Laserfiche WebLink
11. NATURE OF THE ASSIGNMENT <br />A. Purpose of the Valuation <br />The purpose of this reuse valuation is to estimate the fair reuse value for the Site being <br />conveyed to the Developer based upon the covenants and the conditions included in the <br />draft DDA. <br />The DDA restrictions and guidelines affect the characteristics of the physical <br />development and other features and impose certain requirements relating to how the <br />project will be developed, to the operation of the project and to the transferability of the <br />Developer's interest. The covenants and conditions strongly affect the development <br />economics of the Project and hence the value of the interest to be conveyed to the <br />Developer, as described in this report. <br />The reuse value specifically requires compliance with the limiting conditions and <br />assumptions of this report as stated in Section VI. <br />B. Definifion of Value <br />Fair reuse value is the fair market value in accordance with covenants, conditions, and <br />easements governing the sale of the property as contained in the DDA. It is the highest <br />price in dollar terms which the property would be expected to bring for the specified <br />purpose in a competitive and open market under the reuse conditions established by the <br />Agency, with the buyer (Developer) and seller (Agency) each acting prudently and <br />knowledgeably, assuming the price is not affected by undue stimulus. Also essential to <br />an estimate of a fair market value is the notion that the conveyance of the property will <br />result in near-term development, not speculation. <br />Implicit in this definition is the consummation of a sale as of a specified date under <br />conditions whereby: <br />1. Both parties are well informed and well advised, and are each acting prudently in <br />what it considers its own best interest. <br />2. Financing, if any, is on terms generally available to this Developer for the use <br />proposed at the date the property is ready for construction. The reuse value <br />represents a normal consideration for the property sold, unaffected by special <br />financing amounts and/or terms, services, fees, costs, or credits incurred in the <br />financing transaction. <br />Conley Consulting Group Page 7 of 22 <br />9-9 Bartarse Reuse 10300.006 v5 September, 2001 <br />