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VI: OC NCLUSIONS AND LIMITING NS <br />A. Opinion of Value/Conclusion <br />The previous section of this report discussed the approach to determining the value of the interests <br />being conveyed to the Developer. Based on this analysis, it is our opinion that as of February 7, <br />2000, the fair reuse value for the interest to be conveyed to the Developer, free and clear, is <br />$2,265,000, subject to the terms and conditions of the DDA, specifically the actual development <br />costs and rents. <br />B. Statement of Limiting Conditions and Assumptions <br />The conduct of any appraisal is necessarily guided, and its results influenced, by the terms of the <br />assignment and the assumptions that together form the basis of the appraisal. The following <br />conditions and assumptions, together with lesser assumptions embodied in this report, constitute <br />the framework of our analysis and conclusions. <br />The estimate of reuse value for the interests being conveyed to the Developer assumes compliance <br />with the following: <br />The Agreement requires the construction of a first-class office project with an <br />exceptional level of amenities, including a landscaped plaza, a high quality of <br />building materials, as well as the obligation of the Developer to accomplish such <br />development in an expeditious manner. <br />2. Construct and open the Minimum Project with approximately 130,000 sq.ft. of <br />office space (NRA) in two 3- and 4 -story buildings at one time, in accordance <br />with the Scope of Development in the DDA and within the time frame specified <br />in the Agreement. <br />3. The Minimum Project will include a ground -floor restaurant of not less than <br />2,000 sq.ft. of NRA. Should the Developer fail to lease the 2,000 sq.ft. <br />restaurant space within the time frame specified, then the reuse value will <br />increase by $250,000. <br />4. The Developer is obligated to pay all gover=ental fees and assessments, <br />including the underground utility conversion fee and the City of San Leandro Fee <br />for Street Improvements (DFSI). <br />r^ rtI <br />x,24 . <br />Keyser Marston Associates, Inc. <br />19096.001\002-002.doc Page 17 <br />