said copies. 5. TIME AND WRITTEN NOTIFICATION Time is of the essence. In the event the conditions of this escrow have notbeen complied with at the expiration of the time provided for herein you are permitted, though not required, to complete the same at the earliest possible date thereafter. No notice, demand or change of instructions shall be of any effect to alter, amend, supplement, or vary the terms of these instructions unless given in writing and signed by all parties affected thereby. 6. CANCELLATION PROVISIONS Any principal instructing Escrow Holder to cancel escrow shall file notice of cancellation in Escrow Holder's office in writing and.so state the reason for cancellation. Upon receipt of same; Escrow Holder shall prepare cancellation instructions for signatures of the principals and shall forward same to the principals. Upon receipt of mutually agreeable cancellation instructions signed by all principals and after payment of Escrow Holder's cancellation charges, Escrow Holder is authorized to comply with such instructions and cancel the escrow. 7. ACTION IN INTERPLEADER OR OTHER COURT OR LEGAL PROCEEDINGS The principals hereto expressly agree that Escrow Holder has the absolute right, at its election, to file an action in interpleader requiring the principals to answer and litigate their several claims and rights among themselves and Escrow Holder is authorized to deposit with the clerk and the court, all documents, instruments and funds held in escrow. In the event such action is filed, the principals jointly and severally agree to pay Escrow Holder's cancellation charges and costs, expenses and reasonable attorney's fees it is required to expend or incur in such interpleader action, the amount thereof to be fixed and judgment therefore to be rendered by the cart. Upon filing of such action, Escrow Holder is thereupon fully released and discharged from all obligations to further perform any duties or obligations otherwise imposed by the terms of this escrow. 8. PERSONAL PROPERTY TAX Escrow Holder is not responsible for any personal property tax whidn may be assessed to any former owner of the property that is the subject of this escrow, nor for the corporation or license tax of any corporation as a former owner. No examination or insurance as to the amount of payment of personal taxes is required unless specifically requested. 9. LIMITATION ON DUTY TO INFORM It is agreed by the parties hereto, that so far as Escrow Holder's rights and liabilities are involved, the transaction is an escrow and not any other legal relation and CUESTA TITLE COMPANY is an Escrow Holder only on the within expressed terms, and Escrow Holder shall have no responsibility for notifying any of the parties of this escrow of any sale, resale, loan, exchange or other transaction involving any-property herein described or of the profit realized by any person, firm or corporation (broker, agent and parties to this and/or other escrow included), in connection therewith, regardless of the fact that such transaction(s) may be handled concurrently by Escrow Holder in this escrow or in another escrow.. 10. LEGAL ADVICE The parties acknowledge and understand that Escrow Holder is not authorized to practice law, nor give financial advice. The parties are hereby advised to seek legal and financial counsel and advice concerning the effect of these escrow instructions. The parties acknowledge that no representations are made by Escrow Holder aboutthe legal sufficiency, legal consequences, financial effect or tax consequences of the within escrow instructions. Page 2 of 5 11. DISCLOSURE OF CONDITIONS PRECEDENT The parties to this escrow, by execution thereof, acknowledge their duty to Escrow Holder of full disclosure of dose matters, which shall effect the transfer of subject property and conditions of title (inclusive of real personal and intangible property, which matters may result in a lien against subject property). Disclosure shall include, but not limited to: water stock, owners association or maintenance dues, contractual obligations not automatically terminated upon sale, notes, deeds of trust and vendors liens. 12. STATE/FEDERAL CODE NOTIFICATION According to Federal law, the Seller(s), when applicable, will be required to complete a 1099 -S Worksheet that will be utilized to generate a 1099 reporting statement to the Internal Revenue Service. You are released from and shall have no liability, obligations or responsibility with respect to (a) withholding of funds pursuant to Section 1445 of the Internal Revenue Code of 1984, "Foreign Investors in Real Property Act" (FIRPTA), as amended (b) advising of requirements, (c) determining whether the seller is a foreign person, under such Section, or (d) obtaining a non - foreign affidavit or other exemption from withholding under such Section nor otherwise making any inquiry concerning compliance with such Section by any patty to this transaction. IN ACCORDANCE WITH SECTION 18662 OF THE REVENUE AND TAXATION CODE, A BUYER MAY BE REQUIRED TO WITHHOLD AN AMOUNT EQUAL TO 3 -1/3 PERCENT OF THE SALE PRICE OR AN ALTERNATIVE WITHHOLDING AMOUNT CERTIFIED BY THE SELLER IN THE CASE OF A DISPOSITION OF CALIFORNIA REAL PROPERTY INTEREST BY EITHER: 1) A SELLER WHO IS AN INDIVIDUAL, TRUST, ESTATE, OR WHEN THE DISBURSEMENT INSTRUCTIONS AUTHORIZE THE PROCEEDS TO BE SENT TO A FINANCIAL INTERMEDIARY OF THE SELLER, OR 2) A CORPORATE SELLER THAT HAS NO PERMANENT PLACE OF BUSINESS IN CALIFORNIA IMMEDIATELY AFTER THE TRANSFER OF TITLE TO THE CALIFORNIA PROPERTY. THE BUYER MAY BECOME SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD AN AMOUNT EQUAL TO THE GREATER OF 10 PERCENT OF THE AMOUNT REQUIRED TO BE WITHHELD OR FIVE HUNDRED DOLLARS ($500.00). HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION INCLUDED IN THE CALIFORNIA STATUTES REFERENCED ABOVE, NO BUYER WILL BE REQUIRED TO WITHHOLD ANY AMOUNT OR BE SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD IF ANY OF THE FOLLOWING APPLY: 1) THE SALE PRICE OF THE CALIFORNIA REAL PROPERTY CONVEYED DOES NOT EXCEED ONE HUNDRED THOUSAND DOLLARS ($100,000). 2) THE SELLER EXECUTES A WRITTEN CERTIFICATE, UNDER THE PENALTY OF PERJURY, CERTIFYING THAT THE SELLER IS A CORPORATION WITH A PERMANENT PLACE OF BUSINESS IN CALIFORNIA. 3) THE SELLER, WHO IS AN INDIVIDUAL, TRUST, ESTATE OR A CORPORATION WITHOUT A PERMANENT PLACE OF BUSINESS IN CALIFORNIA, EXECUTES A WRITTEN CERTIFICATE, UNDER THE PENALTY OF PERJURY, OF ANY OF THE FOLLOWING: A) THE CALIFORNIA REAL PROPERTY BEING CONVEYED IS THE SELLER'S OR DECEDENT'S PRINCIPAL RESIDENCE (WITHIN THE MEANING OF SECTION 121 OF THE INTERNAL REVENUE CODE). B) THE LAST USE OF THE PROPERTY BEING CONVEYED WAS USE BY THE TRANSFEROR AS THE TRANSFEROR'S PRINCIPAL RESIDENCE WITHIN THE MEANING OF SECTION 121 OF THE INTERNAL REVENUE CODE. C) THE CALIFORNIA REAL PROPERTY BEING CONVEYED IS OR WILL BE EXCHANGED FORTROPERTY OF LIKE KIND (WITHIN THE MEANING OF SECTION 1031 OF THE INTERNAL REVENUE CODE), BUT ONLY TO THE EXTENT OF THE AMOUNT OF GAIN NOT REQUIRED TO BE RECOGNIZED FOR CALIFORNIA INCOME TAX PURPOSES UNDER SECTION 1031 OF THE INTERNAL REVENUE CODE. D) THE CALIFORNIA REAL PROPERTY HAS BEEN COMPULSORILY OR INVOLUNTARILY CONVERTED (WITHIN THE MEANING OF SECTION 1033 OF THE INTERNAL REVENUE CODE) AND THAT THE SELLER INTENDS TO ACQUIRE PROPERTY SIMILAR OR RELATED IN SERVICE OR USE SO AS TO BE ELIGIBLE FOR NONRECOGNITION OF GAIN FOR CALIFORNIA INCOME TAX PURPOSES UNDER SECTION 1033 OF THE INTERNAL REVENUE CODE. E) THE CALIFORNIA REAL PROPERTY TRANSACTION WILL RESULT IN A LOSS OR NET GAIN NOT REQUIRED TO BE RECOGNIZED FOR CALIFORNIA INCOME TAX PURPOSES. THE SELLER IS SUBJECT TO PENALTY FOR KNOWINGLY FILING A FRAUDULENT CERTIFICATE FOR THE PURPOSE OF AVOIDING THE WITHHOLDING REQUIREMENT. 13. NO ACTIVITY If there is no written activity by a principal to this escrow within any six -month period after the time limit date as set forth, in the escrow instructions or written extension thereof, Escrow Holder's obligation shall terminate. at Escrow Holder's option. All documents, monies or other items deposited with Escrow Holder shall be returned to the respective parties entitled thereto, less fees and charges herein provided. 14. CAPTIONS AND COUNTERPARTS Captions in these escrow instructions are inserted for convenience of reference only and do not define, describe or limit the scope of the intent of these instructions or any of the terms hereof. These instructions 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 said counterparts together shall constitute one and the same instrument. 15. BINDING All terms of these escrow instructions shall be binding upon, inure to the benefit and be enforceable by the parties hereto and their respective legal representatives, successors and assigns. In the event any term, covenant, condition, provision or agreement herein contained is held to be invalid or void by any court of competentjurisdiction, the invalidity of any such term, covenant, condition, provision or agreement shall in no way affect any other term, covenant, condition, provision or agreement herein contained. 16. USURY Escrow Holder is not to be concerned with any question of usury in any loan or encumbrance involved in the processing of this escrow and is hereby released of any liability or responsibility therefore. 17. CONFLICTING DEMANDS/INTERPLEADER NO notice, demand or change of instructions shall be of any effect in this escrow unless given in writing by all parties affected thereby. If conflicting demands are made in connection with this escrow, Escrow Holder shall have the absolute right to either withhold and stop all proceedings, or file suit in the interpleader and obtain an order from the court requiring the parties to interplead their several claims and rights amongst themselves. 18. FACSIMILE AND ELECTRONIC MAIL All parties acknowledge that documents and instructions may be transmitted via facsimile (FAX) and/or electronic mail (e- mail). In the event the principals of this transaction, their agents, or assigns, utilize "facsimile (FAX)" transmitted instructions, Escrow Holder may rely and act upon such instructions in the same manner as if original signed instructions were in the possession of Escrow Holder. 19. DISCRETIONARY TERMINATION At the sole discretion of Escrow Holder, Escrow Holder may elect to terminate its escrow relationship with the principals to the escrow. Funds and documents will be returned upon mutual instructions of the appropriate parties. Page 3 of 5 1 0 0 20. PURCHASE AGREEMENT It is understood that the Purchase agreement or amendment or supplement (collectively "Purchase Agreement ") deposited to this escrow shall be effective only as between the parties signing the Purchase Agreement. Escrow Holder's only duty is to comply with the instructions set forth in these escrow instructions and the duties described in said Purchase Agreement as hereinabove set forth. Escrow Holder shall not be responsible for interpreting or acting on any other provisions of the Purchase Agreement. In connection with any loan transaction, Escrow Holder is authorized to deliver a copy of any purchase agreement and a copy of all escrow instructions, supplements or amendments to the Lender. 21. ENVIRONMENTAL DISCLOSURE Notwithstanding any actual or other knowledge on the part of Escrow Holder, the parties agree to release Escrow Holder from any and all liability of any kind or nature and to indemnify Escrow Holder of any loss, damages, claims, judgments or costs of any kind or nature resulting from or related to the release or discharge of hazardous or toxic wastes on the subject property whether it occurred in the past or present or may occur in the future which release or discharge is in violation of law, in excess of any state and federal standards, permit. requirements and/or disclosure requirements existing at this time or which may exist at a future time. The parties represent that they made their own assessment of the condition of the subject property and have not relied on any of your representations in making the assessment. The parties are advised to seek independent legal and technical environmental expert advice in assessing the risks associated with potential hazardous or toxic wastes. 22. ADDITIONAL DOCUMENTS HANDED TO ESCROW HOLDER Parties agree to hand Escrow Holder applicable documentation to establish their authority to act. Those documents may include, but shall not be limited to the following: 1) If an individual: Statement of Information 2) If a corporation: A Corporate resolution signed by the Secretary of the Corporatim, authorizing the acquisition, encumbrancing (if applicable), or sale of the subject property, and designating the authorized signatories on behalf of the corporation, together with a copy of the Articles of Incorporation & By -Laws. 3) If a Trust: copy of the Trust Agreement, any amendments thereto and/or a Certificate of Trust. 4) If a General Partnership: An original Statement of Partnership, in recordable form (if not already recorded) to berecorded in the County in which the subject property is located A copy of the parmership agreement is also requested. 5) if a Limited Partnership: The LP -1 form, certified by the Secretary of State to record (if not already recorded) in the county in which the subject property is located. A copy of the partnership agreement is also requested. 6) If a Joint Venture: The requirements specified 1, 2, and 3 herein will be applicable as it relates to the entities which comprise the Joint Venture. 7) If a Limited Liability Company (LLC): The LLC1 certified by the Secretary of State to record (if not already recorded) in the county in which the subject property is located The LLC1 must reflect an expiration date. One person must be named on the LLC I as managing the LLC, or all members must sign. A copy of the operating agreement is required. The parties further acknowledge that in the.event the partners of a partnership are individuals, it may be required that each such partner submit a completed and executed Statement of Information. If the Principals have any questions regarding the disposition of Unclaimed Funds, in excess of $50.00, the Principals should contact the Controller or successor agency for the State of California. 23. DESTRUCTION OF RECORDS Escrow Holder is authorized to destroy or otherwise dispose of any and all documents, papers, instructions, correspondence and other materials pertaining to this escrow at the expiration of seven (7) years from the close of escrow or cancellation thereof. 24. GOOD FUNDS California Insurance Code Section 12413.1 regulates the disbursement of escrow and sub- escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds received via wire transfer may be disbursed upon receipt. Funds received viaceshier's checks or teller checks drawn on a California Bank may be disbursed on the next business day after the day of deposit If funds are received by any other means, recordhg and /or disbursement may be delayed. CUESTA TITLE COMPANY shall not be responsible for accruals of interest or other charges resulting from compliance with the disbursement restrictions imposed by state law. If any check submitted is dishonored upon presentment for payment, you are authorized to notify all principals and /or their respective agents of such nonpayment. 25. CHANGE IN OWNERSHIP REPORT All parties are aware that a "Preliminary Change in Ownership Form" is to be filed with the office of the County Assessor upon recordation of all transfer documents involving real property. As an accommodation only, Escrow Holder shall provide necessary forms to the purchaser herein and in the event the completed form is deposited into escrow prior to close, Escrow Holder shall deliver same to Couny Assessor concurrently with recordation of the documents being recorded in this transaction. 26. APPLICATION OF PAYOFF FUNDS Should a check or wire be deemed unacceptable by lenders, creditors, lienholders or beneficiaries of Deeds of Trust, Escrow Holder is authorized to act on our behalf in requesting the funds, as well as any balance in an impound account, be applied towards the balance due. 27. INDEMNITY FOR ATTORNEY'S FEES AND COSTS In the event suit is brought by any party or parties to this escrow, including Cuesta Title Company, as against each other or others, including, Cuesta Title Company, which results in a dismissal of orjudgment in favor of Cuesta Title Company, the parties hereto agree to hold harmless, reimburse and indemnify Cuesta Title Company, its officers and employees, from any loss, expenses, costs and attorney's fees incurred. THIS AGREEMENT IN ALL PARTS APPLIES TO, INURES TO THE BENEFIT OF, AND BINDS ALL PARTIES HERETO, THEIR HEIRS, LEGATEES, DEVISEES, ADMINISTRATORS, EXECUTORS, SUCCESSORS AND ASSIGNS, AND WHENEVER THE CONTEXT SO REQUIRES THE MASCULINE GENDER INCLUDES THE FEMININE AND NEUTER, AND THE SINGULAR NUMBER INCLUDES THE PLURAL. THESE INSTRUCTIONS AND ANY OTHER AMENDMENTS MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH SHALL BE CONSIDERED AS AN ORIGINAL AND BE EFFECTIVE AS SUCH, THE FOREGOING ESCROW INSTRUCTIONS AND GENERAL PROVISIONS HAVE BEEN READ AND ARE UNDERSTOOD AND AGREED TO BY EACH OF THE UNDERSIGNED. Buyer(s): The City of San Luis Obispo By: Page 4 of 5 • Seller(s): Patrick B. Clemens Michael Clemens David R. Atkinson, trustee Garden Station LLC :1 0 Joy Clemens Virginia Clemens Cathy Atkinson, trustee Page 5 of 5 UESTROPY FO up, r, � q '-A "P IT PRELIMINARY TITLE REPORT Cuesta Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance of Stewart Title Guaranty Company describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception on Schedule B or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in Exhibit `A " attached. Copies of the Policy forms should be read. They are available from the office which issued this report. Please read the exceptions shown or referred to below and the Exceptions and Exclusions set forth in the attached Exhibit "A" of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered It is important to note that this Preliminary Report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to this land This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of apolicy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested Marcus Harmon Title Officer Authorized Signatory q U ESTA II.E File Number: B7500488 COMPANY 715 Tank Farm Road; #120 • San Luis Obispo, CA 93401 • (805) 544 -1860 • FAX (805) 541 -1769 PRELIMINARY REPORT TITLE OFFICER: Marcus Harmon TO: Cuesta Title Company 860 Price Street Pismo .Beach, California 93449 ATTN: Deena Peak PHONE NUMBER: (805) 773 -8600 SHORT TERM RATE: Yes Your Reference : B750048 Property Address:, , EFFECTIVE DATE: Friday, October 12, 2007 at 7:30 a.m. The form of Policy or Policies of title insurance contemplated by this report is: California Land Title Association Standard Coverage Policy THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A fee as to Parcel 1. An easement more particularly described below as to Parcel 2 and 3. 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: Patrick B. Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided. 25% interest; David R. Atkinson and Cathy Atkinson, Trustees of the Atkinson Family Trust utd February 11, 1991, as to an undivided 25 %'interest; Garden Station, LLC, a California limited liability company, as to an undivided 25% interest, as Tenants in Common. THE LAND REFERRED TO IN THIS REPORT IS SITUATED IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF Page I of 9 File Number: B7500488 10/19/2007 Page 2 of 9 LEGAL ]DESCRIPTION Parcel 1: File Number: B7500488 A portion of Block A of the Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded October 24, 1887 in Book A, Page 98 of Maps, a portion of Block'13 and a portion of abandoned Haskin Avenue per Resolution No. 6870 recorded. September 25, 1990 as Instrument No. 1990 -66170 of the Buena Vista Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded October 20, 1887 in Book A, Page 47 of Maps, described as follows: Beginning at the Northwest corner of said Block 13; Thence 1) North 89° 32' 00" East along the North line of said Block 13 a distance of 241.43 feet to the Westerly line of the property conveyed to Southern Pacific Railroad Company, by deed dated November 28, 1890 and recorded November 28, 1890 in Book 11, Page 42 of Deeds; Thence 2) South 29° 54' 30" East along the Westerly line of the property so conveyed and the Southeasterly extension thereof, 130.06 feet more or less to the Westerly right -of -way line of Emily Street, being 60 feet wide; Thence 3) South 00° 28' 00" East along the West line of Emily Street a distance of 148.96 feet to the centerline of Haskin Avenue as shown on said Map of the Fairview Addition; Thence continuing 4) South 00° 28' 00" East along the West line of Emily Street and the East line of Lots 1, 2, 3, and 4 of Block A of the Fairview Addition a distance of 213.48 feet to the Southeast corner of Lot 4: Thence 5) South 89° 32' 00" West along the South line of Lot 4 a distance of 123.2 feet to the Southwest corner thereof; Thence 6) South 89° 32' 00" West 80.00 feet to the Southeast corner of Lot 12; Thence 7) South 89° 32' 00" West along the South line of Lot 12 a distance of 144.0 feet to the Southwest comer thereof and the Easterly right -of -way line of Santa Barbara Avenue as shown on said map: Thence 8) North 4° 42' 00" East along the Easterly right -of -way line of Santa Barbara Avenue 477.66 feet to the point of beginning. As shown in Notice of Merger and Certificate of Subdivision Compliance which recorded January 5, 1999 as Instrument No. 1999000818 of Official Records. Page 3 of 9 0 Parcell: 0 File Number: B7500488 An easement with the right to grant to others, for private driveway purposes for ingress and egress as granted to V. G. Morf, et al. in deed recorded June26, 1961 in Book 1129, -Page 582 of Official Records, over the Easterly 20 feet of Lot 15 and the Westerly 20 feet of Lot 16 of that portion of Lot 15 and 16 in Block A of Fairview Addition to the City of San Luis Obispo, City of San Luis Obispo, in the County of San Luis Obispo, State of California, according to Map recorded October 24, 1887 in Book A, Page 98 of Maps, lying South of the following described line; Beginning at the Northeast_ corner of Lot 13; Thence Easterly 80 feet to the Northwest corner of Lot 5. Parcel 3: An easement for private driveway purposes for ingress and egress with the right to grant to others, as granted to V.G. Morf, et al. in deed recorded May 19, 1964 in Book 1298, Page 7 of Official Records for over that portion of Lot 15 in Block A of the Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded October 24, 1887 in Book A, Page 98 of Maps, lying South of the following described line: Beginning at the Northeast corner of Lot 13: Thence Easterly 80 feet to the Northwest corner of Lot 5. APN: 003,752,007 End of Legal Description Page 4 of 9 • • File Number: B7500488 SCHEDULE B At the date hereof, exceptions to coverage in addition to the printed exceptions and exclusions contained in said policy or policies would be as follows: General and Special City and/or County taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 2007 - 2008- I" Installment: $24,510.85 2 °d Installment: $24,510.85 Exemption: $0.00 Land: $4,313,835.00 Improvements: $577,575.00 Personal Property: $0.00 Code Area: 003 -000 Assessment No.: 003,752,007 Supplemental taxes for the fiscal year issued pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the Revenue and Taxation Code of the State California: Code Area: 003 -000 Parcel No.: 003,752,007 Billed Assessment: 2006 -07 / 972,141,218 First Installment: $3,074.27 Delinquent: 07/02/2007 Second Installment: $3,074.27 Delinquent: 10/31/2007 3. The lien of supplemental taxes, .if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the revenue and taxation code of the State of California. 4. Limitations on use of Parcel 3 as contained in Grant Deed recorded June 26, 1961 . in Book 1129, Page 582 of Official Records, provide substantially as follows: ... "for a period of twelve years from March 3, 1961, or so. long thereafter as the grantees herein, their successors or assigns, continue to use said easement for the purpose herein stated, provided that in the event the grantees do not exercise this right, within said twelve year period, such rights shall automatically terminate and revert back to the grantor, its heirs or assigns." Limitations on use of Parcel 4 as contained in Grant Deeds recorded May 19, 1964 in Book 1298, Page 7 and recorded December 3, 1973 in Book 1755, Page 647 of Official Records, providing substantially as follows: ..." for a period of twelve years from March 3, 1961, or so long thereafter as the grantees herein, their successors or assigns, continue to use said easement for the purpose herein stated, provided that in the event the grantees do not exercise this right, within said twelve year period, such rights shall automatically terminate and revert back to the grantor, its heirs or assigns." Page 5 of 9 0 0 File Number: B7500488 6. An easement for the purpose shown below and rights incidental thereto as reserved in a document: Reserved by: The City of San Luis Obispo Purpose: Public Sewer and Incidental. Purposes Recorded: September 25, 1990, as Instrument No. 66170, in Book 3584, Page 194 of Official Records Affects: Abandoned Haskin Avenue 7. Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby: Amount: $3,000,000.00 Dated: June 1, 2007. Trustor: Garden Station LLC, a California limited liability company, as to an undivided 255 interest, Patrick B. Clemens and Joy Clemens, husband and wife, as community property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife, as community property with rights of survivorship, as to an undivided 25% interest; David R. Atkinson and Cathy Atkinson, Trustees of the Atkinson Family Trust utd February 11, 1991 , as to an undivided 25% interest, as tenants in common Trustee: First American Title Company, a California Corporation Beneficiary: Standard Insurance Company, an Oregon Corporation Recorded: June 22, 2007 as Instrument No. 2007042212 of Official Records. An assignment of the lessor's interest in the lease herein referred to, given as additional security for the payment of the indebtedness secured by said deed of trust, which assignment was: Executed By: Garden Station LLC, a California limited liability company, as to an undivided 255 interest, Patrick B. Clemens and Joy Clemens, husband and wife, as community property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife, as community property with rights of survivorship, as to an undivided 25% interest; David R. Atkinson and Cathy Atkinson, Trustees of the Atkinson Family Trust utd February 11, 1991 , as to an undivided 25% interest, as tenants in common In favor of: Standard Insurance Company, an Oregon Corporation Recorded: June 22, 2007 as Instrument/File No. 2007042213 of Official Records. 8. Terms and provisions of a lease dated October 1, 2004, executed by Garden Station LLC, a California limited liability company, as lessor, and Pacific Coast Home & Garden Center; a California Corporation, as lessee as disclosed by a Subordination and Attomment Agreement, recorded June 22, 2007, as Instrument/File No. 2007042214, of Official Records. Page 6 of 9 • • File Number: B7500488 9. Any invalidity or defect in the title of the vestees in the event that the, trust referred to in the vesting portion of Schedule A is invalid or fails to grant sufficient powers to the trustee(s) or in the event there is a lack of compliance with the terms and provisions of the trust instrument. 10. If title is to be insured in the trustee(s) of a trust, (or if their act is to be insured), this Company will require a copy of the trust instrument creating such trust, and all amendments thereto, together with a written verification by all present trustees that the copy is a true and correct copy of the trust, as it 'may have amended, that it is in full force and effect and that it has not been revoked or terminated. END OF EXCEPTIONS Page 7 of 9 None NOTES Page 8 of 9 File Number: B7500488 I M O O — < - ;A7 -- � - -- — �1 ~ rom –x V ---- - - -c I a- .m - o a F o1R / m� /C11 9 n n O� 80 I I OI m i I I I oil ` �O 0! l mo HI n Lri J -I Lr -I orcr / 067N r /t/ ��J n wrx Jaaoo IoSZI L6 I Lb I orzr M I I g I •s alw M I I I I_ 1 —� —.-� —• �L orvr/ I arvr/ nT —ut If IN "Im F X- - -- — �_ I nV-1 VP 1 a I I '� < IOL •6E ox x I I I m o "rep j.W, r 6116 I w x a6 991y 0 � �a77�ISnB rocs 1 a � i ilia I I I I I ri ZIP, I I Lr Idc g A-00 °a �LL ca o° �Oq O ono ca r*�) Ol -IO1 eee M Q --;c Q p�00Q Qa� Ss LL' /61 LI• I I LY I GJ'l� I I I I I I � I I 1 awl I I O c o P Iri elm y I a° o LO #- I a �yyl 00' 1 db "Ly 19S Sr N,4 °v h1Np'S I a ?Uy� ascription: San Luis Obispo, CA Assessor Map 3.75 Page. 1 of 2 -der: a Comment: T 61 uj cu O) O .0 o R m 42 'O N T " T c c `s ai ` EX. 4.-' ax r- ax ch �, rS c . i -0-0 . y vo • 0 File Number: B7500488 CALIFORNIA "GOOD FUNDS" LAW California. Insurance Code Section 12413.1 regulates the disbursement of escrow and sub - escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds received by Cuesta Title Company via wire transfer may be disbursed upon receipt. Funds received via cashier's checks or teller checks drawn on a California Bank may be disbursed on the next business day after the day of deposit. If funds are received by any other means, recording and/or disbursement may be delayed, and you should contact your title or escrow officer. All escrow and sub - escrow funds received will be deposited with other escrow funds in one or more non - interest bearing escrow accounts in a financial institution selected by Cuesta Title Company. Cuesta Title Company may receive certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with the financial institution, and Cuesta Title Company shall have no obligation to account to the depositing party in any manner for the value of, or to pay to such party, any benefit received by Cuesta Title Company. Such benefits shall be deemed additional compensation to Cuesta Title Company for its services in connection with the escrow or sub - escrow. If any check submitted is dishonored upon presentation for payment, you are authorized to notify all principals and /or their respective agents of such nonpayment. WIRING INSTRUCTIONS If you anticipate having funds wired to Cuesta Title Company, our wiring information is as follows: Additional Note: Direct wire transfers to: City National Bank One Centerpoint Drive # 160 La Palma. CA 90623 ABA: 122016066 Account Number: 013-429707 Credit to: Cuesta Title Company Reference Number.: B7500488 When instructing the financial institution to wire funds, it is very important that you reference Cuesta Title Company. Should you have any questions in this regard please contact your Escrow Officer immediately. Page 9 of 9 • 0 Stewart Title Guaranty Company Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm- Leach - Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you With nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Stewart Title Guaranty Company. We may collect nonpublic personal information about you from the following sources: ■ Information we receive from you, such as on applications or other forms. Information about your transactions we secure from our files, or from our affiliates or others. Information we receive from a consumer reporting agency. lie Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonafliates third parties permitted by law. We also may disclose this information about our customers or former customers to the following types of non affiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: • Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. • Non- financial companies such as envelope stuffers and other fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. • i Cuesta Title Company Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm - Leach - Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices ofCuesta Title Company. We may collect nonpublic personal information about you from the following sources: • Information we receive from you, such as on applications or other forms. • Information about your transactions we secure from our files, or from our affiliates or others. • Information we receive from a consumer reporting agency. • Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliates third parties permitted by law. We also may disclose this information about our customers or former customers to the following types of non affiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: • Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. • Non - financial companies such as envelope stuffers and other fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. • • EXHIBIT A AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6 -1-87) EXCLUSIONS in addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or governmental regulation. This includes building and zoning ordinances and also laws and regulations concerning: • land use • improvements an the land • land division • environmertal protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at policy date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to lake the land by condemning it, unless: • a notice of exercising the right appears in the public records on the Policy Date • the taking Happened prior to the Policy Date and is binding on you if you bought the land without knowledge of the taking Title Risks: • that are created, allowed, or agreed to by you • that are known to you, but not to us, on the Policy Date- untass they appeared in the public records • that result In no loss to you • that fast affect your title after the Policy Date — this does not limit the labor and material lien coverage In Item 8 of Covered Title Risks Failure to pay value for your title. Lack of a right: • to any fand outside the area specifically described and referred to in Item 3 of Schedule A in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. SCHEDULE B EXCEPTIONS In addition to the Exclusions, you are not insured against loss, costs, attorneys' fees, and the expenses resulting from: 1. Any rights, interests, or claims of parties in possession of the land not shown by the public records. 2. Any easements or liens not shown by the public records. This does not limit the lien coverage in Item 8 of Covered Title Risks. 3. Any facts about the land which a correct survey would disclose and which are not shown by the public records. This does not limit the forced removal coverage in item 12 of Covered Title Risks. 4. Any water rights or claims or title to water in or under the land, whether or not shown by the public records. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY -1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attomeys' teas or expenses which arise by reason of., 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating (t) the occupancy, use, or enjoyment of the land; (ii) the character; dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the lend or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public retards at Date of Policy. (b) Any, governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Dale of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed, or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the dale the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy. or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. UneNorceabliity of the Den of the insured mortgage because of the inability or the failure of the insured at Date of Polley, or the inability or failure of any subsequent owner of the Indebtedness, to comply with the applicable doing business laws of the state in which the land Is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the Insured mortgage and is based upon usury or any consumer credit protection or truth in lending taw. 6. Any claim, which arises out of the transaction vesting in the insured tho estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. SCHEDULE B, PART I EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: PART 1 1. Taxes or assessments which are not shown as existing liens by the records of any taxing 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public authority that levies taxes or assessments on real property or by the public records. records. Proceedings by a public agency which may result in taxes or assessments, or notices of such 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other proceedings,.whether or not shown by the records of such agency or by the public records. fads which a correct survey would disclose, and which are not shown by the public records. 2. Any facts, rights interests or claims which are not shown by the public records but which 5. (a) Unpolented mining claims: (b) reservations or exceptions in patents or in Acts could be ascertained by an inspection of the land or which may be asserted by persons In authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the possession thereof, matters excepted under (a), (b), or (c) are shown by the public records. • • EXHIBIT A (CONTINUED) AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17 -92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10-17 -92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of` 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (li) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these taws, ordinances or govemmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a dated, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Data of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. i. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed, or agreed to by the Insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the Gen of the insured mortgage over any statutory lien for services, labor or material or to the extent insurance Is afforded herein as to assessments for street improvements under construction or completed at Date of Policy); or (e) resulting in loss or damage which would not have been sustained it the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or the failure of the insured at Date of Policy, or the Inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth In lending law. 6. Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an Improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws; that is based on: (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (G) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (iii) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer, or (b) of such recordation to impart notice to a purchaser for value or a judgement or Gen creditor. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17 -92) AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10-17 -92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (it) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect. Gen or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded In the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;. (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained If the insured claimant had paid value for the estate or interest insured by this policy. Any claim, which arises out of the transaction vesting in the Insured the estate or interest Insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (t) the transaction creating the estate or Interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer, or (ii) the transaction creating the estate or interest insured by this policy b Bing deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgement or lien creditor. The above ALTA policy forms may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Genera I Exceptions: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attomeys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing hens by the records of any taxing 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public authority that levies taxes or assessments on real property or by the public records. records. Proceedings by a public agency which may result In taxes or assessments, or notices of such 4. Discrepancies, conflicts in boundary tins, shortage in area, encroachments, or any other proceedings, whether or not shown by the records of such agency or by the public records. fads which a cored survey would disclose, and which are not shown by the public records. 2. Any fads, rights, interests or claims which are not shown by the public records but which S. (a) Unpatented mining datms; (b) reservations or exceptions In patents or in Ads could be ascertained by an inspection of the land or by making Inquiry of persons in authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the possession (hereof. matters excepted under (a), (b), or (c) are shown by the public records. • • EXHIBIT A (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (6 -2 -98) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10- 17 -98) EXCLUSIONS In addition to the Exceptions in Schedule B. You are not insured against loss, costs, attomeys' fees, and expenses resulting from: 1. Governmental police power; and the existence or violation of any law or governmental regulation. This includes ordinances, laws and regulations concerning: P. building b. zoning C. Land use d. improvements on Land e. Land division I. environmental protection This Exclusion does not apply to violations or the enforcement of these matters U notice of the violation or enforcement appears in the Public Records at the Policy Date. This Exclusion does not limit the coverage described in Covered Risk 14, 15, 16, 17 or 24. 2. The failure of Your existing structures, or any pan of them, to be constructed in accordance with applicable building codes. This Exclusion does not apply to violations of building codes If notice of the violation appears in the Public Records at the Polley Date, 3. The right to take the Land by condemning it untess; a. notice of exercising the right appears in the Public Records at the Policy date; or b. the taking happened before the Policy Date and is binding on You if You bought the Land without Knowing of the taking. 4. Risks: e. that are created, allowed, or agreed to by You, whether or not they appear in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they appear In the Public Records at the Policy Date; C. that result In no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.d, 22, 23. 24, or 25. 5. Failure to pay.value for Your Title. 6.. Lack of a right a, to any Land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described In Covered Risk 11 or 18. RESIDENTIAL TITLE INSURANCE POLICY ONE -TO -FOUR FAMILY RESIDENCE ENHANCED VERSION (1997) EXCLUSIONS In addition to the Exceptions in Schedule 9, you are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Govemmental police power, and the existence or violation of any law or governmental regulation. This includes building and zoning ordinances and also laws and regulations coming- 0. land use; b. improvements on the Land; r- land divisions; or d. environmental protection. This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Dale. This exclusion does not limit the coverage described in Item 12c and d, 13 and 18 of Covered Title Risks. 2. The right to take the land by condemning it, unless: a. a notice of exercising the right appears in the public records on the Policy dale; or b. the taking happened before the Policy Date and is binding on you If you bought the land without knowing of the taking. 3. Title Risks: a. that are created, allowed, or agreed to by you; b. that are known to you, but not to us, on the Policy Dale - unless they appeared in the public records; C. that result in no loss to your, or d. that first affect your title after the Policy Date - this does not limit the coverage described in Items 3b, 8, 17; and 19 of Covered Title Risks. 4. Failure to pay value for your title. 5. Lack of a right: (a) to any lend outside the area specifically described and referred to in 1. Item 3 of Schedule A or (b) in streets, alleys, or waterways that touch your land. This exclusion does not limit the coverage described in Items 5 and 128 of the Covered Title Risks. HA NER, JEWELL & ASSOCIATES Government Real Estate Services a division of Beacon Integrated Professional Resources, Inc. Ventura County Office: 3639 Harbor Boulevard, Suite 210, Ventura, California 93001 Tel: 805 658 -8844 Fax: 805 658 -8859 y San Luis Obispo County Office: 340 James Way, Suite 150, Pismo Beach, California 93449 Tel: (805) 773 -1459 Fax: (805) 773 -2418 Writer's e-mail address: djewell @hamner- jewell.com September 28, 2007 Personally Presented Patrick and Joy Clemens Michael and Virginia Clemens David and Cathy Atkinson Garden Station LLC c/o Rob Rossi, Rossi Enterprises 750 Pismo Street San Luis Obispo, California 93101 -2636 Subject: City of San Luis Obispo — Santa Barbara Street Widening Project Acq. AP # 003 - 752 -007 (Garden Station LLC) Dear Mr. Rossi, This is to formally present you with a written offer on behalf of the City of San Luis Obispo ( "City") to purchase a portion of your property located at 2120 Santa Barbara Street, San Luis Obispo, commonly referred to as the PHIC property. As you are aware, purchase of small portions of your property along the frontage of Santa Barbara Street by the City is sought in order to make planned street widening improvements. To assure that fair market value is offered to you for the purchase of these property rights, an independent appraisal has been made. That appraisal has taken into consideration the highest and best use of the property, the size of the land, and all other factors that affect the fair market value of the property being sought by the City. Enclosed is an Appraisal Summary Statement that provides you with a summary of the basis of the valuation conclusion reached by the appraiser. On the enclosed Appraisal Summary Statement, the Total Just Compensation figure of One Hundred Fourteen Thousand Three Hundred Dollars ($114,300) represents the fair market value for the property, and the directly affected improvements located thereon, sought for the street improvement project, and the adjacent temporary construction easements, as established by an independent appraiser. Please note that $10,000 of this amount is the amount allocated by the appraiser for the existing landscaping and related improvements within the affected areas. Garden Station LLC • • :+4September 28, 2007 Page 2 of 2 Consistent with prior meetings held between City staff and Garden Station LLC representatives, the City is willing to offer additional cash compensation to you for the cost of doing landscaping and parking area modifications that will be prompted by the City's street improvement work. Your representatives have indicated a preference for doing this work yourselves rather than having the City complete such restoration. The attached spreadsheet reflects the City's cost projections for completing the discussed restoration work. In exchange for Garden Station LLC taking sole responsibility for the restoration of your parking lot, planters, and any and all other work associated with the restoration of improvements on your property, the City would offer additional compensation based upon the cost projections shown on the spreadsheet. To avoid a duplication of compensation, the additional amount shown on the spreadsheet would be offered In Lieu of the $10,000 that the appraisal included for landscaping restoration. Thus, the total amount offered to you for this right of way purchase, under the terms and conditions specified herein, and in the enclosed Agreement for Acquisition of Real Property is One Hundred Thirty Seven Thousand Dollars ($137,000). The City hereby offers to purchase the sought property rights for the full amount offered, subject to your execution of the attached Agreement for Acquisition of Real Property and Grant Deed proposed to convey the required property rights to the City free and clear of all conflicting liens and encumbrances. The City will pay any and all necessary transactional costs and recording fees associated with this proposed purchase. This offer is subject to final approval and acceptance of the Agreement and Deed by the San Luis Obispo City Council. We hope that you will find this purchase offer acceptable and representative of just compensation and look forward to working with you to finalize the purchase agreement. As the City's authorized representatives related to the property rights being sought for this project, we will be happy to assist you in any way we can. If you have any questions regarding this offer, please contact me at (805) 773 -1459 at your earliest convenience. The City would like to finalize an agreement as soon as possible so that construction of the planned street improvements can commence immediately after the upcoming Holiday season in January 2008. Thank you for your time and anticipated response. I look forward to your feedback. Sincerely, David M. Jewell enc: Agreement For Acquisition.of Real Property Appraisal Summary Statement Grant Deed Pamphlet "When a Public Agency Acquires Your Property" PHIC Cost Estimate Spreadsheet G:\ Projects \CIP\ActiveProjects \Street Lnprovements \90408 SantaBar6araWiden ing \_Documents\3- Preconstruction \ROW\GardenCenter \Offerpocs \Offer Letter- Garden Station LLC.doc is PHIC Cost Estimates Garden Center Reimbursement ITEM & DESCRIPTION No. ITEM UNIT QUAN UNIT PRICE TOTAL PRICE Parking lot 1 Remove/Dispose Conc Wheel stops -I8 EA 18 10.00 $180.00 2 Remove /Grind (E) Parking Lot striping LF 660 2.40 $1,584.00 3 1 Remove /Grind (E) Parking Lot MarkingE SF 1 65 7.20 $468.00 4 Seal Coat Parking lot SF 14425 0.28 $4,039.00 5 (N) Parking Lot striping 4" White or Blu LF 1377 2.00 $_2,754.00 6 (N),HC Stall signs/posts ea 2 300.00 $600.00 7 (N) Pave Markings - arrows, HC SF 131 8.50 $1,113.50 8 Provide & Install New Wheel stops- qry ea 34 40.00 $1,360.00 Total:1 $12,098.50 Planter w/ Irrigation & Landscaping 9 6" Curb- Parking/planter (incl AC repair) LF 240 52.00 $12,480.00 10 Irrigation/Landscape SF 1400 5.00 $7,060.00 Total: $19,480.00 Rental Shop Stairs 11 Concrete Stairs CY 3 750.00 $2,250.00 12 Handrails LS 1 1500.00 $1,500.00 Total: $3,750.00 Storm Drain Extension 13 Extend torn Drain to PL for future PHIC darinange system LF 15 - 175.00 ($2,625.00} TOTAL: $32;703.50 Page 1 Page 1 of 4 • • AP # 003 - 752 -007 APPRAISAL SUMMARY STATEMENT BASIC DATA PROJECT: PARCEL NO.: 1.1 �" d PROPERTY LOCATION: APPLICABLE ZONING: CURRENT USE OF SUBJECT PROPERTY HIGHEST AND BEST USE OF SUBJECT PROPERTY: DATE OF VALUATION: TOTAL PROPERTY AREA: PROPERTY TO BE ACQUIRED: IMPROVEMENTS TO BE ACQUIRED City of San Luis Obispo —Santa Barbara Street Widening Project. 003 - 752 -007 Patrick B Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; David R. Atkinson and Cathy Atkinson, Trustees of the Atkinson Family Trust utd February 11, 199 1, as to an undivided 25% interest; Garden Station LLC, a California limited liability company, as to an undivided 25 % interest, as Tenants in Common. 2120 Santa Barbara Street, San Luis Obispo, California C -S — Commercial Service Home and Garden Center (Pacific Home) Existing Use — Commercial Service with the potential for future redevelopment August 2, 2007 3.48 acres 2,172.2 square foot fee parcel and approximately 4,305.6 square foot Temporary Construction Easement 2,000 square feet, all within Fee parcel Page 2 of 4 • AP # 003 - 752 -007 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 $14.28 % sq.ft. to $51.95 /sq.ft., with a Market Value conclusion of $40.00 /sq.ft. 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 valuation process as it was deemed inapplicable to this specific case. 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. VALUATION Fee Parcel 2,172.2 square feet x $40.00 = $86,888 Improvements 2,000 square feet x $5.00 = $10,000 Temporary Easement 4,305.6 square feet x $40.00 x 10% _ $17,222 Total Market Value Rounded = $114,300 Total Just Compensation for this Acquisition: One Hundred Fourteen Thousand Three Hundred Dollars $11( 4,300) This summary of the basis of the amount offered as just compensation is presented in compliance with federal and state law 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. Approved for Acqui ition: City of San L 's O o B Name J Walter Title: .c Works Director Date: 4- 24 —07 Page 3 of 4 • • AP # 003 - 752 -007 SUMMARY STATEMENT RELATING TO PURCHASE OF REAL PROPERTY OR AN INTEREST THEREIN Project: City of San Luis Obispo, Santa Barbara Street Widening Project AP #: 003 -752 -007 The City of San Luis Obispo is proposing to widen and improve Santa Barbara Street in the City of San Luis Obispo, California. Your property, located at 2120 Santa Barbara Street, San Luis Obispo, is within the project area and also identified by your county assessor as Parcel Number 003 -752 -007. The City seeks to purchase a small portion of this property for the street widening and improvement project. 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 infoymatiom 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 the purchase of a 2,172.2 square foot area in Fee and an 4,305.6 square foot Temporary Construction Easement. These interests are described in the enclosed Grant 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. 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. Paie 4 of 4 • AP # 003 -752 -007 5. Pursuant to Civil Code of Procedure Section 1263.025, you have a right to obtain an independent appraisal of the property rights sought by the City and to l seek reimbursement 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 the selected appraiser be highly experienced, skilled, and qualified to do this type of appraisal assignment. 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 110 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. 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. 7. If you ultimately elect to reject this offer 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. EXHIBIT A -1 .Right of Way Legal Description A portion of Block A, Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, in the County of San Luis Obispo, State of California, according to map filed for record October 24, 1887 in Book A, Page 98 of Maps and a portion of Block 13 of the Buena Vista Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California,- according to map recorded October 20, 1887 in Book A. Page 47 of Maps, in the office of the County Recorder of said County, described more particularly as follows: Parcel 1: That portion of Lot 1, Block 13 of said Map of Buena Vista Addition laying Northwesterly of a curve which is tangent to the North and West lot lines of said Lot 1, having a radius of 8.00 feet a curve length of.11.85 feet and a central angle of 94'50'19". Containing 11.1 sq. ft., more or less.. Parcel 2: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of lots 4, 5 and 6 together with the West 7.00 feet of the South 15.91 feet of Lot 3 of Block 13 of said Map of Buena Vista Addition Containing 942.8 sq. ft., more or less. Parcel 3: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of lots 9, 10 11 and 12 of Block A of said Fairview Addition, excepting East 2.20 feet of the South 9.51 feet of Lot 11 of said 7.00 foot wide strip and the East 2.20 feet of the North 38.76 feet of Lot 12 of said 7.00 foot wide strip. Containing 1,218.3 sq. ft., more-or less.. THIS DOCUMENT WAS PREPARED BY ME OR UNDER MY DIRECTION. Robert A. Livick, PLS 8126 exp 12/31/08 -1-,07 Date ND Se —� No. 8126 * EXP.12 /3,% 9�F OF C AL�FOQ g:\ projects \cip\activeprojects \street improvements\90408 santabarbarawidening \-documents \3 - preconstruction\ row \gardenstationlegaldescription ral.doc a a N89 °28'46 "E N89 °29'04"E ' I N O O '1 'M = O X LL W In r ✓ � � W ^, m °29'04 "E 7.03' W o c �ti1 m Q I J O z N89 acli �► I J Co CD i Ci g C O 3 W ui tip., -+ o Q Jw ED o N o co m I I O z a Bo Ito Z Z I Z "' '^ (n Cl) N N N `r LLI l a Z LL m O m N � ap NU) J °o Q p I a T � 1 C,4 ' I I V co as SMEET pvSwD01VEm LL rlASMS 3584 OR 194 N I C') a) J Cl N85- 18'00"W 7.00' I W `r N Q a. w w O o N O fV Z � T 1� � , I Lq fV O ^^ J W /� C 'o ✓ V .� 0 m a lo, O a 889 °32'19 �ti1 •--� S89 °28'46"W 7.03' I I o J W c ' ,l r' v J r --p a o�w w g co CJ4 889 °32'19"W 7.31' O _- {_REET _ ^� - m o a c M I • - 0 m — — C — Z mc°� r • � I \ n 1 DOm 10 1 Z m 0 0 ' 4(w Z \ m I �• r �I � ✓ m 0 I _ . ° Lt co I Nm0 �-ZIcn mo Z �30 tr�30' O z I 1 m O cNil. * I �D m R1 P64 HO k8fC 03NOOM�'8b'I133?l1S SNIYSdH r m m rd D m K;u mnp Z uNi_ a D o m �p0 --� n co m co D wzz 0 0� n -n m L M > z Co Z T O D Z-�� 1 z <cr °D M n c 1 I �, Z O I m m m D CO r z m 0 0 m t ca N l � r �= O m O Z > v) I D z DI '�' �✓� c• �% � w c w -co ca n Z ✓ O C N z y I m 6� Ley ✓ Cl) in n m m m � m a 1 m o � m Z 1 3.vo.6Z.68N AL I APPRAISAL REPORT OF PACIFIC HOME DO -IT CENTER SANTA BARBARA STREET WIDENING 2120 SANTA BARBARA. STREET SAN LUIS OBISPO, CALIFORNIA PREPARED FOR: TIMOTHY S. BOCHUM DEPUTY PUBLIC WORKS DIRECTOR, 955 MORRO STREET, CALIFORNIA PREPARED BY: REEDER, GILMAN & ASSOCIATES REAL ESTATE APPRAISERS SANTA MARIA, CALIFORNIA April 10, 2001 G/ _D. !1a Rio • 0 REEDER, GILMAN & ASSOCIATES Appraisers and Consultants • Real and Personal Property WARREN REEDER a MAI, SR/WA 1101 South Broadway, Suite A, Santa Maria, California 93454 SCREA. CA b AGOW21 Senior Member - APPRAISAL INSTITUTE P. O. Box 726, Santa Maria, California 93456 INTERNATIONAL RIGHr OF WAY ASSOCIATION Telephone: (805) 925 -2603 LESLIE J. GILMAN • MBA, SRIWA SCREA, CA S AG014980 Senior Member - INTERNATIONAL RIGHT OF WAY ASSOCIATION M. LISA BORGQUIST SCREA, CA s AGO14431 April 10, 2001 Mr. Timothy S. Bochum Deputy Public Works Director 955 Morro Street San Luis Obispo, CA 93401 Fax: (805) 925 -0840 Email: RGA1101®AOL.COM Federal Tax ID #77- 0555850 RE: Appraisal Pacific Home Do -it Center, Santa Barbara Street Widening 2120 Santa Barbara Street, San Luis Obispo, California Our File No. 6972B- 05 -00-ED J W146 Dear Mr. Bochum: At your request and authorization, we have completed the second of the two appraisals of the properties affected by the proposed widening of the east side of Santa Barbara Street between Roundhouse Road and High Street. The purpose of the appraisal is to estimate the just compensation for the acquisition of the new right -of- way. The appraisal is to consider real property only. Items of personal property such as business valuation equipment, etc., are not to be part of this analysis. The opinion of value is based on the fee simple interest in the subject property as if free and clear of all liens, leases, and encumbrances. The function of this appraisal will be its use a guide to value during negotiation for acquisition of the proposed right -of -way. The following appraisal report is a result of our inspection of the subject property and contains descriptive data and analysis on which we have based our opinion of value. Our 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 Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. As a result of our. investigation and analysis of the factors influencing real estate value, together with our experience in appraising properties in the area, it is our opinion that just compensation for the acquisition of the subject property, as of April 3, 2001, is: FOUR HUNDRED THOUSAND DOLLARS (A 0000.00) SUBJECT TO the Assumptions and Limiting Conditions contained herein. We hereby certify that we have no present nor contemplated financial interest in the subject property, that the opinion of value expressed herein is our own. conclusion. and that our fee is not contingent upon the value reported nor upon anything else except the delivery of this report. Respectfully submitted, REEDER, GILMAN & ASSOCIATES REAL ESTATE APPRAISERS Warren Reeder, MAI, SRWA Certified General Real Estate Appraiser, CA #AG006521 A-� ebK6;� - M. LI B G Certified General Real Estate Appraiser, CA #AG014431 NOTE.' oRfGuvAL DocumENr is SIGNED iN BLUE JNK WR/MLB:jhc REEDER, GILMAN & ASSOCIATES 6972B.doc:W146 Page- 3 0 INTRODUCTION: TABLE OF CONTENTS 0 ............ .I.................. ....... 1 TitlePage ........................................................................ Letterof Transmittal .................. .................. ............................... .................... 2 4 . Table of Contents ................. :.............................. . ..... ....... ......... ............................... 5 Definitions............................ .................................... ............................... Scopeof the Appraisal ..............................................................: ............................... 6 7 AppraisalSummary .................. .................................................. ............................... APPRAISAL REPORT: 8 TheProject ...................................................... ............................... ........................ Identification of the Larger Parcel .............................................. ............................... 8 Purpose of the Appraisal ........................................ ............................... . 8 PropertyRights Appraised ......................................................... ............................... 8 ProjectAerial Map .................................:....................... .............a................. Offer to Accompany Appraisers ............................................•...... ............................... 9- .............................. 9 Dateof Value .................................................. .. 9 Ownership........................................................................... ............................... ... Functionof the Appraisal ............................................................ ............................... 9 9 PropertyHistory .........' ................................................................. ............................... AreaMap .. .......................................................... ............................... . 10 GeneralArea Analysis ......................... ............................ ............ ................... ..... Market Description and Exposure Time ..................................... ............................... 10 10 SubjectProperty Data ................................................................ ............................... LocationMap ...................................................... ........................... :... SubjectProperty Map ....... ..... .................................. ............................... 12 Highestand Best Use ................................................................. ............................... 14 Valuation................. ...............................:................................. ............................... Valuation Factors Affected by Acquisition .................................. ............................... 17 Assumptions and Limiting Conditions ...................................... ............................... 21 Certificates of Appraisers ........................:.................................. ............................... 23 ADDENDA: LandSales Locations .............................................. ..... :............................................ Subject Property Photographs .......... ....................................... ............................... ZoningMap ................................................................................ ............................... Selected City of San Luis Obispo Zoning Regulations ............... ............................... GrantDeeds ................................................................ ............................... ProfessionalQualifications ......................................................... ............................... REEDER, GILMAN & ASSOCIATES 6972B.doc:W 146 Page 4 DEFINITIONS A. FAIR MARKET VALUE 0 (a) 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 uses and purposes for which the property is reasonably adaptable and available. (b) The Fair Market Value of property taken for which there is no relevant market is its value on the date of valuation as determined by any method of valuation, that is just and equitable. SOURCE: Eminent Domain Law, Title 7, Chapter 9, Article 4 Section 1263.320 B. SEVERANCE DAMAGES - In the case of a partial taking, it is the damage to the part not taken which arises by reason of the taking and /or the construction of the improvements in the manner proposed. C. TAKE OR SUBJECT PROPERTY All the property which the owner thereof will be deprived the use of, either permanently or temporarily as a result of the construction of this project. D. PARENT PROPERTY OR LARGER PARCEL - The whole of the parcel of which a partial take is being made. E. GENERAL BENEFITS - A gain or appreciation in value arising from a public improvement which affects the entire community, neighborhood or District by reason of nearness to the public improvements. F. HIGHEST AND BEST USE - That which, at the time of appraisal, is the most profitable, likely use to which a property can be put. G. EASEMENT A non - possessory interest in the land of another which allows the owner of the easement to use that land for a particular purpose. REEDER, GILMAN & ASSOCIATES 6912B.doc:W146 Page 5 0 0 SCOPE OF THE APPRAISAL The duties of the appraiser in fulfilling this assignment included: A. Inspection of the physical property including the land, improvements, public utilities and other items considered important. I . B. Study and evaluation of available publications on relevant data such as economic studies, maps, real estate trends, etc., necessary in preparing this appraisal. C. A study of various public records including data available from the County. Assessor, the County Recorder and other public agencies. D. Study of the surrounding areas and local factors and. trends affecting real estate values and the subject property. E. - Taking photographs of the subject property. F. Securing sufficient data to complete the appraisal. This includes interviews with buyers and sellers of similar properties and interviews with knowledgeable people in the area for the purpose of securing the necessary background data. G. Analyzing all data collected and processing said data into our opinion of the Market Value of the subject property. H. The market data contained in this report was, verified with people familiar with the transaction, typically the Buyer, Seller, Real Estate Broker, or other reliable source. This is a complete appraisal and is reported in summary format. REEDER, GILMAN & ASSOCIATES 6972B.doc:WI46 Page 6 APPRAISAL SUMMARY Subject Property Owners: Location: Assessor's Parcel Number: Larger Parcel Area: Land Taken: Improvement Area: Part Taken:. Zoning: Highest & Best Use: Date of Value: Valuation Larger Parcel: Cost Approach: Sales Comparison Approach Income Approach: Final Opinion of Value: Total Compensation: Pacific Home Improvement Center, Inc. 2120 Santa Barbara Street, San Luis Obispo, California 003 - 752 -007 3.48 acres with 19,658 square feet of structures, plus 600 square feet of mezzanine offices 863 square feet — This is the land under the metal indoor sales building containing 350 square feet plus two areas under the wood -frame building containing 171 and 342 square feet 863 square feet, main building, plus 600 square feet, mezzanine C -S — Commercial Service Existing use, Commercial Service with the potential for future redevelopment April 3, 2001 $2,730,000 NIA NIA $2,730,000 $400,000 REEDER, GILMAN & ASSOCIATES 6972B.doc:Wi46 Page 7 0 THE PROJECT: APPRAISAL REPORT 9 The project includes two parcels, which are located on the east side of Santa Barbara Street between Roundhouse Avenue and High Street. The purpose is to widen Santa Barbara Street and reduce congestion. The Take Area is 7 feet wide and runs the length of the street. The Volney property, which is the subject of this report, is one of two parcels that are affected by the project. The Take Area includes land, a portion of several buildings, and front landscaping. The second parcel, known as the Conroy property, has been completed and was sent to you in January 2001. IDENTIFICATION OF THE LARGER PARCEL: The Larger Parcel is a 3.48 -acre corner lot located on the southeastern corner of High Street and Santa Barbara Street. The property is improved with five buildings with parking and open air sales. Due to the location of the structures, the project will affect the front portion of the indoor sales buildings. , PURPOSE OF THE APPRAISAL: The purpose of the appraisal is to estimate the fair market value of the subject property. "Fair Market Value" is defined as: 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 willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all uses and purposes for which the property is reasonably adaptable and available. The Fair Market Value of 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. SOURCE: Eminent Domain Law, Title 7, Chapter 9, Article 4, Section 1263.310 69 REEDER, GILMAN & ASSOCIATES 72B.do Pa e 8 Page 8 STAGING AREAr r` " UNLOA DING iy • � 1 � � 111!ll... - { ,'... p.T5 SE STORAGE BUILDING 231.41 F.F. Se .. INDOOR • SALES BUILDING 1 : FLJVNIS} . ,kN n4Y &P. lRPPP°°° F .+ i - 27a5S F. r INDOOR SALES R BUILDING .� A p rox. ` 171 Sq. F.t. '..` ApproX: P42 S Ft. Id i SA N T A B A R B A R AREA TO'' -B.E ACQUIRED =' , ?R•- X1.1 - ,y. f ® M1 AREA DEDIG,TED:. r'` :' BUILDIN:FTiNG t� r � PROPERTY RIGHTS APPRAISED: The property rights appraised are those of the fee simple interest in the subject property as if free and clear of all liens, leases, and encumbrances. No title report was provided for this assignment. The property is currently owner - operated as a home improvement center. OFFER TO ACCOMPANY APPRAISERS: The offer to accompany appraisers on the inspection of the property was made through a letter mailed July 28, 2000. The property owner accepted the offer and the property was inspected on November 2, 2000, with Arnold Volney (property owner) and Anthony Whalls (general manager) in attendance. DATE OF VALUE: The date to which this appraisal applies is: April 3, 2001 OWNERSHIP: The presumed owner of the property is the Pacific Home Improvement Center, Inc_ We have not been provided with a preliminary title report and have relied upon the records of the San Luis Obispo County Assessor's Office. FUNCTION OF THE APPRAISAL: The function of the appraisal will be its use as a guide to value during negotiations for acquisition of the proposed right -of -way. PROPERTY HISTORY: The property was a tenant purchase in 1998. The tenant, Pacific Home Improvement Center, had a 50 -year lease and was 20 years into it at the time of sale. It is our understanding that the property has been in the name of Pacific Home Improvement Center, Inc., since its purchase August 14, 1998 and to our knowledge the property has not been listed for sale during the past 12 months. 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I f.�,:�r`4' 3 SAN LUIS C - S Bi ',R� • � abr • K a -- �,r�.. `' r a 7 r.� * rr• tj 1:. •``N �- 1wR01W7i r - I ♦ I a1 i p„�afi 4 f.. +r# � � ' �' ra '+ , � � i J `• r I' ��?I� _t7+ , so � 'S3 ' � aleb l.dflr � � � _M �,•'., /• .+ ` f� yryires • r �9 �' ?! ��( {1. /.rn, o r+'f - 18f10f) O #i. � � .� � f (., �... . .R, g. •r ;J� 1i _. -- •m 1 r- ..�' if �'•�:, ''7J, ra�rrr.a r t�•'�x:' a Po I • Sw i.F7r ®..I�•. ea n.T, w� h \ s ', r aw C4 v " �T• -r A • i row...a.r. fMJ •k f wwror+a•n ����„� r i, ARRHO RANDE '� 1 ' AREA MAC' _..; '• ' - =. � _, ° , : "• ���� . � rc ANTA • e'er \ �I•• •.qf1 .,fir '� .. C .;.'wl ,-r,f O� . lieaoo.' �a Ji. magic•. 1 a ' _1 j GENERAL AREA ANALYSIS: The City of San Luis Obispo is the County seat for San Luis Obispo County. The City has a population of approximately 43,000 people as of 2000, with growth in the population projected over the next 5 years at less than 1 percent per year. The City is an important retail sales and tourism center for the County. The City's retail sales for the year 2000 are projected at $700,000,000, which represents 34 percent of the County's retail sales of approximately $2,060,000,000. median home rice in the City of San Luis Obispo is approximately The p $265,000, 8 percent higher than the County -wide average of $245,000. Housing stock j in the City is projected to rise very slightly, with only 90 units per year anticipated over the next 5 years. I Overall, the City of San Luis Obispo is considered to be an attractive and desirable place to live and work. Its strong employment base provides work j opportunities, although escalating home prices require that many workers commute l from other parts of. the County where housing is more affordable. Retail sales and tourism are strong in the City and are projected to remain solor the foreseeable future. MARKET DESCRIPTION AND EXPOSURE TIME: With the economic boom, the real estate sales activity has increased significantly. Sales prices are up, marketing periods are down, and the inventory is significantly reduced. San Luis Obispo County is in the midst of an economic expansion that surged some time after the Nation's economy began is long expansion. Absorption rates are good, rents are strong, and a steady supply of new space is in process for development. Currently, user demand is rapidly expanding in a limited supply of space. J Overall vacancies in the City of San Luis Obispo are estimated at less than 5 percent and many new build -to -suit (speculation) developments are under construction. Most of the commercial property is not listed through MLS. Listing times vary from buyer - 1 initiated to many years on a difficult location. Properly priced, the subject would required a 12- to 18 -month exposure time. SUBJECT PROPERTY DATA. Location: 1 The subject property is located in the southern portion of the City of San Luis J Obispo. This area is adjacent the Southern Pacific right -of -way and is one block north of the intersection of South Street and Broad Street. Santa Barbara Street is a heavily ' trafficked, two -lane asphalted thoroughfare. j 6972B.doc: W l 46 REEDER, GILMAN & ASSOCIATES Page 10 z .... . . . . • . ..... . f.... c w1aniv I . ...... . .. ...... .... .. --- GARQLNj. R LES b , I" . , I la Rte, 7w [[all LOCATION MAP s— "MIA SUBJECT 1EMPLETON A A It kl. ..... ...... • 7 66 M T It ILI ATASCidEO �L . ! . . . ! . .cy, i 1 T.UL 7 'T' n n VT, AAA- ASC A! WWW CA FA !J� p SUA... ......................... .. fAA1 A, U4, &A A, ...... I; Af LA. Kad —Am ORO i­r" SANTA Z t ON '7 4 : �4p. IF ZZ V N LUIS OBISP :L w� A ' "or .� I. ............ UW 11.5.. A A can Pt opt %LAf ■ . ...... bk WAN IN offh5po C.0 :8 j BAY C, ARROYO 4 sm KA 0 Ic PISMO -)MIA BEACH -GRANDE n I u I mpo . . ..... WrAn Luca IA, IL31 n BM* DL'NVI •STIAW, WAKIIIAN LoAM a RrX. AWA p &AL A M Acv A 3- a 0 • Legal Description: Lots 13 and 14 of Block A, A.M.O.R. 99- 000 -818, recorded in the maps of the County Recorder of San Luis Obispo County, California. Assessor's Data: Assessor's Parcel Number: 003 -752 -007 Tax Rate Area: 3000 1999/2000 Assessed Value: Land $1,223,490 Improvement $ 204.000 Total $1,427,490 Total Estimated Property Tax: $16,481.62 Zoning: The subject property is currently zoned CS, Commercial- Service, by the City of San Luis'Obispo. The CS zoning is intended to provide for storage, transportation, and wholesale, as well as certain sales and business services, which may be less 1 appropriate in the City's other commercial zones. It will be applied to areas designated Service Commercial /Light Industrial on a General Plan Map. Typically, those areas have more public exposure along arterial streets than places reserved for manufacturing. A copy of the detailed zoning regulations is contained in the Addenda. 1 Improvements: The subject property is improved with five buildings of various ages and construction types. The land is large for this type of site and the building coverage is 1 only 13 percent. A majority of the buildings were originally designed for industrial uses, _adjacent Union Pacific Railroad. Specific details of each structure are as follows: 1 • Building A is a 5,600 - square -foot storage building. The structure is constructed of steel and has a sawtooth roof. Considering this type of construction, it is estimated that the structure was originally built in the 1 1940s. The building is in average condition and has had some changes made over time. ,l e Building B was removed and is to be replaced as part of Phase I of the redevelopment of the property. REEDER, GILMAN & ASSOCIATES 6972B.doc:W146 Page 11 -1 • MetroScan /San Luis Obispo (it Owner : Pacific Home Improvement Center Inc Parcel : 003 752 007 CoOwner Land : $1,223,490 Site : Santa Barbara Struct . : $204,000 Mail : PO Box 12709 San Luis Obispo Ca 93406 Total : $1,427,490 Xjered Doc # : % Intprvd .: 14 Price Deed % Owned Ln Amt Loan Exempt Lender IntTy Type YeslType ----a� A Tax Area :3000 Use : *Unknown Use Code* _ 00 -01 Tax :$16,481.62 Legal : CY SLO PTNS BUENA VISTA A DD & OwnerPh : FAIRVIEW TR Williamson : No Census : Tract : Block : Thomas R : T : S s� tao � M11H r 65 a 1 X 1 I LJPJZK4O. Cr. %003-75 1 1 �n v — of —tor 1 I I I r 1 E I I I 1 1 l401aalee ,qtr D r+r JJasrs�r erg®' 73B I `87J ST. iron ®� + SK BMM MbTA Aa0X. Rif. INLA FAMZW AWX. R.Y. SLA • 1 Subject Property The Information Provided Is Deemed Reliable. Butts Not Guaranteed MY OF SAM LL OS 08M90 WWI 1� GF S 041 II I I pY,F.p 1 I t b Ma�ltl�.s ♦ • r- ----a� A $-- -- 1 t er i9 r. r .d 1. I. ra:i E IIDL�OIpI� � I 1 IA 1 e 1 2 + - - - - - -- r lair- T- - - - - -- - 1 a - - - - -- w 1 O 1 asap i ; • Y J : �i N • M VAMVff ACID OU •y .� LJPJZK4O. Cr. %003-75 1 1 �n v — of —tor 1 I I I r 1 E I I I 1 1 l401aalee ,qtr D r+r JJasrs�r erg®' 73B I `87J ST. iron ®� + SK BMM MbTA Aa0X. Rif. INLA FAMZW AWX. R.Y. SLA • 1 Subject Property The Information Provided Is Deemed Reliable. Butts Not Guaranteed MY OF SAM LL OS 08M90 WWI 1� GF S 041 • Building C is a 600- square -foot, wood -frame storage building with a composition shingle roof. The building is in average condition and we have estimated 35 percent depreciation. • Building'D is a 1,249 - square -foot, wood -frame retail building (rental center) with a composition shingle roof, presumably designed as a residence, and has been renovated and adjustments made over time. The rear now includes a handicapped access ramp. The condition is good; we have estimated 35 percent depreciation. • Building E is' a 600- square -foot storage building that was moved from the southern portion of the property to its present northeastern location. The structure is a metal building and is in average condition. We have estimated 35 percent depreciation. • Building F is actually comprised of three separate portions. The original portion is a wood -frame structure at the northwestern comer of the property and is estimated to have been built in 1876. The first addition was built in the 1960s and is comprised of wood -frame truss construction. These two portions equate to 5,609 square feet of interior sales and office areas. The last addition is a butler -style building of 6,000 square feet with a mezzanine office area of 600 square feet. The remainder of the property is paved and used for parking and open sales or storage areas. The structures are considered interim use, and eventual redevelopment of the entire site for a new and proper project is anticipated. HIGHEST AND BEST USE: "Highest and Best Use" is defined as: "That available use or program for future utilization of a parcel of land that produces the highest present land value." We have completed an investigation and analysis regarding the highest and best use of this property. The most probable use of the property must meet the following criteria. 1. The use must be a lawful one, consistent with the General Plan and prescribed zoning, meeting all governmental regulations. 2. The use must be within the realm of probability in the near future, not a mere possibility, not a speculative use. REEDER, GILMAN & ASSOCIATES 6972B.doc:W 146 Page 12 • • 3. There must be a demand for such a use and it must be an effective demand backed with purchasing power. 4. It must be a use that will produce the highest net return to the land in the form of money and amenities over the longest period of time. In determining the highest and best use of the subject property, additional factors which should be considered include: 1. The use is in an appropriate location to the local market and the existing nearby land uses must support and compliment this use. 2. The use is physically possible. The site is physically adaptable for this use and the necessary public infrastructure exists to support this use. 3. The use is legally permissible. Al potential uses must comply with private and public land use restrictions and zoning laws governing the use and building safety of the proposed /existing improvements. 4. The use is socially /politically acceptable. Citizens are taking an ever increasing interest in land use decisions affecting their communities. Almost all major real estate developments involve significant public comment and input. 5. The use must be financially feasible. The use must be probable, profitable, and have adequate market demand. The use must be economically feasible and not speculative in nature.. 6. Finally, among all alternate of uses which might meet the previous test, that use which results in the greatest net return or highest property value is considered to be the highest and best use. The subject site is a developed, level parcel, which is adaptable to various commercial service uses. The parcel size of 3.48 acres is sufficient to accommodate many uses including an area for parking and a storage yard. Considered as a vacant parcel, the property would best be developed into a commercial service in conformance with the Commercial Service zoning. As improved, the current building's improvements contribute to the value of the land. After considering the physical, legal, and economic criteria, it is concluded that the existing improvements will retain their values for the foreseeable future. However, eventual redevelopment is inevitable. The 13- percent building coverage contributes to the underutilization as does the age and construction types of'the existing structures. Therefore, the highest and best use of this property is interim currently as- improved for commercial service uses, with redevelopment possible in the future. REEDER, GILMAN & ASSOCIATES 6972B.doc:W 146 Page 13 • i VALUATION: The appraisal of real estate involves three fundamental methods or approaches to arrive at an opinion of the market value of a property: Cost, Sales Comparison, and Income Approaches. Each of the approaches is briefly described as follows: Cost Approach to Value: This is the method whereby improvement replacement cost, less depreciation, is added to land value ascertained from vacant land sales. he result is an indication of property value. Sales Comparison Approach.to Value: This method, formerly known as the Market Approach, considers recent sales of similar properties in the area. These sales are analyzed and compared to the . subject property with adjustments for dissimilar characteristics. The result is also an indication of the value of the property. Income Approach to Value: This method considers a property's income producing capabilities and processes said income into an indication of value through the capitalization process. The results of the above three approaches, if all are applicable, provide a band of value that is correlated into one final value estimate considering all factors affecting the property. This appraisal is primarily based on the Cost Approach to Value. We searched the San Luis Obispo area for improved sales of like properties but found no properties similar to the subject that would provide a reliable indication of-value. An Income Approach was considered; however, building coverage on the subject property is approximately 13 percent of the land. We believe that an income analysis would understate the value of the subject property. Therefore, we did not complete an Income Approach to Value. The Cost Approach is based on a premise that an informed purchaser will pay no more for the subject property than- the cost of constructing like property, assuming no costly construction delay. The steps in this approach are: 1) The land value is estimated based on land sale comparisons and other appraisal techniques. REEDER, GILMAN & ASSOCIATES 6972B.doc:W146 Page 14 2) The replacement cost of .the building and other improvements is estimated based on present construction techniques, and today's labor, material, and entrepreneurial costs and profits. 3) From this total, an amount is subtracted for accrued depreciation. This depreciation figure represents value loss caused by deterioration and obsolescence. The resulting figure is the estimated property value by the Cost Approach. The first step in the Cost Approach to Value is to estimate land value. We searched the San Luis Obispo area for land sales similar to the subject. Several sales were located; however, the following five sales, which are summarized below, are thought to be the best value indicators. Land Value: The market value of the subject property's land has been estimated using the following sales: LAND SALES SALE No. DATE DOC. LOCATION APN SALE PRICE ZONING AREA $ /SF 1 3100 Tank Farm Road $1,000,000 2.22.AC 12978 SLO C-S $10.33 053-083 -04 2 6100 Aero Drive $1,100,000 2.52 AC 36426 SLO C- $10.02 053-412 -01 3 11100 Brad Street $1,500,000 2.52 AC 65830 SLO C-S $13.67 053 - 412 -011 3A 10/99 Broad Street $1 ,0971-700 2.52 AC 75718 SLO C-S $10.00 053 - 412 -011 4 12100 South Street $550,000 0.66 AC 76231 SLO C-S $19.13 004 - 811 -014, 034 These land sales provide a band of value between $10.00 per square foot and $19.13 per square foot. The older sales, 1, 2, and 3A, suggest land values at about $10.00 per square foot: However, Sale 3, a resale of Sale 3A, and Sale 4 are more recent, indicating values in the range of $14 to $19 per square foot. Sale 4, the highest value indicator, is substantially smaller than the subject. Our experience indicates that smaller properties typically sell . at higher unit values than larger parcels, all other REEDER, GILMAN & ASSOCIATES 6972B.doc:W146 Page. 15 k factors being equal. Therefore, in our opinion, Sale 4 provides the upper limit of value at $19.13 per square foot. Based on our analysis of the many factors affecting value, such as location, size, date, zoning, etc., we have concluded that a unit value of $15 per square foot would be representative of the current market land value of the subject. This amount indicates a total land value of $2,275,000, calculated as follows: 3.48 AC or 151,589 SF @ $15 /SF = $2,273,835 Rounded: $2,275,000 The next step in the Cost Approach is to estimate the depreciated value of the improvements. The first step is to estimate replacement cost new. This was completed by utilizing the Marshall & Swift Cost Handbook. From the replacement cost new, depreciation is subtracted, based on both the tables in the Marshall & Swift Cost Handbook and our judgment in estimating depreciation on structures over the years. The following is a summary of the results of the improvement values: BUILDING IDENTIFICATION DESCRIPTION SIZE REPLACEMENT COST NEW REPLACEMENT Cost NEW LEss DEPRECIATION A Storage 5,600 SF $117,000 35,000 Wood Frame B Cut. Lumber Storage (removed) C Rental 600 SF $20,000 $15,000 Equipment Storage D Rental Display 1,249 SF $51,000 $40,000 Center E Powder Storage 600 SF $25,000 $17,000 F Indoor Sales 5,600-SF $256,500 $80,000 Wood Frame F -1 Indoor Sales 6,000 SF $339,000 $222,000 Metal G Paving and 76,200± SF $114,000 $45,000 Landscaping Total improvement Value Less Depreciation $454,000 REEDER, 61LMAN & ASSOCIATES 6972B.doc: W 146 Page 16 To the above value is added the land value previously discussed in this appraisal report. Total value by the Cost Approach is as follows: Depreciated Improvement Value: $454,000 Land Value: 2,275.000 Grand Total: $2,729,000 Rounded: $2,730,000 Total Fee Value of Subject Property, TWO MILLION SEVEN HUNDRED THIRTY THOUSAND DOLLARS 000.00) VALUATION FACTORS AFFECTED BY THE ACQUISITION: As indicated above, the fair market value of the fee simple interest in the Larger Parcel is $2,730,000 based on a Cost Approach to Value. The Part Taken for the Santa Barbara Street widening is a strip of land 7 feet in width adjacent the Santa Barbara Street right -of -way. The acquisition of the 7 feet affects the building known as the Indoor Sales Building, or Buildings F and F -1 in this report. Building F is the older wood -frame structure on the corner of High Street and Santa Barbara Street. Building F -1 is connected to Building F . but is of metal construction. This building serves as the entrance to the indoor sales area. The Part Taken is basically a 7 -foot strip of land under building F -1, which is 50 feet in width. The land area under F -1 consists of 350 square feet (7 feet times 50 feet). An additional area of land to be acquired is under Building F. According to right - of -way maps, the necessary right-of-way to be acquired is two small areas, 171 square feet and 342 square feet, of land under F. The total land area is 863 square feet (350 square feet.+ 171 square feet.+ 342 square feet = 863 square feet). According to maps from the City, the rest of the right -of -way necessary for the widening apparently will be dedicated to the City by the subject property owner. As to improvements, the acquisition will affect the front wall and approximately 7 feet of the interior of each building. REEDER, GILMAN & ASSOCIATES 6972B.doc:W146 Page 17 • • Value for the land was based on $15 per square foot, as indicated in the value of the Larger Parcel. The value of the interior areas as based on the depreciated amount per square foot for each building as expressed in the fee cost approach to value. Building F -1 contains a 12- foot -wide mezzanine adjacent the exterior wall. Our values include the entire mezzanine in the Part Taken since it would be of no use in the After Condition. Final values for the two components in the Part Taken are as follows: Land: 863 SF @ $15 /SF = $12,945 Improvements: 863 SF + 600 SF Mezzanine = $31,565 Total Part Taken: $44,510 Rounded: $45,000 Severance Damages: Severance damages include three basic components: 1. The cost to cure, replacing the front wall 2. Adding a 1,000- square -foot addition to replace the lost sales area 3. Consequential damages due to loss of sales from the construction down time. Item 1, replacing the front wail of the Buildings F and F -1, was based on an analysis by Mr. Robert Vessely, Civil Structural Engineering, 743 Pacific Street, Ste. B, San Luis Obispo, California. Mr. Vessely's estimate to replace the front wall was $200,000. A copy of Mr. Vessely's estimate is included in the Addenda of this report. . The second item of damages is the cost to replace lost building square footage. Building F is a metal -clad building on a concrete foundation with trusses on 20 -foot centers. At the rear of this building is property being used for nursery sales. Since building coverage on this site is 13 percent. There should be no problem extending the building with a 20- foot -wide section similar to the original construction. According to the Marshall & Swift Cost Handbook, this could be done for approximately $100,000, including amounts for some partitioning or a mezzanine. Consequential damages for Item 3 are from down time due to construction activities preventing normal sales within the building. Mr. Vessely and his associate, Michael Hicks of Carroll Building Company, estimated construction would last from 4 to 6 months. Utilizing net profit per square foot amounts from the profit and loss statements provided by the property owner, we estimated the loss of sales over a 6- month construction period at both the front and the rear of Building F -1. These totals $54,500. The calculations are available in our files, if needed. REEDER, GILMAN & ASSOCIATES 6972B.doc:W I46 Page 18 Considering the above three items under the heading Severance Damages, total damages amount to $354,500, calculated as follows: Item 1: Cost to Replace Front Wall: $200,000 Item 2: Construct Addition at Rear of Building F $100,000 Item 3: Consequential Damages due to Construction Down Time $54,500 Total Damages: $354,500 0 REEDER, GILMAN & ASSOCIATES 6972B.docW 146 Page 19 n • • CALIFORNIA EMINENT DOMAIN FORMAT VALUATION: 1. Fair Market Value of Larger Parcel: Land 3.48 acres, or 151,,589 SF, @ $15 /SF= $2,273,835 Rounded: $2,275,000 Improvements: - Replacement cost new less depreciation for 5 major structures $454,000 2. Fair Market Value of the Part Taken: Land - 863 SF @ $15/SF = $12,945 Improvements — Depreciated value $31,565 Total Part Taken - $44,510 Rounded: $45,000 3. Fair Market Value of Remainder: 4. Fair Market Value of Remainder After Project Construction: 5. Severance Damages: See Attached 6. Temporary Easement - 8. Total Compensation: Land $12,945 Improvements $31,565 Damages $354,500 Temporary Easement 0 TOTAL COMPENSATION: $399,0 -0 $2,730,000 $45,000 $2,685,000 $2,330,500 $354,500 0 Rounded: $400,000 REEDER, GILMAN & ASSOCIATES 6972B.doc:W146 Page 20 ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report is subject to the following: 1. It is assumed that title to the property which is the subject of this report is free and clear of liens, leases, and encumbrances and is good and marketable unless otherwise noted. 2. No responsibility is assumed for matters legal in nature or for facts or conditions which require specialized knowledge beyond that of a qualified real estate appraiser or that customarily employed by real estate appraisers. This includes, but is not limited to, structural defects or termite damage not readily apparent, conformance to specific governmental requirements such as fire, building safety, earthquake, flood, or occupancy codes, soil stability or instability, etc. 3. No survey of the subject property was made at the time of appraisal. All references to property size or dimensions were obtained from public records or from data provided this appraiser. Maps and other display material are included only as a guide in .emphasizing certain aspects of a property. 4. In preparing this report, certain information was obtained from other persons. This data is assumed to be correct, but we assume no responsibility for its accuracy. 5. We are not required to give testimony onto appear in court or at conferences by reason of this appraisal, with reference to, the property in question, unless further arrangements have been previously made and mutually agreed upon. 6. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by anyone but the applicant without the previous written consent of the appraiser or the applicant, and then only with proper qualification. 7. The "Highest and Best Use" as indicated by this report, is assumed to be consistent with Planning and Zoning policies, and will meet the approval of all local, city, county, state, and federal land use and environmental laws and regulations. We assume no responsibility for changes or limitations imposed by the various governing agencies or political entities that affect a property's use or value. 8. This valuation does not include items of personal property, partial interests, or mineral rights unless specifically incorporated by reference. 9. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. 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 petroleum products, asbestos, urea - formaldehyde foam insulation, underground chemicals or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an-expert in this field, if desired. REEDER, GILMAN & ASSOCIATES 6972B.doe:WI46 Page 21 • • 10. This is a complete appraisal and is reported in summary format. 11. Because no title report was made available to the appraisers, we assume no responsibility for such items of record not disclosed by our customary investigation. 12. The appraiser reserves the right to make such adjustments to the valuation herein reported, as may be required by consideration of additional data or more reliable data that may become available. 13. No termite inspection report was available. The appraiser personally inspected the subject property, but is not qualified to detect termite damage or infestation. We urge the client to retain an expert in this field if desired. This report assumes that there is no termite infestation that would significantly impact the overall value of the property; however, we don't guarantee that infestation does not exist. 14. No consideration has been given in this appraisal as to the value of the property considered by the appraiser to be personal located on the premises, or the cost of moving or relocating such personal property; only the real estate has been considered.. 15. Because our report is in summary form, we will retain the technical appraisal data in our files. We regard the appraisal analysis as confidential and will release its contents only upon your authorization. 16. Maps, plats, and exhibits included herein are for illustration only as an aid in visualizing - matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced, or used apart from this report. 17. No opinion is expressed as to the value of subsurface oil, gas, or mineral rights or whether the property is subject to surface entry for the exploration or removal of such materials except as is expressly stated. REEDER, OILMAN &ASSOCIATES 6972B.doc:W 146 Page 22 • CERTIFICATE OF APPRAISER • 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 are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. My 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 Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. 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, l have completed the requirements of the continuing education program of the Appraisal Institute. I have personally inspected the property that is the subject of this report. My value conclusion, as well as other opinions expressed herein are not based on a requested minimum value, a specific value, or approval of a loan. Prior to accepting this assignment I determined that I have the professional education, background, and experience necessary to complete this assignment competently. No one provided significant professional assistance to the persons signing this report. DATE: April 10, 2001 WARREN REEDER, MAI, SRWA Certified General Real Estate Appraiser, CA #AG006521 Federal Tax ID #77- 0555850 NOTE: ORIGINAL DOCUMENT IS SIGNED IN BLUElNK. REEDER, GILMAN & ASSOCIATES 6972B.doc:W146 Page 23 i • CERTIFICATE OF APPRAISER 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 are limited only by the reported assumptions and limiting. conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. My 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 Practice of the Appraisal institute, and the Uniform Standards of .Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.. I have personally inspected the property that is the subject of this report. My value conclusion, as well as other opinions expressed herein are not based on a requested minimum value, a specific value, or approval of a loan. Prior to accepting this assignment I determined that. I have the professional education, background, and experience necessary to complete this assignment competently. No one provided significant professional assistance to the persons signing this report. DATE: April 10. 2001 M. Lisa orgquist Certified General Real Estate Appraiser, CA #AG014431 Federal Tax ID #77 -0555850 NOTE: oRlGINAL DOCUMENT Is sfGNED tN BLUE wic REEDER, GILMAN & ASSOCIATES 6972B.doc:Wi46 Page 24 ADDENDA Land Sales Locations Aerial Photograph of Subject Property Subject Property Photographs Zoning. Map Selected City of San Luis Obispo Zoning Regulations Cost Estimate for Building Remodel Corporation Grant Deeds Professional Qualifications REEDER, GILMAN & ASSOCIATES 6972B.doc:WI46 Page 25 • Llp i a y e e i i teen son Lutz ON" n n.-rr �I$ ,3 O� �a �e A o 1 mr SAN LUIS OBISK +.tee.. , Laa v 2 lARYne nui �' ••, rake F cow WAU Y • :'.�' ''s .uooMr. ,„,. -A t l LAND SALES LOCATIONS ® SALES SUBJECT PROPERTY u� E, r � I a oew COY. SUBJECT: SALES BUILDING WITH OFFICES SUBJECT: RENTAL DISPLACE BUILDING 6972bP.clm -1 i • SUBJECT: STORAGE BUILDING BACKGROUND SUBJECT: GARDEN CENTER 6972b- P.doc:2 ,.:m m SELECTED CITY OF SAN L UIS OBISPO ZONING REGULATIONS Chapter 17.52: SPECIFIC PLAN (SP) OVERLAY ZONE Sections: 17.52.010 Purpose and application. 17.52.020 Allowed uses. 1752.030 Property development standards. 17.52.010 Purpose and application. The SP zone is intended to translate the provisions of an adopted specific plan into regulations for the subsequent developmentof land. It will be applied to areas for which a specific plan has been adopted or where the general plan calls for a specific plan prior to development, generally within residential expansion areas. (Ord. 941 - 1 (part), 1982: priorcode- 9203.15(A)) 17.52.020 Allowed uses. Prior to adoption of a specific plan, areas in the SP zone may be used in conformance with the provisions of the C/OS zone. Once a specific plan has been adopted. uses shall be as provided in the specific plan. (Ord. 941 - .1. (part).1982: prior code - 9203.15(8)} 17.52.030 Property development standards. A. Residential density shall be as provided in the specific plan. B. Height, yards, coverage and parking shall be as provided in the specific plan. If the specific plan does not contain explicit provisions on these items, they shall be provided in the underlying zone. C. Other development features explicitly contained in the specAc plan, such as landscaping; building siting and form, and circulation, shall be as provided in the specific plan. (Ord. 941- 1(part).1982: prior code - 9203.15(C)) Chapter 17.54: HISTORICAL PRESERVATION (H) ZONE Sections: 17.54.010 Purpose and Application 17.54.020 Allowed Uses 1754.030 Property Development Standards 17.54.0110 Purpose and application. A. The H zone identifies parcels, areas or structures that (1) are architecturally or historically important; and (2) may be eligible for benefits offered through the City's Historical Preservation Program. a. The H zone may be applied to areas with any of the following characteristics: 1. The property is within an area where buildings with pre -1941 architectural styles create a mcogntoble character. 2. The property or area contains structures which (a) are good or excellent examples of pre-1 941 architecture, or•(b) were designed by eminent architects or designers, or (c) are community architectural landmarks. 3. The property or area contains structures that are included in the City's Master list of Historical Resources. 4. The property, area or structure was owned or occupied by someone who had a significant role in the history of the city, region, state or nation. (Ord. 1086 - 1 Ex. A(part), 1987) 17.54.020 Allowed uses. Uses shall be as provided in the underlying zone. (Ord. 1086 -1 Ex. A (part), 1987) 17.54.030 Property development standards. Property Development Standards shall be as established by the underlying zone. (Ord. 1086 -1 Ex. A (part), 1957) • Chapter 17.44: TOURIST - COMMERCIAL (C T) ZONE Sections: 17.44.010 Purpose and application 17.44.020 Property dcvelopment standards, 17.44.010 Purpose and application The C -T zone is intended primarily to provide accommodations and services for the traveling public and will be applied to areas designated "tourist- ommercial" on the general plan map. (Ord. 941 - 1 (part), 1982: prior code - 9203.11(A)) 17.44.020 Property development standards. The property development standards for the C -T zone are as follows: A. Maximum density: 12 units per net acre, including dwelling units in hotels and motels, but not including other hotel or motel units (see also Section 17.16.010). B. Yards: See Section 17.16.020. C. Maximum coverage: 75% (see also Section 17.16.030). D. Maximum height 45 feet (see also Sections 17.16.020 and 17.16.040). E. Parking requirements: See Section 17.16.060. (Ord. 1006 -1 (part). 1984: Ord. 941 -1 (part), 1982: prior code - 9203.11(8)) • Chapter 17.46: SERVICE - COMMERCIAL (C-S) ZONE Sections: 17.46.010 Purpose and application_ 17.46.020 Property development standards. 17.46.010 purpose and application. The CS zone is intended to provide for storage, transportation and wholesaking as well as certain retail sales and business services which may be less appropriate in the City's other oommerciatzones. It will be applied to areas designated "services and manufacturing" on the general plan map, typically those areas WM more public exposure along arterial streets than places reserved for manufacturing. (Ord. 941 -1 (part). 1982: prior code - 9203.12(A)) 17.46.020 Property development standards. The property development standards for the C-S zone are as follows: A. Yards. Minimum street yards shall be: 1. Where no building adjoins, five feet (requirement for parking lots and signs); 2. For buildings 20 feet and less in height, 10 feet 3. For buildings more than 20 feet in height, 15 feet; 4. Other yards shall be as provided in the zone of any adjacentlot: 5. See also Section 17.16.020. B. Maximum height; 35 feet (see also Section 17.16.020 and 17.16.040). C. Maximum coverage: 75% (see also Section 17.16.030). D. Parking requirements: See. Section 17.16.060. • phapter 17.22: USE REGULATION section:. 17:22.010 Uses allowed by zones. 17.22.010 Uses allowed by zones. Uses within zones shall be as provided in the following chart Symbols shall have these meanings_. A _ The use is allowed; D. - If the Director approves an administrative use permit as provided in Sections 17.58.020 through 17.58.080, the use may be established *. PC - if the Planning Commission approves a use permit as provided in Sections 17.58.020 through 17.58.080. the use may be established: AID - The use is allowed above the ground floor. If the Director approves an administrative use perms, it may be established on the ground floor. See also Section 17.36.030 concerning uses which may be established within public schools. Listed uses are principal uses. Accessory uses are allowed with princlpaluses. Drive-through facilities are not allowed in any zone. Where manufacturing is allowed, incidental sale of items. rtmde on the premises is allowed. When sale of a particular type of item is allowed, craftsman -type production of such an item for sale on the premises is Mowed. These regulations are intended to permit similar types of uses within each zone. The Director, subjectto the appeal procedures of Chapter 17.65, shall determine whether uses which are not listed shall be deemed allowed or allowed subject to use permit approval in a certain zone. This Interpretation procedure shall not be used as a substitute for the amendment procedure as a means of adding new types of uses to a zone. Special notes, indicated by number in the following chart, may be found at the end of the chart • :t �ROBERTS ES R1- CIVIL STRUCTURAL 743 Pacific St„ Suite B San Luis Obispo, CA 93401 E N G I N E E R I N G Phn: 8051541 -2003 Fax: 8051541 -2098 Letter of Transmittal To: Warren Reeder . Company: Reeder, Gilman & Associates From: Bob Vessely Job Name: Santa Barbara Street Widening, San Luis Obispo Date: 3112101 RECEIVED M. i 4 2001 INCLUDED HEREWITH: 1. Construction cost estimate by Carroll Building Co. COMMENTS: Warren, This estimate goes with the drawings that I sent to you in January. In February, l sent a copy of the drawings to Terry Sandville at the City and had one brief conversation with him since then. He thought that.the drawings reflected, -at least, the general direction that the City was anticipating for the project. . I believe that this completes my work. If you have any questions, please don't hesitate to call me. VAS CARROLL CARROLL DEVELOPMENT, INC. Lfc. No. 755873 2653 Victoria Avenue San Luis Obispo, CA 93401 Tel: (805) 543 -2427 Fax: (805) 543-2498 March 12, 2001 Robert S. vessely, P.E. 743 Pacific Street, Suite B San Luis Obispo, Ca 93401 Re.: Pacific Home Improvement Building Remodel Dear Mr. vessely: The following is a preliminary budget based on the plans provided by your office dated January 15, 2001. It includes work for the removal of section to outline main building and small remodel at the rental center. I h attempted the work I have figured based on the plans and abasisc walk around allowed the as building, including costs related to prevailing wage. follows: Section General Requirements Temporary fencing, set up temporary utilities, clean up, project coordination and supervision. Site Work Demolition of existing walls, roof, floor, an needed demolition of rents porch; foundation; temporary shoring wall. New perimeter concrete foundation for new wall. Concrete Carpentry Rough framing labor to tie in flooring, new wall, & of exterior fagade; interior finish roof; replacement carpentry. ThermallRoofing Insulate reframed wall; demo, OSB sheet, and reroof shingles the remodeled portion of with 30 year asphalt the building; sheetmetal flashings; continuous aluminum gutter along replaced wall. Pacific Home Improvement Remodel Carroll Building Company Page 2 of 2 March 12, 2001 Section Descriodon of work Finishes Drywall new wall on the interior, patch ceiling at tie in to wall, patch at rental area for drywall & stucco; flooring patch inside of store; painting of interior wall and ceiling patch, paint exterior siding and flashings. Specialties Louvers or vents for foundation and roof. Labor to move existing store shelving and merchandise. Mechanical Rework of existing ductwork in attic area. Electrical Demolition of existing electrical within wall and ceiling area, replacement of plugs in wail and rework of existing ceiling lights as needed. Work or costs not included in this budget include the following: architectural, structural, or mechanical design; building permit fees, utility company applications or fees; underground utility relocation or protection; underground structures other than foundation that are not noted on the plan; addition of building fire sprinklers; any work related to the City sidewalk, curb & gutter, street patch or repair, landscaping or irrigation rework; ADA or handicap upgrades; building signage; fire alarm & communication work. This budget is not a proposal to do the work it is only a preliminary budget. - Hopefully this information is helpful for your continued design work and project . analysis. For the sake of unforeseen areas of work you should probably consider a 10% to 15% contingency. Thank you for the opportunity to provide you with this budget Sincerely, O—q'A' . Michael Hicks Carroll Building Company Encl.: 1 0 Estimate Spreadsheet for PHIC Remodel Date: March 12th, 2001 Owner. For Robert Vessely, P.E. Phone t 541 -2003 Job Address: Contact: Description: Remove and replace part of building • CARROLL BUILDING CO. 2853 VICTORIA AVENUE SAN LUIS OBISPO, CA 93401 (606)543-2427 Cati3r Tillie 1'ltA1194' � t �'to• Code Description Total 1.000 GENERAL REQUIRE ENTS 250 1.120 Tem ra Utilities Cleanup Chemical Toilet 2214 250 1470 1.200 1.210 1.500 Temporary Fence & Public SO 55pervision 8500 1.820 2.000 SITE WOEM 19660 2.050 Demolition 7560 2.150 TemporarY ShOrinQ Wall 3.000 CONCRETE 17095 3.100 Concrete Footings 6.000 WOOD 8 PLASTICS 14400 6.100 Rough Lumber/Hardware 18500. 3080 6.110 6.130 F e Re lacement Finished 1505 6.200 7.000 THERMALIMOISTURE PROTECTN 1200 7.200 Insulation 12000 7.300 Roofing '600 7.600 Flashing & Shedt Metal 720 7.710 Gutters/Downs 9.000 FINISHES 5200 9.250 sum Board 3600 9.650 Floorl3L 9.900 Painting8220 10.000 SPECIALTIES 1440 10.200 Louvers & Vents 10.670 Move. Shelvin eT!mndise 2900 15.000 MECHANICAL 15.500 HVAC 2660 16.000 ELECTRICAL 16.050 Basic Electrical 5900 SUB TOTAL 138,924 1.810 BUILDER CONTINGENCIES 2,778 1.830 SAFETY CHECK Ok or PROBLEM OK LIA INSURANCE 1,389 1.860 OVERHEAD 11,447 1.870 PROFIT 10,818 SUB TOTAL 165.357 1.880 BONDS 2,365 TOTAL BID 1167,722 pt-itf :Fcti mS� Carroll Building Coinpany Confidential 1 3/12/04 P1 -1.)ds I1 - 144W � -- O -mob- 1332�1SHJIH X T D o T __ I AA I \ wood Dnm 10 '1 z m,0 �:✓ 0 T z c W, Cn O Z m �- O y✓ A z O :,S Vv m of I m ✓ m a�n 0 ' 1 D n m Pzz i9 ute m -i fn m 37• Tic 0 Z< 1 O m O O > Z m 1 Ill h66_210 p3NOON119b')133?J1S SNI�SdH z D m rd N X m C 0 N m 0 Q n Gi I ZED N O m m Mj W a 0 1 N Z man wZ z -1 O W -n m *' o I TNC D Z —I � I z °D jcr Z n c �_ c co O I �' o 4. _ m Z 0 ? i ' m m v D 65 ODD0 M CO -o 2m O i :01 1:✓� �i..i I D� cn ,._, �,. �- D z z °O m ,� N� mocy,o o I m m = V orvm m m (S) m I `� ✓ � -n TI -n > NI p D I I O w m 1 ' 3„y0,6Zo68N (r 4�� 'Toy CI OMM5 hue) 4 1II - ��vi�s Li ;I IPlP.nT�? .'r'TT 71/ 7 qtr ]\/ITT T nhT I_ 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 September 19, 2007 APPRAISAL REPORT OF PACIFIC HOME & GARDEN SANTA BARBARA STREET WIDENING 2120 SANTA BARBARA STREET SAN LUIS OBISPO, CALIFORNIA PREPARED FOR: MS. BRIDGET FRASER, PROJECT MANAGER CITY OF SAN LUIS OBISPO 919 PALM STREET SAN LUIS OBISPO, CALIFORNIA PREPARED BY: REEDER, GILMAN & MILLION REAL ESTATE APPRAISERS SANTA MARIA, CALIFORNIA 1 1 1 1 September 19, 2007 Ms. Bridget Fraser, Project Manager City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 RE: Appraisal Pacific Home & Garden Center, Santa Barbara Street Widening 2120 Santa Barbara Street, San Luis Obispo, California Our File No. 7641 B- 01 -07 -ED / Flash237 Dear Ms. Fraser: At your request and authorization, we have completed the second of the two appraisals of the properties affected by the proposed widening of the east side of Santa Barbara Street between Roundhouse Road and High Street. The purpose of the appraisal is to estimate the just compensation for the acquisition of the new right -of- way. The appraisal is to consider real property only. Items of personal property such as business valuation, equipment, etc., are not to be part of this analysis. The opinion of value is based on the fee simple interest in the subject property as if free and clear of all liens, leases, and encumbrances. The function of this appraisal will be its use a guide to value during negotiation for acquisition of the proposed right -of -way. The following appraisal report is a result of our inspection of the subject property and contains descriptive data and analysis on which we have based our opinion of value. Our 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 Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. REEDER GILMAN & MILLION ' Appraisers and Consultants e Real and Personal Property WARREN REEDER • MAI, SR/WA 1101 South Broadway, Suite A, Santa Maria, California 93454 SCREA, CA # A0006S21 ' Senior Member - APPRAISAL INSTITUTE P. O. Box 726, Santa Maria, California 93456 INTERNATIONAL RIGHT OF WAY ASSOCIATION Telephone: (805) 925 -2603 LESLIE J. GILMAN • MBA, SR `WA ' SCREA, CA 9 AGO 14980 Fax: (805) 925 -0840 Senior Member - INTERNATIONAL RIGHT OF WAY ASSOCIATION Email: info@rgmappraisers.com M. LISA MILLION ' SCREA, CA # AGO] 4431 Federal Tax ID #77- 0555850 1 1 1 September 19, 2007 Ms. Bridget Fraser, Project Manager City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 RE: Appraisal Pacific Home & Garden Center, Santa Barbara Street Widening 2120 Santa Barbara Street, San Luis Obispo, California Our File No. 7641 B- 01 -07 -ED / Flash237 Dear Ms. Fraser: At your request and authorization, we have completed the second of the two appraisals of the properties affected by the proposed widening of the east side of Santa Barbara Street between Roundhouse Road and High Street. The purpose of the appraisal is to estimate the just compensation for the acquisition of the new right -of- way. The appraisal is to consider real property only. Items of personal property such as business valuation, equipment, etc., are not to be part of this analysis. The opinion of value is based on the fee simple interest in the subject property as if free and clear of all liens, leases, and encumbrances. The function of this appraisal will be its use a guide to value during negotiation for acquisition of the proposed right -of -way. The following appraisal report is a result of our inspection of the subject property and contains descriptive data and analysis on which we have based our opinion of value. Our 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 Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. 7- L As a result of our investigation and analysis of the factors influencing real estate value, together with our experience in appraising properties in the area, it is our opinion 1 that just compensation for the acquisition of the subject property, as of August 2, 2007, is: ' ONE HUNDRED FOURTEEN THOUSAND THREE HUNDRED DOLLARS ($114,3") ' SUBJECT TO the Assumptions and Limiting Conditions contained herein. ' We hereby certify that we have no present nor contemplated financial interest in the subject property, that the opinion of value expressed herein is our own conclusion and that our fee is not contingent upon the value reported nor upon anything else ' except the delivery of this report. Respectfully submitted, REEDER, GILMAN & MILLION REAL ESTATE APPRAISERS ' M. Li Million Certified General Real Estate Appraiser, CA #AG014431 II NOTE: ORIGINAL DOCUMENT IS SIGNED IN BLUE INK. � MGMas L REEDER, GILMAN & MILLION 7641B / Flash237 Page 3 1 6 TABLE OF CONTENTS INTRODUCTION: APPRAISAL REPORT: TheProject ............................................................................................ ............................... Identification of the Larger Parcel .......................................................... ............................... Purposeof the Appraisal ........................ :.............................................................................. AreaMap .................................................................................... ............................... PropertyRights Appraised ..................................................................... ............................... Offer to Accompany Appraisers ............................................................. ............................... Dateof Value ......................................................................................... ............................... Ownership............................................................................................. ............................... Functionof the Appraisal ....................................................................... ............................... PropertyHistory ..................................................................................... ............................... Highestand Best Use ............................................................................ ............................... Valuation............................................................................................... ............................... PartTaken .............................................................................................. ............................... ValuationSummary ............................................................................... ............................... Assumptions and Limiting Conditions .................................................... ............................... Certificateof Appraiser .......................................................................... ............................... ADDENDA: LandSales ............................................................................................ ............................... MarketData Map .................................................................................... ............................... Assessor's Parcel Map and Data ............................................................ ............................... SubjectAerial Photograph ...................................................................... ............................... Subject Property Photographs ............................................................... ............................... FloodMap .............................................................................................. ............................... ZoningMap and Information .................................................................. ............................... TopographyMap .................................................................................... ............................... ProposedRight of Way ......................................................................... ............................... PreliminaryTitle Report .......................................................................... ............................... Garden Center Reimbursement Information ........................................... ............................... Appraisal Services Letter to Property Owner .......................................... ............................... ProfessionalQualifications .................................................................... ............................... REEDER, GILMAN & MILLION 9 9 9 10 12 13 16 18 19 21 7641B / Flash237 Page 4 7 1 IA. FAIR MARKET VALUE DEFINITIONS ' (a) 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 uses and purposes for which the property is reasonably adaptable and available. ' (b) The Fair Market Value of property taken for which there is no relevant market is its value on the date of valuation as determined by any method ' of valuation that is just and equitable. SOURCE: Eminent Domain Law, Title 7, Chapter 9, Article 4 Section 1263.320 B. SEVERANCE DAMAGES - In the case of a partial taking, it is the damage to the ' part not taken which arises by reason of the taking and /or the construction of the improvements in the manner proposed. ' C. TAKE OR SUBJECT PROPERTY - All the property which the owner thereof will be deprived the use of, either permanently or temporarily as a result of the construction of this project. ' D. PARENT PROPERTY OR LARGER PARCEL - The whole of the parcel of which a partial take is being made. E. GENERAL BENEFITS - A gain or appreciation in value arising from a public improvement which affects the entire community, neighborhood or District by ' reason of nearness to the public improvements. F. HIGHEST AND BEST USE - That which, at the time of appraisal, is the most ' profitable, likely use to which a property can be put. G. EASEMENT - A non - possessory interest in the land of another which allows the owner of the easement to use that land for a particular purpose. l REEDER, GILMAN & MILLION IJ 7641B / Flash237 Page 5 1 1 t SCOPE OF THE APPRAISAL The duties of the appraiser in fulfilling this assignment included: A. Inspection of the physical property including the land, improvements, public utilities and other items considered important. B. Study and evaluation of available publications on relevant data such as economic studies, maps, real estate trends, etc., necessary in preparing this appraisal. C. A study of various public records including data available from the County Assessor, the County Recorder and other public agencies. D. Study of the surrounding areas and local factors and trends affecting real estate values and the subject property. E. Taking photographs of the subject property. F. Securing sufficient data to complete the appraisal. This includes interviews with buyers and sellers of similar properties and interviews with knowledgeable people in the area for the purpose of securing the necessary background data. G. Analyzing all data collected and processing said data into our opinion of the Market Value of the subject property. H. The market data contained in this report was verified with people familiar with the transaction, typically the Buyer, Seller, Real Estate Broker, or other reliable source. I. This appraisal is reported in summary format. REEDER, GILMAN & MILLION 7641B / Flash237 Page 6 1 t 1 1 1 1 1 1 1 1 1 APPRAISAL SUMMARY Subject Property Owners: Location: Assessor's Parcel Number: Larger Parcel Area: Part Taken: Temporary Construction Easement: Improvement Area: Part Taken: Zoning: Highest & Best Use: Date of Value: Valuation: Larger Parcel (Land Only): Part Taken (Land): Improvements: Damages: Benefits: Temporary Construction Easement: Total Just Compensation: REEDER, GILMAN & MILLION Garden Station LLC 2120 Santa Barbara Street, San Luis Obispo, California 003 - 752 -007 3.48 acres with 19,658 square feet of structures, plus 600 square feet of mezzanine offices 11.1 SF 942.8 SF 1,218.3 SF Total 2.172.2 SF 342.58 SF 3.963.02 SF Total 4 305.60 SF Estimated 2,000 SF of landscaping C -S — Commercial Service Existing use, Commercial Service with the potential for future redevelopment August 2, 2007 $6,064,000 $ 87,000 $ 10,000 $ 0 $ 0 $ 17,300 $ 114,300 7641 B / Flash237 Page 7 1 1 1 APPRAISAL REPORT THE PROJECT: The project includes two parcels, which are located on the east side of Santa Barbara Street between Roundhouse Avenue and High Street. The purpose is to widen Santa Barbara Street and reduce congestion. The Take Area is 7 feet wide and runs the length of the street. The Garden Station LLC property, which is the subject of this report, is one of two parcels that are affected by the project. The Take Area includes land, a portion of front landscaping, and a stairway entrance on the southern building. The Fee Take Area is 2,172.2 square feet with 2,000 square feet of landscaping improvements and a temporary construction easement of 4,305.6 square feet for this parcel. The second parcel, known as the Conroy property, has been completed and was sent to you in January 2001. IDENTIFICATION OF THE LARGER PARCEL: The Larger Parcel is a 3.48 -acre corner lot located on the southeastern corner of High Street and Santa Barbara Street. The property is improved with five buildings with parking and open -air sales. Due to the location of the structures, the project will affect the front portion of landscaping and the southern buildings front entrance. PURPOSE OF THE APPRAISAL: The purpose of the appraisal is to estimate the fair market value of the subject property. "Fair Market Value" is defined as: 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 willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all uses and purposes for which the property is reasonably adaptable and available. The Fair Market Value of 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. SOURCE: Eminent Domain Law, Title 7, Chapter 9, Article 4, Section 1263.310 REEDER, GILMAN & MILLION 7641B / Flash237 Page 8 J'1 Ld MI t' _ pTtgr\ t' 8Pn 8pj "e �. r' "f �,� ATASCAD�RO w��•j). 1! csI T 'r r � G I r 0 • e.�ub � �• � natyr ,w , is • %I Poinf ft o - /• sr a a,....r�il a° w Peek n .-� `• �O =c " M 0 °C r I Gs ,^, IEOw rL£'J c vol" Dargke =_B1 ' Cryums Pt. ,nw! w 1 a„ 1 ••c `.`Y ` n RPaak :rSCAYUC05 r r .o i� ,ni 76re 11 r ` Onro SAO n'i uYi� ��i Cerro Aha ht�EagH `� •� aaajna E Ahtwla 101 q °'``•`r'•'°rm s VorNO C • T p •, > PeekK p w:mrutn lrr . l' `' nPya°O' 4 W ' • �caYOte Perot \ .Cit d •�' 415 = a' sprbY •� - `LSANIA N „• ,-. 11O� ELI Morro mod,t-0tl .i 'gpjW N .� c b MARGARITA + wl ' J:05 •� i liofSPriw1 yb � c PAORRO BAY P . Wh,dp = /:�- tuwe-Wwe•,tpEJ. . - ,: 4' d +�: S r.' �1 81ick r5"Y :• 1 a ; -. a s LDS �SD54 BPr�wB -sash. cn e= v wan:. n 'Haile._. .,-..�� (y vim"`• G• -MCaN ��\ R.°Kr •� i , orar arrrr Peak�n + 3 � .^ J rlsr! =ar 1,I _!� •,p%`_� '2V ty i rs s a . + r Q', ?)"`!'•n'•:Ff '� n \) r GU w° que4 fi r1MACNESNA MO UN 1:1+:�lway DEORO y rlv ♦ t J/ ' Ti A' ' SpinQ SAN LUIS Maehosne r s�.I �•9,R n.. "DB�$_PD `$ a�°jxM Mounre in j• ' 1 ~ -. C CU a / - G r ,S - r , i iG (�r3- Q � ` wd ` - .S.c • I n ° • V row �. ..nvu/. ti LE!, W / - r I"EIM1. . t..r GAYCIA ILDERNESS _�Point RUChM ay Hill ••• Hl �ln. SprEry., 1 Sim l��,,, •� , u.. •� mwnr ` + R `-'�, ° •' . �'+� {�'-� . I WIIDEQNESS �XarAstasa ma. 9,y 5 die en,�p - • r�.: ^ ": , ' �►- ealdyBuI;;,'��• ' ,unu:dfw4w }� Gram •: P ♦ - n Peak' 4` Ro n Icnob I : +` rte. rr "ibp spy r , In Knob :7 a �. i°"�'r'�,j'r r %� $ I "•: AYIIAm than EACN�' ' ! ��,,Earreu.oaaq� PISMO' —� w ��, °:6 ' PoMt sen Luls '' EACH w �T�!rD_ _ - .` - ..:`ircr.`\. °"°' ': .. - ` i,y s0- l• i �D .,,p CEwa! P. ci Carrol� GRO EACH',i 'f,.�,' R �,,urw.w�i•�..''arr �rJ ;��.e•'� D ARROYOg6RANDE Lma - W Wi. / rp •'"�` a Pkad10 PrrCIM I:.auuwam.W r' ?^' n•rr � ' l In - OCEANO i = SA r , � "' c7.f� an °,vl,a Nrrc y r. `•' r SI elf P¢ j � _ s r y. } �1 StanWr Mrr.nMln r�! Boor P el`4,l`l 9� HIPOmo 1anw uc:s O ? . v tic 1 n R La CuoncWhe ln i o Y+ G Mo ' • 'l' Sp, NrA SANTA, o P S.N r:a * MARIA I MussdPt: p” ,L e °"° - - `.. I n•� sw+v ,, ;`�;; 1 + ! ref M ` ss PoMt LI �` • i Ba C + ' tt. — 'E • _ �! " I e Q h. ,J 4t +ivinrun ty9,ry t FulmF a/ a lypi i ® 1 a° R �r = E / 1 •,�.�; _App E " RCUiT Mamt „ ' c �• 4 O 2 •0 � ie s sao- -n +* \ ON ° 101 ,t oar osmr ,y Q Ld v ti ur ,V,r _ • J 1^ cu VANDE BERG s Lp 1 0UNTON MESA r P a , Vt VANDENBERB 8' A OS ,( AUK aan0or / 4/ AIR FORCE R e N ,m �`( VANDENBERS , MISSION HILLS�e Redioc Mtn. i ' bra.. s+f'✓ V IUA1 RRE _ ' - rte.'!_! ALL 9 ( ., -, , �1 M4LEYe x ;u.;yv: EaeuWAvw it BI$E rd 1 .� a N rq p' ur •r 5 �� g t�a� . ,'3° �'p4E _ �I1t ,ar •c RR� "j T 4 N ' i',� • ^1rS 0,, — BUELLTON IPROPERTY RIGHTS APPRAISED: ' The property rights appraised are those of the fee simple interest in the subject property as if free and clear of all liens, leases, and encumbrances. ' The property is currently owner - operated as a home improvement center. ' OFFER TO ACCOMPANY APPRAISERS: The offer to accompany appraisers on the inspection of the property was made through a letter mailed March 15, 2007. The property owner accepted the offer and the ' property was inspected on August 2, 2007, with John Dunn, the property owner's representative, and Ken Hayek, General Manager of the Home and Garden Center, in ' attendance. Several issues were brought up at this meeting: ' • The planters and landscaping are important to the owners. The owners want to replace the landscaping themselves and move the mature trees. ' • The owners have retained Cannon and Associates to reconfigure the parking lot and drainage due to the project. ' • The locations at the north and south ends of the project where there is no landscaping, when concrete is removed, they would like to replace with ' planters. DATE OF VALUE: ' The date to which this appraisal applies is: ' August 2, 2007 ' OWNERSHIP: The owner of the property is the Garden Station LLC. We have relied upon the ' records of the San Luis Obispo County Assessor's Office and the preliminary title report. FUNCTION OF THE APPRAISAL: ' The function of the appraisal will be its use as a guide to value during negotiations for acquisition of the proposed right -of -way. REEDER, GILMAN & MILLION 7641B / Flash237 ' Page 9 7 IPROPERTY HISTORY: The property was purchased in 2004. The seller, Pacific Home Improvement Center, owned the business at the time of sale. It is our understanding that the property has been in the name of Garden Station LLC since its purchase on November 19, ' 2004, and to our knowledge the property has not been listed for sale during the past 12 months. The buyer also purchased the business. ISUBJECT PROPERTY DATA: ' Location: The subject property is located in the southern portion of the City of San Luis Obispo. This area is adjacent the Southern Pacific right -of -way and is one block north of the intersection of South Street and Broad Street. Santa Barbara Street is a heavily trafficked, two -lane asphalted thoroughfare. Legal Description: ' The legal description of the larger parcel is contained in the preliminary title report. The legal description of the Part Taken is Exhibit A -1, located in the addenda of this report. Assessor's Data: Assessor's Parcel Number: 003 - 752 -007 ' Tax Rate Area: 3000 2006/2007 Assessed Value: Land $3,417,000 Improvement $ 765.000 Total $4,182,000 ' Total Estimated Property Tax: $41,912.42 Zoning: ' The subject property is currently zoned CS, Commercial - Service, by the City of San Luis Obispo. The CS zoning is intended to provide for storage, transportation, and ' wholesale, as well as certain sales and business services, which may be less appropriate in the City's other commercial zones. It will be applied to areas designated Service Commercial /Light Industrial on a General Plan Map. Typically, those areas ' have more public exposure along arterial streets than places reserved for manufacturing. A copy of the detailed zoning regulations is contained in the Addenda. REEDER, GILMAN & MILLION 7641B / Flash237 ' Page 10 IImprovements: ' The subject property is improved with five buildings of various ages and construction types, a total building area of 19,658 square feet. The land is large for this type of site and the building coverage is only 13 percent. A majority of the buildings ' were originally designed for industrial uses, adjacent Union Pacific Railroad. Specific details of each structure are as follows: ' • Building A is a 5,600- square -foot storage building. The structure is constructed of steel and has a sawtooth roof. Considering this type of ' construction, it is estimated that the structure was originally built in the 1940s. The building is in average condition and has had some changes made over time. ' • Building B was removed and was the cut lumber storage building. ' • Building C is a 600- square -foot, wood -frame storage building with a composition shingle roof. The building is in average condition and we have estimated 35 percent depreciation. i• Building D is a 1,249- square -foot, wood -frame retail building (rental center) with a composition shingle roof, presumably designed as a residence, and ' has been renovated and adjustments made over time. The rear now includes a handicapped access ramp. The condition is good; we have estimated 35 percent depreciation. ' • Building E is a 600- square -foot storage building that was moved from the southern portion of the property to its present northeastern location. The ' structure is a metal building and is in average condition. We have estimated 35 percent depreciation. ' • Building F is actually comprised of three separate portions. The original portion is a wood -frame structure at the northwestern corner of the property and is estimated to have been built in 1876. The first addition was built in the 1960s and is comprised of wood -frame truss construction. These two portions equate to 5,609 square feet of interior sales and office areas. The last addition is a butler -style building of 6,000 square feet with a mezzanine office ' area of 600 square feet. The remainder of the property is paved and used for parking and open sales or storage areas. The structures are considered interim use, and eventual redevelopment of the entire site for a new and proper project is anticipated. REEDER, GILMAN & MILLION 7641B / Flash237 Page 11 1 HIGHEST AND BEST USE: ' "Highest and Best Use" is defined as: "That available use or program for future utilization of a parcel of ' land that produces the highest present land value. " We have completed an investigation and analysis regarding the ' highest and best use of this property. The most probable use of the property must meet the following criteria. ' 1. The use must be a lawful one, consistent with the General Plan and prescribed zoning, meeting all governmental regulations. ' 2. The use must be within the realm of probability in the near future, not a mere possibility, not a speculative use. ' 3. There must be a demand for such a use and it must be an effective demand backed with purchasing power. ' 4. It must be a use that will produce the highest net return to the land in the form of money and amenities over the longest period of time. ' In determining the highest and best use of the subject property, additional factors, which should be considered, include: 1 1. The use is in an appropriate location to the local market and the existing nearby land uses must support and compliment this use. 2. The use is physically possible. The site is physically adaptable for this use and the necessary public infrastructure exists to support this use. 3. The use is legally permissible. All potential uses must comply with private and public land use restrictions and zoning laws governing the use and building safety of the proposed /existing improvements. 4. The use is socially /politically acceptable. Citizens are taking an ever - increasing interest in land use decisions affecting their communities. Almost all major real estate developments involve significant public comment and input. 5. The use must be financially feasible. The use must be probable, profitable, and have adequate market demand. The use must be economically feasible and not speculative in nature. REEDER, GILMAN & MILLION 7641B / Flash237 Page 12 1 1 1 1 6. Finally, among all alternate of uses, which might meet the previous test, that use which results in the greatest net return or highest property value is considered to be the highest and best use. The subject site is a developed, level parcel, which is adaptable to various commercial service uses. The parcel size of 3.48 acres is sufficient to accommodate many uses including an area for parking and a storage yard. Considered as a vacant parcel, the property would best be developed into a commercial service in conformance with the Commercial Service zoning. As improved, the current building improvements contribute to the value of the land. After considering the physical, legal, and economic criteria, it is concluded that the existing improvements will retain their values for the foreseeable future. However, eventual redevelopment is inevitable. The 13- percent building coverage contributes to the under - utilization as does the age and construction types of the existing structures. Therefore, the highest and best use of this property is interim currently as improved for commercial service uses, with redevelopment probable in the future. VALUATION: The appraisal of real estate involves three fundamental methods or approaches to arrive at an opinion of the market value of a property: Cost, Sales Comparison, and Income Approaches. Each of the approaches is briefly described as follows: Cost Approach to Value: This is the method whereby improvement replacement cost, less depreciation, is added to land value ascertained from vacant land sales. The result is an indication of property value. Sales Comparison Approach to Value: This method, formerly known as the Market Approach, considers recent sales of similar properties in the area. These sales are analyzed and compared to the subject property with adjustments for dissimilar characteristics. The result is also an indication of the value of the property. ' Income Approach to Value: This method considers a property's income producing capabilities and ' processes said income into an indication of value through the capitalization process. 1 REEDER, GILMAN & MILLION 7641 B / Flash237 Page 13 ' The results of the above three approaches, if all are applicable, provide a band of value that is correlated into one final value estimate considering all factors affecting ' the property. This appraisal is primarily based on the Cost Approach to Value. We searched ' the San Luis Obispo area for improved sales of like properties but found no properties similar to the subject that would provide a reliable indication of value. ' An Income Approach was considered; however, building coverage on the subject property is approximately 13 percent of the land. We believe that an income analysis would understate the value of the subject property. Therefore, we did not complete an ' Income Approach to Value. The Cost Approach is based on a premise that an informed purchaser will pay ' no more for the subject property than the cost of constructing like property, assuming no costly construction delay. The steps in this approach are: 1 1) The land value is estimated based on land sale comparisons and other appraisal techniques. 2) The replacement cost of the building and other improvements is estimated based on present construction techniques, and today's labor, material, and entrepreneurial costs and profits. 3) From this total, an amount is subtracted for accrued depreciation. This depreciation figure represents value loss caused by deterioration and obsolescence. The resulting figure is the estimated property value by the Cost Approach. The first step in the Cost Approach to Value is to estimate land value. We searched the San Luis Obispo area for land sales similar to the subject. Several sales were located; however, the following five sales, which are summarized below, are thought to be the best value indicators. REEDER, GILMAN & MILLION 7641B / Flash237 Page 14 1 1 1 1 1 1 1 1 Land Value: The market value of the subject property's land has been estimated using the following sales: LAND SALES SALE No. DATE Doc. LOCATION APN SALE PRICE ZONING AREA $ /SF 1 11/05 3592 Broad Street $11,000,000 5.5 AC 91735 053 - 231 -024 C -S $45.91 2 12/05 12398 Los Osos $2,000,000 38,500 SF 100260 Valley Road C -S $51.95 053 - 151 -020 3 12/05 &12/06 NEC Higuera & $2,600,000 4.18 AC 100212 & 85278 Tank Farm Road M $14.28 053 - 251 -049 and 050 4 7/06 3850 Sacramento $1,134,000 1.45 AC 49008 053 - 061 -042 and M $17.99 Portion of 043 5 11/06 Calle Joaquin $9,750,000 11.25 AC 80412 053 - 152 -001 thru HC Auto $19.90 004 Dealership The above sales represent properties similar to the subject; however, there are differences in size, zoning, location, and date. Sale One is located on Broad Street, not far from the subject property, is a bit larger and has similar zoning to the subject. It has a higher traffic count and better access. Sale Two is an older sale located at the intersection of Los Osos Valley Road with a traffic light. The site was formerly a service station. Sale Three is a corner intersection with a historic building on it and was part of an assemblage that is currently is processing for development and is slightly larger than the subject. Sale Four is an industrial lot, smaller than the subject; however, inferior zoning and the sale is from one year ago. REEDER, GILMAN & MILLION 7641B / Flash23 / Page 15 Sale Five is located next to the Dalidio Property on Calle Joaquin adjacent Highway 101. This lot is designated for an auto dealership and is currently re- listed for $12,900,000 (26.32/SF), and it consists of four individual lots. It is also significantly larger than the subject property. Details of these sales are contained in the Addenda of this report. The sales range from $14.28 per square foot to $51.95 per square foot. ' Considering the variances and adjustments for differences in characteristics, our opinion of the subject property land fair market value is $40 per square foot. This equates to: 3.48 Acres or 151,588.80 SF @ $40 /SF = $6,063,552 Rounded = $6,064,000 PART TAKEN: The Part Taken for the Santa Barbara Street widening is a strip of land 4.8 feet to 7 feet in width adjacent the Santa Barbara Street right -of -way. The acquisition of the 7 feet affects the landscaping and planters. The total land area is 2,172.2 square feet (11.1 square feet + 942.8 square feet + 1,218.3 square feet = 2,172.2 square feet). The value in our opinion of the land is $40, as indicated by the Larger Parcel. This equates to the following: 2,172.2 SF @ $40 /SF = $86,888 Rounded = $87,000 The temporary construction easement value is based on a one -year land rent at ' a 10 percent annual return per year. As to improvements, the acquisition will affect the front stair of the southern structure and the front entry. There are landscaping areas, as well as three mature trees and a water fountain, and the property signage, all located in the acquisition area, as well as minor paving and concrete bumpers. 1 1 The paving and parking lot of the subject property is in substandard condition and does not conform to the current parking striping requirements; handicapped and motorcycle parking require adjustments as well. Adding a planter and re- striping would compound this non - conforming parking lot, which needs to be reconfigured, as it exists today; portions of the lot are broken and there are low areas, which do not drain adequately. Due to the substandard condition, we have not considered any compensation for the paving or striping. REEDER, GILMAN & MILLION 7641E / Flash237 Page 16 The landscaping improvements and three mature trees are in the Take Area. There are currently no curbs or planters, as the planting is done in the ground at street level, whereas the City requires a curb buffer for drainage. We have to estimate the cost to cure of the landscaping. This was completed by utilizing the Marshall & Swift Cost Manual Handbook and our judgment in estimating costs over the years. The planter and landscaping areas are based upon a $5 per square foot replacement cost, which would include planting and installation of drip systems in the ' amount of $10,000 (the mature trees in the City right of way are the property of the City). The value of the stairway, landscaping, parking lot costs and compensation are negotiation agreement with the City of San Luis Obispo and the property owners and ' are costs that are not part of this appraisal, i.e., The Garden Center Reimbursement PHlC Cost Estimate. If verification of these costs were required, a licensed general contactor would be recommended for potential verification. ' Final values for the two components in the Part Taken are as follows: Land: 2,172.2 SF @ $40 /SF = $86,888 Rounded = $ 87,000 ' Improvements: 2,000 SF @ $5 /SF $ 10,000 Temporary Easement: 4,305.6 SF @ $40 /SF @ 10% Annum = $17,222 ' Rounded= 17,300 ' Total Just Compensation $114,300 We have not considered it warranted to pay for the front stairwell on the ' southern building; it is not used as an entrance, parking and access is in the rear, and the property is being paid for in that area at $40 per square foot. 1 REEDER, GILMAN & MILLION 7641B / Flash237 Page 17 1 1 1 1 1 1 1 1 1 1 1 1 1 VALUATION SUMMARY ASSESSORS PARCEL NUMBER: 003 - 752 -007 OWNER: Garden Station LLC 1. ESTIMATED FAIR MARKET VALUE OF LARGER PARCEL (LAND ONLY): 3.48 AC or 151,588.8 SF @ $40 /SF (R) $6,064,000 2. FAIR MARKET VALUE OF PART TAKEN: Land - 2,172.2 SF @ $40 /SF = $ 86,888 (R) $ 87,000 IMPROVEMENTS: 2,000 SF @ $5 /SF $ 10,000 3. FAIR MARKET VALUE REMAINDER: (Land Only) $5,977,000 4. FAIR MARKET VALUE AFTER PROJECT CONSTRUCTION: (Land Only) 149,416.6 SF @ $40 /SF $5,976,664 (R) $5,977,000 5. DAMAGES: $ 0 6. BENEFITS: $ 0 7. TEMPORARY EASEMENT: #1: 342.58 SF #2 3,963.02 SF TOTAL 4,305.60 SF @ $40 /SF x 10% PER ANNUM $ 17,222 Rounded $ 17,300 TOTAL COMPENSATION Land: $ 87,000 Improvements $ 10,000 Damages: $ 0 Temporary Easement: 17,300 Grand Total: $114,300 M. VINeneral MILLION Cer Real Estate Appraiser, CA # AGO14431 REEDER, GILMAN & MILLION 7641 B / Flash237 Page 18 ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report is subject to the following: ' 7. The "Highest and Best Use" as indicated by this report, is assumed to be consistent with Planning and Zoning policies, and will meet the approval of all local, city, county, state, ' and federal land use and environmental laws and regulations. We assume no responsibility for changes or limitations imposed by the various governing agencies or political entities that affect a property's use or value. ' 8. This valuation does not include items of personal property, partial interests, or mineral rights unless specifically incorporated by reference. REEDER, GILMAN & MILLION 7641 B / Flash237 IPage 19 1. It is assumed that title to the property, which is the subject of this report, is free and ' clear of liens, leases, and encumbrances and is good and marketable unless otherwise noted. ' 2. No responsibility is assumed for matters legal in nature or for facts or conditions which require specialized knowledge beyond that of a qualified real estate appraiser or that customarily employed by real estate appraisers. This includes, but is not limited to, ' structural defects or termite damage not readily apparent, conformance to specific governmental requirements such as fire, building safety, earthquake, flood, or ' occupancy codes, soil stability or instability, etc. 3. No survey of the subject property was made at the time of appraisal. All references to property size or dimensions were obtained from public records or from data provided ' this appraiser. Maps and other display material are included only as a guide in emphasizing certain aspects of a property. ' 4. In preparing this report, certain information was obtained from other persons. This data is assumed to be correct, but we assume no responsibility for its accuracy. 5. We are not required to give testimony or to appear in court or at conferences by reason of this appraisal, with reference to the property in question, unless further arrangements have been previously made and mutually agreed upon. 6. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by anyone but the applicant without the ' previous written consent of the appraiser or the applicant, and then only with proper qualification. ' 7. The "Highest and Best Use" as indicated by this report, is assumed to be consistent with Planning and Zoning policies, and will meet the approval of all local, city, county, state, ' and federal land use and environmental laws and regulations. We assume no responsibility for changes or limitations imposed by the various governing agencies or political entities that affect a property's use or value. ' 8. This valuation does not include items of personal property, partial interests, or mineral rights unless specifically incorporated by reference. REEDER, GILMAN & MILLION 7641 B / Flash237 IPage 19 ' 9. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. 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 petroleum products, asbestos, urea - formaldehyde foam insulation, underground chemicals or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge ' required to discover them. The client is urged to retain an expert in this field, if desired. 10. This appraisal is reported in summary format. 11. The term "Fair Market Value ", as herein used, is defined as "the highest price on the date of valuation that would be agreed to 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 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." (Cal. Code of Civ. Proc., Title 7, Sec. 1263.320) 12. No consideration has been given in this appraisal as to the value of the property ' considered by the appraiser to be personal located on the premises, or the cost of moving or relocating such personal property; only the real estate has been considered. 13. Because our report is in summary form, we will retain the technical appraisal data in our files. We regard the appraisal analysis as confidential and will release its contents only upon your authorization. 14. Maps, plats, and exhibits included herein are for illustration only as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied ' upon for any other purpose, nor should they be removed from, reproduced, or used apart from this report. t 15. The improvements are assumed to be properly designed, engineered, and the construction techniques correctly applied. 16. This is a partial appraisal as improvement values are not included. This is considered appropriate since the improvements are unaffected by the project. ' 17. If eminent domain proceedings should occur, we reserve the right to adjust our value conclusions to include the structural improvements as required by law. However, in our opinion they are unaffected by the project and as such not considered in this appraisal. IF 1 REEDER, GILMAN & MILLION 7641B / Flash237 Page 20 1 CERTIFICATE OF APPRAISER II 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 are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, ' and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent on an action or event resulting from the analyses, ' opinions, or conclusions in, or the use of, this report. My 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 Practice of the Intemational Right of Way and the Uniform Standards of Professional Appraisal Practice. 1 I have personally inspected the property that is the subject of this report. My value conclusion, as well as other opinions expressed herein are not based on a ' requested minimum value, a specific value, or approval of a loan. Prior to accepting this assignment I determined that I have the professional education, ' background, and experience necessary to complete this assignment competently. 1 1 No one provided significant professional assistance to the persons signing this report. vg)lLa. DATE: September 19, 2007 M. e Li Million CertifGeneral Real Estate Appraiser, CA #AG014431 Federal Tax ID #77- 0555850 NOTE: ORIGINAL DOCUMENT IS SIGNED IN BLUE INK. REEDER, GILMAN & MILLION 7641B / Flash237 Page 21 1 1 1 1 1 1 1 1 1 1 1 ADDENDA Land Sales Market Data Map Assessor's Parcel Map & Data Subject Property Aerial Photograph Subject Property Photographs Flood Map Zoning Map & Information Topography Map Proposed Right of Way Preliminary Title Report Garden Center Reimbursement Information Appraisal Services Letter to Property Owner Professional Qualifications REEDER, GILMAN & MILLION 7641 B / Flash237 Page 22 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 LAND SALE NUMBER 1 ASSESSOR'S PARCEL NO.: 053 - 231 -024 LOCATION: 3592 Broad Street, San Luis Obispo DATE OF SALE: 11/1/05 DOCUMENT NO. 91735 PROPERTY DESCRIPTION: Land: 5.5 Acres Improvements: None SALES PRICE: $11,000,000 TERMS: Cash to Seller GRANTOR: PS California Investments GRANTEE: Centex Homes ZONING: Commercial Service PRICE PER SF: $45.91 /SF REMARKS: Processed for a mixed -use development mob. 1.Of�AG pt t. f = P.Y. 65-79 -- (� F..T1AC, FR. 9 I,4�AC. � aao 97. 053-23 r � X71 /•\OPEN SP , . �. - 2 OPEN SPACE ME S 1T AC. SJS K WDUSTRNL wy. /uial � e0. I .L- VISIONS ��JJBB�� M . esaew / s.µav 0 m IN g CT' OF SAN LUIS OBISPO o nos ■�P .s r�rA�D rOe SAN LUIS OBfSPO SUBURBAN TRACT. LS.2Bk P1, Pg. 92. l •03J�P E 2J NTV ar !.°,PP A'a99AENT PURPOSES ONLY. REEDER, GILMAN & MILLION 7641 B / Flash237 Page 23 1 1 1 1 1 1 1 1 1 1 1 1 1 1 LAND SALE NUMBER 2 ASSESSOR'S PARCEL NO.: LOCATION: DATE OF SALE: DOCUMENT NO. PROPERTY DESCRIPTION: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SF: m e as m av nc raw s amru�n Fa+ Y�be � ti'459m(T PNIPGQS �'!_ LC . Gs 053 - 151 -020 12398 Los Osos Valley Road San Luis Obispo 12/1/05 100260 Land: 38,500 SF Improvements: Former Service Station $2,000,000 Cash to Seller Equilon Enterprises 12398 LOUR LLC Commercial Service $51.95/SF 1 TRALT NO. 347, FREEWAY CENTER, R.N. Sk 7 , Pg.21 L3J 053-15 .1O JAN 0 3 NO CITY OF SAN LWS OS SPO "ST MAP COMM or REEDER, GILMAN & MILLION 7641B / Flash237 Page 24 1 1 1 1 1 1 1 1 1 LAND SALE NUMBER 3 ASSESSOR'S PARCEL NO LOCATION: DATE OF SALE: DOCUMENT NO. PROPERTY DESCRIPTION: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SF: REMARKS: 053 - 251 -049 and 050 NEC Higuera & Tank Farm Road, San Luis Obispo 12/1/05 & 12/1/06 100212 & 85278 Land: 4.18 Acres Improvements: Old Barn $2,600,000 Cash to Conventional TD $350,000 Omkar Long Street Farm Manufacturing $14.28/SF In process for development as a business park �J t • r r � i tJ 4 w s 'Z ,. / SEE DETAIL 'A' \ 1XI-1 S1tAGt /�-- HIND RD. \ / J I I I OE7JIIL A• swla 7--Tar V \ i 9 HIND, RD. i e.rsa. >wv x 2 1 �A I - ,� I 251 I I _ AA. 4.8TK ' J 1 I . 1. XK QR /L A. O] -0126B ' I 053 -251 1 s 2W1 m I P \J wAyp ■wart ufmr P.It TANK FARM RD. o �nsioNS a 1(257 Q.V m o Ar m CITY OF SAN LUIS OBISPO Pq=44p 1XIS YAP B PIIEPARED FLIt I i.� 's WU1(IY OF ENT wlaosss ONLr. VACHELL TRACT. R.S. OX 1, PG. 4. SSAA�NKN IW�xKa�0aACr:'br E REEDER, GILMAN & MILLION 7641B / Flash237 Page 25 1 1 1 1 1 1 1 1 1 rJ LAND SALE NUMBER 4 ASSESSOR'S PARCEL NO.: LOCATION: DATE OF SALE: DOCUMENT NO. PROPERTY DESCRIPTION: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SF: REMARKS: -^ c :ft-lf- 053 - 061 -051 3850 Sacramento, San Luis Obispo 7/14/06 49008 Land: 1.45 Acres Improvements: None $1,134,000 Cash to Conventional TD $885,000 CA Cowan S & M Development Manufacturing $17.99/SF Lot line adjustment was Parcel 42 and portion of 43. Property was under contract since 8/05. 10 EVISIONS 23 6m CRY OF SAN LUIS OBISPO 1P8 AS R PU0.POSE5 gLLX TRACT 2134 -1, R.N. 8k. 19 , Pg.07. !WWU� OF SAN LUIS OBISPO SUBURBAN TRACT- L.S. Bk 1 P0.92. REEDER, GILMAN & MILLION 7641B / Flash237 Page 26 1 1 1 1 1 t LAND SALE NUMBER 5 ASSESSOR'S PARCEL NO. LOCATION: DATE OF SALE: DOCUMENT NO. PROPERTY DESCRIPTION: SALES PRICE: TERMS: GRANTOR: GRANTEE: ZONING: PRICE PER SF: REMARKS: 'k 053 -152 -001 through 004 Calle Joaquin, San Luis Obispo 11/13/06 80412 Land: 11.25 (4 separate lots) Improvements: None $2,437,500 each $9,750,000 overall N/A Kelly Gearhart Roger Hogan Highway Commercial Auto Dealership $19.90/SF Adjacent Dalidio; however, in the city limits. Re- listed for $12,900,000. i / o REVISIONS \ G 1 uu[ � y 1X6 Y�V R vgen Nm FO1 ' ¢-�e =s mss "T RANCHO CANAOAI DE COS OSOS 8• LA REEDER, GILMAN & MILLION 152 MAC 2 AG ey � a 1. K y. = -o. CITY OF SAN LUIS OBISPO SAN g O S1* UOMY OF R.M. Bk A , P9.83 -84. BOOK O5J �v 7641 B / Flash237 Page 27 1 1 1 1 1 Carom San Lwr Obnpo nr �� el 0 t 1 1 1 1 1 1 1 1 1 1 1 1 1 Meft,'Ycan /San Luis Obispo (CA) Owner : Garden Station Llc Parcel : 003 752 007 Co -Owner Building # of Site : Santa Barbara Land :$3,417,000 Al1ail : 1216 State St #700 Santa Barbara Ca 93101 Structure : $765,000 Transferred : 11/19/2004 Doc ti : 101922 Multi - parcel Total : $4,182,000 Price : $4,100,000 Full Deed : 5 % Improved : 18 Loan Amount : Loan % Owned : 25 Vesting Type Int Ty Exempt Lender Type Use : 310 Com,Retail Sales Tax Area : 3000 Legal : CY SLO PTNS BUENA VISTA A DD & 06 -07 Tax :$41,912.42 FAIRVIEW TR Owner Phone Census Tract Block bfilliamson : No R : T S Thomas Bedrooms: Prkg Space : Stories Const Type Ful/Baths : Prkg Type B1dgSgFt : Year Built Half Baths: Pool Acres :3.49 Foundin Tot Baths : Fireplaces : LotSgFt : 152.000 RoofAfat'l TotRooms : HeatMethd : LotDepth Ext Wall .4ccess HeatSource : LotFrntg F1oorCvr Utilities Air Cond : Class Cd Topgrphy r.1 �J d 56 RAC►rAEt C,, RM I � s a' R.N. B —01 i I I Z 1 RSO 0 rl MAYMONT ADM.. R.M. Sk. B Pg. 91 SOUTH Si. S.P.R.R., R.M. Bk.A Pg. 42 o nes uu Is vstrurEO ral % BUENA VISTA ADD-N., R.M. Bk. A Pg. 47 ASSE399MT rulwoses crar. FAIRVIEW ADD N., R.M. Sk, A Pg. 98 Information compiled from various sources. ]Zeal Estate Solutions makes no representations or warranties as to the accurate or completeness ofinformation contained in this report. % 003- 75 f E1 p t' tl N? AVF_ �T R.M. A —. i I f 1 .J ST iti 11w' �J CITY OF SAN LUIS OBISPO OF = M E T R O S C A N PROPER T Y P R O F I L E= ISan Luis Obispo (CA) ********************************************************* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** ' * <<< OWNERSHIP INFORMATION >>> * * * Parcel Number :003 752 007 Building # of * Owner :Garden Station. Llc * CoOwner * Site Address :Santa Barbara '* Mail Address :1216 State St #700 Santa Barbara Ca 93101 * Owner Phone * * * <<< SALES AND LOAN INFORMATION >>> * * * * Transferred :11/19/2004 Loan Amount * Document # :101922 MULTI- PARCEL Lender * Sale Price :$4,100,000 Full Loan Type * Deed Type :Corporation Interest Rate * n Owned :25 Vesting Type * :FAIRVIEW TR * Lot Depth Topography * R: T: S: -------------------------------------- * * * * <<< PROPERTY CHARACTERISTICS >>> <<< ASSESSMENT AND TAX INFORMATION >>> * Prkg Spaces Heat Method Utilities * Grg /PrkgType: * * * * Land :$3,417,000 Exempt Type * * Structure Total :$765,000 :$4,182,000 Exempt Amount Tax Rate Area :3000 * ¢ Improved :18 06 -07 Taxes :$41,912.42 * * ' * <<< PROPERTY DESCRIPTION >>> ---------------------------- * Williamson :No * Census :Tract: Block: * Thomas Bros . * T. —A iTco . Z9 n r ,__ D—+-,; l C_l e� ' * Bedroom Stories ConstrType * Full Bath Bldg SgFt Foundation * Half Bath Bldg Style Roof Mat'l * ZoningCd :Cs ' * Legal :CY SLO PTNS BUENA VISTA A DD & * Tot Rooms :FAIRVIEW TR * * Lot Depth Topography * R: T: S: * YearBuilt * * '* * <<< PROPERTY CHARACTERISTICS >>> ' * Bedroom Stories ConstrType * Full Bath Bldg SgFt Foundation * Half Bath Bldg Style Roof Mat'l * TotalBath Lot Acres :3.49 Ext Wall * Tot Rooms Lot Sq Feet :152,000 F1oorCover * Fireplaces Lot Depth Topography * YearBuilt Lot Frontage: Class Code '* Pool Air Cond Access * Prkg Spaces Heat Method Utilities * Grg /PrkgType: HeatSource * * Information compiled from various sources. Real Estate Solutions makes no representations or warranties as to the accuracy or completeness of information contained in this report. I Information compiled from various sources. Real Estate Solutions makes no representations or warranties as to the accuracy or completeness of information contained in this report. Transfer History Property ID: 003 752 007 --------------------- Buyer --------------- - - - - -- ------------------------------------------- Clemens Patrick B /Joy;+ Price CoOwner Clemens Michael;Virginia Xfered : 06/06/2006 1 Title : First American Title Doc # : 39697 Lender Deed : Grant Deed Loan Vest %Owned : 25 'Loan$ Rate $ /SgFt : 0.00 ------------------------------------------------------------------------------------------ Buyer : Garden Station Llc Price : $4,100,000 CoOwner Xfered : 11/19/2004 Title : First American Title Doc # : 101922 Lender : Miscellaneous Deed : Sheriffs 'Loan$ Loan : : Conventional $3,000,000 Vest %Owned : Corporation : 100 Rate : Fixed $ /SgFt : 0.00 ------------------------------------------------------------------------------------------ : Pacific Home Improvement Center Inc Price 'Buyer CoOwner Xfered Title Doc # Lender Deed Loan Vest Loan$ %Owned : 100 Rate $ /SgF-t : 0.00 I Information compiled from various sources. 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V1 .v]0 IoO.rnr [omd Ilaed .nn .Haan I -,... ullenl; ea« llea elaotlem and lleoe M1amU lumn e.lerT�nee � _� ZONE B� ]'LOOT) ZONE MAP ;� SUBJECT PROPERTY ' ZONE A8 ZONE C ZONE A14 ?QQ RRA9 p W 91 ZONE Al2 B ZONE B f ZONE B ' SANDER; BRANCH I L ' SO x RM8 EXPOSITI, DRIVE .0 1 UpED LVIY C'U f� Slenner ^ ) LUIS 138 CrP4 yZ 9 !NE ZONE A8\9 NEBE �. I> r• k i 3' ZONE A s ¢ ZO E B = (DEPTH 3 \ x MrESt Q h 23 �' �St n 23 RM23 Z NE A13' 230., ri ZONE AON ' (DEPTH 2) SF q Z 01.9 " W sT L ZONE C 05 ?Os j M2 O pHI�L \�E RM22 2� 2 ONE AO C (DEPTH Y) \ \ M20 Na\v NI O 9 � N K`ONt a O I E y F' 3 ST �► o Q v cr_ ST_ v� I deli► -,'!I 1 —L L ally .II >1�� NATIONAL FLOOD INSURANCE PROGRAM Z FIRM , FLOOD INSURANCE RATE MAP NE�G IEB, \5% I Z( P s1 I1_� ill W i RACHEL W `� it CT y 2 u 00 m W [ i1 HASK'N a _ I "l--w JALL`0FLE�CH R . _ I� SAN CA �( NpN'p /q OS % P�Q IyE / t I I 5 L %1 1 ^ LUIS `Q SAN OBISPO, CALIFORNIA wit BAN LUIS OBISPO T COUNTY j i ONLY PANEL PRINTED \ \.p St COMMUNITY-PANEL NUMBER / 060310 0005 C / MAP REVISED: JULY 7. 1981 feda I .m.[,eDer menswme.rt ewrt[y NE federal irmare,a adminletrethm ZONE A13�N_ NE�G IEB, \5% I Z( P s1 I1_� ill W i RACHEL W `� it CT y 2 u 00 m W [ i1 HASK'N a _ I "l--w JALL`0FLE�CH R . _ I� SAN CA �( NpN'p /q OS % P�Q IyE / t I I 5 L %1 1 1 1 1 1 1 1 1 1 1 1 Map Output rfami A ogp hll� Fiat of San Luis Page 1 of I Legp-nd Transit Rubs o.. rJV. Limit ROV02d StImt "Am'm ► Kwe tat Lagma LA-0 Zoning Ell Irr My Limit .&r02 Icity of san Us oBispo fCBRUaRy 2007 zoninc, REGutations Chapter 17.46: SERVICE - COMMERCIAL (C -S) ZONE ' Sections: ' 17.46.010 Purpose and application. 17.46.020 Property development standards. 17.46.010 Purpose and application. The C -S zone is intended to provide for services, limited retail, and other business service uses that may be less appropriate in the City's other commercial zones, as well as accommodating certain storage, transportation, wholesaling and light manufacturing 1 uses. The C -S zone implements and is consistent with the Services and Manufacturing land use category of the General Plan, and is intended to be applied primarily to areas with more public exposure on arterial streets than those reserved for manufacturing. 1 17.46.020 Property development standards. ' The property development standards for the C -S zone are as follows: A. Maximum density: 24 units per acre (see Section 17.16.010). ' B. Yards. Minimum street yards shall be: 1. Where no building adjoins, five feet (requirement for parking lots and signs); 1 2. For buildings 20 feet and less in height, 10 feet; 3. For buildings more than 20 feet in height, 15 feet; 4. Other yards shall be as provided in the zone of any adjacent lot; 5. See also Section 17.16.020. C. Maximum height: 35 feet (see also Section 17.16.020 and 17.16.040). ' D. Maximum coverage: 75% (see also Section 17.16.030). E. Maximum floor area ratio: the ratio of gross building floor area to site area shall not 1 exceed 1.5. (Ord. 1365 (200 Series) (Part)) F. Standard Lot Dimensions: ' Minimum lot area: 9,000 square feet Minimum lot width: 60 feet ' Minimum lot depth: 100 feet Minimum street frontage:40 feet F. Parking requirements: See Section 17.16.060. 1 ' paGE 103 L city of san tuts oaispo zonmc Requlations fewwauy 2007 H. Maximum Building Size: No retail establishment (commercial building) shall exceed 60,000 square feet of gross floor area, unless excepted by Section 17.16.035. IpaQE 104 G. Off - street loading requirements: ' Gross Floor Area of Building Number of Spaces Required 1,000 to 9,999 none 10,000 to 29,999 1 30,000 to 99,999 2 100,000 and more 3 H. Maximum Building Size: No retail establishment (commercial building) shall exceed 60,000 square feet of gross floor area, unless excepted by Section 17.16.035. IpaQE 104 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lill 1"ll, 0 -it 77 L 1 EXHIBIT A -1 Right of Way Legal Description A portion of Block A, Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, in the County of San Luis Obispo, State of California, according to map filed for record October 24, 1887 in Book A, Page 98 of Maps and a portion of Block 13 of the Buena Vista Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California,. according to map recorded October 20, 1887 in Book A, Page 47 of Maps, in the office of the County Recorder of said County, described more particularly as follows: Parcel 1: That portion of Lot 1, Block 13 of said Map of Buena Vista Addition laying Northwesterly of a curve which is tangent to the North and West lot lines of said Lot 1, having a radius of 8.00 feet a curve length of 11.85 feet and a central angle of 84'50'19". Containing 11.1 sq. ft., more or less. Parcel 2: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of lots 4, 5 and 6 together with the West 7.00 feet of the South 15.91 feet of Lot 3 of Block 13 of said Map of Buena Vista Addition Containing 942.8 sq. ft., more or less. Parcel 3: Being a strip of land which is parallel and contiguous with the East Line of Santa Barbara Avenue and containing the West 7.00 feet of lots 9, 10 11 and 12 of Block A of said Fairview Addition, excepting East 2.20 feet of the South 9.51 feet of Lot 11 of said 7.00 foot wide strip and the East 2.20 feet of the North 38.76 feet of Lot 12 of said 7.00 foot wide strip. Containing 1,218.3 sq. ft., more or less. THIS DOCUMENT WAS PREPARED BY ME SAND S� OR UNDER MY DIRECTION. �2go ��T A. 4 �G�9� No. 8126 Robert A. Livick, PLS 8126 exp 12/31/08 Date N EXP. 12/31 9�F OF C g:\ projects \cip\activepmjects\etreet improvements \90408 santabarbarawidening \-documents \3 - preconstructionVow \gardenstationlegaldescdption ral.doc 1 1 1 nl L 1 1 N89-2946-F- 7.03' N89 °29'04 "E i ' xa I N O Q ON ' � N n I X lL W m Z 1 O 1� co a > I m I U o J 0 Z N89'29'04"E 7.03' o e �' I Q Z J L D m Z ww ^ I " Q ' Z 3 O S e+�f �� 1 V) QM I 5 (W� uj 50 W W I O o N$ ao co v IQ ' /�/�/� Q Q VJ Q z Cl) 'Q Z m (V N; J m Q 1 a 1 Q a r W N In N I < i c IL Q "° mASR7N55TREET I 3584 OR 194 N I ' M m J " N85°18100°W 7.00 I ' 111 � U CSL O d FIJI I CL w w o 9 o a v � I I z w 1� t7 /' N J W .00.E Q 'o N to �ti 0 a " to ro O rr89'32'19"W �y 111 se9.2W46'w 7.03' 1� J W U i Q LL < J 1 Q -- < 2.1 7.3 s89'3 s'w _REST - — m o a c M 1 t 1 J 1 1 Z 28 04 °E N89° - -- I W , O ON U) V) ---' I o m LL 0 w z 3: 04 0 Z ,� O �O Q � 1 Z 1 06 N C'j in 03 cr) I ` W LL 04 0 m mo 1 .516 �� 0 u m wcs C.) F- X11 �� m Q i O wz m U J N a a J o IQ o , � z m W 3 z O R W � I O u> N J I O a w a 0 y col I z 0 U m O �d Owmi L) 2 �, 0 �Z N 1 It Q� cr m a 'W i m LL H OW' w L) N Q]W a � CO i 3 HASKINS TR�(A NED 3584 OR 194 C H Z IL LLI 00 In a 0 U i 0£---I I �LL, �£� I iW LLI i llumi QwN' 1 } I N L II Q' �i 0�Q' 1Fl CL 1, 0 O w � I m OLL U a LL '\ / Z Q * , t,J. O ../ TRW aZw co HUW I L-_ I um 9 w 0 - W o } w o ' 1 �J r— L I 1 1 1 �5S AMEgrM RmtAmerican Title Company 899 Pacific Sheet • San Luis Obispo, CA 93401 Seller's Final Settlement Statement �e,E 01-1 L1. G 2g % Property: 2034 Santa Barb , (55r& ' terest), San Luis Obispo, File No: 4009- 2373918 CA 93401 Officer: Lisa Blasquea/LB t� New Loan No: Settlement Date: 0610612006 Disbursement Date: 0610612006 Print Date: 3/23/20(Y7,9:29 AM Buyer: Amherst Exchange Corporation; Patrick B. Clemens and Joy Clemens; Michael Clemens and Virginia Clemens; Attldnson Family Trust utd 2/11/91 Address: 1330 East Carrillo St, Santa Barbara, CA 93101 Seller: Garden Station. LLC Address: 750 Pismo Street, San Luis Obispo, CA 93401 Charge Desuiption Seller Charge Seller Credit Consideration: Total Conside 6w.. 3,750.000.00 Adjustments: Cr for 75% of costs in Escrow 237391 SA 436.87 Proration: Rents 06/06/06 to (37/01/06 03250.00 /day 6.250.00 Attorney: Amme 's Fees to.Vmd G. Metchik, Attorney 2.500.00 Assumption Lean(s): Lender: Horne and! Garden Center First Martitwe LP Unpaid Principal )Balance - Home and Garden Center First Mortgage LP 2,250,000.00 Assumption Loan interest Proration 06/06/06 to 07/01/06 ®8.50000096 - Home and Garden Center Fast Mortgage LP 13,099.32 Title/Escrow e s : Document n t American Title Company 25.00 ALTA Owner w/Re c 10- 17-921402.92 - First American Title Company 180.73 Escrow Fee - One half - First American Title Company 256.25 Exchange Tie In Fat - First American Title Company 56.25 Record Deed - First American Title Company 2.50 Record Memo of TIC Agrmt - First American Title Company 6.25 County Documenterry Transfer Tax - Fast American Title Company 41250 Disbursements Paid: Transfer of funds to First American Title to close escrow 239774619 3,651.15 Transfer funds to First American Title to close Escrow No. 2373918A 1,239,69650 Cash (X To) ( From) Seller 260,499.06 Totals 3.763.536.19 3.763.536.19 3 '1 �ti f3r - 3 o 4T )R TAX PURPOSES. tlat"�b Zf /I" ,, Page 1 of 1 1 1 1 1 U PRELIMINARY TITLE REPORT Cuesta Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance of Stewart Title Guaranty Company describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception on Schedule B or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in Exhibit `A " attached. Copies of the Policy farms should be read. They are available from the office which issued this report. Please read Ilse exceptions shown or referred to below and the Exceptions and Exclusions set forth in ' the attached Exhibit "A" of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered It is important to note that this Preliminary Report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to this land ' This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. / M- -Mx- g-r.:! = Marcus Harmon ' Title Officer Authorized Signatory 1 1 1 1 1 1 1 File Number: T7800114 UESTA ITLE COMPANY 715 Tank Farm Road, #120 • San Luis Obispo, CA 93401 • (805) 544 -1860 • FAX (805) 541 -1769 PRELIMINARY REPORT TITLE OFFICER: Marcus Hannon TO: Hamner, Jewell & Associates 340 James Way, Suite 150 Pismo Beach, California 93449 ATTN: Dave Jewell PHONE NUMBER: (805) 773 -1459 SHORT TERM RATE: Yes Your Reference : Garden Station Property Address:, , EFFECTIVE DATE: Tuesday, February 13, 2007 at 7:30 a.m. The form of Policy or Policies of title insurance contemplated by this report is: THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A fee as to Parcel(s) 1. An easement more particularly described below as to Parcel (s) 2 and 3. 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: Patrick B. Clemens and Joy Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; Michael Clemens and Virginia Clemens, Husband and Wife as Community Property with rights of survivorship, as to an undivided 25% interest; David R. Atkinson and Cathy Atkinson, Trustees of the Atkinson Family Trust utd February 11, 1991, as to an undivided 25% interest; Garden Station, LLC, a California limited liability company, as to an undivided 25% interest, as Tenants in Common. 3. THE LAND REFERRED TO IN THIS REPORT IS SITUATED IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF Page I of 8 1 1 1 Page 2 of 8 File Number: T7800114 2/21/2007 IParcel l: LEGAL DESCRIPTION File Number: T7800114 ' A portion of Block A of the Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded October 24, 1887 in Book A, Page 98 of Maps, a portion of Block 13 and a portion of abandoned Haskin Avenue per Resolution No. 6870 recorded September 25, 1990 as Instrument No. 1990 -66170 of the Buena Vista ' Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded October 20, 1887 in Book A, Page 47 of Maps, described as follows: ' Beginning at the Northwest corner of said Block 13; Thence `J 1 1 1) North 89° 32' 00" East along the North line of said Block 13 a distance of 241.43 feet to the Westerly line of the property conveyed to Southern Pacific Railroad Company, by deed dated November 28, 1890 and recorded November 28, 1890 in Book 11, Page 42 of Deeds; Thence 2) South 29° 54' 30" East along the Westerly line of the property so conveyed and the Southeasterly extension thereof, 130.06 feet more or less to the Westerly right -of -way line of Emily Street, being 60 feet wide; Thence 3) South 00° 28' 00" East along the West line of Emily Street a distance of 148.96 feet to the centerline of Haskin Avenue as shown on said Map of the Fairview Addition; Thence continuing 4) South 00° 28' 00" East along the West line of Emily Street and the East line of Lots 1, 2, 3, and 4 of Block A of the Fairview Addition a distance of 213.48 feet to the Southeast corner of Lot 4: Thence 5) South 89° 32' 00" West along the South line of Lot 4 a distance of 123.2 feet to the Southwest corner thereof; Thence 6) South 89° 32' 00" West 80.00 feet to the Southeast corner of Lot 12; Thence 7) South 89° 32' 00" West along the South line of Lot 12 a distance of 144.0 feet to the Southwest comer thereof and the Easterly right -of -way line of Santa Barbara Avenue as shown on said map: Thence 8) North 4° 42' 00" East along the Easterly right -of -way line of Santa Barbara Avenue 477.66 feet to the point of beginning. As shown in Notice of Merger and Certificate of Subdivision Compliance which recorded January 5, 1999 as Instrument No. 1999000818 of Official Records. Page 3 of 8 Parcel 2: File Number: T7800114 An easement with the right to grant to others, for private driveway purposes for ingress and egress as granted to V. G. Morf, et al. in deed recorded June 26, 1961 in Book 1129, Page 582 of Official Records, over the Easterly 20 feet of Lot 15 and the Westerly 20 feet of Lot 16 of that portion of Lot 15 and 16 in Block A of Fairview Addition to the City of San Luis Obispo, City of San Luis Obispo, in the County of ' San Luis Obispo, State of California, according to Map recorded October 24, 1887 in Book A, Page 98 of Maps, lying South of the following described line; ' Beginning at the Northeast corner of Lot 13; Thence Easterly 80 feet to the Northwest corner of Lot 5. ' Parcel 3: An easement for private driveway purposes for ingress and egress with the right to grant to others, as granted to V.G. Morf, et al. in deed recorded May 19, 1964 in Book 1298, Page 7 of Official Records for over that portion of Lot 15 in Block A of the Fairview Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded October 24, 1887 in Book A, Page 98 of Maps, lying South of the following described line: tBeginning at the Northeast corner of Lot 13: Thence Easterly 80 feet to the Northwest corner of Lot 5. APN:003,752,007 IEnd of Legal Description 7 L 1 Page 4 of 8 77 L F- L 1 File Number: T7800114 SCHEDULE B At the date hereof, exceptions to coverage in addition to the printed exceptions and exclusions contained in said policy or policies would be as follows: General and Special City and /or County taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 2006 - 2007: I" Installment: $20,956.21 Paid 2 °d Installment: $2,956.21 Exemption: $0.00 Land: $3,417,000.00 Improvements: $765,000.00 Personal Property: $0.00 Code Area: 003 -000 Assessment No.: 003,752,007 The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the revenue and taxation code of the State of California. Limitations on use of Parcel 3 as contained in Grant Deed recorded June 26, 1961 in Book 1129, Page 582 of Official Records, provide substantially as follows: ..."for a period of twelve years from March 3, 1961, or so long thereafter as the grantees herein, their successors or assigns, continue to use said easement for the purpose herein stated, provided that in the event the grantees do not exercise this right, within said twelve year period, such rights shall automatically terminate and revert back to the grantor, its heirs or assigns." 4. Limitations on use of Parcel 4 as contained in Grant Deeds recorded May 19, 1964 in Book 1298, Page 7 and recorded December 3, 1973 in Book 1755, Page 647 of Official Records, providing substantially as follows: ..." for a period of twelve years from March 3, 1961, or so long thereafter as the grantees herein, ' their successors or assigns, continue to use said easement for the purpose herein stated, provided that in the event the grantees do not exercise this right, within said twelve year period, such rights shall automatically terminate and revert back to the grantor, its heirs or assigns." F L An easement for the purpose shown below and rights incidental thereto as reserved in a document: Reserved by: The City of San Luis Obispo Purpose: Public Sewer and Incidental Purposes Recorded: September 25, 1990, as Instrument No. 66170, in Book 3584, Page 194 of Official Records Affects: Abandoned Haskin Avenue Page 5 of 8 1 u k File Number: T7800114 6. Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby: Amount: $3,000,000.00 Dated: November 11, 2004 Trustor: Garden Station LLC, a California Limited Liability Company and Garden Station LLC, a California Limited Liability Company Trustee: First American Title Company Beneficiary: Hoe and Garden Center First Mortgage, L.P., a California Limited Partnership Recorded: November 19, 2004, as Instrument No. 2004101923 of Official Records. A Document entitled "Assignment of lessor's interest in lease" recorded November 19, 2004 as Instrument No. 2004101924 of Official Records, as additional security for the payment of the indebtedness secured by the deed of trust. Any invalidity or defect in the title of the vestees in the event that the trust referred to in the vesting portion of Schedule A is invalid or fails to grant sufficient powers to the trustee(s) or in the event there is a lack of compliance with the terms and provisions of the trust instrument. If title is to be insured in the trustee(s) of a trust, (or if their act is to be insured), this Company will require a copy of the trust instrument creating such trust, and all amendments thereto, together with a written verification by all present trustees that the copy is a true and correct copy of the trust, as it may have amended, that it is in full force and effect and that it has not been revoked or terminated. END OF EXCEPTIONS Page 6 of 8 1 None 1 1 I! u 1 1 NOTES Page 7 of 8 File Number: T7806114 1 7 1 1 File Number: T7800114 CALIFORNIA "GOOD FUNDS" LAW California Insurance Code Section 12413.1 regulates the disbursement of escrow and sub - escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds received by Cuesta Title Company via wire transfer may be disbursed upon receipt. Funds received via cashier's checks or teller checks drawn on a California Bank may be disbursed on the next business day after the day of deposit. If funds are received by any other means, recording and /or disbursement may be delayed, and you should contact your title or escrow officer. All escrow and sub - escrow funds received will be deposited with other escrow funds in one or more non - interest bearing escrow accounts in a financial institution selected by Cuesta Title Company. Cuesta Title Company may receive certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with the financial institution, and Cuesta Title Company shall have no obligation to account to the depositing party in any manner for the value of, or to pay to such party, any benefit received by Cuesta Title Company. Such benefits shall R deemed additional compensation to Cuesta Title Company for its services in connection with the escrow or sub - escrow. If any check submitted is dishonored upon presentation for payment, you are authorized to notify all principals and /or their respective agents of such nonpayment. WIRING INSTRUCTIONS If you anticipate having funds wired to Cuesta Title Company, our wiring information is as follows: Additional Note: Direct wire transfers to: City National Bank One Centerpoint Drive #160 La Palma. CA 90623 ABA: 122016066 Account Number: 013 - 429707 Credit to: Cuesta Title Company Reference Number: T7800114 When instructing the financial institution to wire funds, it is very important that you reference Cuesta Title Company. Should you have any questions in this regard please contact your Escrow Officer immediately. Page 8 of 8 1 ' Cuesta Title Company and Underwriters, Stewart Title Guaranty Company, Stewart Title Insurance Company And ' Commonwealth Land Title Insurance Company Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm - Leach - Bliley Act (GLBA) generally prohibits any financial institution, directly or through its ' affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are ' providing you with this document, which notifies you of the privacy policies and practices of Cuesta Title Company and underwriters Stewart Title Guaranty Company, Stewart Title Insurance Company and Commonwealth Land Title Company. We may collect nonpublic personal information about you from the following sources: ■ Information we receive from you, such as on applications or other forms. ' Information about your transactions we secure from our files, or from our affiliates or others. ■ Information we receive from a consumer reporting agency. ■ Information that we receive from others involved in your transaction, such as the Real Estate Agent or Lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. ' We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliated third parties as permitted by law. ' We also may disclose this information about our customers or former customers to the following types of nonaffiliated companies that perform services on our behalf or with whom we have joint marketing agreements: ' ■ Financial Service providers such as companies engaged in banking, consumer finance, securities and insurance. ■ Non - financial companies such as envelope stuffers and other fulfillment service providers. ' WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that ' information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. 1 J EXHIBIT A AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6 -1 -87) EXCLUSIONS In addition to the Exceptions in Schedule B. you are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any low or governmental regulation. This includes building and zoning ordinances and also laws and regulations concerning: • land use • improvements on the land • land division • environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at policy date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless: • a notice of exercising the right appears In the public records on the Policy Date • the taking happened prior to the Policy Date and is binding on you if you bought the land without knowledge of the taking Title Risks: • that are created, allowed, or agreed to by you that are known to you, but not to us, on the Policy Date - unless they appeared in the public records • that result in no loss to you • that first affect your title after the Policy Date — this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks Failure to pay value for your title. Lack of a right: to any land outside the area specifically described and referred to in Item 3 of Schedule A or in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. SCHEDULE B EXCEPTIONS In addition to the Exclusions, you are not insured against loss, costs, attorneys' fees, and the expanses resulting from: ' 1. Any rights, interests, or claims of parties in possession of the land not shown by the public records. 2. Any easements or liens not shown by the public records. This does not limit the lien coverage in Item 8 of Covered Title Risks. L t F_� I JI r—� i 3. Any fads about the land which a correct survey would disclose and which are not shown by the public records. This does not limit the forced removal coverage in Item 12 of Covered Title Risks. 4. Any water rights or claims or title to water in or under the land, whether or not shown by the public records. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY -1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of. 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances. adverse claims, or other matters: (a) whether or not recorded In the public records at D21e of Policy, but created. suffered, assumed, or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the Insured claimant and not disclosed In writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy, (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (a) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforcoability, of the lien of the insured mortgage because of the 'inability or the faiture of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state In which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6, Any claim, which arises out of the transaction vesting in the insured the @slate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. SCHEDULE B, PART I EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attomeys' fees or expenses) which arise by reason of: PART 1 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, Interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. S. (a) Unpatenled mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. 1 1 1 1 1 1 EXHIBIT A (CONTINUED) AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10- 17 -92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10- 17 -92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attomeys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or govammental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the lend; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, Ilan or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Dale of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed, or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this polity insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy): or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or the failure of the insured at Date of Policy, or the Inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforreability of the lien of the insured mortgage, or claim !hereof, which arises out of the transaction evidenced by the Insured mortgage and Is based upon usury or any consumer credit protection or truth in lending law, 6. Any statutory Ilan for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lion of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Dale of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, stale insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer, or (ii) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (01) the transaction creating the interest of the insured mortgagee being.deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer, or (b) of such recordation to impart notice to a purchaser for value or a judgement or lien creditor. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10- 17 -92) AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10- 17 -92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attomeys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (it) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land Is or was a pan; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recordod in the pubec records at Date of Policy, 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the Insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. Any claim, which arises out of the transaction vesting In the insured the estate or interest Insured by this policy, by reason of the operation of federal bankruptcy, stale insolvency, or similar creditors' rights laws, that is based on: (1) the transaction creating the estate or interest Insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (o) the transaction creating the estate or Interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer, or (b) of such recordation to impart notice to a purchaser for value or a judgement or lien creditor. The above ALTA policy forms may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following General Exceptions: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attomeys' fees or expanses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which co uld be ascertained by an inspection of the land or by making inquiry of persons In possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other fads which a correct survey would disclose, and which are not shown by the public records. 5. (e) Unpatented mining claims; (b) reservations or exceptions In patents or in Acts authorizing the issuance thereoF, (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. 1 1 1 1 EXHIBIT A (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (6 -2 -98) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10- 17 -98) EXCLUSIONS In addition to the Exceptions in Schedule B. You are not insured against loss, costs, attomeys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or governmental regulation. This includes ordinances, laws and regulations concerning: a. building b. zoning C. Land use d. improvements on Land e. Land division I. environmental protection This Exclusion does not apply to violations or the enforcement of these matters d notice of the violation or enforcement appears in the Public Records at the Policy Date. This Exclusion does not limit the coverage described in Covered Risk 14. 15, 16, 17 or 24. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to lake the Land by condemning it, unless: a. notice of exercising the right appears in the Public Records at the Policy date; or b. the taking happened before the Policy Date and is binding on You if You bought the Land without Knowing of the taking. 4. Risks: a. that are created. allowed, or agreed to by You, whether or not they appear in the Public Records; b. that ere Known to You at the Polity Date, but not to Us, unless they appear in the Public Records at the Policy Date; C. that result in no loss to You; or d. that first occur after the Polity Date — this does not limit the coverage described in Covered Risk 7, 8.d, 22, 23, 24, or 25. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any Land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 18. RESIDENTIAL TITLE INSURANCE POLICY ONE -TO -FOUR FAMILY RESIDENCE ENHANCED VERSION (1997) EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or govemmental regulation. This includes building and zoning ordinances and also laws and regulations concerning: a. land use: b. improvements on the Land; C. land divisions; or d. environmental protection. This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does not limit the coverage described In Item 12c and d, 13 and 18 of Covered Title Risks. 2. The right to take the land by condemning it, unless: a. a notice of exercising the right appears in the public records on the Policy date; or b. the taking happened before the Policy Dale and is binding on you if you bought the land without knowing of The taking. 3. Title Risks: a. that we created, allowed, or agreed to by you; b. that are known to you, but not to us, on the Policy Date — unless they appeared in the public records; C. that result in no loss to you; or d. that first affect your title after the Policy Date — this does not limit the coverage described In Items 3b, 8, 17, and 19 of Covered 7419 Risks. 4. Failure to pay value for your title. 5. Lack of a right: (a) to any land outside the area specifically described and referred to in Item 3 of Schedule A or (b) in streets, alleys, or waterways that touch your land. This exclusion does not limit the coverage described In Items 5 and 12a of the Covered Title Risks. 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ITEM UNIT QUAN UNIT PRICE TOTAL PRICE Parking lot I Remove/Dispose Conc Wheel stops -18 EA 18 10.00 $180.00 2 Remove /Grind (E) Parking Lot striping LF 660 2.40 $1,584.00 3 Remove /Grind (E) Parking Lot MarkingE SF 65 7.20 $468.00 4 Seal Coat Parking lot SF 14425 0.28 $4,039.00 5 (N) Parking Lot striping 4" White or Blui LF 1377 2.00 $2.754.00 6 (N) HC Stall signs/posts ea 2 300.00 $600.00 7 (N) Pave Markings - arrows, HC SF 131 8.50 $1.113.50 8 Provide & Install New Wheel stops- qty ea 34 40.00 $1,360.00 Total: $12,098.50 Planter vas/ Irrigation & Landscaping 9 6" Curb - Parking/planter (inel AC repair) LF 240 52.00 $12,480.00 10 Irrigation/Landscape SF 1400 5.00 $7,000.00 Total: $19,480.00 Rental Shop Stairs I l Concrete Stairs CY 3 750.00 $2,250.00 12 Handrails LS 1 1500.00 $1,500.00 Total: $3,750.00 Storm Drain Extension 13 Extend tone Dram to FL for future PHIC darinange system LF 15 - 175.00 ($2,625.00 TOTAL: 1 $32,70350 Note: These costs are from the City of San Luis Obispo in negotiating with the property owners. They are not part of the appraisal and not verified. REEDER, GILMAN & BORGQUIST Appraisers and Consultants • Real and Personal Property WARREN REEDER • MAI, SR/WA 1101 South Broadway, Suite A, Santa Maria, California 93454 ' SCREA, CA # AGO06521 Senior Member - APPRAISAL INSTITUTE P. O. Box 726, Santa Maria, California 93456 INTERNATIONAL RIGHT OF WAY ASSOCIATION Telephone: (805) 925 -2603 ' LESLIE J. GILMAN • MBA, SR/WA SCREA, CA # AGO 14980 Fax: (805) 925 -0840 Senior Member - INTERNATIONAL RIGHT OF WAY ASSOCIATION Email: info@rgbappraisers.com M. LISA BORGQUIST SCREA, CA # AGO 14431 Website: WWW.RGBAPPRAISERS.COM Federal Tax ID #77- 0555850 March 14, 2007 Rossi Enterprises Attn: John Dunn 750 Pismo Street San Luis Obispo, CA 93401 ' RE: Appraisal — Santa Barbara Street Widening — Conroy - APN: 003 - 752 -005 Our File No.: 7641.01- 01 -07 -ED ' Dear Mr. Conroy: Our firm has been retained by the City of San Luis Obispo to perform appraisal services related to a Santa Barbara Street Widening Project Your property, which is identified above, is one of the properties that are involved in the project. The attached map indicates the location of your property; it is outlined in yellow. This letter is to inform you of our involvement in the appraisal process and to provide you with an opportunity to meet with us during the inspection of the property. ' If you are interested in accompanying us, please contact us at (805) 925 -2603. Please note that either you or your designated representative can meet with us. Also, if you wish, details regarding your property can be discussed with us over the phone rather than during the actual property inspection. ' Please contact us at any time regarding questions related to the appraisal phase of this project. After the appraisal is completed, a representative of the project will contact you concerning the actual acquisition. ' Sincerely, REEDER, GILMAN & BORGQUIST ' REAL ESTATE APPRAISERS ' M. Lis g, Ist Certified general Real ate ppraiser, CA #AG014431 ' : Bridget cc cc: Brdget Fraser, City of SLO Dave Jewell, Hamner i£ Jewell Certified Letter Number: �T? : V W OR D peo 1� Q du � q M I L ISBStreetWidening 1 REEDER, GILMAN & BORGQUIST ' Appraisers and Consultants • Real and Personal Property WARREN REEDER • MAI, SR/WA 1101 South Broadway, Suite A, Santa Maria, California 93454 ' SCREA' CA 0 AGO06521 Senior Member - APPRAISAL INSTITUTE P. O. Box 726, Santa Maria, California 93456 INTERNATIONAL RIGHT OF WAY ASSOCIATION Telephone: (805) 925 -2603 ' LESLIE J. GILMAN •. MBA, SR/WA SCREA, CA # AGO 14990 Fax: (805) 925 -0840 Senior Member - INTERNATIONAL RIGHT OF WAY ASSOCIATION Email: info@rgbappraisers.com M. LISA BORGQUIST ' SCREA,CANAG014431 Website: WWW.RGBAPPRAISERS.COM Federal Tax ID #77- 0555850 ' February 16, 2007 Garden Station LLC ' 1216 State Street #700 Santa Barbara, California 93101 RE: Appraisal — Santa Barbara Street Widening — Garden Station LLC - APN: 003 - 752 -007 Our File No.: 7641.02- 01 -07 -ED Dear Sirs: ' Our firm has been retained by the City of San Luis Obispo to perform appraisal services related to a Santa Barbara Street Widening Project. Your property, which is identified above, is one of the properties that are involved in the project. The attached map indicates the location of your property; it is outlined in yellow. This letter is to ' inform you of our involvement in the appraisal process and to provide you with an opportunity to meet with us during the inspection of the property. If you are interested in accompanying us, please contact us at (805) 925 -2603. Please note that either you ' or your designated representative can meet with us. Also, if you wish, details regarding your property can be discussed with us over the phone rather than during the actual property inspection. ' Please contact us at any time regarding questions related to the appraisal phase of this project. After the appraisal is completed, a representative of the project will contact you concerning the actual acquisition. 1 n u Sincerely, REEDER, GILMAN & BORGQUIST REAL ESTATE APPRAISERS —�V �4�1� M. Lisa qu Certified G eral Real Estat raiser, CA#AG014431 LB:ajs cc: Bridget Fraser, City of SLO Certified Letter Number ISBStreetWidening r -I 0 17 L 1 1 r- j� e; REEDER, GILMAN & MILLION Apprai revs and Consultants • Real & Personal Pmperly WARREN REEDER • MAI, SR /WA SCRE', CA # AG006521 Senior Member - APPRAISAL INSTITUTE INTERNATIONAL RIGHT OF WAY ASSOCIATION LESLIE. GII MAN • MBA, SR /WA SCRE:1, C: # AGO 14990 Senior Member - INTERNATIONAL RIGHT OF WAY ASSOCIATION M. LISA MILLION SCREA CA # AGO14431 1101 South Broadway, Suite A, Santa Maria, California 93454 P. O. Box 726, Santa Maria, California 93456 Phone: (805) 925 -2603 Fax: (805) 925 -0840 Email: info@rgenaPPraisers.com Website: WWW.RGMAPPRAISERS.COM PROFESSIONAL QUALIFICATIONS The firm of Reeder, Gilman & Million is an association of appraisers whose practice began in 1946 under the direction of Ellis Rice. Burt Fugate and Robert Chapman joined the firm in 1962, which became Rice, Fugate & Chapman. In 1976, Warren Reeder and Les Gilman associated with the firm, which became known as Reeder, Fugate, Chapman & Gilman. In May of 1981, the firm became Reeder, Gilman & Associates to reflect the retirement of Robert Chapman and Burt Fugate from the appraisal profession. In October of 2000, Lisa Million became partner in the firm, and the firm name is now Reeder, Gilman & Million. Our firm's appraisal capabilities are comprehensive. Appraisals include agricultural, industrial, commercial, residential, business opportunities and special purpose properties, as well as involvement in eminent domain procedures. Our clients are varied and include individuals, financial institutions, corporations, and government agencies. The geographic area we service encompasses the tri- county areas of San Luis Obispo, Santa Barbara, and Ventura counties. With our background, experience, and education in the appraisal field, we will continue to offer comprehensive appraisal and consultation services. The following pages include our real estate appraisal specialties, a partial list of clients, the professional designations of our appraisers, and a summary of the qualifications of the individuals of our appraisal organization. ' REAL ESTATE APPRAISAL SPECIALTIES 1 ASSEMBLY, SPORTS & ENTERTAINMENT APPRAISAL SERVICES • • • Appraisal Reviews ' • Condemnation / Eminent Domain • Consulting- Feasibility Studies ' • Consulting- Highest and • Equestrian Facility Best Use Studies • • Consulting- Market Analysis Estates • • Evaluations • Reception Hall / Banquet Facility Land Use Studies ' • Litigation / Expert Testimony • • Mortgage ' Theatre — Indoor Screen Multiplex Zoning • • Other IJ ' ASSEMBLY, SPORTS & ENTERTAINMENT • • Auditorium Bowling Alley • Campground / RV Trailer Camp ' Club / Lounge • Community Center • Equestrian Facility ' Golf Course / Country Club • Health / Athletic Club / Spa • Reception Hall / Banquet Facility ' Religious Facility • Theater — Drive In ' • Theatre — Indoor Screen Multiplex • Other 1 COMMERCIAL / RETAIL • Bar / Nightclub / Tavern / Brewery • Car Wash — Full Service • Car Wash — Self Service • Community Store • Convenience Store — Gas • Convenience Store — No Gas • Convenience / Strip Center • Day Care Facility / Nursery • Factory Outlet Center / Mall • Financial Institution • Funeral Home / Mortuary • Garden Center • Neighborhood Strip Mall • Parking Garage / Surface • Power Center • Restaurant — Fast Food • Restaurant — Limited Service • Restaurant — Sit Down Full Table Service • Service Station / Gas Station / Quick Lubes • Single Tenant Building • Vehicle Dealership • Other t REAL ESTATE APPRAISAL SPECIALTIES AGRICULTURAL • Dairy Farm • Dryland Farm • Greenhouse / Nursery • Horse Farm • Irrigated Crop Land • Irrigated Pasture • Livestock Auction Market / Stockyard • Livestock Farm / Ranch • Livestock Feed Processing Facility • Livestock Feedlot • Orchards / Groves • Poultry Facility • Vineyard • Winery • Other MIXED • Hotel • Hotel • Retail • Retail • Other USE - Office - Office — Residential - Office - Residential RESIDENTIAL • Multi - Family — Garden Apartments • Multi - Family — Low Income Housing • Subsidized Housing • Multi- Family — Low -Rise Apartments • Student Housing — Apartment • Student Housing — Dorm • PUDs • Subdivisions • Mansions / Luxury Homes • Other SENIOR HOUSING • Assisted Living • Continuing Care Retirement Center • Independent Living 1 F REAL ESTATE APPRAISAL SPECIALTIES OFFICE • Office Building — Single Tenant • Office Building — Multi- Tenant • . Office Park / Campus • Office Condo • Other LODGING / HOSPITALITY • All Suites • Bed & Breakfast / Guest House • Convention • Economy • Full Service • Limited Service • Resort / Spa • Other GOVERNMENT / MUNCIPAL • Airport / Airport Hangar • Governmental Building • Libraries • Police / Fire Stations • Post Offices • School Buildings / Facilities • Train Station / Bus Terminal • Other INDUSTRIAL • Beverage Processing Plant • Cold Storage Plant • Dock / Distribution Facility • Heavy Manufacturing • Industrial Condo • Industrial Park • Light Manufacturing • Meat Packing / Food Processing Plant • R & D Development / Tech Center • Repair / Maintenance Centers • Self- Storage / Mini- Storage • Single Tenant Special Use • Truck Terminal / Hub / Transit • Warehouse — Distribution • Warehouse — Public Storage • Warehouse — Refrigerated / Cold Storage • Mini Warehouse • Other 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Raw REAL ESTATE APPRAISAL SPECIAL'T'IES LAND • Bulk Subdivision land • Easements • Industrial Site • Multi - Family Site • Office Site • Park Setting / Open Space / Natural Lands • Residential / Acreage • Retail / Commercial Site • Wetland / Marsh / Flood Zone • Other HEALTH CARE • Acute Care/ Hospital • Medical Office Building • Nursing Home • Rehabilitation Center • Skilled Care Facility • Other SPECIAL PURPOSE / OTHER • Cemetery / Mausoleum / Crematory • Corridor / Right of Way • Landfill • Mineral Rights / Quarries / Mining • Museum / Gallery • Outdoor Advertising • Salvage Yard • Towers • Transmission Lines • Oil and Gas Property / Pipelines • Other PARTIAL LIST OF CLIENTS ' FINANCIAL INSTITUTIONS: Wells Fargo Bank, Bank of America, Santa Lucia Bank, Mitsubishi Bank, Union Bank, ' Bank of Montecito, Lloyds Bank, Cathay Bank, Sanwa Bank, Sumitomo Bank, Commerce Bank, Santa Barbara Bank & Trust, First Bank of San Luis Obispo, Heritage Oaks Bank, Upland Bank, ' Regency Savings Bank, City Commerce Bank, Southern Pacific Bank n I� 1 1 ENVIRONMENTAL: The Nature Conservancy, California State Coastal Conservancy, Land Trust for Santa Barbara County, Morro Bay National Estuary Program, The Trust for Public Land GOVERNMENT: • United States: Federal Aviation Agency, Western White House (Reagan Ranch), Department of Interior, U.S. Postal Service, U.S. Department of Justice, General Services Administration, F.D.I.C., Department of Veterans Affairs • State: Caltrans, California State Coastal Conservancy, California Department of Justice, California Department of Water Resources, California Department of Parks and Recreation, Central Coast Water Authority • Counties: Santa Barbara, San Luis Obispo, Ventura, and Santa Barbara County Association of Governments (SBCAG) • Cities: Santa Barbara, Santa Maria, San Luis Obispo, Morro Bay, Ventura, Oxnard, Port Hueneme, Lompoc, Arroyo Grande, Grover Beach, Guadalupe, Paso Robles, Atascadero SPECIAL DISTRICTS: Santa Barbara County Flood Control, San Luis Obispo County Flood Control, Santa Barbara Metropolitan Transit, Goleta Water, Santa Ynez River Water Conservation, Solvang Municipal Improvement District, Santa Maria Airport District, Santa Barbara High School District, Cambria Community Services District, Port San Luis Harbor District GENERAL CLIENTS: In addition to the above, our firm serves various clients throughout the Central Coast. These include law firms, private individuals, and agricultural, commercial and industrial clients. INDUSTRIES: ' • General.• Ford Motor Co., Granite Construction, Chrysler Corp., Gould Corp., Santa Maria Valley Railroad, Quintron Systems, ' International Telephone and Telegraph, Marian Medical Center, Chicago Title Company, McCarthy Steel Company • Agricultural.• Gainey Ranch & Winery, Firestone Winery, Zaca Mesa Winery, Central Coast ' Farm Credit Association, Chandler Ranches, Hearst Ranch, Bixby Ranch Company, Newhall Land and Farming, Alisal Ranch, O.T. Rice & Son, Inc., Santa Maria Berry Farms, Fess Parker Ranch & Winery ' Oil Companies: ARCO, Shell, Chevron, Texaco, Marathon, Conoco, Exxon, Venoco Inc. • Utilities: Pacific Gas & Electric, Southern California Gas, Southern California Edison, and ' General Telephone ' FINANCIAL INSTITUTIONS: Wells Fargo Bank, Bank of America, Santa Lucia Bank, Mitsubishi Bank, Union Bank, ' Bank of Montecito, Lloyds Bank, Cathay Bank, Sanwa Bank, Sumitomo Bank, Commerce Bank, Santa Barbara Bank & Trust, First Bank of San Luis Obispo, Heritage Oaks Bank, Upland Bank, ' Regency Savings Bank, City Commerce Bank, Southern Pacific Bank n I� 1 1 ENVIRONMENTAL: The Nature Conservancy, California State Coastal Conservancy, Land Trust for Santa Barbara County, Morro Bay National Estuary Program, The Trust for Public Land GOVERNMENT: • United States: Federal Aviation Agency, Western White House (Reagan Ranch), Department of Interior, U.S. Postal Service, U.S. Department of Justice, General Services Administration, F.D.I.C., Department of Veterans Affairs • State: Caltrans, California State Coastal Conservancy, California Department of Justice, California Department of Water Resources, California Department of Parks and Recreation, Central Coast Water Authority • Counties: Santa Barbara, San Luis Obispo, Ventura, and Santa Barbara County Association of Governments (SBCAG) • Cities: Santa Barbara, Santa Maria, San Luis Obispo, Morro Bay, Ventura, Oxnard, Port Hueneme, Lompoc, Arroyo Grande, Grover Beach, Guadalupe, Paso Robles, Atascadero SPECIAL DISTRICTS: Santa Barbara County Flood Control, San Luis Obispo County Flood Control, Santa Barbara Metropolitan Transit, Goleta Water, Santa Ynez River Water Conservation, Solvang Municipal Improvement District, Santa Maria Airport District, Santa Barbara High School District, Cambria Community Services District, Port San Luis Harbor District GENERAL CLIENTS: In addition to the above, our firm serves various clients throughout the Central Coast. These include law firms, private individuals, and agricultural, commercial and industrial clients. L 1 1 1 1 1 PROFESSIONAL. DESIGNA'T'IONS OF APPRAISERS MAI - MEMBER APPRAISAL INSTITUTE SR /WA - SENIOR MEMBER, INTERNATIONAL RIGHT -OF -WAY ASSOCIATION SCREA - STATE CERTIFIED REAL ESTATE APPRAISER INFORMATION ON DESIGNATIONS: MAI - The Appraisal Institute is an organization that awards the MAI appraisal designation to qualified individuals. This designation represents years of appraisal experience in varied types of property and is awarded to those individuals who have demonstrated their appraisal ability through the Institute's stringent requirements which include work experience, testing and educational programs. SR /WA - The Senior Member, International Right -of -Way Association professional designation is awarded to those individuals who have demonstrated through testing and experience, their understanding and ability in the field of right -of -way appraisal, engineering, negotiations and eminent domain law. SCREA - The Financial Institutions Reform, Recovery and Enforcement. Act (FIRREA) of 1989 requires all states to institute a licensing and certification program for appraisers conducting appraisals for federally related real estate transactions. In compliance with FIRREA, the Office of Real Estate Appraisers (OREA) was established by the State of California.. The title "State. Certified Real Estate Appraiser' is awarded by the OREA to individuals who have successfully met the minimum requirements for certification.. This renewable license authorizes the appraiser to complete appraisals of all real estate transactions without regard to transaction value or complexity. DESIGNATED PARTNERS: WARREN REEDER - MAI, SR /WA, SCREA, CA #AG006521 LESLIE J. GILMAN - SR /WA, SCREA, CA #AG014980 M. LISA MILLION - SCREA, CA #AG014431 1 u 1 M. LISA MILLION REAL ESTATE APPRAISER RESIDENCE: Oceano, San Luis Obispo County, California BUSINESS AFFILIATION: Reeder, Gilman & Million, Appraisers and Consultants PROFESSIONAL AFFILIATIONS: State Certified Real Estate Appraiser, CA #AG014431 - Office of Real Estate Appraisers Member - International Right of Way Association Competent Communicator — Toastmasters International EDUCATION: Hancock College — Associate in Arts Degree Appraisal Institute - USPAP, General Applications, Seminars, Advanced Applications, Litigation Seminar, Evaluating Commercial Construction, Non - conforming Uses, Appraisal Litigation International Right of Way Association — Environmental Contamination, Acquisitions Seminar, Ethics, Easement Valuation, Legal Aspects of Easements, Eminent Domain Case Update, Detrimental Conditions Seminar Lorman Education Services — Laws of Easements, Advanced Zoning and Land Use Lincoln Graduate Center - Farm & Land Appraisal State Board of Equalization - Course 5, Income Approach, Advanced Income and Sales Comparison State Board of Equalization (Texas, includes Cost, Market, Income & Tax Law) - Courses 120, 210, 220, 230 & 325 APPRAISAL EXPERIENCE: 2000 - Current Reeder, Gilman & Million — Santa Maria, CA 1 1998-2000 Santa Barbara County Assessor- Santa Maria, CA 1992-1998 Reeder; Gilman & Associates — Santa Maria, CA 1911-1992 Santa Barbara County Assessor - Santa Maria, CA '1987-1988 Los Angeles County Assessor - Los Angeles, CA 1985-1987 Hidalgo County Appraisal District - Pharr, TX RELEVANT EXPERIENCE: 1 5/87-10/87 Damar Corporation, Los Angeles, CA CL t 00 11 f REEDER GILMAN & MILLION Appraisers and Consultants • Real and Personal Property 1101 South Broadway, Suite A, Santa Maria, California 93454 Phone(805)9 25 -2603, Fax (805) 925 -0840