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A. Purpose of the Appraisal <br /> The purpose of this reuse appraisal is to estimate the fair reuse value for the interests being <br /> conveyed to the Auto Dealer, the Batarse Family Trust, also operating as the Lloyd A. Wise <br /> Companies, based upon the covenants and the conditions included in the Disposition Development <br /> 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 Auto Dealer'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 Auto Dealer, 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, Auto Dealer) 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. The definition of reuse value is further augmented due to certain conditions <br /> • imposed by the Agency, and assumptions as follows: <br /> KEYSER MARSTON ASSOCIATES INC. <br /> 1909610014- 003.doc Page 4 <br />