While the method of valuation was “corrected” in this review to reflect a more supported fair market value conclusion, an appropriate corridor valuation technique was utilized in the appraisal prepared by Santolucito Dore.
Element Santolucito-Dore Appraisal Corrective Review
Date of
Value
May 1, 2022 May 1, 2022
Valuation
Method
Sales Comparison Approach: Corridor
Valuation using ATF Analysis
Sales Comparison Approach: Corridor
Valuation using ATF Analysis
Fair Market
Value
$1,326,000 $677,688
Appraisal Review
The appraisal under review is an appraisal report prepared by Christine Santolucito, R/W -AC, Lance Dore, MAI, FRICS and Noble Tucker, of Santolucito Dore Group Inc. with a report date of September 29, 2022 and date of value of May 1, 2022. It is incorporated by attachment to this appraisal review as a Corrective Appraisal Review Report.
The appraisal presents a relevant and appropriate definition of the problem, subject property and market area characterizations. As will be discussed in the following analysis, this appraisal review is presented as a corrective review to correct for:
A revised proposed acquisition size.
A more supported fair market value conclusion.
The subject property is identified as a 13.52- acre portion of a flood control channel extending south from the San Bernardino County line in the City of Eastvale, between Hellman and Archibald Avenues. It is also identified as APN 144- 010-010 and is owned by the San Bernardino County Flood Control District.
Fair Market Value Interpretation
The San Bernardino County Charter defines fair market value as “the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available…”.
This contrasts with typical definitions of market value that do not reflect the “highest price” but the “most probable price” that would be supported.
The Santolucito-Dore Group appraisal report provides an appropriate definition of value.
However, the analysis under the sales comparison approach concludes to a value not fully supported for the subject’s Eastvale location.
693
INTEROFFICE MEMO
CORRECTIVE APPRAISAL REVIEW REPORT 23-15CR LIMONITE GAP CLOSURE PROJECT (FCSUR 2022-0004) / RESD 3800 4356 (CITY OF EASTVALE EASEMENT) MAY 24, 2023
Across the Fence Valuation Technique
The Santolucito-Dore Group appraisal report analyzes the value of the acquisition via “across the fence” technique. This technique is often used in one form or another to value interests in a corridor, such as a flood control channel, railway, or road. When valuing a corridor, the larger parcel can often be several miles long that makes it difficult to apply a sales comparison approach. The ATF technique presupposes the property that is part of a corridor has the same highest and best use as the adjacent land. Such analysis is reasonable in light of the definition of fair market value and, as, if the corridor did not presently exist, it would be required to be carved out from the adjacent (or the Across the Fence) property.
The appraisal report describes the ATF properties as being 20- 50 acres of improved land (prior to subdividing) and zoned for industrial uses. The parcels to the east are zoned Industrial Park (IP) and have a General Plan Land Use of Light Industrial . Those properties were 15.47 acres and 49.68 acres at the time of their sales (before subdivision/re- parcelization) and their transactions have been utilized as Sales 2 & 5 in this corrective review. The property to the west was 21.36 acres at the time of its sale (Sale 1) and located within The Ranch at Eastvale Specific Plan, with a General Plan Land Use designation of Light Industrial. Within the specific plan, the property to the west of the subject is within planning areas 7, 8 and 9 (PA-7, PA-8 and PA-9). PA-7 is zoned for light industrial and PA-8 & PA-9 are zoned for business park.
Therefore, this corrective analysis reflects the relevant characteristics of typical or actual property that is across the fence as land designated for industrial development ranging from 15 to 50 acres.
694
INTEROFFICE MEMO
CORRECTIVE APPRAISAL REVIEW REPORT 23-15CR LIMONITE GAP CLOSURE PROJECT (FCSUR 2022-0004) / RESD 3800 4356 (CITY OF EASTVALE EASEMENT) MAY 24, 2023
The selected comparables utilized in the appraisal report range in size from 13.20 to 54.50 acres, are zoned for industrial uses and are located from Eastvale and Ontario to Redlands. The selected sales range in price from $44.00 to $105.51 per square foot. Based on comparison of the ATF property to these sales, the appraisal concludes fair market value of $99.00 per square foot.
In preparation for this appraisal review, I researched industrial land sales in close proximity to the District property in Eastvale, Chino and Ontario. I utilized seven comparable sales, three of which were the above mentioned ATF properties (Sales 1, 2 a nd 5). The seven sales range from $26.04 to $105.51 per square foot. The market data sold between June of 2019 and November of 2022. The oldest market data utilized from 2019 and 2020 reflect sales in the City of Eastvale (the three ATF properties noted above).
695
INTEROFFICE MEMO
CORRECTIVE APPRAISAL REVIEW REPORT 23-15CR LIMONITE GAP CLOSURE PROJECT (FCSUR 2022-0004) / RESD 3800 4356 (CITY OF EASTVALE EASEMENT) MAY 24, 2023
LocationBuyerZoning Record Date
Data///Parcel Size/Sale Price
No.Assessor's Parcel NumberSellerGeneral Plan(Acres)Doc. #Sale PricePe r SFNotes Flood Control Channel
SubjectEastvale, Riverside County/
144-010-010DOV
9301 Remington Avenue TDC Remington Partners LLCSP (LI & BP)21. 36 6/27/2019 $24,228,500$26.04 Eastvale, Riverside County//930,442
144-010-004, 005 & 009,
0218-292-15 & 16
Jamie Carlos &
Maricela Rodriguez
LI(net)
E/S Archibald Ave, N of LimoniteRexford Industrial - Eastvale LLCIP15.47 6/7/2019 $18,200,000$27.01 E
astvale, Riverside County//673,873/
Por. of 164-010-019Dyt Family TrustLI(net)#204848
7721 Eucalyptus AvenueGLV Landowner LPAG130.20 11/7/2022 $122,000,000 $21.51 Ontario, San Bernardino County//5,671,512/
1054-071-01, 02, et alGeorge Borba Family TrustIND/BP#366645 7954 Merrill AvenueGLV Landowner LPAG17.40 7/5/2022 $85,000,000 $112.15 Ontario, San Bernardino County//757,944/
1054-321-01 & 02Haringa Family TrustIND/BP#234827
Blended Sale147.60$207,000,000$32.20
Ontario, San Bernardino County/6, 429,456/blended
5170 S. Archibald AvenueRemington Apg LLCCCCESP-Ind13.10 12/17/2021 $18,537,500$32.49 Ontario, San Bernardino County//570,636/
1073-151-12 & 15Marchis CorporationIndustrial#563945
Remington and ArchibaldDermody Properties, Inc.IP49.68 12/4/2020 $95,210,081$44.00 Eastvale, Riverside County//2,164,061/
144-010-015, 018, 020, 023, 024
& 032
Orbis Real Estate PartnersLI(net)#511595
Kimball and MayhewBlackstone Inc.Preserv e SP-AR28.00 9/15/2021 $112,401,788$92.16 Chino, San Bernardino County//1,219,680/
1055-241-08, 13 & 1055-231-04
(former)
Richland Communities
Preserv e SP-AR
#421671
Hamner AvenueDPIF3 Ca 36 Ontario Ranch LLCRich Haven SP-LI54.40 11/10/2021 $250,018,000$105.51 O
ntario, San Bernardino County//2,369,664/
0218-211-17, 24 & 27
(now 0218-211-31)
Rich Haven Marketplace LLC Rich Haven SP-LI#511595
6 Located just south of Chino Airport. Industrial uses to the west, residential to the south and east. AR zone
allows for light industrial (55%), business park (20%), office/ commercial (10% each) and hotel (5%) uses.
Two transactions blended as a single sale to the same
buyer. Buyer is assembling properties to construct the South Ontario Logistics Center which is planned to
include 2.9 million square feet of distribution building space.
3 5
Located at Remington and Archibald, adjacent to the
subject property and San Bernardino County line. Buyer entitled in escrow. Sale used in appraisal report.
#237620
(Riv Co.) &
215263
(SB Co.)
MARKET DATA SUMMARY GRID
5/1/2022
2 Industrial Land Sales
Fully entitled land to construct six industrial buildings for smaller industrial uses. Seller will be the developer of the project "The Merge".
1 Entitled industrial land for a two building industrial project totaling 337,856 square feet of space. Ground break
was in December 2019, with completed in 2020. The net
area is due to an SCE easement and nature trail running through the property.
4 Two parcels located at Remington and Archibald, very
close to the subject property and Riverside County line.
ATF property is industrial land between 15 and 50 acres. 7 Property proposed as a 1,003,348 square foot logistics facility. Currently under construction (in 2023) advertised for occupancy by the 4th quarter 2023. On the border of Ontario and Eastvale. Forner dairy purchased after a lot line adjustment to exclude the southerly portion with
O
ntario Ranch Road frontage. Purchased as one the
last remaining properties in the IE west that could
support a 1 million plus square foot logistics building. 696
INTEROFFICE MEMO
CORRECTIVE APPRAISAL REVIEW REPORT 23-15CR LIMONITE GAP CLOSURE PROJECT (FCSUR 2022-0004) / RESD 3800 4356 (CITY OF EASTVALE EASEMENT) MAY 24, 2023
The industrial land market has been exhibiting rapidly appreciating market conditions over the past several years. The market is currently starting to see a slowing to this trend, however, as of the May 2022 date of value, prices were still appreciating rapidly. Sales 1 and 2 ($26.04 and $27.01 per square foot) set the low end for require the largest market conditions adjustment for being three-year-old transactions as of the date of value . Sale 3 was two transactions at 130.30 acres for $21.51/sf and 17.40 acres for $112.15/sf, which blended to an overall price of $32.20 per square foot . This property consists of a to tal of 147.6 acres and is much larger than the subject ATF property . Sale 4 is inferior as a narrow , irregular shaped property located on the corner of a larger industrial development just north of the subject ATF properties . Sale 5 is inferior for market conditions as a year and a half old sale as of the date of value. Sales 6 and 7 set the upper limit and are superior for location and entitlement status.
Sales 1, 2 a nd 5 are given the most weight as they represent the actual ATF properties, although they are older sales. After adjustments , the fair market value for the typical ATF property (in the size range of 15 to 50 acres) is $ 50.00 per square foot. Applied to the entire
13.52-acre (588,931 sf) subject property, it is extended as follows:
Larger Parcel ATF Valuation: 588,931sf @ $50.00 = $29,446,550
697
INTEROFFICE MEMO
CORRECTIVE APPRAISAL REVIEW REPORT 23-15CR LIMONITE GAP CLOSURE PROJECT (FCSUR 2022-0004) / RESD 3800 4356 (CITY OF EASTVALE EASEMENT) MAY 24, 2023
Easement Valuation
Once the fee value of the acquisition area is determined, the effect on fee of the proposed easement is applied. The appraisal concludes to a value of 25% for the portion of the easement to be utilized for the bridge, and 75% for the portion of the easement to be utilized for footings.
The appraisal does not discuss how the appraiser determined the square footage of each area.
In addition, the easement documents do not differentiate between the rights being granted for the respective areas. As such, this corrective review valuation is based on a single easement acquisition for all road and bridge improvement rights to be granted.
The proposed easement grants the City of Eastvale non- exclusive rights for street, highway, road and/or bridge purposes, including, without limitation, appurtenances such as culverts, slopes, embankments, curbs and sidewalks and utilities. In addition, the easement will be subject to terms, conditions and restrictions which reserves right s for the District to continue to access and use this area for flood control and water conservation purposes, including maintenance, provided the use does not materially and adversely interfere with Grantee’s (City’s) use of the easement area (and the Grantee’s use does not interfere or impede on the District’s conveyance of storm water or flood control improvements). As the District reserves the right to approve any plans for construction or replacement of improvements, the District retains superior rights in the easement area. The rights to be acquired for the Public Road and Utilities Easement is estimated at 35% of the concluded fee value and results in the following easement valuation based on the corrected fair market value of $50.00 per square foot.
Corrected Fair Market Value of Proposed Easements
Public Road and Utilities Easement 38,725 SF x $50 / sf @ 35% = $677,688
Summary of Conclusions
This corrective review concludes the same corridor valuation technique as of the same date of value used in the appraisal presented by Santolucito- Dore Group. However, the fair market value for the proposed road easement was corrected to reflect a more supported valuation.
Element Santolucito-Dore Appraisal Corrective Review
Date of
Value
May 1, 2022 May 1, 2022
Valuation
Method
Sales Comparison Approach:
Corridor Valuation using ATF Analysis
Sales Comparison Approach:
Corridor Valuation using ATF Analysis
Fair Market Value $1,326,000 $677,688
Overall, the concluded value in the appraisal is not fully supported and the corrected Fair Market Value of $677,688 can be accepted by the District for this disposition.
698
INTEROFFICE MEMO
CORRECTIVE APPRAISAL REVIEW REPORT 23-15CR LIMONITE GAP CLOSURE PROJECT (FCSUR 2022-0004) / RESD 3800 4356 (CITY OF EASTVALE EASEMENT) MAY 24, 2023
Reviewer’s Scope of Work
I have not personally inspected the subject property or the selected comparables. I was contacted during preparation of the original appraisal by the appraiser with the Notice of Decision to Appraise, and directed the appraiser that an across the fence valuation is appropriate method of valuing District’s corridor property for the proposed road/bridge easement. At the time of contact, neither the easement language nor the legals and plats for the proposed easement had been provided to the appraiser. I reviewed the appraisal report for adequacy, relevance, reasonableness, completeness, and credibility of the analysis considering the appraisal problem, County requirements, and County Policy 12-17.
I did not inspect the selected comparable sales identified in the appraisal report, but confirmed that they were chosen for comparison to relevant characteristics associated with the across the fence property consistent with corridor valuation. I relied on the appraisal report for problem development, project des cription, and easement valuation analysis. But developed and reported by own sales comparison approach, using limited scope, qualitative analysis to determine an alternative fair market value under a more supported corridor valuation.
I conducted my own analysis using the information provided in the appraisal report and independent research to provide my own value opinion under a limited scope analysis. 699
INTEROFFICE MEMO
CORRECTIVE APPRAISAL REVIEW REPORT 23-15CR LIMONITE GAP CLOSURE PROJECT (FCSUR 2022-0004) / RESD 3800 4356 (CITY OF EASTVALE EASEMENT) MAY 24, 2023
Reviewer Certification
I certify that, to the best of my knowledge and belief:
The facts and data reported by the appraiser and used in the review process are true and correct. The analyses, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report and are my personal, impar tial, and unbiased professional analyses, opinions, and conclusions.
I have no present or prospective interest in the property that is the subject of the work under review and no personal interest with respect to the parties involved, aside from the fact that RESD is my employer.
I have provided no appraisal practice or service, on the subject property within the last three years prior to acceptance of this assignment.
I have no bias with respect to the property that is the subject of the work under review or to the parties involved with this assignment.
My engagement in this assignment was not contingent upon developing or reporting predetermined results.
My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in this review or from its use.
My compensation for completing this assignment is not contingent upon the development or reporting of predetermined assignment results or assignment results that favors the cause of the client, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal review.
My analyses, opinions, and conclusions were developed and this review report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice. Personal Inspection of the Subject Property:
o I have made a personal inspection of the subject property; or I have not made a personal inspection of the subject property. Personal inspection of the comparable data under review:
o I have personally inspected the comparable data under review; or I have not personally inspected the comparable data under review. Significant Professional assistance in development or preparation of this report:
No one provided significant assistance to me; or
o The following individual(s) provided significant assistance to me in development or preparation of this report: None
The values expressed in the appraisal report:
o were not changed in any manner.
were changed as specified in the corrective appraisal review report. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute.
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
As of the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute.
May 24, 2023
Date Brenda Fusco, MAI, R/W-AC
CA #AG043063
700
PREPARED FOR:
City of Eastvale
12363 Limonite Avenue
Suite 910
Eastvale, CA 91752
PREPARED BY:
Santolucito Doré Group, Inc.
31600 Railroad Canyon Road
Suite 100-L
Canyon Lake, CA 92587
LIMONITE GAP CLOSURE PROJECT
APN144-010-010 (SBCFC)
701
951.225.3500 • 31600 Railroad Canyon Road, Canyon Lake, CA 92587 • sdgroupinc.com September 29, 2022
Attn: Ms. Dahi Kim, PE, TE
Senior Engineer
City of Eastvale
12363 Limonite Avenue, Suite 910
Eastvale, CA 91752
Re: City of Eastvale – Limonite Gap Closure Project
Located near Limonite Avenue, between Hellman and Archibald Avenues Eastvale, Riverside County, CA
APN: 144-010-010 – San Bernardino County Flood Control (SBCFC)
File Name: SDG-2022-045
Dear Ms. Kim:
Pursuant to your request, we performed an appraisal of the above referenced property as more particularly described in the appraisal report to follow. More specifically, the subject property consists of one legal parcel of l and totaling 13.52 acres of heav y agricultural zoned land. It can be further identified as Assessor’s Parcel Number (APN) 144 -010-010. The subject property is part of the Cucamonga Creek Channel; a concrete lined flood control corridor that extends for many miles to the north and south.
Since the property is an Flood Control Channel (an active corridor), we have valued the property via Across the Fence (ATF) Methodology. The land adjacent and to the east and west of the subject property is zoned Industrial Park (I -P). As such, we have considered industrial land adjacent to the subject property in our ATF valuation analysis.
The client and intender user for this assignment is the City of Eastvale. T he intended use of the appraisal is for property acquisition purposes; specifically, a partial acquisition for the Limonite Gap Closure Project (Project) inclusive of a permanent easement for the bridge structure over the channel. The purpose is to estimate compensation for the proposed acquisition. A valuation of the subject property/larger parcel as a whole (land only) is made first, followed by a valuation of the proposed acquisition.
This appraisal report has been prepared in accordance with our interpretation of the State of California’s guidelines and requirements and the Uniform Standards of Professional Appraisal Practice (USPAP), the California Code of Civil Procedure relating to the appraisal of real property, Chapter 7 of the Caltrans Right of Way Manual, and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Uniform Act).
Your attention is directed to the Hypothetical Conditions, Extraordinary Assumptions, and General Conditions and Assumptions sections of this report (beginning on page 7). Acceptance of this report constitutes an agreement with these conditions and assumptions.
702
951.225.3500 • 31600 Railroad Canyon Road, Canyon Lake, CA 92587 • sdgroupinc.com City of Eastvale
September 29, 2022
Please reference page 13 of this report for important information regarding the scope of research and analysis for this appraisal - including property identification, inspection, highest and best use analysis and valuation methodology.
We certify that we have no present or contemplated future interest in the property beyond this estimate of value. The appraisers have performed prior services regarding the subject within the previous three years of the appraisal date.
Based on the appraisal described in the accompanying report, subject to the Hypothetical Conditions, Extraordinary Assumptions and General Conditions and Assumptions, we have made the following value conclusion(s):
VALUE CONCLUSIONS
FAIR MARKET VALUE
AS OF May 1, 2022
Larger Parcel (Land Only) Proposed Acquisition
$58,304,189 $1,326,000
Of note, the value conclusion(s) in this report consider the impact the global Coronavirus (COVID- 19) pandemic has had in the local market, if any. Additional discussion is provided in the Neighborhood and Market Summary section later in this report.
Thank you for the opportunity of submitting this appraisal. If we can be of further service, please do not hesitate to call.
Respectfully submitted,
Santolucito Doré Group Inc.
Christine S. Santolucito, R/W-AC
President
California-AG043715
Exp.: February 14, 2024
[email protected]
Lance W. Doré, MAI, FRICS
Vice President
California-AG002464
Exp.: October 1, 2022
[email protected]
Noble W. Tucker
Appraiser/Consultant
California-AG3004502
Exp.: February 03, 2024
703
4 TABLE OF CONTENTS
Summary of Salient Facts & Conclusions .................................................................................... 5 Hypothetical Conditions and Extraordinary Assumptions ........................................................... 7 General Conditions And Assumptions ......................................................................................... 9 Scope of Work .......................................................................................................................... 13 Definitions ................................................................................................................................. 16 Regional Description – Riverside County .................................................................................. 18 Regional Map ........................................................................................................................23 City Description - Eastvale ........................................................................................................ 24 City Map ................................................................................................................................26 Neighborhood and Market Area Description .............................................................................. 27 Property Description.................................................................................................................. 28 Assessor’s Parcel Map ..........................................................................................................32 Aerial Photograph .................................................................................................................33 Subject Photographs .............................................................................................................34 Right of Way Project ................................................................................................................. 38 Project Description ................................................................................................................38 Proposed Acquisition ............................................................................................................38 Description of the Remainder ................................................................................................38 Project Legal Description ......................................................................................................39 Project Plat Map ....................................................................................................................44 Highest and Best Use ............................................................................................................... 48 Valuation Methodology .............................................................................................................. 50 Sale Comparison Approach ...................................................................................................... 52 Description of the Across the Fence Property .......................................................................52 Land Comparables ................................................................................................................53 Land Comparable Summary Table ........................................................................................54 Comparable Location Map ....................................................................................................55 Land Comparable Photographs .............................................................................................56 The Comparison Process ......................................................................................................58 Sales Comparison Approach Conclusion ..............................................................................62 Land Comparable Adjustment Grid .......................................................................................64 Valuation of the Proposed Acquisition ....................................................................................... 65 Value of the Parts Acquired ...................................................................................................65 Value of the Remainder as part of the Whole ........................................................................66 Value of the Remainder in the After Condition .......................................................................66 Severance Damages .............................................................................................................67 Benefits ................................................................................................................................. 67 Certification Statement .............................................................................................................. 69 Addenda ................................................................................................................................... 71 704
5 SUMMARY OF SALIENT FACTS & CONCLUSIONS
GENERAL
SUBJECT PROPERTY:
13.52± Acres Vacant Land
Located off of Limonite Avenue, between Hellman and
Archibald Avenues, Eastvale, Riverside County, CA
OWNER:
San Bernardino County Flood Control
LEGAL DESCRIPTION:
Reference in Addenda
ASSESSOR PARCEL
NUMBER:
144-010-010
EFFECTIVE DATE / REPORT
DATE:
May 1, 2022 / September 29, 2022
CLIENT: City of Eastvale
INTENDED USER(S):
City of Eastvale
INTENDED USE:
The intended use of the appraisal is for property acquisition purposes; specifically, a partial acquisition for the Limonite Gap Closure Project (Project) inclusive of a permanent
easement for the bridge structure over the channel. The purpose is to estimate compensation for the proposed
acquisition.
SALES HISTORY:
According to public records the subject property has not sold or transferred within the past five years.
CURRENT LISTING /
CONTRACT(S):
To the best of our knowledge, the subject is not currently listed for sale. We are not aware of any purchase contracts or offers for the subject property.
PROPERTY
LAND AREA:
13.52± acres or 588,931 square feet , per the Assessor’s Parcel Map
ACCESS: The subject is accessed from Limonite Avenue and also via a locked chain link fence located north of the subject
property near Remington Avenue.
705
6 TOPOGRAPHY: The subject is a concrete lined flood control channel that slopes down at 45-degree angles for the perimeter siding on each side and is level in the middle of the channel.
AVAILABLE UTILITIES:
Electricity: Southern California Edison
Sewer: City of Eastvale
Water: Jurupa Community Services District
Gas: Southern California Gas Company
Public utilities are assumed to be typical and adequate for the market area. Note: the subject does not have any
improvements or utilities connected.
IMPROVEMENTS /
PERSONAL PROPERTY:
The subject property is currently a flood control channel with concrete paving and perimeter chain link fencing.
ZONING: Heavy Agriculture (A2) through the City of Eastvale; ATF property to the east and west is zoned Industrial Park (I-P)
HIGHEST & BEST USE: As Vacant: Agricultural use, subject to the floodplain and agriculture overlays
FLOOD ZONE: Zone AE, water from Flood Zone X discharge contained in the flood control structure. Map dated on 08/28/2008, map number 06071C9375H.
VALUE CONCLUSIONS
FAIR MARKET VALUE
AS OF May 1, 2022
Larger Parcel (Land Only) Proposed Acquisition
$58,304,189 $1,326,000
706
7 HYPOTHETICAL CONDITIONS
AND EXTRAORDINARY ASSUMPTIONS
Acceptance of and/or use of this report constitutes acceptance of the indicated Hypothetical Conditions and Extraordinary Assumptions; these can only be modified in a written document(s) executed by both parties.
HYPOTHETICAL CONDITIONS
A hypothetical condition is defined as “ That which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.”
1 The following hypothetical conditions apply to this specific appraisal assignment. Use of these hypothetical conditions may have affected the assignment results.
• The valuation of the remainder in the “after” condition requires a hypothetical condition to be assumed that the project has been built and facilities are in place as proposed.
• Per Section 1263.330 of the California Code of Civil Procedure, the valuation of the subject larger parcel does not include any increase or decrease in the value attributable to the proposed project.
EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions.
Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis.” 2 The following extraordinary assumptions apply to this specific appraisal assignment. Use of these extraordinary assumptions may have affected the assignment results.
• The subjec t property has been appraised subject to information, maps, and exhibits provided by the client. As such this information is integral to the value conclusions in the appraisal. We have assumed this information, as provided, is reliable for analysis purposes.
• The larger parcel boundary and proposed acquisition were not staked. The appraisers determined the property boundaries based on a review of Google Earth aerial imagery, the project legal description( s) and plat map( s), and our physical inspection of the
1 The Appraisal of Real Estate 14th Edition, Page 332, (Chicago: Appraisal Institute, 2013). 2 Ibid.
707
8 property. Measurements were taken to determine the approximate location of the proposed acquisition. We have assumed our estimates are reasonable for analysis purposes. If it is later found that our estimates are incorrect, based on additional surveys or changes in the engineering maps, we reserve the right to reconsider our estimates.
• The larger parcel is valued via the ATF method, often used in the appraisal of corridors.
This method utilizes a modified sales comparison approach to compare the sale comparables to the typical ATF property. As such, size, shape, and topography of the larger parcel are disregarded, and these items of comparability are analyzed based on the characteristics of the typical ATF parcel.
• A preliminary title report was requested, but not provided. We have made the assumption that the contents of a preliminary title report will have no effect on the value of the subject property.
708
9 GENERAL CONDITIONS AND ASSUMPTIONS
The appraisal has been completed subject to the following General Conditions and Assumptions:
• This appraisal was completed per the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) and those additional requirements expected of a member of the Appraisal Institute. The development process used was a complete analysis that is documented in this appraisal report.
• By use of this appraisal report, each party that uses this report agrees to be bound by all of the Hypothetical Conditions and Extraordinary Assumptions stated herein. The opinions are only as of the date stated in the appraisal report. Changes since that date in external and market factors, or in the subject property itself, can significantly affect the conclusions presented in the appraisal report.
• This appraisal is to be used only for the purpose stated herein. While distribution of this appraisal in its entirety is at the discretion of the client, individual sections shall not be distributed as this report is intended to be used in whole and not in part.
• All files, work papers and documents developed in connection with this assignment are the property of Santolucito Doré Group Inc. No part of this appraisal, its value estimates, or the identity of the firm or the appraiser(s) may be communicated to the public through advertising, public relations, media sales, or other media without Santolucito Doré Group Inc.'s prior written consent. If the appraisal report is referred to or included in any offering material or prospectus, the report shall be deemed referred to or included for informational purposes only and Santolucito Doré Group Inc., its employees, and the appraiser(s) have no liability to such recipients. Santolucito Doré Group Inc. disclaims any and all liability to any party ot her than the party that retained Santolucito Doré Group Inc. to prepare the appraisal report.
• The information contained in this appraisal report, or upon which the report is based, has been gathered from sources the appraiser(s) assumes to be reliable and accurate. The owner of the subject property may have provided some of such information. Neither the appraiser(s), nor Santolucito Doré Group Inc. , shall be responsible for the accuracy or completeness of such information, including the correctness of estimates, opinions, dimensions, sketches, exhibits, and factual matters. Any authorized user of the appraisal report is obligated to bring to the attention of Santolucito Doré Group Inc. any inaccuracies or errors that it believes are contained in the report. Any plans provided are intended to assist the client in visualizing the property; no other use of thes e plans is intended or permitted. Appraisals are based on the data available at the time the assignment is completed. Amendments/modifications to appraisals based on new information made available after the appraisal was completed will be made, as soon as reasonably possible, for an additional fee.
• No part of the appraisal report shall be used in conjunction with any other analyses.
Reference to the Appraisal Institute or to the MAI designation is prohibited. Except as may be otherwise stated in the letter of engagement, the appraisal report may not be used by any person(s) other than the party(ies) to whom it is addressed or for purposes other than that for which it was prepared. Any authorized user(s) of this appraisal report who provides 709
10 a copy to, or permits reliance thereon by, any person or entity not authorized by Santolucito Doré Group Inc. in writing to use or rely thereon, hereby agrees to indemnify and hold Santolucito Doré Group Inc. , its affiliates and their respective shareholders, directors, officers and employees, harmless from and against all damages, expenses, claims and costs, including attorneys' fees, incurred in investigating and defending any claim arising from or in any way connected to the use of, or reliance upon, the appraisal report by any such unauthorized person(s) or entity(ies).
• If the appraisal report is submitted to a lender or investor with the prior approval of Santolucito Doré Group Inc. , such party should consider this report as only one factor, together with its independent investment considerations and underwriting criteria, in its overall investment decision. Such lender or investor is specifically cautioned to understand all Hypothetical Conditions and Extraordinary Assumptions incorporated in this appraisal report.
• The appraiser(s) may not divulge the material (evaluation) contents of the report, analytical findings, or conclusions, or give a copy of the report to anyone other than the client, legal authorities via subpoena, or the Appraisal Institute.
• The appraisal report is based on the assumption of: (a) responsible ownership and competent management of the subject property; (b) no hidden or unapparent conditions of the subject property, subsoil or structures that render the property more or less valuable (no responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them); (c) full compliance with all applicable federal, state and local zoning and environmental regulations and laws, unless noncompliance is stated, defined and considered in the Report; and (d) all required licenses, certificates of occupancy and other governmental consents have been or can be obtained and renewed for any use on which the value opinion contained in the appraisal report is based.
• The physical condition of the improvements , if any, considered by the appraiser(s) is based on visual inspection by the appraiser(s). Santolucito Doré Group Inc. assumes no responsibility for the s oundness of structural components or for the condition of mechanical equipment, plumbing or electrical components.
• The presence of hazardous substances may affect the value of the subject property. No hidden or unapparent conditions of the subject property, if any, to the subsoil or structure, including without limitation, asbestos, formaldehyde foam insulation, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which would make the property more or less valuable, were discovered by o r made known to the appraiser(s) , except those specifically mentioned in the report. The appraiser(s) is not qualified to test for such substances and no responsibility is assumed for such conditions or engineering necessary to discover them. Unless otherw ise stated, the appraiser(s) assumed there was no existence of hazardous materials or conditions, in any form, on or near the subject property.
• No opinion is intended to be expressed and no responsibility is assumed for the legal description or for any matters that are legal in nature or require legal expertise or specialized knowledge beyond that of a real estate appraiser. Title to the subject property was presumed to be good and merchantable and the property was appraised assuming 710
11 there were no advers e easements, encroachments, liens, encumbrances, special assessments, or other restrictions.
• The appraised value was based on the assumption that there were no tax liens affecting the subject property. Property does not appear to be assessed because it is considered a public entity. Unless otherwise noted, the subject property was found to be current in the payment of real estate taxes as of the date of value according to the applicable county Treasurer-Tax Collector. It was assumed that any special assessments affecting the subject property are typical and appropriate for the area and do not have an impact on the value conclusion in this report and that any outstanding bonds have been paid.
• Unless stated herein, the subject property is assumed to be outside of areas where flood hazard insurance is mandatory. Maps used by public and private agencies to determine these areas are limited with respect to accuracy. Due diligence has been exercised in interpreting these maps, but no responsibility is assumed for misinterpretation.
• Santolucito Doré Group Inc. was not provided with a Biological Survey detailing possible biological species. Without a recent biological survey of the property, it could not be determined which species are actually on or frequent the subject land. The vegetation cover on the subject land is typical for the area and may provide habitat for many indigenous animal species found throughout the area.
• No opinion is expressed with regard to potential seismic impact and it was assumed that the subject’s potential risks are similar to those shared by most properties throughout the region. Santolucito Doré Group Inc. makes no warranty as to the seismic stability of the subject land. The assumption was made that future development of the property, if any, would occur in accordance with all appropriate regulations and ordinances regarding grading, fill, and applicable building codes.
• Any ground lease information referred to in the appraisal report may be based on lease summaries provided by the owner or third parties. The appraiser(s) assumes no responsibility for the authenticity or completeness of lease information provided by others.
Santolucito Doré Group Inc. recommends that legal advice be obtained regarding the interpretation of lease provisions and the contractual rights of parties. Any forecasts are not predictions of the futur e. Rather, they are the appraiser's best opinions of current market thinking on future income and expenses. The appraiser(s) and Santolucito Doré Group Inc. make no warranty or representation that these forecasts will materialize. The real estate market is constantly fluctuating and changing. It is not the appraiser's task to predict or in any way warrant the conditions of a future real estate market; the appraiser(s) can only reflect what the investment co mmunity, as of the date of the appraisal report, envisages for the future in terms of rental rates, expenses, and supply and demand.
• Except as may be otherwise stated in the letter of engagement, the appraiser(s) shall not be required to give testimony in any court or administrative proceeding relating to the subject property or the appraisal. If the appraiser(s) is subpoenaed pursuant to a court order, the client agrees to pay the Santolucito Doré Group Inc.’s regular per diem rate plus expenses.
• In the event of a claim against Santolucito Doré Group Inc., its affiliates, their respective officers or employees, or the appraiser(s) in connection with or in any way relating to this 711
12 appraisal report or this engagement, the maximum damages recoverable shall be the amount of the monies actually collected by Santolucito Doré Group Inc. or its affiliates for this appraisal report and under no circumstances shall any claim for consequential damages be made.
• Any estimate of insurable value, if included within the agreed upon scope of work and presented within this report, is based upon figures derived from a national cost estimating service and is developed consistent with industry practices. However, actual l ocal and regional construction costs may vary significantly from our estimate and individual insurance policies and underwriters have varied specifications, exclusions, and non - insurable items. As such, it is strongly recommended that the client obtain estimates from professionals experienced in establishing insurance coverage for replacing any structure.
This analysis should not be relied upon to determine insurance coverage. Furthermore, the appraiser(s) makes no warranties regarding the accuracy of this estimate.
• Necessary licenses, permits, consents, legislative or administrative authority from any local, state, or federal government, or private entity, are assumed to be in place or reasonably obtainable.
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13 SCOPE OF WORK
According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser’s responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user(s). Therefore, the appraiser must identify and consider:
• the client and intended users;
• the intended use of the report;
• the type and definition of value;
• the effective date of value;
• assignment conditions;
• typical client expectations; and
• typical appraisal work by peers for similar assignments.
In preparing this report, we investigated numerous land sales and listings from the area and confirmed all data with buyers, sellers, brokers, property developers, and/or public officials, when possible. We collected, confirmed, and reported data that were applicable in the valuation process. Data collection involved the use o f various sources including CoStar, LoopNet, the Multiple Listing Service, RealQuest, Dataquick, Inc. (data collection services), Riverside and San Bernardino County deed records, and in-house materials. The data collected and confirmed have been reported to an extent sufficient for the particular appraisal problem involved.
This appraisal is prepared for the City of Eastvale. The intended use of the appraisal is for property acquisition purposes; specifically, a partial acquisition for the Limonite Gap Closure Project (Project) inclusive of a permanent easement for the bridge structure over the channel. The purpose is to estimate compensation for the proposed acquisition.
SCOPE OF WORK
REPORT TYPE:
This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2- 2(a). This format provides a summary of the appraisal
process, subject and market data, and valuation analyses.
PROPERTY IDENTIFICATION: The subject has been identified by the legal description and the assessors' parcel number.
PROPERTY RIGHTS
APPRAISED:
Fee simple and permanent easement rights
INSPECTION: SD Group sent a notice of decision to appraise letter on April 7, 2022, inviting the property owner to attend the appraisal inspection. SD Group did receive a response from the
property owner and was told that a representative of the 713
14 property owner did not need to attend the appraisal
inspection. An inspection from a public right of way of the subject property was made on May 1, 2022, with
photographs taken the same date.
MARKET AREA AND
ANALYSIS OF MARKET
CONDITIONS:
An analysis of market conditions has been made. The
appraiser maintains and has access to comprehensive
databases for this market area and has reviewed the market for sales and listings relevant to this analysis.
HIGHEST AND BEST USE
ANALYSIS:
A highest and best use analysis for the subject has been made. Physically possible, legally permissible and
financially feasible uses were considered, and the maximally productive use was concluded.
VALUATION ANALYSES: The subject site currently has a Heavy Agricultural (A2) zoning designation. However, we have valued the subject via Across the Fence (ATF) Methodology, which is typical in the valuation of land with a limited zoning designation utilized for public use or some type of corridor.
Cost Approach:
A cost approach was not developed in valuing the larger parcel as the site is vacant land.
Sales Comparison
Approach:
A sales comparison approach was applied in determining
the market value for the subject’s underlying land value (via the ATF method). There is adequate data to develop a value estimate and this approach reflects market behavior for this property type.
Income Approach:
The income approach was not developed because the
subject is vacant land and not income producing.
HYPOTHETICAL
CONDITIONS:
The following hypothetical conditions apply to this specific appraisal assignment. Use of these hypothetical conditions may have affected the assignment results.
The valuation of the remainder in the “after” condition requires a hypothetical condition to be assumed that the project has been built and facilities are in place as proposed.
Per Section 1263.330 of the California Code of Civil
Procedure, the valuation of the subject larger parcel does not include any increase or decrease in the value attributable to the proposed project.
EXTRAORDINARY
ASSUMPTIONS:
The following extraordinary assumptions apply to this
specific appraisal assignment. Use of th ese extraordinary assumptions may have affected the assignment results.
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15 The subject property has been appraised subject to
information, maps, and exhibits provided by the client. As such this information is integral to the value conclusions in the apprai sal. We have assumed this information, as
provided, is reliable for analysis purposes.
The larger parcel boundary and proposed acquisition were not staked. The appraisers determined the property
boundaries based on a review of Google Earth aerial
imagery, the project legal description(s) and plat map(s), and our physical inspection of the property. Measurements were taken to determine the approximate location of the proposed acquisition. We have assumed our estimates are reasonable for analysis purposes. If it is later found that our estimates are incorrect, based on additional surveys or changes in the engineering maps, we reserve the right to reconsider our estimates.
The larger parcel is valued via the ATF method, often used in the appraisal of corridors. This method utilizes a modified sales comparison approach to compare the sale
comparables to the typical ATF property. As such, size, shape, and topography of the larger parcel are disregarded, and these items of comparability are analyzed based on the characteristics of the typical ATF parcel.
A preliminary title report was requested, but not provided.
We have made the assumption that the contents of a
preliminary title report will have no effect on the value of the subject property.
DOCUMENTATION: Santolucito Doré Group Inc. was provided with the document(s) listed below. Unless noted, the document(s) did not indicate any unusual or detrimental conditions that have an impact on value. These documents were assumed
to be accurate and were relied upon in the valuation of the subject property.
• Engineering Plans prepared under the supervision of
Joshua D. Cosper, License No. 71667 , at Mark
Thomas Engineering
• Legal Description and Plat Map prepared by Byron
J. Cazar, LS 9337, dated June 7, 2022
No responsibility is assumed for any missing pertinent data contained within these documents and the reconciled value does not reflect knowledge of their content.
A preliminary
title report was requested, but not provided. We have made the assumption that the contents of a preliminary title report will have no affect on the value of the subject property. 715
16 DEFINITIONS
FAIR MARKET VALUE, SEVERANCE DAMAGES, AND PROJECT BENEFITS3 As defined in the California Code of Civil Procedure:
1263.320 (a) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.
(b) The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable.
1263.330 The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following:
(a) The project for which the property is taken.
(b) The eminent domain proceeding in which the property is taken. (c) Any preliminary actions of the plaintiff relating to the taking of the property.
1263.410 (a) Where the property acquired is part of a larger parcel, in addition to the compensation awarded pursuant to Article 4 (commencing with Section 1263.310) for the part taken, compensation shall be awarded for the injury, if any, to the remainder.
(b) Compensation for injury to the remainder is the amount of the damage to the remainder reduced by the amount of the benefit to the remainder. If the amount of the benefit to the remainder equals or exceeds the amount of the damage to the remainder, no compensation shall be awarded under this article. If the amount of the benefit to the remainder exceeds the amount of damage to the remainder, such excess shall be deducted from the compensation provided in Section 1263.510, if any, but shall not be deducted from the compensation required to be awarded for the property taken or from the other compensation required by this chapter.
1263.420 Damage to the remainder is the damage, if any, caused to the remainder either or both of the following:
(a) The severance of the remainder from the part taken. (b) The construction and use of the project for which the property is taken in the manner proposed by the plaintiff whether or not the damage is caused by a portion of the project located on the part taken.
3 Part 3, Title 7, Chapter 9, Article 4, of the California Code of Civil Procedure 716
17 1263.430 Benefit to the remainder is the benefit, if any, caused by the construction and use of the project for which the property is taken in the manner proposed by the plaintiff whether or not the benefit is caused by a portion of the project located on the part taken.
PROPERTY RIGHTS APPRAISED
The property rights appraised are fee simple estate and permanent easement.
Fee Simple Estate is defined as follows: “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”
4 Permanent Easement is defined as follows: “A permanent easement is a perpetual encumbrance for a specific use.”
5 CORRIDOR
The subject property is a part of a corridor.
A corridor is a long, narrow strip of land or real property rights for which the highest and best use is to provide an economic or social benefit by connecting the end points, and sometimes serving intermediate points along the way.”6
ACROSS THE FENCE
The subject property has been valued using the across the fence method.
Across the Fence Method is defined as follows “A land valuation method often used in the appraisal of corridors. The across-the-fence method is used to develop a value opinion based on comparison to abutting land.”7
Across the Fence Value is defined as follows “In the valuation of real estate corridors , the value concluded based on a comparison with adjacent lands before the consideration of any other adjustment factors.”
8 4 The Dictionary of Real Estate Appraisal, 7th Edition, Page 73, (Appraisal Institute, Chicago: 2022). 5 The Caltrans Right of Way Manual, 7.04.09.00
6 Right of Way Magazine, May/June 2002, Page 14, The Continuing Evolution of Corridor Appraising by Charles F. Seymour, CRE, MAI 7 The Dictionary of Real Estate Appraisal, 7th Edition, Page 3, (Appraisal Institute, Chicago: 2022). 8 The Dictionary of Real Estate Appraisal, 7th Edition, Page 3, (Appraisal Institute, Chicago: 2022). 717
18 REGIONAL DESCRIPTION – RIVERSIDE COUNTY
LOCATION
Riverside County is located in Southern California
and is bordered by San Bernardino County (north),
San Diego and Imperial Counties (south), Orange
County (west), and the Arizona state line (east).
With a land area of 7,200 square miles and 28
incorporated cities, it is the fourth largest county in the state in terms of physical si ze and 36th largest
in population. The county has two distinct regions -
western Riverside County, which is a semi -arid
region with the majority of the population and a
diverse economic base, and eastern Riverside
County, which is primarily a desert area with an
economy centered on tourism and agriculture. The
county is part of the region known as the “Inland
Empire,” which encompasses 27,000 square miles
and also includes San Bernardino County.
TRANSPORTATION
Riverside County has some of the busiest transportation corridors in the nation including two primary north/south freeways (Interstates 15 and 215) and five primary east/west freeways (Interstate 10, and Highways 60, 74, 79, and 91). Traffic is expected to double in the long- term on some existing freeways in the county as a result of population and employment growth.
Ontario International Airport is a full-service airport offering regional and international passenger service to 10 million passengers a year, as well as cargo service. There are also numerous private and municipal aviation facilities serving the county. Commercial rail transportation is provided by Southern Pacific, Union Pacific, and Santa Fe and passenger service is provided by Amtrak (long distance) and Metrolink (commuter). Riverside Transit A uthority is the primary provider of municipal bus service. The closest port facilities are in Los Angeles and San Diego Counties.
SERVICES
Riverside County offers a complete array of services to residents. Southern California Gas Company and Southern Cali fornia Edison provide gas and electricity, and various companies provide water and sewer. The county’s primary law enforcement agency is the Riverside County Sheriff’s Department, whose territory is all unincorporated areas and several contract cities; additional law enforcement is provided by individual city police departments. The county also operates the Riverside County Fire Department, which works in conjunction with the California Department of Forestry and Fire Protection to provide "all -risk" fire, rescue, and emergency medical services to all unincorporated areas in the county not served by independent fire 718
19 protection districts and those cities that chose to contract with the department. Riverside County has a well-developed educational system of public and private schools, including 25 public school districts with a total estimated enrollment of 427,951 students. Higher education is provided by four community colleges, one major university (University of California, Riverside), and several smaller private colleges. There are adequate medical and public facilities, as well as local and regional shopping venues.
One of the utmost concerns facing the leadership and residents in the county is water availability.
Although enough water is obtained from Northern California and Colorado, prolonged periods of drought conditions can cause rationing or possible shortages. As a result, most water agencies have increased water fees to provide financing
for new water storage facilities, maintaining
large reservoi rs, and developing long- term
solutions.
RECREATION | TOURISM
Southern California is well known for its miles
of coastline, mountains, and deserts, which
combine to provide a variety of recreational
activities for all ages. Riverside County is near
the San Bernardino and Cleveland National
Forests, which offer nearly 1,000,000 acres of
land providing extensive outdoor activities. The
county has approximately 35 parks and
additional local recreational areas, including
Lake Perris State Recreational Ar ea, Lake
Skinner County Park, Lake Elsinore State
Recreation Area, Lake Mathews, Eastside
Reservoir, and the Dr. Roy E. Shipley Reserve.
Joshua Tree National Monument, Santa Rosa
Mountains National Scenic Area, Anza Borrego
Desert, and several state and local beaches are
within reasonable driving distance.
POPULATION | DEMOGRAPHICS
As of January 2022, the California Department
of Finance estimated Riverside County’s
population at 2,435,525, a 0.5% increase from
the previous year. The county is used to seeing
annual growth rates in the 5% range, largely a
result of out -migration from the more crowded
and expensive neighboring counties of Los
Angeles, Orange and San Diego. In fact, during
City 1-Jan-21 1-Jan-22 % change
Banning 30,629 30,877 0.8
Beaumont 54,313 54,690 0.7
Blythe 17,470 17,505 0.2
Calimesa 10,544 10,899 3.4
Canyon Lake 11,147 11,056 -0.8
Cathedral City 51,898 51,840 -0.1
Coachella 42,178 42,158 0.0
Corona 156,901 156,778 -0.1
Desert Hot Springs 32,546 32,569 0.1
Eastvale 70,444 69,929 -0.7
Hemet 89,823 89,646 -0.2
Indian Wells 4,771 4,762 -0.2
Indio 88,862 89,137 0.3
Jurupa Valley 105,415 105,384 0.0
Lake Elsinore 70,891 71,615 1.0
La Quinta 37,949 37,860 -0.2
Menifee 103,617 106,627 2.9
Moreno Valley 209,603 209,407 -0.1
Murrieta 111,671 111,183 -0.4
Norco 24,563 24,909 1.4
Palm Desert 50,976 50,889 -0.2
Palm Springs 44,570 44,397 -0.4
Perris 79,327 78,890 -0.6
Rancho Mirage 16,650 16,804 0.9
Riverside 312,789 317,847 1.6
San Jacinto 54,503 54,593 0.2
Temecula 110,394 109,925 -0.4
Wildomar 36,928 36,632 -0.8
Balance of County 393,215 396,717 0.9
Riverside 2,424,587 2,435,525 0.5
Source: CA Dept of Finance
Riverside County's City Population Estimates
719
20 the real estate boom of 1990- 2005, several cities, including Temecula, more than doubled in population. Given the abundance of undeveloped and relatively affordable land available to accommodate future development, proximity to major employment centers, and recovered economy, experts are optimistic about population growth over the long term.
According to the latest census data, the county had 736,413 households with an average of 3.26 persons per household and a median age of 35.8 years.
REGIONAL ECONOMY
Trends in employment are a key
indicator of economic health and
strongly correlate with real estate
demand. As mentioned earlier, San
Bernardino and Riverside Counties
comprise the “Inland Empire,” which
has a diversified employment base
drawing on employm ent centers in
Los Angeles, Orange, and San Diego
Counties. Major industries located
within the county include
government, retail trade, educational
and health services, leisure and
hospitality, and construction.
TOTAL EMPLOYMENT | UNEMPLOYMENT RATE
According to the California Employment Development Department, Riverside County had a labor force of 1,165,800 in March 2022. Unemployment was 4.3%.
PERSONAL | MEDIAN HOUSEHOLD INCOME
Personal income is a significant factor in determining the real estate demand in a market.
According to the latest census data, Riverside County had a per capita income of $29,913, as compared to the state’s income of $38,576. The county’s median household income was $70,732, compared to $78,672 in California. Census data indicat e that a total of 12.5% of the county population lives below the poverty level, which compares to the state (12.6%).
2020 2030 2040 2050 2060 % Change (2020-2060)
Riverside County 2,449,299 2,728,068 2,933,038 3,059,095 3,129,833 27.8% California 39,782,419 41,860,549 43,353,414 44,049,015 44,228,057 11.2% Source: California Dept of Finance
HISTORICAL POPULATION AND PROJECTIONS (2020 - 2060)
Employer # Employees % of Total
County of Riverside 22,952 2.23%
Amazon 10,500 1.02%
March Air Reserve Base 9,600 0.93%
University of California, Riverside 8,909 0.87%
Stater Brothers Markets 8,304 0.81%
Moreno Valley Unified School District 6,250 0.61%
Kaiser Permanente Riverside Medical Center 5,780 0.56%
Corona-Norco Unified School District 5,478 0.53%
Hemet Unified School District 4,460 0.43%
Ross Dress for Less 4,313 0.42%
Source: 2021 Riverside County Comprehensive Annual Financial Report
LARGEST EMPLOYERS IN RIVERSIDE COUNTY
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21 REAL ESTATE DEVELOPMENT
Riverside County has a wide range of real estate development and property types typical of a large metropolitan area, as well as an abundance of vacant and affordable land.
RESIDENTIAL
Similar to the entire Southern
California region, home prices
in Riverside County peaked in
2007, and began to decline in
2006. Significant price
reductions in both resale and
new home product began to
occur in 2008, as a result of the
fall-out over the subprime
lending and national financial
crisis, with prices hitting bottom
in 2009. This trend continued throughout most of 2011, with some improvement occurring as a direct result of government incentives. At the heart of the recession, these distressed properties were selling at a relative discount, putting downward pressure on prices. These properties have since been purchased by real estate investors and first -time homebuyers seeking to take advantage of homebuyer incentives and are no longer having a significant price effect. CoreLogic reported Riverside County’s median home price at $580,000 as of March 2022, a 21.6% increase from the previous year.
Employed Labor Force 978,726 100.0%
Education/Healthcare/Social Services 202,425 20.7%
Retail Trade 125,858 12.9%
Arts/Entertainment/Recreation/Food Service 112,477 11.5% Professional/Scientific/Management 100,081 10.2%
Manufacturing 85,599 8.7%
Construction 83,655 8.5%
Transportation/Warehousing/Utilities 60,739 6.2%
Other Services 51,416 5.3%
Finance/Insurance/Real Estate 50,492 5.2%
Public Administration 47,264 4.8%
Wholesale Trade 29,226 3.0%
Agricultural/Forestry/Hunting/Mining 15,063 1.5%
Information 14,431 1.5%
County of Riverside Employment
Industry # Employed % of Total Wage &
Salary Employment
Source: U.S. Census (American Community Survey)
Sales
Mar-22 Mar-22 Mar-21 % Change
Los Angeles 7,535 $840,000 $750,000 12.0%
Orange 3,187 $1,020,000 $835,000 22.2%
Riverside 4,656 $580,000 $477,000 21.6%
San Bernardino 3,117 $495,000 $430,000 15.1%
San Diego 3,736 $805,000 $678,000 18.7%
Ventura 1,024 $775,000 $659,500 17.5%
SoCal 23,255 $790,000 $668,750 17.9%
SOUTHERN CALIFORNIA HOME PRICING TRENDS
CA County
Median Price
Source: CoreLogic
721
22 CONCLUSION
Riverside County has an established reputation and a stable economy, which is fueled by the region’s relative affordability and well-developed distribution network, lending to a positive long- term outlook.
722
23 REGIONAL MAP
723
24 CITY DESCRIPTION - EASTVALE
LOCATION | TRANSPORTATION
Eastvale is located in northwestern
Riverside County, California, in the
Inland Empire region of Southern
California. The city is the most
northwest City in Riverside County and
is surrounded by the cities of Chino
and Ontario in San Bernardino County
on t he west and north and the
Riverside County cities of Jurupa
Valley, Norco and Corona on the east
and south. According to the United
States Census Bureau, Eastvale covered an area of 11.4 square miles, 99.65% of it is land, and
0.35% of its water.
The Federal Santa Ana River and Cucamonga Creek waterways traverse Eastvale as does Interstate 15 and Highway 60. The city is served by the Chino Airport and International Ontario Airport both within a 15‐minute drive.
POPULATION | DEMOGRAPHICS
According to the California Department of Finance, Eastvale had a January 1, 2022, population of 69,929. This is a decrease of - 0.7% from the January 2021 population of 70,444.
According to the 2020 American Community Survey/US Census, the city had 15,649 households with 4.20 persons per household and a median age of 33.0 years.
SERVICES
The city provides a wide range of services including City Clerk, Communications, Planning, Building, Public Works, Engineering, Community Enhancement and Safety, and internal administrative services including Finance and Talent Attraction and Development (Human Resources/Risk Management). Animal control, library, and public safety (fire and police) services are provided to the City and its residents through contracts with the Count y of Riverside. Other services are provided directly through other agencies, water and sewer through the Jurupa Community Services District, parks and recreation through the Jurupa Community Services District and Jurupa Area Recreation and Parks District, and public transit through the Riverside Transit Agency. The city has franchise agreements for electricity service through Southern California Edison, natural gas through SoCalGas, refuse collection through Waste Management and Burrtec and cable service through state franchise agreements with Pacific Bell (AT&T), Time Warner and Charter Communications.
724
25 LOCAL ECONOMY | INCOME
The city of Eastvale is in its tenth year of
incorporation and has a young and
growing population and continues to be
one of the f astest growing cities in
Riverside County. The city developed in
a significantly different fashion in
comparison to older cities: residential
was developed throughout the city before
a downtown commercial center was
developed. Several development
projects are underway, and all will add
significant commercial, residential, and
retail growth.
EMPLOYMENT | UNEMPLOYMENT
According to the California Employment Development Department, Eastvale had a total labor force of 35,400 as of March 2022, of which 3.2% wer e unemployed. This compares to the state (4.9%) and country (3.6%.).
PERSONAL INCOME
According to the 2020 American Community Survey, the city had a median household income of $127,881, up from $105,894 in 2010. This is significantly higher than Californi a ($78,672).
Approximately 5.7% of all city residents live below the poverty level, which is significantly lower than the state (12.6%).
REAL ESTATE DEVELOPMENT
RESIDENTIAL
Eastvale has a variety of residential development. According to California’s Department of Finance as of January 1 st, 2022, the city had a total of 18,396 housing units, which could be broken down into 16,193 single family detached units, 767 single family attached units, 855 multi- family units, and 581 mobile home/other units. In April 2022, the median listing home price in Eastvale, CA was $890K, trending up 29% year -over-year. The median listing home price per square foot was $300. The median home sold price was $930K.
CONCLUSION
Eastvale is primarily a bedroom community and housing (particularly multi-family) and commercial growth is expected to increase and keep pace with projected employment and population increases. Due to the temperate climate, good quality of life, affordable real estate prices and overall appeal, the long-term outlook for the city is favorable.
Employer No. of Employees % Of Total
Amazon Fulfillment Center 3,400 10.56%
Walmart Distribution 925 2.87%
Corona-Norco USD 624 1.94%
Ingram Micro 581 1.80%
Costco 317 0.98%
Home Depot 228 0.71%
Grainger Inc. 223 0.69%
Komar Distribution Services 164 0.51%
Albertsons 100 0.31%
Kmart Distribution Center 100 0.31%
10 LARGEST EMPLOYERS IN EASTVALE
Source: 2021 Eastvale Comprehensive Annual Financial Report 725
26 CITY MAP
726
27 NEIGHBORHOOD AND MARKET AREA DESCRIPTION
The subject property is located off of Limonite, between Hellman and Archibald Avenues, south of Remington Avenue and the San Bernardino County line, in Eastvale, Riverside County, California. Access to Eastvale is by the Barstow (I -15) Freeway to the east, Pomona (SR-60) Freeway to the north; Riverside (SR-91) Freeway to the south, Euclid (SR-83) Avenue to the west, and the Chino Hills (SR-71) further to the west.
The subject’s immediate industrial neighborhood is generally bounded by Archibald Avenue to the east, Edison Avenue to the north, Limonite Avenue to the south, and Euclid Avenue to the west, which extends in to the cities of Chino and Ontario just north of the subject property. There are secondary streets which provide good access throughout the neighborhood.
Property types in the immediate area of the subject property are mostly industrial in nature with commercial retail located nearby . The Chino Airport is located approximately one mile west of the subject property. Further south and west of the subject property are single-family residential properties. The subject neighborhood and surrounding neighborhoods are in a growth stage of the economic life cycle with previous farmland being converted to industrial uses.
The subject property is part of the Cucamonga Creek Channel; a concrete lined flood control corridor that extends for many miles to the north and south. As previously discussed, the subject underlying land will be appraised via ATF methodology. The typical ATF parcel is an industrial zoned land. An initial search for comparable industrial land sales was conducted within the cities of Eastvale, Chino, Ontario, Norco, Corona and Jurupa Valley that sold within the past two years of the date of value. There were very few vacant industrially zoned land sales as majority of the sites have been purchased over the past decade . As such we expanded our search to include land sales within a 10-mile radius of the subject. The search revealed several sales sufficient for use in valuing the subject property.
There is no published data on trends for industrial land sales. A review of sales activity and discussions with brokers and market participants indicate an upward trend in land values.
Discussions with these market participants revealed strong demand for vacant industrial land. An investor reported that industrial real estate prices have appreciated significantly over the last two years, especially after the global Covid- 19 pandemic, which accelerated the growth of e - commerce and the demand for warehousing space. We have considered the upward trend in our analysis of market conditions and an upward annual adjustment of 6% is applied to the sales land to account for inflation in values subsequent to their dates of sale.
727
28 PROPERTY DESCRIPTION
LARGER PARCEL
There are three requirements a property must meet to be considered a “Larger Parcel” , unity of ownership, physical contiguity, and unity of use (common highest and best use).
In the subject’s case, there is one property owner (see Summary of Salient Facts and Conclusions section) and one legal parcel with one common highest and best use. Therefore, all three requirements are met. The subject property under appraisal is a segme nt of the Cucamonga Creek Flood Control Channel and extends for miles to the north and south. For purposes of the appraisal report, we have considered APN 144- 010-010 as our larger parcel, as this is the only parcel directly impacted by the project. Therefore, all three requirements are met.
SITE
LOCATION:
The subject property is located off of Limonite, between Hellman and Archibald Avenues, south of Remington Avenue and the San Bernardino County line, in Eastvale, Riverside County, California.
LEGAL
DESCRIPTION:
Reference in Addenda
ASSESSOR PARCEL
NUMBER(S):
144-010-010
CURRENT USE:
Vacant land currently used as a flood control channel
SIZE: 13.52± acres or 588,931 square feet, per the Assessor’s Parcel Map
SHAPE: Irregular
ZONING: Zone: Heavy Agriculture (A2) through the City of Eastvale
Of note , the land is valued utilizing ATF
methodology. The typical ATF parcel is zoned
(I-P) Industrial Park, which will be utilized in
this analysis.
Description: The subject is zoned A2 (Heavy Agriculture).
The purpose of the A2 district is to provide for
animal keeping, commercial fertilizer
operations, poultry operations, crop
production, dairy farms, grazing, kennel and
cattery uses, single and second -unit
dwellings, home occupations and mobile
728
29 homes. The development standards for A -2
are minimum lot sizes of 20,000 square feet,
minimum lot width of 100 feet, minimum lot
depth of 150 feet, front setbacks of 20 feet,
side setbacks of 10 feet, rear setbacks of 10
feet, and a building height of 40 feet.
The purpose of the (I -P) Industrial Park
zoning is to establish zones in the city that
support commercial and industrial uses
within the City of Eastvale. The development
standards for I -P are minimum lot sizes of
20,000 square feet, minimum lot width of 100
feet, and side, interior, and street depths of
10 feet, rear setbacks of 15 feet, and primary
building height of 35 feet.
Current Use:
Legally
Conforming:
The subject property is currently vacant land
within a flood control channel.
The subject property is legal and conforming,
considered similar to a transportation arterial,
verified with the City of Eastvale Planning
Department.
Zoning Comments: None
FRONTAGE /
ACCESS:
The subject property’s frontage is as follows:
• The terminus of Limonite Avenue: 72± feet
• Remington Avenue: 190± feet
ADJACENT USES:
North:
South:
East:
West:
Industrial
Single-family residential
Industrial, retail, and single-family residential
Industrial, followed by Chino Airport
TOPOGRAPHY: The subject is a concrete lined flood control channel that slopes down at 45-degree angles for the perimeter siding on each side and is level in the middle of the channel.
SOIL CONDITIONS: The soil conditions observed at the subject appear to be typical of the region and adequate to support development. Majority of the site is paved.
HAZARDOUS
SUBSTANCES:
We did not observe any evidence of toxic or hazardous substances during inspection of the site. The subject is not listed as a hazardous site per the Hazardous Waste and Substances Sites List compiled by the California Environmental Protection Agency. Santolucito Doré Group Inc. was not provided with a Phase I Env ironmental Assessment Report or any other reports addressing potentially hazardous materials on or near the subject property.
729
30 UTILITIES: Electricity: Not Connected - Southern California Edison Sewer: Not Connected - Jurupa Community Services
District
Water: Not Connected - Jurupa Community Services
District
Natural Gas: Not Connected - Southern California Gas
Company
Underground
Utilities:
Underground utilities and overhead lines
serve the site.
Adequacy: Utilities are not connected to the subject
property. However, a ccess to public utilities
is assumed to be typical and adequate for the
market area.
FLOOD ZONE: The subject is located in an area mapped by the Federal Emergency Management Agency (FEMA). The subject is located in an area not mapped by FEMA. However, it is likely within a FEMA flood zone A, without base flood elevation (BFE), as the continuation of the flood control channel immediately north of this area is within flood zone A.
FEMA Map Number: 06065C0676G
FEMA Map Date: August 28, 2008
The typical ATF parcel appears to be located in zone X, and area of minimal flood hazard.
WETLANDS /
WATERSHED:
The s ubject property is within the Cucamonga Creek , which is concrete paved. It is assumed that it is not an environmentally sensitive area.
EARTHQUAKE
HAZARD:
The subject land is not located in an Alquist -Priolo Special Study area. It is noted that all of California is subject to potentially destructive earthquakes, the subject site is not unusually risky in this regard.
ENVIRONMENTAL
ISSUES:
There are no known adverse environmental conditions on the subject site. Please reference Limiting Conditions and Assumptions.
BIOLOGIC
CONDITIONS:
We did not review a Biological Survey detailing possible biological species on the subject land. Without this, it could not be determined which
species are actually on or frequent the property. Since the subject is a concrete lined flood control channel, it is assumed there are no biological conditions that would preclude development.
MINERAL RIGHTS This area has a low potential for mining related activity. There were no observed operations and in Southern California mineral extraction is largely cost prohibitive.
GION-DIETZ
DECISION – IMPLIED
DEDICATION:
Based on the decision in Gion v. The City of Santa Cruz and Dietz v.
King, consolidated in (1970) 2 Cal.3d 29, "Gion- Dietz", it did not 730
31 appear there is an implied dedication by the public on the subject property.
SITE
IMPROVEMENTS /
PERSONAL
PROPERTY:
The subject property is currently vacant land , utilized as a flood control channel with concrete paving and the western and eastern property boundaries have chain-link fencing.
PROPERTY TAX Taxing Authority: Riverside County
INFO: Year: 2021
Land Assessed Value: $16,053
Improved Assessed Value: $0
Total Assessed Value: $16,053
Total Taxes: $304.14
Comments: None
731
32 ASSESSOR’S PARCEL MAP
732
33 AERIAL PHOTOGRAPH
Subject Property
Neighborhood
733
34 SUBJECT PHOTOGRAPHS
Terminus of Limonite Avenue and Cucamonga Creek Flood Control Channel (photo taken by N. Tucker 5/1/2022)
Proposed extension of Limonite Avenue looking southwest, from east of subject eastern property boundary (photo taken by N. Tucker 5/1/2022)
734
35 SUBJECT PHOTOGRAPHS (CONT.)
Looking north from the terminus of Limonite Avenue at subject eastern property boundary (photo taken by N. Tucker 5/1/2022)
Looking northeast from the terminus of Limonite Avenue west of subject western property boundary (photo taken by N. Tucker 5/1/2022)
735
36 SUBJECT PHOTOGRAPHS (CONT.)
Subject property looking north
(photo taken by N. Tucker 5/1/2022)
Subject property looking west
(photo taken by N. Tucker 5/1/2022)
736
37 SUBJECT PHOTOGRAPHS (CONT.)
Subject property looking south/southwest from Remington Avenue (photo taken by N. Tucker 5/1/2022)
Subject property looking south/southwest from Remington Avenue (photo taken by N. Tucker 5/1/2022)
737
38 RIGHT OF WAY PROJECT
PROJECT DESCRIPTION
The City of Eastvale (City) is in the final design stage for the Limonite Gap Closure Project (Project) which will construct a 320 -foot long and 82 to 88 feet wide bridge over Cucamonga Creek Channel. The City is also working with Army Corps of Engineers and San Bernardino Flood Control District to obtain necessary permits and to enter into agreement to cons truct the bridge over the creek. In order to do so, part of 404/408 permit process requires the City to provide an appraisal of the fair market value of the real estate interests to be acquired.
PROPOSED ACQUISITION
As proposed, the project will require one permanent street and bridge easement (PE) acquisition, as summarized in the table below. The acquisition is needed to facilitate construction of the Project; specifically, the proposed improvements include a new vehicular bridge over the flood control channel.
The proposed acquisition bisects the flood control channel . The PE as identified on the legal description and accompanying plat map indicates an area of approximately 38, 708 square feet, broken out between the bridge deck and footing areas.
There are no significant site improvements within the acquisition area. It is assumed that any the concrete channel improvements will be protected in place or replaced/restored by the contractor as part of the project.
DESCRIPTION OF THE REMAINDER
There will be one remainder parcel in the after condition. While the proposed PE will bisect the larger parcel, the footings will not block the channel and the impacted APN will remain contiguous with the rest of the flood control channel. The overall larger parcel site will be unchanged; however, there will be a slight reduction in the usable area where the footings/pier walls will lie containing 7,420 square feet, a reduction of approximately 1.26%. The majority of the roadway improvements will be aerial due to the location of the bridge at street grade and will not impact the usable area. Overall shape and access will be unchanged. Impacts due to construction in the manner proposed are consi dered minimal and are not anticipated to negatively impact the remainder parcel. Copies of the right of the legal description and plat map can be found on the following pages.
APN Type Size (SF)
144-010-010 PE (Bri dge Deck) 31,288
144-010-010 PE (Footings/Pie r Walls) 7,420
TOTAL Permanent Rights 38,708
PROPOSED ACQUISTIONS
738
39 PROJECT LEGAL DESCRIPTION
739
40 PROJECT LEGAL DESCRIPTION (CONT.)
740
41 PROJECT LEGAL DESCRIPTION (CONT.)
741
42 PROJECT LEGAL DESCRIPTION (CONT.)
742
43 PROJECT LEGAL DESCRIPTION (CONT.)
743
44 PROJECT PLAT MAP
744
45 PROJECT PLAT MAP (CONT.)
745
46 PROJECT PLAT MAP (CONT.)
746
47 PROJECT PLAT MAP (CONT.)
747
48 HIGHEST AND BEST USE
Highest and best use may be defined as:
The reasonably probable use of property that results in the highest value. 9 To be reasonably probable, a use must be:
1. Legally Permissible: What uses are permitted by zoning and other legal restrictions?
2. Physically Possible: To what use is the site physically adaptable?
3. Financially Feasible: Which possible and permissible use will produce any net return to the owner of the site?
4. Maximally Productive. Among the feasible uses, which use will produce the highest net return, (i.e., the highest present worth)?
HIGHEST AND BEST USE AS VACANT
LEGALLY PERMISSIBLE / PHYSICALLY POSSIBLE
The subject property is considered to be a segment of a corridor, within the Cucamonga Creak flood control channel extending for miles to the north and south. Therefore, the value of the underlying land within the corridor is based on Across the Fence (ATF) methodology. This approach considers the adjacent zoning/land uses as the basis for valuation of the subject.
As discussed in the Land Description section, the subject land is zoned A2 (Heavy Agriculture) but will be appraised via ATF methodology based on the typical ATF parcel, which is zoned for primarily industrial uses. The underlying land value for the subject is based on the highest and best use of the typical ATF property, which is zoned for industrial uses.
FINANCIALLY FEASIBLE / MAXIMALLY PRODUCTIVE
There are many types of corridors including: transportation corridors (i.e. railway, roadway, bike and walking paths), open space within linear parks, flood control uses, and aqueducts.
Corridors provide numerous benefits to the public and in the subject’s case provide a necessary service to convey water from its source to its distribution points. As such, the subject as a corridor is considered to be financially feasible. Demand for the corridor is reflected by its current use as the Cucamonga Creek and there are no other uses considered to be financially feasible based on its size and shape as a corridor.
As previously stated, the subject larger parcel is a segment of a corridor. This segment is located in an established community and it would be extremely difficult to reroute or change it. Uses for corridors are significant and important in maintaining and expanding public infrastructure and
9 The Appraisal of Real Estate 14th Edition, Page 332, (Chicago: Appraisal Institute, 2013). 748
49 there is a trend to conserve existing corridors, due to the difficulty in modifying them. Given these factors, we have concluded that the maximally productive use of the subject is for a corridor.
In conclusion, the highest and best use of the larger parcel “as vacant” is part of a corridor.
HIGHEST AND BEST USE AS IMPROVED
In the analysis of the highest and best use as improved, a determination is made as to the optimal use of the site and the improvements. The improvements must be analyzed to determine whether they should be expanded, modified, demolished or rehabilitated. The subject is a segment of a larger corridor improved with a flood control channel/ The highest and best use of the subject “as improved” is for continued corridor/flood control use. Please note, that while a portion of subject property is improved, the proposed acquisition does not impact the improvements or use of the property, and the improvements have been disregarded in this valuation assignment.
MOST PROBABLE BUYER
Taking into account all of the physical and investment characteristics of the subject property, the likely buyer is a public entity.
HIGHEST AND BEST USE OF THE REMAINDER
As previously mentioned, the overall larger parcel site will be unchanged; however, there will be a slight reduction in the usable area of 7,420 square feet, or approximately 1.26%. The majority of the roadway improvements will be aerial due to the location of the bridge at st reet grade. As will be shown in the Valuation of the Parts Acquired, there is no difference in land value on a price per square foot basis in the before and after conditions. As such, continued corridor/flood control use of the property will be the same as in the before condition. Therefore, the highest and best use of the subject remainder “as vacant” and “as improved”, is unchanged.
749
50 VALUATION METHODOLOGY
Three basic approaches may be used to arrive at an estimate of market value. They are:
1. The Cost Approach
2. The Income Capitalization Approach
3. The Sales Comparison Approach
COST APPROACH
The cost approach is a breakdown of property into land and building components. It assumes that an informed buyer would pay no more for a property than the cost of acquiring land and reproducing improvements of similar utility, less the amount of any depreciation. This approach is most applicable when improvements are relatively new and represent the highest and best use of the land, or in the case of special-use properties, for which there are few comparable sales.
INCOME CAPITALIZATION APPROACH
The income capitalization approach reflects the present value of the future benefits of property ownership. It converts a property’s net operating income into a lump-sum value via capitalization.
The two methods of income capitalization are direct capitalization and yield capitalization (via a discounted cash flow analysis), with one or both applied, as applicable to the property being appraised. This approach is most applicable for income-producing properties.
SALES COMPARISON APPROACH
The sales comparison approach is the comparison of similar properties, that recently sold or are currently listed for sale, to the subject property. It assumes that an informed buyer would pay no more for a property than the cost of acquiring a substitute property of similar utility and desirability.
This approach is most applicable when there are sufficient recent and reliable transactions of similar properties. It is most often relied upon in the valuation of owner-user properties or vacant land.
ACROSS THE FENCE (ATF)
In addition to the three basic approaches described above, the ATF method can be used in the appraisal of corridors, easements, and public facilities. This method is used to develop an opinion of value based on comparison to abutting land. An analysis of the typical abutting parcel is made to determine a value that can be applied to the property being appraised.
FINAL RECONCILIATION
The appraisal process concludes with the final reconciliation of the values derived from the approaches applied for a single estimate of market value (when multiple approaches are utilized).
Different properties require different means of analysis and may lend themselves to one approach over the others.
750
51 METHODOLOGIES APPLIED
The cost and income approaches were considered but not developed, because the subject is being valued as land only, since there are no building or significant site improvements . Thus, developing a value via these approaches is not warranted for vacant land. The sales comparison approach was considered and was developed for the typical ATF par cel because there is adequate data to develop a value estimate and this approach best reflects market behavior for this property type.
751
52 SALE COMPARISON APPROACH
The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with similar utility and desirability, and perceived benefits of ownership. It is based on the principles of supply and demand, balance, substitution and externalities.
The following steps describe the applied process of the Sales Comparison Approach:
• The market in which the subject property competes is investigated; comparable sales, contracts for sale, and current offerings are reviewed.
• The most pertinent data is further analyzed and the quality of the transaction is determined.
• The most meaningful unit of value for the subject property is determined.
• Each comparable sale is analyzed and, where appropriate, adjusted to equate with the typical ATF property.
• Each comparable sale is analyzed and, where appropriate, adjusted to equate with the subject property.
• The value indication of each comparable sale is analyzed and the data reconciled for a final indication of value via the Sales Comparison Approach.
The larger parcel is a corridor and is a part of the Cucamonga Creek flood control channel. For the purposes of our valuation, the larger parcel is valued by utilizing the ATF method.
Adjustments and/or comparisons of the sales are made relative to differences or similarities to the typical ATF parcel. A range of values results from this approach. We correlate the range into a final value by weighting the land comparables as to their overall similarity to the typical ATF parcel.
DESCRIPTION OF THE ACROSS THE FENCE PROPERTY
The ATF parcels consist of approximate 20-50 acres of improved land (prior to subdividing) and are zoned for industrial uses.
752
53 LAND COMPARABLES
We have researched numerous land sales and have selected a total of five land comparables for this analysis; all sales were closed transactions. These land comparables are documented on the following pages by a summary table, location map, and an analysis grid.
All land comparables have been researched through multiple sources (including, but not limited to, the county recorder's office, market data services, published reports, and personal contacts), were verified with a party to the transaction, whenever possible, and were physically inspected from the public right of way.
753
54 LAND COMPARABLE SUMMARY TABLE
Comp Address Date Grantor Financing Price Acres Zoning
No. City Tax ID Grantee Book/Page or
Reference Doc
Price Per Land
SF Land SF Current Use
1 10750 Live Oak Ave 12/6/2021 Robert & Lillian
Cantero Trust
Conventional $62,000,000 14.79 SW/IP
1 Fontana 0236-141-05, 0236-
141-06, 0236-141-
20 Live Oak Land, LLC 2021-544881 $96.24 644,252 Vacant Land 2 E/O Hamner Ave,
N/O Ontario Ranch
Rd.
11/10/2021 Rich Haven
Marketplace LLC
Conventional $250,018,000 54.40 Rich Haven
Specific Plan
(PSP05-004)
2 Ontario 0218-211-27 Dpif3 Ca 36
Ontario Ranch LLC
2021-511595 $105.51 2,369,664 Vacant Land
3 27050 Palmetto Ave. 10/1/2021 PR III Of MP
Redlands Industrial
LLC
Conventional $46,100,000 17.84 EV/PI
3 Redlands 0292-041-08, 0292-
041-44, 0292-041-
38 City of Redlands 2021-450697 $59.32 777,110 Vacant Land 4 18910-19010 Slover
Ave.
6/16/2021 James & Judie
Carter Revocable
Trust 1996
Conventional $35,250,000 13.20 BL/IC
4 Bloomington 0254-241-15 Union Pacific
Corporation
2021-273768 $61.31 574,992 Vacant Land
5 SWC Remington &
Archibald
12/4/2020 Orbis Real Estate
Partners
Conventional $95,210,081 49.68 I-P
5 Eastvale 144-010-015, 144-
010-018, 144-010-
020, 144-010-023,
144-010-024, 144-
010-032
Dermody
Properties, Inc.
N/Av $44.00 2,164,061 Vacant Land
This sale was confirmed by the buyer and is the sale of of 54.40 acres of land in Ontario, Calif., which will be developed into a 1,003,348-square-foot industrial warehouse, expected to deliver in 2023. The development will be known as LogistiCenterSM at Ontario Ranch, and the site is located at Hamner Avenue and Ontario Ranch Road. The Rich Haven Specific Plan allows a Mixed-use overlay.
This is the sale of a 14.79 acre paved pad for $62,000,000. There were no permits, approvals, or entitlements on the land at the time of sale. The buyer plans on entitling the property for an industrial development with a class A distribution center, that will be approximately +/- 300,000 square feet when constructed.
This is the sale of a 13.20 acre storage yard for $35,250,000 or about $2.67 million per acre. This was a court appointed sale. At the court hearing there were 18 offers or bids on the property. The buyer was Union Pacific Railroad who has an adjacent rail yard. The property was sold for land value only. It was previously a contractor's storage yard and there were minimal improvements not considered in the sale price. The buyer plans on expanding their business, Union Pacific Corporation.
The price, acreage, and sale details were confirmed by the broker.
This is the sale of 49.68 acres of industrial land for $95,210,081 or $44 per-square-foot. The land was purchased without entitlements, but the buyer went through the approvals and entitlement process during the escrow and due diligence period. According to the sellers press release, the buyer will develop six class-A industrial warehouse buildings to total about 1.05 million square feet. The APN's have changed and the property now consists of Assessor Parcel Number's 144-010-081, 82. The grant deed was not available. Since purchase the property has been developed with industrial buildings.
Comparable Land Sales
On October 1, 2021, the 17.84 acres of industrial land was sold for $46,100,000. The buyer was Molto Properties which acquired the property without any entitlements for speculative industrial development.
The seller was the City of Redlands. The transaction was an arm's length market sale, the City took multiple offers on the subject property and sold the property to the highest offer.
Comments
754
55 COMPARABLE LOCATION MAP
755
56 LAND COMPARABLE PHOTOGRAPHS
Land Comparable 1 (photo taken by N. Tucker 5/26/2022)
Land Comparable 2 (photo taken by N. Tucker 5/26/2022)
Land Comparable 3 (photo taken by N. Tucker 5/26/2022)
756
57 LAND COMPARABLE PHOTOGRAPHS (CONT.)
Land Comparable 4 (photo taken by N. Tucker 5/26/2022)
Land Comparable 5 (photo taken by N. Tucker 5/1/2022)
757
58 THE COMPARISON PROCESS
In the comparison process, we take into consideration the financial and physical differences between each land comparable and the subject. Categories of adjustment and/or comparison include: 1) property rights conveyed; 2) terms of sale; 3) conditions of sale; 4) buyer expenditures; 5) market conditions; and, 6) physical characteristics (including location, access and exposure, size/economies of scale, zoning, shape and topography, utilities, site improvements, and entitlements at time of sale). The land co mparables were analyzed on a per square foot basis, which is the most applicable unit -of-comparison for vacant land within the subject market area.
Each land comparables’ size was obtained from public records, published sales information, and/or other reliable sources. Once the price per square foot value indicator was estimated, it was applied to subject larger parcel.
The comparison process is fairly subjective in nature primarily due to the many characteristics of value, variances in buyer/seller influences, imperfections in the market, etc. Adjustments and/or comparisons are an attempt to reflect value contributions of the various factors in the marketplace.
Many of the comparisons of physical characteristics overlap and reflect overall desirability. Th e comparison grid following this section is an empirical format to simply lead the reader to a logical conclusion of the final estimated value. Please note, each item of comparability is not weighted equally. Items may outweigh each other resulting in an overall rating that may not “add up” based on the ratings of individual elements.
PROPERTY RIGHTS
The property right appraised was the fee simple estate. All of the land comparables transferred (or were marketing) the fee simple interest, thus, no adjustments were warranted.
FINANCING (TERMS OF SALE)
Financing (terms of sale) include below market rates, buy downs, atypical payback periods, or any financing situations that are not commonly accepted within the marketplace. In the subject market, land is typically purchased with all cash or the seller takes back a first trust deed with a large (20%-50%) down payment. In this case, all of the sales reflected were cash or market terms and financing and no adjustments were necessary.
CONDITIONS OF SALE
Conditions of sale include any distressed influences, less than arm’s length transactions, or other related influences that are not attributable to financing/terms of sale, market conditions, or physical differences. All of the sales utilized appear to be arm’s length transactions, and no conditions of sale adjustments were warranted.
BUYER EXPENDITURES
A knowledgeable buyer considers expenditures that will have to be made upon purchase of a property because these costs affect the price they agree to pay. Such expenditures may include the cost to demolish and remove buildings, petition for a zoning change, remediate environmental 758
59 contamination, extend escrow, or pay broker fees, among others. No atypical buyer expenditures were discovered during the verification process; thus, no adjustments were warranted.
MARKET CONDITIONS
Market conditions (time of sale) adjustments take into consideration appreciation or depreciation that has occurred in the market. In this analysis, all of the land comparables were relatively recent transactions, occurring between December 2020 and December 2021.
There is no published data / market reports for industrial land sales. A review of market sales data and discussions with market participants all indicate upward trends f or land values in the area prior to and after the Covid- 19 outbreak at the end of March 2020. During the pandemic, land sales continued, and the market functioned, sales volume had declined but prices remained stable with an upward trend. Additionally, COVID-19 stay-at-home orders accelerated the growth of e-commerce and the demand for warehouse space. With the reopening of the economy and sustained low interest rates, demand for developable land has continued to increase. We ran a Trend Report through CoStar for all industrial land sales over the past five years ranging in size from 5 to 100 acres. The trend report revealed an increase in land sales prices of over 6% annually. We have considered the upward trends in land prices, along with the limited supply in our analysis of market conditions, and an upward annual adjustment of 6% is applied to the sales to account for inflation in values subsequent to their dates of sale.
PHYSICAL CHARACTERISTICS
After adjusting for the above non-physical characteristics, we compared the physical differences of the land comparables to the subject. There is a myriad of physical features that can be reviewed by investors when purchasing vacant land. However, the features discussed below represent those that generally have the greatest effect on value or are most often a consideration. Note that location, size, access and exposure, and entitlements generally have a stronger impact on value than the remaining categories. Qualitative comments were made regarding any differences noted.
L
OCATION
When looking at location, we take into consideration a property’s orientation to the surrounding area including proximity to local services and perceived desirability/market demand. The subject larger parcel is centrally located within a predominantly industrial zoning district, close to places of employment, with major retail / commercial corridors and support facilities in surrounding areas , and freeway access approximately 2 miles to the east. All comparables are considered similar being located within industrial districts, warranting no adjustments for this item.
ACCESS AND EXPOSURE
Access reflects the proximity to transportation facilities and ease of site access, while exposure reflects visibility from main thoroughfares. The subject property is located on Limonite Avenue and Remington Avenue, considered primary and secondary arterials.
The subject also borders secondary streets in the surrounding industrial parks. it is 759
60 approximately two miles west of I-15 freeway, and approximately four miles east of the I- 71 Freeway and just over a mile east of Chino Airport. The typical ATF parcel is a site on a busy industrial and commercial arterial roadway, with adequate street frontage and visibility.
Land Comparables 1 through 5 are located within the inland empire. Land Comparable 1 is located on a corner lot, with two secondary streets. It is considered similar to the typical ATF parcel in terms of access and exposure. Land Comparable 2 has a corner lot location on the intersection of two primary arterials. Its access and exposure are also considered similar to the typical parcel . Land Comparable 3 has a secondary mid-block orientation interior lot with limited access. Its access and exposure are slightly inferior to the typical ATF parcel. Land Comparable 4 has a corner lot location on the intersection of a primary arterial and secondary arterial. Its access and exposure are also considered similar to the typical parcel. Land Comparable 5 has a corner lot location on the intersection of two primary arterials. Its access and exposure are also considered similar.
SIZE /E CONOMIES OF SCALE
Size/economies of scale reflects the fact that a larger parcel will typically sell for a lower price per acre, while a smaller parcel with similar location and utility will typically sell for a higher price per acre. However, for industrial acreage in the Inland Empire, the opposite is currently taking place. Over the past several years, due to the increase in e-commerce, there has been a high demand for sites approximately 20 acres or larger in order to accommodate large 500,000-plus square foot distribution facilities, some in the 1 million square foot range. Developers are paying premiums for larger parcels, which will allow for possible future expansion, larger project sizes, and larger outside storage areas, among other items of consideration.
The comparables range in size from 13.20 to 54.40 acres, bracketing the subject parcel size of 13.52± acres and the typical ATF parcel size. The typical parcel for the surrounding land uses is indicated at 20-50 acres for the ATF method. All of the land Comparables are considered similar in size and would attract similar buyers and investors.
Z
ONING
Zoning reflects a property’s allowed uses and usable area for development. The typical ATF parcels zoning allows for a wide variety of industrial uses. The typical adj oining parcels surrounding the subject are industrial park uses. Land Comparables 1, 3, 4, and 5 are similar as they are zoned industrial or similar industrial uses . Land Comparable 2 was in a specific plan with a mixed-use overlay, therefore making it slightly superior.
SHAPE AND TOPOGRAPHY
The shape and topography of land generally determines potential uses (i.e., the more level the land, the greater the utility). The subject property is irregular in shape and is below street grade consisting of a flood channel. The typical ATF parcel adjacent to the property 760
61 is generally rectangular, usable land, that is level at street grade, which has been utilized as the basis for valuation for this adjustment.
Land Comparables 1 and 4 are considered generally rectangular, and level at street grade.
Both are similar to the typical parcel. Comparables 2 and 3 are rectangular and level at street grade, also being considered similar to the typical subject parcel. Land Comparable 5 is large slightly irregular shaped parcel that is level at street grade and is located directly to the east of the subject property adjacent to the subject. The site now improved with buildings, but was vacant land at the time of sale.
UTILITIES
This includes hook-up to utilities (phone, electric, gas, and sewer and water), as well as both the costs to extend the lines to the site as well as the tap fees. The subject is assumed to have all available utilities at the site. All of the comparables utilized appear to have utilities available within the adjacent roadways, and, therefore, no adjustments are indicated.
S
ITE IMPROVEMENTS
Significant site improvements can be a major contributor to the value of vacant land. All of the land comparables were vacant land, with the exception of Land Comparables 4. Land Comparable 4 had miscellaneous structures on it which did not appear to contribute value in excess of the land, because the buyer reportedly did not consider them in the purchase price. The buyer of Land Comparabl e 4 is planning to utilize the site to expand their business and will remove the structures. This sale was considered slightly inferior due to the cost of razing the improvements. All of the other land comparables sold for land value and are similar in terms of site improvements.
E
NTITLEMENTS AT THE TIME OF SALE 10
In the context of ownership, use, or development of real property, the right to receive governmental approvals for annexations, zoning, utility extensions, construction permits, and occupancy / use permits. Entitlements may be transferable, subject to covenants or government protocols, may constitute vested rights, and may represent an enhancement to a property’s value.
The adjacent parcels “as is” are developed with industrial buildings. The existence of such implies that they are fully entitled. As such, we have considered the typical ATF parcel to be fully entitled. All of the comparables , with the exception of Land Comparable 2 , sold with no entitlements and are considered slightly inferior . Land Comparable 2 was fully entitled at the time of sale and is considered similar. It also has an easement of +/ -10 acres that could only be used for trailer storage and parking. According to the broker , Rebecca Perlmutter, this had no impact on value as the site would need the parking for
10 The Dictionary of Real Estate Appraisal, Fifth Edition. 761
62 the future warehouse to be built. Land Comparable 1, 3, 4, and 5 are all similar with no entitlements.
SALES COMPARISON APPROACH CONCLUSION
A total of five land comparables were used in the land valuation. The land comparable data were sufficient in quality and quantity to estimate the subject’s market value with many physical and non-physical characteristics analyzed in the valuation process.
The land comparables had an unadjusted price per square foot range from $ 44.00 to $105.51.
Land sizes range from 13.20 to 54.40 acres, bracketing the subject parcel size of 13.52± acres and the typical ATF parcel size of 20 -50 acres. Sale dates range from December 2020 to as recently as December 2021. There were no adjustments for property rights, financing, conditions of sale, or buyer expenditures. An annual market trend adjustment of 6% was applied to each comparable. The adjustments were made based on comparison to the typical ATF parcel, which is then applied to the subject larger parcel (144-010-010).
After qualitative adjustments, all of the Land Comparables, ranging from $47.71 to $108.49 per square foot. The sales 3 and 4 were considered overall slightly inferior to the subject. Therefore, it was reasonable to reconcile the subject’s value above this range. Land Comparables 5 was similar, but sold in December of 2020 and according to conversations with local brokers land values have dramatically increased since then. Land sale 1 is similar and is indicated at $98.55 per square foot. Land Comparable 2 adjusted to $108.49 per square foot, respectively is superior to the subject. Therefore, it was reasonable to reconcile the subject’s value near these indicators.
Therefore, it was reasonable to reconcile the subject’s value below this value.
The qualitative land analysis results are arrayed in the table below wi th the time adjusted price per square foot indicators from the closed sales, followed by the indicated fair market value, and adjustment grid (on a subsequent page).
INDICATED FAIR MARKET VALUE - LARGER PARCEL (LAND ONLY) INDICATED VALUE PER LAND SF: $99.00
SUBJECT SIZE: 588,931 Square Feet (13.52± Acres)
INDICATED VALUE: $58,304,189
Land
Comparable
Comparability to
Subject
Adjusted Price
per SF
2 Sl. Superior $108.49
Subject -- $99.00
1 Sl. Infe rior $98.55
4 Inferi or $64.52
3 Inferi or $61.39
5 Sl. Infe rior $47.71
VALUATION ADJUSTMENT ARRAY
762
63 The value per square foot will be used to estimate the fair market value of the proposed acquisition.
763
64 LAND COMPARABLE ADJUSTMENT GRID
Land Analysis Grid
Address
City
State
Date
Price
Acres
Land SF
Land SF Unit Price
Transaction Adjustments
Property Rights Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Financing Conventional 0.0% Conventional 0.0% Conventional 0.0% Conventional 0.0% Conventional 0.0% Conditions of Sale None 0.0% None 0.0% None 0.0% None 0.0% None 0.0% Expenditures After Sale
Adjusted Land SF Unit Price
Market Trends Through 5/1/2022 6.0%
Adjusted Land SF Unit Price
Location
Comparison
Access & Exposure
Comparison
Acres
Comparison
Zoning
Comparison
Shape & Topography
Comparison
Utilities
Comparison
Site Improvements
Comparison
Entitlements at Time of Sale
Comparison
Adjusted Land SF Unit Price
Overall Comparability
$47.71$108.49
InferiorSl. Superior
$98.55 $64.52$61.39
Sl. Inferior Inferior
Fee Simple
$0
$96.24
3.48%
$44.00$61.31
2.40%
N/A
Eastvale Ontario
CACA
$59.32
777,110644,252
Redlands
$96.24
10/1/2021
N/A
Vacant Land
Available at site
Similar
Sl. Inferior Sl. InferiorSl. InferiorSl. Inferior Similar Similar
Entitlements No Entitlements
Vacant Land
Generally
rectangular/Level at street
grade
(Typical ATF Parcel)
Available at site
(Typical ATF Parcel)
Similar
Vacant LandVacant Land
Available at site
(Typical ATF Parcel)
Entitlements
Similar
(Typical ATF Parcel)
(Typical ATF Parcel) Similar
IP, Industrial & Business
Park
20-50 Acres
(Typical ATF Parcel)
SW/IP
10750 Live Oak Ave E/O Hamner Ave, N/O
Ontario Ranch Rd.
Fontana
Comp 2
Limonite Ave., between
Hellman and Archibald
CA
Subject
CA
6/16/2021
Comp 3
Eastvale
Comp 4 Comp 5
CA
Bloomington
27050 Palmetto Ave. 18910-19010 Slover Ave.
Sl. Superior
Similar
Rich Haven Specific Plan
(PSP05-004)
Similar
EV/PI
$35,250,000
$0 $0
$61.31
574,992
54.40 $61.39
2.83%
$108.49
$105.51
Industrial District
Similar
49.68 Similar
Similar
Similar
I-P
Similar
17.84 Similar
Corner Lot - Intersection of
two primary arterials
BL/IC
Similar
13.20 Similar
No Entitlements
Similar
Sl. Irregular/Level at street
grade
Vacant Land
Similar
Similar
Industrial District
14.79 Similar
Similar
Generally
rectangular/Level at street
grade
Rectangular/Level at street
grade
Secondary mid-block
orientation interior lot
Rectangular/Level at street
grade
Similar Similar
Corner Lot - Intersection of
two primary arterials
Similar
SimilarSimilar
8.43%
Primary and Secondary
Arterials and Secondary
Streets
Corner Lot - two
secondary streets
$98.55
Industrial District
$59.32
$0
Industrial District
$47.71
N/A
11/10/20215/1/2022 12/6/2021
$250,018,000$62,000,000 $46,100,000
588,931
--
2,369,664
$105.51
14.79 12/4/2020
$95,210,081
SWC Remington &
Archibald
Sl. Inferior
Comp 1
$64.52
Industrial District
5.24%
2,164,061
49.6813.2054.40 17.84
$44.00
CA
Land Sale Analysis Grid
Sl. Inferior
Similar
Corner Lot - Primary
arterial and secondary
street
Industrial District
Similar
Available at site
Similar
Available at site
No Entitlements
13.52 Similar
Available at site
Sl. Inferior
Similar
Similar
Similar
Misc. Structures
No Entitlements
Generally
rectangular/Level at street
grade
$0
764
65 VALUATION OF THE PROPOSED ACQUISITION
In previous sections of this report, we described the proposed acquisitions and valued the larger parcel. The indicated land value for the subject of $99.00 per square foot is utilized as the basis for the valuation of the proposed acquisition.
VALUE OF THE PARTS ACQUIRED
As proposed, the project will require one permanent road easement for construction of the bridge, however, the majority will be aerial above the flood channel riverbed with a small area for footings.
The acquisition is needed to facilitate construction of the Project; specifically, the proposed road easement is necessary for the bridge footings and deck.
To assist in arriving at an estimate of the value of the parts acquired, we reviewed the follow ing Easement Valuation Matrix:
The majority of the roadway improvements will be aerial due to the location of the bridge at street grade. The aerial potions of the easement will result in a minimal effect on the use and utility of the riverbed. The typical range of impact on a percentage of fee basis is from 11-25%. As such, the impact of the rights to be acquired is concluded to be at the upper end of the range. There will also be improvements in the form of footings and pier walls within the channel. The location of these will impact the surface use and conveyance of any future use of the area. The typical range of impact on a percentage of fee basis for this type of acquisition is from 75-100%. As such, the impact of the rights to be acquired is concluded to be at the lower end of the range, due to impact being only 1.26% of the total larger parcel size. The values of these areas are calculated in the following table.
Percentage of Fee Comments Potential Types of Easements 90% - 100% Severe impact on surface use;
Conveyance of future uses
Overhead electric, flowage
easements, railroad ROW,
irrigation canals, access roads
75% - 89% Major impact on surface use;
Conveyance of future uses
Pipelines, drainage
easements, flowage
easements
51% - 74% Some impact on surface use;
Conveyance of ingress/egress rights Pipelines, scenic easements 50% Balanced use by both owner and
easement holder
Water or sewer lines, cable
lines, telecommunications
26% - 49% Location along a property line,
location across non-usable land area
Water or sewer lines, cable
lines
11% - 25%
Subsurface or air rights that have
minimal effect on use and utility,
Location within a setback
Air right, water or sewer
lines
0% to 10% Nominal effect on use and utility Small subsurface easement EASEMENT VALUATION MATRIX*
* Right of Way Magazine, May/June 2006, Easement Valuation by Donald Sherwood, SR/WA. 765
66 VALUE OF THE REMAINDER AS PART OF THE WHOLE
The value of the remainder as part of the whole is equal to the value of the larger parcel, less the value of the parts acquired.
VALUE OF THE REMAINDER IN THE AFTER CONDITION
In determining the value of the remainder in the after condition, before consideration of benefits, we consider the impact of the proposed project and partial acquisition on the remainder parcel.
The larger parcel gross sites size will remain the same in the after condition. However, there will be a slight reduction in the usable area where the footings/pier walls will lie containing 7,420 square feet, a reduction of approximately 1.26%. The majority of the roadway improvements will be aerial due to the location of the bridge at street grade and will not impact the usable area.
Overall shape and access will remain the same. Impacts due to construction in the manner proposed are considered minimal and are not anticipated to negatively impact the remainder parcel. The proposed project will not impact the use of the property as the Cucamonga Creek or any flood control or improvements on the property and there is no change to the utility or highest and best use of the property. Therefore, no diminution in value. The value of the remainder in the after condition is concluded to be the same as in the before condition on a price per square foot basis, as shown in the following table.
APN Type
Size
(SF)
Land Value
($/SF)
Rights
Acquired
Indicated
Value
144-010-010 PE (Bri dge Deck) 31,288 $99.00 25% $774,378 144-010-010 PE (Footings/Pie r Walls) 7,420 $99.00 75% $550,935 38,708 $1,325,313
* Slight differences may be due to rounding
VALUE OF THE PARTS ACQUIRED (LAND ONLY)
VALUE OF THE PARTS ACQUIRED
Val ue of the Subject Larger Parcel (Land Onl y) $58,304,189 Less Permanent Acquisition (Land Only) ($1,325,313)
VALUE OF THE REMAINDER AS PART OF THE WHOLE (LAND ONLY) $56,978,876 * Slight differences may be due to rounding
VALUE OF THE REMAINDER AS PART OF THE WHOLE
Size (SF)
Land Value
($/SF) Rights Remaining
Indicated
Value
Encumbered Land w/in PE (Bridge Deck) 31,288 $99.00 75% $2,323,134 Encumbered Land w/in PE (Footings/Pier Walls) 7,420 $99.00 25% $183,645 Uencumbered Remainder Land 550,223 $99.00 100% $54,472,097 VALUE OF THE REMAINDER IN THE AFTER CONDITION (LAND ONLY) $56,978,876 * Slight differences may be due to rounding
VALUE OF THE REMAINDER IN THE AFTER CONDITION
766
67 SEVERANCE DAMAGES
Severance damages are a loss in value to the remainder in a partial acquisition of real property.
Generally, the measure of damage is the di fference between the value of the remainder as part of the whole property and the value of the remainder in the after condition. As determined in the analysis of the value of the remainder in the after condition, there was no permanent acquisition.
As such, no severance damages exist.
BENEFITS
Benefits can only be used to offset damages, and since no damages accrue to the remainder, we have not quantified whether or not any measurable benefit to the individual property owner will be realized.
Value of the Remainder as Part of the Whole (Land Only) $56,978,876 Less Value of the Remainder in the After Condition (Land Only) $56,978,876 SEVERANCE DAMAGES $0
* Slight differences may be due to rounding
SEVERANCE DAMAGES
767
68 SUMMARY OF CONCLUSIONS
Per the preceding analyses, we have developed opinions of the fair market value of the subject larger parcel and compensation for the proposed acquisition, which are summarized in the table below:
May 1, 2022 Indicated Value
Value of Property
Rights to Be Acquired
Val ue of the Larger Parcel (Land Onl y) $58,304,189
Value of the Part(s) Acquired
Permanent Easements $1,325,313
Total Value of the Part(s) Acquired $1,325,313 $1,325,313 Value of the Remainder as Part of the Whole (Land Only) $56,978,876 Value of the Remainder After Acquisition (Land Only) $56,978,876 Severance Damages $0 $0
Benefi ts Not Quantified
Net Severance Damages $0 $0
Total Fair Market Value of the Proposed Acquisitions $1,325,313 TOTAL COMPENSATION ROUNDED $1,326,000
* Slight differences may be due to rounding
SUMMARY OF VALUE CONCLUSIONS
768
69 CERTIFICATION STATEMENT
We certify that, to the best of our knowledge and belief:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions and conclusions.
We have no present or prospective future interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved.
We have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment.
Our engagement in this assignment was not contingent upon developing or reporting predetermined results.
Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).
The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
No one provided significant real property appraisal assistance to the person(s) signing this certification.
We certify sufficient competence to appraise this property through education and experience, in addition to the internal resources of the appraisal firm.
As of the date of this report, Lance W. Doré, MAI, FRICS has completed the continuing education program for Designated Members of the Appraisal Institute.
As of the date of this report, Christine S. Santolucito, R/W -AC has completed the Standards and Ethics Education Requirement for Candidates of the Appraisal Institute.
The appraisers have performed no services, as appraisers or in any other capacity, regarding the property that is the subject of this report within the three- year period immediately preceding the agreement to perform this assignment.
769
70 Christine S. Santolucito and Noble W. Tucker have made an inspection of the subject property from the public right of way. Lance W. Doré did not inspect the subject property.
Christine S. Santolucito, R/W-AC
President
California-AG043715
Exp.: February 14, 2024
[email protected]
Lance W. Doré, MAI, FRICS
Vice President
California-AG002464
Exp.: October 1, 2022
[email protected]
Noble W. Tucker
Appraiser/Consultant
California-AG3004502
Exp.: February 03, 2024
770
71 ADDENDA
771
Property Detail Report
For Property Located At :
,, CA
Owner Information
Owner Name: SAN BERNARDINO COUNTY FLOOD CONT
Mailing Address: 825 E 3RD ST, SAN BERNARDINO CA 92415-0845 C000 C/O RIGHT OF WAY ENGINEERING Vesting Codes: / /
Location Information
Legal Description: 13.52 ACRES M/L IN POR N 1/2 OF SEC 27 T2S R7W FOR TOTAL DESCRIPTION SEE ASSESSORS MAPS County: RIVERSIDE, CA APN: 144-010-010
Census Tract / Block: 413.02 / 1 Alternate APN: 144-010-010 Township-Range-Sect: 2S-7W-27 Subdivision:
Legal Book/Page: Map Reference: /
Legal Lot: Tract #:
Legal Block: School District: CORONA NORCO
Market Area: 248 School District Name: CORONA NORCO
Neighbor Code: Munic/Township: CITY OF EASTVALE
Owner Transfer Information
Recording/Sale Date: / Deed Type:
Sale Price: 1st Mtg Document #:
Document #:
Last Market Sale Information
Recording/Sale Date: / 1st Mtg Amount/Type: /
Sale Price: 1st Mtg Int. Rate/Type: /
Sale Type: 1st Mtg Document #:
Document #: 2nd Mtg Amount/Type: /
Deed Type: 2nd Mtg Int. Rate/Type: /
Transfer Document #: Price Per SqFt:
New Construction: Multi/Split Sale:
Title Company:
Lender:
Seller Name:
Prior Sale Information
Prior Rec/Sale Date: / Prior Lender:
Prior Sale Price: Prior 1st Mtg Amt/Type: /
Prior Doc Number: Prior 1st Mtg Rate/Type: /
Prior Deed Type:
Property Characteristics
Year Built / Eff: / Total Rooms/Offices Garage Area:
Gross Area: Total Restrooms: Garage Capacity:
Building Area: Roof Type: Parking Spaces:
Tot Adj Area: Roof Material: Heat Type:
Above Grade: Construction: Air Cond:
# of Stories: Foundation: Pool:
Other Improvements:Building PermitExterior wall: Quality:
Basement Area: Condition:
Site Information
Zoning: A-2-10 Acres: 13.52 County Use: VACANT RESIDENTIAL LAND - OTHE (BM2)
Lot Area: 588,931 Lot Width/Depth:x State Use: Y04
Land Use: VACANT LAND (NEC)Commercial Units: Water Type:
Site Influence: Sewer Type: Building Class:
Tax Information
Total Value: $16,053 Assessed Year: 2021 Property Tax: $302.16 Land Value: $16,053 Improved %: Tax Area: 027002
Improvement Value: Tax Year: 2020 Tax Exemption:
Total Taxable Value: $16,053
772
ID 6416 Date 12/6/2021
Address 10750 Live Oak Ave Price $62,000,000
City Fontana Price per Acre $4,192,021.64
State CA Financing Conventional
Tax ID 0236-141-05, 0236-141-
06, 0236-141-20
Property Rights Fee Simple
Grantor Robert & Lillian Cantero
Trust
Days on Market --
Grantee Live Oak Land, LLC Verification Public Records
Legal Description --
Acres 14.79 Topography Level
Land SF 644,252 Zoning SW/IP
Road Frontage -- Flood Zone --
Shape Mostly Rectangular Encumbrance or --
Utilities All to Site Environmental Issues --
Land Comparable 1
Site
Comments
Transaction
This is the sale of a 14.79 acre paved pad for $62,000,000. There were no permits, approvals, or entitlements on the land at the time of sale. The buyer plans on entitling the property for an industrial development with a class A distribution center, that will be approxi mately +/- 300,000 square feet when constructed. 773
*Of note, the APN's were reparcelized subsequent to the sale.
ID 6417 Date 11/10/2021
Address E/O Hamner Ave, N/O
Ontario Ranch Rd.
Price $250,018,000
City Ontario Price per Acre $4,595,919.12
State CA Financing Conventional
Tax ID 0218-211-27 Property Rights Fee Simple
Grantor Rich Haven Marketplace
LLC
Days on Market --
Grantee Dpif3 Ca 36 Ontario
Ranch LLC
Verification Broker
Legal Description --
Acres 54.40 Topography Level
Land SF 2,369,664 Zoning Rich Haven Specific Plan
(PSP05-004)
Road Frontage -- Flood Zone --
Shape Mostly Rectangular Encumbrance or --
Utilities All to Site Environmental Issues --
Transaction
Land Comparable 2
Comments
Site
This sale was confirmed by the buyer and is the sale of of 54.40 acres of land in Ontario, Calif., which will be developed into a 1,003,348-square-foot industrial warehouse, expected to deliver in 2023. The development will be known as LogistiCenterSM at Ontario Ranch, and the site is located at Hamner Avenue and Ontario Ranch Road. The Rich Haven Specific Plan allows a Mixed-use overlay. 774
*Of note, the APN's were reparcelized subsequent to the sale.
ID 6418 Date 10/1/2021
Address 27050 Palmetto Ave. Price $46,100,000
City Redlands Price per Acre $2,584,080.72
State CA Financing Conventional
Tax ID 0292-041-08, 0292-041-
44, 0292-041-38
Property Rights Fee Simple
Grantor PR III Of MP Redlands Days on Market --
Grantee City of Redlands Verification Public Records
Legal Description --
Acres 17.84 Topography Level
Land SF 777,110 Zoning EV/PI
Road Frontage -- Flood Zone --
Shape Mostly Rectangular Encumbrance or --
Utilities All to Site Environmental Issues --
Transaction
Comments
Land Comparable 3
On October 1, 2021, the 17.84 acres of industrial land was sold for $46,100,000. The buyer was Molto Properties which acquired the property without any entitlements for speculative industrial development.
The seller was the City of Redlands. The transaction was an arm's length market sale, the City took multiple offers on the subject property and sold the property to the highest offer.
Site
775
ID 6419 Date 6/16/2021
Address 18910-19010 Slover Ave. Price $35,250,000
City Bloomington Price per Acre $2,670,454.55
State CA Financing Conventional
Tax ID 0254-241-15 Property Rights Fee Simple
Grantor James & Judie Carter
Revocable Trust 1996
Days on Market --
Grantee Union Pacific Corporation Verification Public Records Legal Description --
Acres 13.20 Topography Level
Land SF 574,992 Zoning BL/IC
Road Frontage -- Flood Zone --
Shape Mostly Rectangular Encumbrance or --
Utilities All to Site Environmental Issues --
Comments
This is the sale of a 13.20 acre storage yard for $35,250,000 or about $2.67 million per acre. This was a court appointed sale. At the court hearing there were 18 offers or bids on the property. The buyer was Union Pacific Railroad who has an adjacent rail yard. The property was sold for land value only. It was previously a contractor's storage yard and there were minimal improvements not considered in the sale price. The buyer plans on expanding their business, Union Pacific Corporation.
Site
Transaction
Land Comparable 4
776
*Of note, the APN's were reparcelized subsequent to the sale.
ID 6420 Date 12/4/2020
Address SWC Remington &
Archibald
Price $95,210,081
City Eastvale Price per Acre $1,916,467.01
State CA Financing Conventional
Tax ID 144-010-015, 144-010-
018, 144-010-020, 144-
010-023, 144-010-024,
144-010-032
Property Rights Fee Simple
Grantor Orbis Real Estate Partners Days on Market --
Grantee Dermod
y Properties, Inc. Verification Broker
Legal Description --
Acres 49.68 Topography Level
Land SF 2,164,061 Zoning I-P
Road Frontage -- Flood Zone --
Shape Irregular Encumbrance or --
Utilities All to Site Environmental Issues --
Land Comparable 5
Site
Transaction
The price, acreage, and sale details were confirmed by the broker. This is the sale of 49.68 acres of industrial land for $95,210,081 or $44 per-square- foot. The land was purchased without entitlements, but the buyer went through the approvals and entitlement process during the escrow and due diligence period. According to the sellers press release, the buyer will develop six class-A industrial warehouse buildings to total about 1.05 million square feet. The APN's have changed and the property now consists of Assessor Parcel Number's 144- 010-081, 82. The grant deed was not available. Since purchase the property has been developed with industrial buildings.
Comments
777
951.225.3500 • 31600 Railroad Canyon Road, Suite 100-L, Canyon Lake, CA 92587 • sdgroupinc.com April 7, 2022
SENT VIA PRIORITY MAIL
San Bernardino County Flood Control
C/O Right of Way Engineering
825 East 3
rd Street
San Bernardino, CA 92415
RE: City of Eastvale – Limonite Gap Closure Project
Notice of Decision to Appraise
Located near Limonite Avenue, between Hellman and Archibald Avenues, Eastvale, Riverside County, CA
Assessor’s Parcel Number 144-010-010
Dear Property Owner:
Our firm has been retained by the City of Eastvale (City), to prepare an appraisal of the fair market value of your property, referenced above, in connection with Limonite Gap Closure Project (Project). The Project consists of constructing a 320-foot long and 82 to 88-foot wide bridge over Cucamonga Creek Channel. The City has deemed a portion of your property necessary, in order to accommodate the construction of the planned public improvements . The appraisal will assist the City in determining just compensation for the proposed acquisition. Upon completion of our appraisal, a representative from the City will contact you to make an offer.
Access to your property is important to properly value the acquisition area. We would appreciate your cooperation in allowing us access to your property. Please contact us by Friday, April 15, 2022, to arrange an appointment. Christie can be reached at 951-225-3500 x 101 or via email at [email protected].
It would be of great assistance in valuing your property if you could provide the following information prior to our inspection:
• Confirmation of the purchase price and terms regarding your acquisition of the property; • Information regarding any offers to buy your property within the past five years; and • Any other information you would like us to consider in our analysis.
Thank you in advance for your cooperation.
Sincerely,
Santolucito Doré Group, Inc.
Christine S. Santolucito, R/W-AC Lance W. Doré, MAI, FRICS President Vice President
[email protected] [email protected]
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1 CHRISTINE S. SANTOLUCITO, R/W-AC
31600 Railroad Canyon Road, Suite 100-L, Canyon Lake, CA 92587 O 951-225-3500 x 101
Christie is the President of the Santolucito Doré Group. In this role, Christie directs all valuation assignments and is responsible for the day to day operations of the business. She is the lead appraiser and works closely with her partner, Lance W. Doré, MAI, FRICS, and team of appraisers on complex appraisal assignments.
Christie is a Certified General Real Estate Appraiser who holds the Right of Way Appraisal Certification (R/W -AC) through the IRWA.
She is a Candidate for Designation through the Appraisal Institute (expected 2022). Christie has performed hundreds of full and partial acquisition appraisals and appraisal reviews for right of way projects for public agency clients and fee simple and leased fee valuations for private clients and financial institutions. Property types appraised and/or reviewed include single- and multi -tenant office buildings, industrial properties, research and development buildings, retail properties, auto- related properties, mixed- use properties, single- and multi-family residential properties, special -use properties, open space/environmentally sensitive land, agricultural land, and other types of vacant land.
Christie is also a California Licensed Real Estate Salesperson and is currently pursuing her Brokers license (expected 202 2). Christie has been involved with various real estate tasks/transactions for multiple public and private entities, including BNSF and UPRR.
Her previous experience includes more than eight years of office management in various capacities including management of a commercial appraisal firm, prior to owning and operating SD Group.
EDUCATION
Bachelor of Arts, Business
Administration and Leadership
Concordia University, Irvine, CA
Cum Laude Graduate, 2006
(GPA of 4.0 at Concordia)
LICENSES
Certified General RE Appraiser
State of California
Certificate No. AG043715
Expires 2/14/2024
Real Estate Salesperson
State of California
License No. 01820326
Expires: 12/29/2023 (Broker
License expected 2022)
PROFESSIONAL
MEMBERSHIPS
Member, International Right of
Way Association (Chapter 57
2018/19 President)
Candidate for Designation,
Appraisal Institute (SCCAI
IEMTS Committee Member)
INDUSTRY
TENURE
16 Years
PROJECT EXPERIENCE
San Bernardino County Transportation Authority (SBCTA) as a sub to Overland Pacific & Cutler, LLC , Epic Land Solutions, Inc., and Bender Rosenthal, Inc., West Valley Connector Project, San Bernardino County, CA. Christie and her team appraised 45 properties and reviewed 19 appraisals within segments 1, 2, and 4 for this road widening transit project. Property types includes multi-family residential, mixed-use, commercial, and industrial properties subject to proposed partial acquisitions.
OCTA as a sub to Epic Land Solutions, Inc., SR-55 Widening Project, Orange County, CA.
Christie and her team provided appraisals of two high- profile properties subject to complex partial acquisitions. An additional appraisal of a partial acquisition within an existing street was made.
Eastern Municipal Water District (EMWD), On-Call Appraisal Contract, Riverside County, CA. Appraiser. Christie and her team provide appraisals for various projects on an on-call basis including an appraisal of a landlocked residential parcel next to an EMWD facility for full fee acquisition, residential subdivision land subject to partial acquisition for a water line easement for the Dunlap Drive Project, two appraisals of vacant multi-family land, one being subject to full acquisition and the other subject to partial acquisition of a sewer easement and temporary 779
2 construction easement for the Sky Canyon Sewer Project, and two appraisals of vacant medium-to-high density residential acreage properties subject to partial acquisition for sewer and access easements for the Pala Lift Station Project.
County of San Bernardino / SBCTA, I -10 / Cedar Avenue Interchange Project, Bloomington, CA. Appraiser. Christie and her team completed 29 appraisals of single-family, commercial, and industrial property subject to partial acquisition for this interchange project.
City of San Jacinto as a sub to Overland Pacific & Cutler, LLC & Best, Best & Krieger LLP, San Jacinto, CA. Appraiser. Christie and her team completed eight appraisals of parcel impacted by the Esplanade Widening Project and two parcels impacted by the Shaver Street Signalization Project. These projects posed unique valuation challenges, since the majority of parcels slated for proposed acquisition were subject to dedication requirements.
SBCTA as a sub to Overland Pacific & Cutler, LLC, I -10 Corridor Express Lanes Project, County of San Bernardino, CA. Christie and her team appraised 50+ properties impacted by construction packages 1, 2, and 4 . Property types include single- family and multi -family residential properties for proposed partial acquisitions associated with this fast -paced design- build project.
City of Riverside , Various Assignments, Riverside, CA. Appraiser. Christie and her team have appraised multiple residential and commercial surplus properties for disposition as well as a business park zoned property for partial acquisition of a transmission line easement.
City of Menifee, Fire Stations, Menifee, CA. Appraiser. Christie and her team provided and appraisal of a vacant commercial parcel for voluntary acquisition for the construction of a City maintenance building and appraisals of 5 fire stations and the future City Hall site for internal asset valuation and auditing purposes.
Riverside County Flood Control and Water Conservation District (RCFCWCD), Riverside County, CA. Appraiser. Christie and her team provided three appraisals of industrial and commercial land subject to partial acquisition of storm drain easements for the Wildomar MDP Lateral C, Stage 3 Project and two appraisals of vacant multi -family residential land and open space land subject to partial acquisit ion of underground storm drain easements for the Palm Springs MDP Line 4, Stage 4 Project.
City of Pomona , Various Assignments , Pomona, CA. Appraiser. Christie provided appraisals of various property types including vacant land, parking lots, and commercial buildings for potential acquisition or disposition purposes.
SBCTA as a sub to HDR, Inc. , Redlands Passenger Rail P roject (RPRP), San Bernardino and Redlands, CA. Appraiser. Christie and her team completed multiple appraisals of commercial and industrial property subject to partial acquisition as part of this 9-mile passenger rail project. During her tenure at HDR, Christie was part of the pre- acquisition planning stages for the RPRP and provided capital cost estimates for various alternatives. In addition to the RPRP project, Christie provided appraisals of 24 parcels and review of 54 appraisals for the E Street Corridor BRT Project, 8 appraisals reviews for the San Bernardino Passenger Rail Project, and 4 reviews for the San Bernardino Transit Center Project – all of which were interrelated projects.
California High Speed Rail Authority ( CHSRA) as a sub to Continental Field Service, California High Speed Rail Project, Central Valley, CA. Review Appraiser. Christie is reviewing appraisals for this large-scale project. Property types include agricultural, residential, commercial, and industrial properties primarily impacted by complex partial acquisitions.
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1 LANCE W. DORÉ, MAI, FRICS
31600 Railroad Canyon Road, Suite 100-L, Canyon Lake, CA 92587 O 951-225-3500 x 102
Lance is the Treasurer and CFO of the Santolucito Doré Group. In this role he is responsible for the co -management of the business operations. He works closely with his partner, Christie Santolucito R/W-AC, on complex appraisal assignments.
Lance is a Certified General Real Estate Appraiser who holds the MAI designation through the Appraisal Institute. He also holds the FRICS (Fellow of Royal Institute of Chartered Surveyors). Lance has performed hundreds of full and partial acquisition appraisals and apprais ed and reviewed thousands of real estate projects in Western United States, with specialize assignments in Mexico, Japan, Russia, and the Caribbean Islands. The appraisals have been predominately for public agency clients and fee simple and leased fee valuations for private clients and financial institutions.
Property types appraised and/or reviewed include single- and multi- tenant office buildings, industrial properties, research and development buildings, retail properties, auto -related propert ies, mixed-use properties, single- and multi-family residential properties, special-use properties, open space/environmentally sensitive land, agricultural land, and other types of vacant land.
Lance is also a California Licensed Real Estate Broker and published “The Secret of Real Estate Revealed” a real estate primer. Additional published articles in The Wall Street Journal, Appraisal Institute Journal and Energy Central.
He has had executive level management for over 20 years in international real est ate firms included Cushman & Wakefield and Colliers International.
EDUCATION
Bachelor of Science, Real
Estate – Minor English – San
Diego State University
LICENSES
Certified General RE Appraiser
State of California
Certificate No. AG002464
Expires 10/1/2022
Real Estate Broker
State of California
License No. 00976180
Expires: 12/16/2022 (Broker)
PROFESSIONAL
MEMBERSHIPS
Member – Appraisal Institute
Member – IRWA
Member – Royal Institute of
Chartered Surveyors (RICS)
INDUSTRY
TENURE
37 Years
PROJECT EXPERIENCE
San Bernardino County Transportation Authority (SBCTA) as a sub to Overland Pacific & Cutler, LLC , I- 10 Corridor Express Lanes Project, County of San Bernardino , CA.
Appraisals of 50+ properties impacted by construction packages 1, 2, and 4. Property types include single- family and multi -family residential properties for proposed partial acquisitions associated with this fast-paced design-build project.
City of Pomona , Various Assignments, Pomona, CA. Appraisals of various property types including vacant land, parking lots, and commercial buildings for potential acquisition or disposition purposes.
City of Palmdale as a sub to Epic Land Solutions , Inc., Avenue R Widening, Palmdale , CA. Appraisals for 42 parcels subject to partial acquisition. Proposed im provements include installing sidewalks and dedicated bike lanes to increase pedestrian safety for the Safe Routes to School Project.
781
2 Eastern Municipal Water District (EMWD) , On-Call Appraisal Contract, Riverside County, CA. Appraisals for various projects on an on -call basis including an appraisal of a landlocked residential parcel next to an EMWD facility for full fee acquisition, residential subdivision land subject to partial acquisition for a water line easement for the Dunlap Drive Project , two appraisals of vacant multi-family land, one being subject to full acquisition and the other subject to partial acquisition of a sewer easement and temporary construction easement for the Sky Canyon Sewer Project, and two appraisals of vacant medium -to-high density residential acreage properties subject to partial acquisition for sewer and access easement s for the Pala Lift Station Project.
CHSRA, California High Speed Rail, Merced to Bakersfield, Central Valley, CA. Lance is a subconsultant appraiser for this large -scale project. Properties impacted include agricultural, residential, commercial, and industrial properties impacted by complex partial acquisitions.
County of Riverside, Iowa Avenue Grade Separation, Riverside, CA. Lance provided appraisals for six larger parcels. Interests appraised were full and partial acquisitions, surface and subsurface easements, and temporary construction easements . Lance has worked on multiple other appraisal assignments with the County.
Los Angeles County Metropolitan Transportation Authority, Crenshaw / Los Ange les International Airport Transit Corridor Project, Los Angeles, CA. Lance provided appraisals for commercial and residential properties. Interests appraised were full and partial acquisitions, surface and subsurface easements, and temporary construction easements.
City of San Diego , Multiple Assignments/Projects. Lance prepared appraisals to determine the Value in Use of multiple properties owned by the City of San Diego. Properties included three libraries and police headquarters. Subsequent appraisals were prepared to assist the City in evaluating the potential for collateralization and internal consultation to determine the market value of the ground lease for two hotels on City property, The Lodge at Torrey Pines and the Hilton Spa and Resort Mission Bay. All appraisals were completed for bond indebtedness.
City of Oakland . Fair Market Rental Study and valuation of Port Berths 20 -24 for taxing authorities for internal due diligence regarding the Concession and Lease Agreement between City of Oakland (Lessor) and Ports America Out Harbor Terminal LLC (lessee). Rental issues include: a) Basic Rent, b) super profit fees, and c) additional basic rent. Berths 20 -24 is an international container cargo transportation and distribution hub with deep water berth depths ranging from 42 to 50 feet. The total terminal area is approximately 166 acres.
County of Monterey. Fair Market Rental Study was provided to the County of Monterey with a Market Rent Analysis/Highest and Best Use Analysis for internal due diligence. Properties included in the analysis were the Monterey Jail (273,800 SF), Juvenile Detention Center (44,602 SF), Health Services building (43,776 SF), two Courthouses (380,000 SF), and two Administration buildings (134,478 SF).
City of Monterey. Multiple subject properties including Old Fisherman’s Wharf No. 1, Monterey Municipal Wharf 2, Monterey Bay Boatworks, and Monterey Beach House. Fair Market Rental Studies were provided for the City of Monterey with a Market Rent Analysis for various concessions on Monterey Bay. The subject concessions included restaurant, retail fish market, specialty retail, charter boat tenants, commercial fish processing, boatyard, marina, retail, office, yacht club, and special event venue tenants.
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1 NOBLE W. TUCKER – APPRAISER TRAINEE 31600 Railroad Canyon Road, Suite 100-L, Canyon Lake, CA 92587 O 951-225-3500 x 101 / Cell (951) 719-6652 Noble is a Certified General Real Estate Appraiser with the Santolucito Doré Group. In this role, Noble works on various valuation assignments. He assists Christie, Lance, and their team of appraisers on complex appraisal assignments. Noble has four years’ experience appraising various residential and commercial property types. He has completed all the Certified General requirements and became licensed in 2022. Noble has performed numerous appraisals and assisted with appraisal reviews during his tenure at Tucker Appraisal Service, where he was trained by his father, a seasoned appraiser. He has appraised all property types including, but not limited to single- and multi-tenant office buildings, industrial properties, research and development buildings, retail properties, auto-related properties, mixed-use properties, single- and multi-family residential properties, special-use properties, open space/environmentally sensitive land, agricultural land, and other types of vacant land. Noble is also pursuing his California Licensed Real Estate Salesperson license (expected 2022). Noble has been involved with various real estate tasks/transactions for single-family homes, RV/Self-Storage facilities, vacant land, mineral rights, & special-use properties. His previous experience includes more than five years of personal training, ice hockey coaching, marketing, and sales.
EDUCATION Bachelor of Arts, Sports Management University of Delaware, Newark, DE, Graduate, May 2015 (GPA of 3.4 at University of Delaware) LICENSES Certified General RE Appraiser State of California Certificate No. AG3004502 Expires 02/03/2024 INDUSTRY TENURE 5 Years PROJECT EXPERIENCE City of Corona, Various Assignments, Corona, CA. Noble assisted providing appraisals of multiple residential, commercial, and open space properties for valuation. Century Law Firm and Private Property Onwers, I-10 Corridor Project, Ontario & Montclair, CA. Noble assisted with the appraisals of properties impacted by I-10 Corridor project for various property owners. Property types include single-family residential properties for proposed partial acquisitions associated with the acquisition of anchor wall easements. Private Property Owners, Westside Purple Line Extension Project, Section 3, Los Angeles County, CA. Noble assisted in providing appraisals for various single-family homes impacted by a deep subsurface tunnel easement. 783
4867-9190-5135 v1
RESOLUTION NO. 23-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EASTVALE, CALIFORNIA,
APPROVING THE RIGHT-OF-WAY ACQUISITION CONTRACT BETWEEN THE CITY
AND THE SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE PERMANENT EASEMENT,
CERTIFICATE OF ACCEPTANCE, AND ALL OTHER DOCUMENTS NECESSARY TO
COMPLETE THE TRANSACTION
WHEREAS, the San Bernardino County Flood Control District (“District”), State of California, owns fee title to the real property commonly known as APN 144-010-010 in the City of Eastvale that make up a portion of the Santa Ana River system (“District Property”); and
WHEREAS, the City of Eastvale’s (“City”) proposed Limonite Gap Closure Project (“Project”) would construct a new vehicular bridge that would accommodate four 12-foot lanes (two lanes in each direction), a raised median, a 12-foot wide multi-use trail with a physical separation. The proposed project will improve the connectivity for vehicles, bicycles, and pedestrians by closing the gap in Limonite Avenue from Archibald Avenue to the east to Hellman Avenue to the west; and
WHEREAS, the City, through a Right-of-Way Acquisition Contract (“Contract”), has agreed to pay fair market value to acquire an aerial easement and surface right-of-way easement, containing approximately 38,725 square feet over the District Property, a portion of Accessor’s Parcel Number 144-010-010 (“Property Interests”), and to reimburse the District for reasonable costs associated with this easement request; and WHEREAS, the District reviewed the request and determined that the conveyance of the Property Interests is in the public interest and the Property Interests conveyed will not substantially conflict or interfere with the use of the land by the District and will have no impact nor interfere with flood protection in the region; and WHEREAS, the District reviewed the request pursuant to the Surplus Land Act and the conveyance of the Property Interests is not subject to the Surplus Land Act; and WHEREAS, the fair market value of the Property Interests was determined to total $677,688.00;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EASTVALE AS THAT:
SECTION 1. The Contract for the acquisition of the Property Interests is hereby approved. 784
4867-9190-5135 v1
SECTION 2. In accordance with Government Code Section 27281 the City Manager is authorized to execute the Contract, an easement deed and certificate of acceptance for the Property Interests, and is authorized to execute any other documents and take all necessary actions necessary to complete the transaction.
SECTION 3. A Mitigated Negative Declaration for the project was prepared and was adopted by the City Council at the September 9, 2020, City Council Meeting. Therefore, no further actions are required pursuant to CEQA.
PASSED, APPROVED AND ADOPTED this 26th day of July, 2023. __________________________________________
Todd Rigby
Mayor
APPROVED AS TO FORM: ATTEST:
__________________________________________ __________________________________________ Erica Vega Marc A. Donohue, MMC
City Attorney City Clerk/Communications Director
785
4867-9190-5135 v1
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) §
CITY OF EASTVALE )
I, Marc A. Donohue, City Clerk/Communications Director of the City of Eastvale, California, do hereby certify that the foregoing City Council Resolution No. 23-XX, was duly adopted by the City Council of the City of Eastvale, California, at a meeting held on the 26th day of July 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Marc A. Donohue, MMC
City Clerk/Communications Director
786
AGENDA STAFF REPORT
City Council Meeting
CITY COUNCIL BUSINESS
Agenda Item No. 13.3
July 26, 2023
Civic Center Financial Planning Workshop
Prepared By:
Amanda Wells, Finance Director/City Treasurer
Recommended Action(s)
Staff recommends that the City Council:
1 .
Conduct a Civic Center Financial Planning Public Workshop; and 2 .
Provide direction to staff regarding project budget and financing options.
Summary
The workshop will consist of an overview of funding and financing op)ons for the City's Civic Center Campus at the Leal property located at the corner of Limonite and Hamner Avenues. Urban Futures, Inc. representa)ves Michael Busch, Chief Execu)ve and Strategy Officer and Brandon Kfoury, Director will lead the presenta)on. The presenta)on will focus on funding and financing mechanisms for the $179 (preliminary low es)mate) to $197 million (preliminary high es)mate) Civic Center Campus Capital Improvement Project.
Background
The Civic Center Financial Planning Workshop will focus on funding and financing mechanisms for the Civic Center project. The project includes the following facilities:
City Hall Campus North West interior of Hamner and Limonite (Phase One) City Hall
Library
12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
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787
Police Station
Parking Structure
Shared Onsite Improvements and Open Space
Park space
Plaza
Fire Sta)on and Onsite Improvements at Scholar and 58th Intersec)on (Later Phase Two or Three)
The workshop will consist of four sections:
Introductions
Civic Center Project & Financial Updates
Estimated project costs
Current financial position and project reserves
Construction timeline
Bond Financing Process/Overview
Municipal bond introduction
Financing teams
Bond process
Financing and Credit Considerations
Interest rates and credit ratings
Impact to operating budget
Staff seeks the City Council's direc)on for funding and financing the Civic Center project and the use of opera)ng revenues to fund debt service, reserve requirements, and future opera)ons and maintenance costs once the facili)es are complete. Staff es)mates that debt proceeds will not be required un)l the project enters the construc)on phase, which will be in approximately one year.
However, in order to adequately plan to u)lize revenue sources for the project and ensure funds are available when necessary, staff seeks City Council's direc)on on a project budget and financing mechanisms.
Environmental
Government fiscal ac)vi)es and financial planning are not considered a Project as defined by the California Environmental Quality Act (CEQA) and no environmental review is required.
Strategic Plan Action - Priority Level: 3
| Target #: C
| Goal #: A
Target: Financial Planning; Goal: Conduct financial planning for newly proposed infrastructure (e.g.
Civic Center)
Fiscal Impact
Overall, the workshop seeks the City's Council direc)on on project budget and financing mechanisms for the city's Civic Center Campus. Direc)on provided on this item will not have an immediate fiscal impact, but will lead to future City Council ac)on that will have a direct fiscal impact. The current preliminary high end es)mate for the project is $197 million, which will require capital resources in the form of both commiHed reserves and debt service. Addi)onally, the project will require recurring opera)ng budget to operate and maintain the facili)es. Staff suggests seIng a project budget at $191 million, which is the sum of the available commiHed project reserves and the General Fund's ability to absorb an annual debt service payment. If City Council provides consensus 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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788
on a project budget with a debt service limit, staff can begin work towards a sources and uses schedule for the project.
Prior City Council/Commission Action
Several project updates and presenta)ons to City Council have occurred regarding the Civic Center project:
05/10/2023 Gensler (Architect) Contract Amendment
04/26/2023 Griffin Structures (Project & Construction Management) Contract Amendment 03/22/2023 Civic Center Public Infrastructure Project Update 11/30/2022 Civic Center Public Infrastructure Workshop
10/12/2022 Griffin Structures (Project & Construc)on Manager) Contract Amendment & Gensler (Architect) Contract
05/11/2022 Civic Center Campus Location Approval (Leal Master Plan Amendment) 11/10/2021 Griffin Structures (Project & Construction Management) Contract Attachment(s)
Not Applicable.
12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
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789
AGENDA STAFF REPORT
City Council Meeting
CITY COUNCIL BUSINESS
Agenda Item No. 13.4
July 26, 2023
Considera,on of a Master Developer Selec,on Process for the Commercial Development of Downtown Eastvale
Prepared By:
Gustavo N. Gonzalez, Interim Community Development Director Recommended Action(s)
Staff recommends that the City Council review the master developer selec on process, take public
comments, provide direc
on to staff if any changes are desired, and set in mo
on the prepara
on
of a Request for Qualifica
ons (RFQ) and Request for Proposals (RFP) for City Council review and approval prior to their release.
Summary
The terms of the Development Agreement between the City and The New Home company gave the City exclusive rights for 20 years to exercise an op
on to purchase, or assign the purchase, of
approximately 16 acres of land at the corner of Limonite and Hamner Avenues to develop the City’s future civic center and commercial downtown core. To develop the commercial core, staff recommends that the City Council set in mo
on the prepara
on of an RFQ/RFP process to select an
experienced and financially stable master developer who has the capacity to implement the master plan vision in the shortest amount of
me. In addi
on, staff also recommends the assemblage of a
consultant team to guide the City through the process of developing the commercial core. Staff would bring forward a future recommendation to the City Council for a consultant team.
Background
On May 11, 2022, the City Council approved an amendment to the Leal Master Plan and entered into a Development Agreement (DA) with The New Home Company (TNHC) to facilitate the development of up to 2,500 residen
al units, 14 acres of parks and open space, 595,000 square feet of commercial development, and the City’s future civic center including a city hall, library and 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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790
innova
on center, police sta
on, public park, civic plaza, and fire sta
on on approximately 158.6
acres of a former dairy and agricultural site known as the “Leal Property”. The terms of the DA gave the City exclusive rights for 20 years to nego
ate an op
on agreement on approximately 16 acres of
land at the corner of Limonite and Hamner Avenues, which will encompass the downtown core of the project.
On August 26, 2022, TNHC formerly closed escrow on Phase I of the 158-acre project, which includes up to 758 residen
al units to be constructed by TNHC. Phase I also includes the approximately 16- acre op
on downtown core parcels where the City’s future civic center will be located and up to 495,000 square feet of commercial space
(A6achment 1)
. The civic center uses will be located on
approximately seven (7) acres while the commercial component will encompass approximately nine (9) acres. On June 27, 2023, the Business and Development Success Ad-Hoc CommiFee recommended the master developer alternative to the City Council.
Development Alternatives
Several strategies are available for the City Council’s consideration to develop the commercial core.
Master Developer Alterna
ve
– The City nego
ates a Development Agreement (DA) with a master
developer for the design, en
tlement, marke
ng, construc
on and opera
on of the en
re
commercial component of the downtown core. The master developer would coordinate and control all aspects of the project, resul
ng in a more holis
c perspec
ve for the project. The DA establishes
the terms for this partnership consistent with the City’s vision. The master developer would procure en
tlements, secure tenant commitments, obtain financing, and construct the project in one or more phases. The City would convey the land in one or more phases when each phase is ready to proceed, including building permits and financing. The City would control the physical form and occupancy of the completed project via its police powers, the covenants in the new DA, and the option agreement and special land use restrictions.
The master developer alterna
ve allows the City to exercise the op
on agreement with one single
master developer. This alterna
ve provides the City with the best opportunity to implement the master plan vision in the shortest amount of
me. A master developer will be more financially stable
and experienced to bring a project of this type and size to fruition.
Overseeing development of the en
re commercial core also allows the master developer to take advantage of economies of scale to manage project costs and aFract the right tenant mix to make the project viable while mee
ng the community’s desire for commercial uses such as restaurants and entertainment uses. The Master Developer will also construct common areas and manage the opera
ons of the development including filling vacancies, addressing tenant issues, and maintaining landscaping and infrastructure.
Land Development Alternative
– The City develops a master plan for the project and then subdivides the larger parcel into several smaller parcels for development by independent developers or users (poten
ally few or many). In theory, this might produce a higher economic return from land sales as smaller parcels generally sell for higher prices than larger parcels and the City engenders compe
on between bidders. The City would either develop and maintain the public spaces, such as parking structures and common areas, or form a property owner associa on and seek to recover
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costs from benefitting property owners.
This alterna
ve will take longer to complete as it requires solicita on from mul
ple developer
and/or users and the nego
a
on and management of mul
ple agreements, with higher resultant
legal costs and compliance costs under the op
on agreements. It foregoes the coordina
on
advantage of the master developer and inserts the City into that supervisory role, consuming addi
onal staff resources. When tenant vacancies arise, master developers will seek an op mal
tenant for the performance of the overall project, whereas the independent owner may be mo
vated to secure the first viable tenant, with less concern regarding compa bility or overall
project viability.
Public Development Alterna
ve
– Ci
es typically partner with private par
es to develop real estate
projects to take advantage of the qualifica
ons and experience of profit mo
vated entrepreneurs.
Ci
es typically lack exper
se in all aspects of development and seek an experienced partner willing to assume the risks and rewards of development endeavors. Assuming there is a realis c profit
opportunity, the development community desires partnership with a public agency offering support with entitlements, infrastructure, and public services.
When capital markets ceased (as they did during the Great Recession) and redevelopment subsequently dissolved, a few sophis
cated California ci
es intervened to develop projects with city
staffing and construc
on funding. This occurred through affiliated economic development corpora
ons formed for that purpose, or in some cases by the city directly using staff formerly assigned to the redevelopment agency. This approach requires a highly sophis cated internal
development team and substan
al ongoing public capital contribu
ons, exposing the city to
financial risk unrelated to its core public service responsibili es. Most ci
es, especially smaller ones,
do not have the experience to assume all the responsibili es and risks inherent in large scale
development. Public development requires compliance with prevailing wage requirements, increasing construction costs for the project.
Selection Criteria
As part of the master developer selec
on process, the following selec
on criteria will be used to
ensure the most qualified developer is selected:
Respect for the Vision
– The master developer must understand and respect the vision set by the City Council through the master plan for the commercial core. The vision for the area is a compact lifestyle center that caters to the pedestrian experience rather than the automobile.
Successful proposals must demonstrate how the vision will be achieved in a financially feasible manner.
Financial Stability
– The master developer must demonstrate their financial stability and history of successfully financing projects of a similar type and scale, par cularly those with a
large infrastructure component including structured and/or underground parking.
Experience with Similar Projects
– The master developer must have experience with
successful comple
on of similar type projects, including projects that are large-scale, mixed- use, and uniquely designed to become major regional draws. 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
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Primary Project Team
– The master developer project team must clearly demonstrate skills set and ability to work together to bring a project of this type and scale from incep on to
occupancy. Each team member must be able to describe their role on the team and the team leader must demonstrate experience in successfully leading similar project teams.
Subconsultant Contracts
– The master developer must iden
fy all subconsultants and their
experience on similar type projects. These subconsultants include architects, landscape architects, urban designers, engineers, land economists, permiKng specialists, commercial brokers, and other real estate professionals.
Master Developer Process
To ensure selec
on of the most qualified master developer, staff recommends the RFQ/RFP selection process as follows:
Step 1: Request for Qualifica,ons (RFQ) –
The selec
on criteria above will be used to screen
for unqualified developers. Staff will request financial records and scru nize for experience in
designing, construc
ng, and managing projects of this size and scope. Staff will also inves
gate any past li
ga
on issues associated with poten
al developers. This step is
anticipated to take 30 to 60 days to complete.
Step 2: Request for Proposals (RFP)
– This step will solicit proposals from only qualified
developers who successfully complete the RFQ process. Staff will review all submiFed proposals for consistency with the commercial core vision and their financial viability to complete and maintain the project. Staff will request a detailed development proforma, conceptual site plan, list of poten
al tenant mix, parking needs, and a maintenance and
management plan. This step is anticipated to take 60 to 90 days to complete.
Step 3: Exclusive Negotiation Agreement (ENA
) – Upon selec
on of the most qualified master
developer by the City Council, staff will ini
ate an ENA to nego
ate the deal points under a
Disposi
on and Development Agreement (DDA) and exercise the op
on to assign the master
developer. The deal points could include, but not be limited to, land sale and lease, prevailing wage issues, major tenants, minimum parking requirements, and site maintenance and management. This step would also include the required entitlements including review and City approvals of site plans, eleva
ons, land uses, and compliance with the California
Environmental Quality Act (CEQA). This step is anticipated to take 90 to 120 days to complete.
City Consultant Team
Staff is commiFed to overseeing the successful implementa on of the Leal Master Plan, which
includes development of the civic center and commercial core. However, due to limited staff resources and exper
se, par
cularly in commercial real estate development, staff recommends the assemblage of a consultant team to guide the City through the process of developing the commercial core from selec
on of the master developer through construc
on and occupancy of
tenant spaces. The consultant team would be comprised of land economists, market analysts, retail strategists, and other real estate professionals to guide staff and the City Council. Staff would bring forward a recommenda
on for considera
on by the City Council at a future mee
ng to award a
Professional Services Agreement (PSA) to a recommended consultant team. 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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Other Considerations
To ensure master developer proposals consider the latest market condi ons in Eastvale, staff
recommends commissioning an updated market feasibility study. The last retail and office market was completed by TNHC in September 2021. The updated market study would take approximately six (6) weeks to complete and included in the RFP.
Further, the development agreement between the City and TNHC states that all development within the 16-acre op
on agreement area is to be reviewed by the TNHC to minimize and/or avoid incompa
bility with development on the remaining por
ons of the Leal Master Plan. As such, staff
recommends soliciting input from the THNC during the master developer selection process.
Environmental
Pursuant to Public Resources Code Sec
on 21065 (CEQA Guidelines), this ac
vity is not subject to
environmental review under the California Environmental Quality Act (CEQA), as it does not cons
tute a “project,” does not commit the City to a definite course of ac on, does not cons
tute
discre
onary approval of a specific project, and will not result in a direct or reasonably foreseeable indirect physical change in the environment, and in the alterna ve is exempt from CEQA as it falls
within the “common sense” exemp
on set forth in CEQA Guidelines Sec
on 15061(b)(3), excluding
projects where “it can be seen with certainty that there is no possibility that the ac vity in ques
on
may have a significant effect on the environment.” This determina on reflects the City’s
independent judgment and analysis. Individual projects as a result of this ac on will undergo CEQA
analysis as necessary.
Strategic Plan Action - Priority Level: 1
| Target #: B
| Goal #: C
Create “Destination Eastvale”
Attract and retain Businesses
Fiscal Impact
Total fiscal impact is es
mated at $75,000 to implement the master developer process, including an updated market feasibility study. There are sufficient funds within the Community Development Department 2033-24 fiscal year budget to begin the master developer process, including the commissioning of an updated market feasibility study and the PSA for a city consultant team. Funds are budgeted in General Fund account 100-301-6490. Costs exceeding $24,999 will require City Council approval. If City Council opts for either of the two alterna ve op
ons, land development
alterna
ve or public development alterna
ve, costs will be higher than the master developer
option.
Prior City Council/Commission Action
On December 13, 2017, the City Council approved the Leal Master Plan and associated Environmental Impact Report.
On May 11, 2022, the City Council approved an amendment to the Leal Master Plan and entered into a Development Agreement (DA) with The New Home Company (TNHC) to facilitate the development of the Leal Master Plan, including the op
on for the City to develop the 16-acre civic
center and commercial core area. 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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Attachment(s)
Attachment 1 - Project Site Plan
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796
AGENDA STAFF REPORT
City Council Meeting
CITY COUNCIL BUSINESS
Agenda Item No. 13.5
July 26, 2023
League of California Ci,es 2023 Annual Conference Delegate and Alternate(s)
Prepared By:
Marc A. Donohue, City Clerk/Communications Director
Recommended Action(s)
Staff recommends that the City Council appoint members of the City Council to serve as the City's delegate and alternate(s) at the League of California Cities' 2023 Annual Conference.
Summary
The 2023 League of California Ci(es Annual Conference is scheduled for Wednesday, September 20 through Friday, September 22, 2023, and will be held in the City of Sacramento. One important aspect of the Annual Conference is the annual Business Mee(ng when the membership considers and takes ac(on on resolu(ons that establish Cal Ci(es Policy. In order to vote at the Business Mee(ng, the City Council must designate a vo(ng delegate and appoint up to two alternate vo(ng delegates.
Background
To expedite the conduct of business every City is requested to designate a vo(ng representa(ve and two alternates who will represent the City at the Business Mee(ng. League bylaws provide that each city is en(tled to one vote and to determine a city posi(on in ma2ers affec(ng municipali(es or League policy matters.
Environmental
Not Applicable.
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Strategic Plan Action - Priority Level: N/A
| Target #: N/A
| Goal #: N/A
Not Applicable.
Fiscal Impact
Appointment of a delegate and alternate(s) does not cause a direct fiscal impact. However, expenses associated with the registra(on and travel for League of California Ci(es 2023 Annual Conference will be charged to the City Council's General Fund travel and training account 100-100- 6240. Adequate budget is available.
Prior City Council/Commission Action
The City Council on July 27, 2022, voted to appoint Todd Rigby as the City's delegate and Chris(an Dinco as the City's alternates for the 2022 Annual Conference.
Attachment(s)
Not Applicable.
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