Reso 2001-158 - 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. Based on the analysis of comparable land sale transactions in the accompanying Reuse Valuation Report for the Batarse Family Trust Project Site, the fair reuse valuation is $2,023,150, based on $12.50 per square foot. The Agency will convey the Property to the Developer for the amount of $3,237,040, which when reduced by the present value of the contribution of tax increment from the Agency, is valued at $2,720,245. The Developer is paying $20 per SF. This is higher than the fair reuse value, as estimated by CCG. 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, RHBA 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 $3,963,756. Conley Consulting Group Page 9 of 12 9-9 Batarse Site 33433 10300.002 v5 September, 2001