RDA Reso 2000-005 - Laserfiche WebLink

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3. The definition of reuse value is further augmented due to certain conditions imposed by the Agency, and assumptions as follows: a. The seller is a public agency having definite controls over the development. Due to the complexity of the overall plan of development, the developer of the land parcel must contend with a series of regulations and controls, which are not common in the conventional real estate market. The Agency must provide continued monitoring with respect to the ability of the Developer to perform within prescribed conditions. b. The Developer, like the Agency, is unique in the real estate market. Due to the various development requirements and time restrictions imposed by the development program, the potential developers are limited to individuals or organizations with adequate financial and productive resources. In order to appeal to the limited market of potential buyers, market value must be equated to the maximum price a restricted and limited market is warranted in paying based upon risk and investment return factors. C. The development plan can impose development restrictions and/or requirements, including that development. must commence immediately after conveyance. Accordingly, the market value must reflect the advantages created by the project as well as the requirements and limitations on land uses to be imposed on the Developer by the public agency. 4. The Agency conveys the site to the Developer based upon the specific terms and conditions agreed to in the DDA. Development will proceed as agreed to in the DDA, including by the times specified in the DDA; i.e., speculation is not allowed. C. Rights Appraised The rights appraised assume that the site is free and clear of all encumbrances except those covenants, conditions, and easements specified in the DDA. D. Date of Valuation February 7, 2000 i7 ..L 011 Keyser Marston Associates, Inc. 19096.001\002-002.doc Page 5