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A. Highest and Best Use Valuation <br />An appraisal was conducted on the Yokota property by Richard H. Burchard & <br />Associates (RHBA) to establish the Fair Market Value of the entire 8.942-acre site, a <br />portion of which is to be sold to the Developer for the construction of the Project. RHBA <br />evaluated the highest and best use for the property to be commercial development <br />including automotive dealership, hotel, office or a regional retail use. The appraisal <br />assumed a valuation of the land if vacant for general commercial development and <br />included demolition costs for the existing nursery structures and residences. <br />Based on comparable sales of commercial land of similar size in the area, RHBA <br />concluded that the fair market value of the land at its highest and best use was $9.5 <br />million for 389,514 SF, or $24.49 per SF. <br />B. Land Sales Comparisons <br />CCG evaluated the fair reuse value of the Site by looking at sales of vacant land that, <br />unlike the highest and best use appraisal by RHBA, was restricted to an intended use of <br />automobile dealership. Attached is Table 1, summarizing the automobile dealership land <br />sales used in our reuse valuation analysis. <br />CCG used Comps, Inc. as the source for land sales. The results of the research were <br />nine transactions for sale of land intended to be used for auto dealerships in the counties <br />of Alameda, Contra Costa and Santa Clara over the last three years. Sales older than <br />three years were excluded, as were sales occurring in southern portions of Santa Clara <br />County, as they were too remote from the subject property to make comparisons. <br />1444 Marina Boulevard, San Leandro <br />The transaction is more than one year old, but it pertains to a parcel of 296,643 SF on <br />previously developed industrial land on the same thoroughfare as the Site. Its <br />accessibility is somewhat better than the Yokota property. The sales price of $13.75 is a <br />useful comparison for our reuse valuation. <br />2. SE corner Hacienda, Dublin <br />This transaction is more than two years old. It pertains to a parcel of 587,189 SF that <br />sold for $16.13 per square foot. The site has superior accessibility and visibility to our <br />subject property, as it is on an off-ramp of Interstate 680. Therefore, we will discount this <br />transaction in our analysis. <br />Conley Consulting Group Page 15 of 22 <br />9-9 Bartarse Reuse 10300.006 v5 September, 2001 <br />