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:= NATURE OFTHASSIGNMENT <br />r. <br />�a:`�3^'�V«�:�.'c++htrrrartx-t. .A.�.-:-. w4w.sM.__- •.n.�;«+r'.:,.:..;:�ma�w.:ru. �s,t�t „ '�`- J.. xr. <br />A. Purpose of the Appraisal <br />The purpose of this reuse appraisal is to estimate the fair reuse value for the Site being conveyed <br />to the Developer, Creekside Associates, LLC, based upon the covenants and the conditions <br />included in the Disposition Development Agreement ("DDA"). <br />The DDA restrictions and guidelines affect the characteristics of the physical development and <br />other features and impose certain requirements relating to how the project will be developed, to <br />the operation of the project and to the transferability of the Developer's interest. The covenants <br />and conditions strongly affect the development economics of the Project and hence the value of <br />the interest to be conveyed to the Developer, as described in this report. <br />The reuse value specifically requires compliance with the limiting conditions and assumptions of <br />this report as stated in Section VI. <br />B. Definition of Value <br />Fair reuse value is the fair market value in accordance with covenants, conditions, and easements <br />governing the sale of the property as contained in the DDA. It is the highest price in dollar terms <br />which the property would be expected to bring for the specified purpose in a competitive and open <br />market under the reuse conditions established by the Agency, with the buyer (Redevelopment <br />Agency, Developer) and seller (private owners, Redevelopment Agency) each acting prudently <br />and knowledgeably, assuming the price is not affected by undue stimulus. Also essential to an <br />estimate of a fair market value is the notion that the conveyance of the property will result in near- <br />term development, not speculation. <br />Implicit in this definition is the consummation of a sale as of a specified date under conditions <br />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 />1-04 <br />Keyser Marston Associates, Inc. <br />19096.001\002-002.doc Page 4 <br />