RDA Reso 2001-011 - Laserfiche WebLink

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IV. VALUE OF THE INTEREST TO BE CONVEYED Reuse Value The reuse value of the Site is directly a function of the specific Project and economics as specified in the terms and conditions of the Agreement. The Agreement requires the Developer to develop property for use as an automobile dealership. The Project's development cost is estimated at approximately $9,157,467. Given that the Project cannot receive financial assistance, as it would otherwise be subject to Health & Safety Code Section 33436.7, the reuse value must be set equal or greater to the fair market value of the Site. Therefore, the Agency will convey the Property to the Developer at a price higher than the per SF price determined in the highest and best use appraisal of the Yokota property, or $25.30 per SF. For the approximately 168,228 SF Site, the total purchase price equals $4,256,168. Per the draft DDA, the Developer will pay the escrow and closing costs on the transaction. Estimated Value at Highest and Best Use An appraisal was conducted on the Yokota property by Richard H. Burchard & Associates (RHBA) to establish the Fair Market Value of the entire 8.942-acre site, a portion of which is to be sold to the Developer for the construction of the Project. RHBA evaluated the highest and best use for the property to be commercial development including automotive dealership, hotel, office or a regional retail use. The appraisal assumed a valuation of the land if vacant for general commercial development and included demolition costs for the existing nursery structures and residences. Based on comparable sales of commercial land of similar size in the area, RHEA concluded that the fair market value of the land at its highest and best use was $9.5 million for 389,514 SF, or $24.49 per SF. Thus, the highest and best use value of the Site, which is to be sold to the Developer through the DDA, is $4,119,904. Conley Consulting Group Page 7 of 10 9-9 Volvo Lavery 33433 10200.003 v5 September, 2001