Reso 1996-061 to 065 - Laserfiche WebLink

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V ..,.- ,REUSE VALUE The purpose of this analysis is to establish the reuse value of the subject site being conveyed to the Auto Dealer, the Batarse Family Trust, operating as the Lloyd A. Wise Companies. The fair reuse value is the fair market value for a developable site subject to the specific terms and conditions of the Disposition and Development Agreement ("DDA") that control the reuse of the site. Pursuant to the DDA, the Auto Dealer is required to develop several new automobile dealerships on the north side of Marina Boulevard in San Leandro. Separately, the Auto Dealer is privately assembling additional acreage in the immediate area as part of the overall development agreement. The valuation of real estate is derived principally through three approaches to market value: the cost approach, the market data comparison approach, and the income approach. From the indication of these separate analyses and the weight accorded each, an opinion of value is reached, based on the quantity and quality of the factual data considered, tempered by the judgment and experience of the appraiser who is utilizing commonly accepted methods and techniques within the framework of the appraisal process. The cost approach is not applicable due to the fact that this appraisal is for the valuation of a site where the improvements have no value and will be demolished or totally renovated. The Income Approach is also not applicable. This approach is based upon the income and cost characteristics of the proposed project, which are unknown. The market data comparison approach to value is based upon the principle of substitution; that is, when a property is replaceable in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming no costly delay in making the substitution. The typical appraisal technique used. to estimate values through substitution involves the collection and . analysis of sales and listings on various sites having as many similar characteristics as possible as the site being appraised. This analysis will utilize the market data comparison approach, as outlined below. Recent land sales for subsequent development of mostly freestanding auto and related auto retail uses can be found throughout the area. There are very few land sales (of improved or partially improved sites) for reuse as multiple auto dealerships within the San Leandro market area. Therefore, KMA reviewed several sales of vacant, unimproved auto dealership sites in the East Bay and South Bay areas. If the Auto Dealer's total assemblage costs are in line with what other auto dealers are required to pay to assemble dealership sites in the Bay Area, then the proposed agreement between the Agency and the Auto Dealer will yield a fair reuse value for the land being conveyed to the Auto Dealer. The following analysis is a detailed discussion of other auto dealer land sales. A. Land Values - Other Bay Area Auto Dealer Land Sales KEYSER MARSTON A SSO I A T E S I NC. 1909610014-003.doc Page I�