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VI CONCLUSIONS AND LIMITING CONDtTIOIVS <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 Auto Dealer. Based on this analysis, it is our opinion that as of March 29, <br />1996, the fair reuse value for the parcels assembled by the Agency to be conveyed to the Auto <br />Dealer, free and clear, is $160,000.. The Auto Dealer is required to purchase land from the <br />Agency for the purpose of developing and operating several automobile dealership facilities. The <br />Auto Dealer is also privately assembling additional parcels along Marina Boulevard. <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 which together form the basis of the study. 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 Auto Dealer assumes <br />compliance with the following: <br />The fair reuse value assumes that the land is clear and ready for development, <br />inclusive of the cost to clean up any toxic materials. <br />2. Under the terms and conditions of the DDA, the permitted use of the sites is <br />limited to auto dealerships. <br />3. The Auto Dealer will optimize the opportunity for a successful Auto Center by <br />privately assembling additional parcels along Marina Boulevard. <br />4. Development of the auto dealerships will occur immediately after conveyance <br />and expiration of leases on the private assemblage site. Speculation is not <br />allowed. <br />5. The Auto Dealer agrees to generate annual taxable sales of a minimum of $20 <br />million on the Auto Dealer's automobile dealerships on Marina Boulevard in <br />San Leandro for a period of 20 years. If in any year the Auto Dealer does not <br />generate annual taxable sales of $20 million, the Auto Dealer shall pay the <br />KEYSE R MARSTON A SSOCI ATES INC. <br />19096\0014-003.doc Page 20 <br />