Reso 1998-009 - Laserfiche WebLink

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IV. VALUE OF THE INTEREST TO BE CONVEYED Reuse Value In our opinion, it is concluded that the land payment from the Developer for the Site of $207,000 is a fair consideration for the interests being conveyed to the Developer, given the specific covenants and conditions of the Agreement requiring the construction and operation of a new automotive lube and tune center. In addition, the Developer is obligated to pay the City of San Leandro utility undergrounding fee and Development Fee for. Street Improvements (DFSIs). The KMA reuse appraisal is attached to this report and incorporated herein by this reference. Estimated Value at Highest and Best Use KMA has also estimated the value of the interests conveyed to the Developer if the entire site was sold by the Redevelopment Agency at its highest and best use allowed under the redevelopment plan. KMA concludes that the reuse value is the same as the value under the highest and best use since the proposed concept with a new automotive lube and tune center, in our judgment, is the highest value concept under the current land use designation, as discussed in the reuse appraisal. Based upon the foregoing analyses, it is our judgment that a fair consideration for the interests conveyed to the Developer is $207,000. V. CONSIDERATION RECEIVED AND REASONS THEREFOR The Agency is receiving a land payment for the value of the interests being conveyed to the Developer, which is consistent with the provisions of the Agreement. The land payment is estimated to be $207,000. The Agency is obligated to deliver a clear, rough graded site to the Developer ready for development. The Developer is obligated to incur the costs of paying the City of San Leandro utility undergrounding fee and to pay the City's DFSI fee. The consideration being paid to the Agency is equal to the estimated value for the highest and best use of the interests being conveyed to the Developer. KEYS ER MA RSTO N ASSOCIATES INC. 19104\0001-002.DOC - Page 7