APPRAISAL REPORT
Adjudicated Water Rights (500 Acre Feet)
Held by Calandri Farms, Inc.
Antelope Valley Groundwater Basin
Los Angeles County, California
File No. 15030
EXECUTIVE SUMMARY
Appraisal Project Adjudicated Water Rights (500 Acre Feet) Held by Calandri Farms, Inc.
Antelope Valley Groundwater Basin
Los Angeles County, California
Interest Valued 100% Fee Simple (Adjudicated Water Rights Only)
Land Area N/A
Adjudicated Water Right 500 Acre Feet (Post Ramp-down)
Flood Hazard N/A
Zoning N/A
Present Use Adjudicated Water Right s, Available for Domestic or Agriculture Use
Highest and Best Use Adjudicated Water Right s, Available for Domestic or Agriculture Use
Value Indicated by
Cost Approach N/A
Income Approach N/A
Sales Comparison Approach $5,000,000
Value Conclusion $5,000,000
Fair Market Rental Value $509/AF/Year
Effective Date of Value May 8, 2025
Date of Report May 13, 2025
TABLE OF CONTENTS
DESCRIPTION, ANALYSIS AND CONCLUSION
Purpose of the Appraisal 1
Intended Use of Report 2
Intended User 2
Scope of the Appraisal 2
Assumptions and Limiting Conditions 3
Description of Property Rights Appraised 4
Owner of Record/Sales History 4
Interest Valued 4
Effective Date of Value 4
Date of Report 4
Location Map 5
Antelope Valley Regional Analysis 6
Subject Map 8
Area Analysis 9
Highest and Best Use 10
Summary of Analysis and Valuation 13
Sales Comparison Approach 14
Fair Market Rental Value 19
Conclusion and Final Opinion of Value 21
Certification 22
ADDENDA
Qualifications of Randy K. Merriman, MAI, SRA
Qualifications of Christine L. Johnson, Appraiser
Merriman Hurst & Associates Proposal Letter
Antelope Valley Basin Water Rights Adjudication –
Per Santa Clara Case No. 1-05-CV-049053
MERRIMAN HURST
& A S S O C I A T E S I N C.
Real Estate Appraisers & Consultants
Randy K. Merriman, MAI, SRA 140 S. Montclair St., Suite C David E. Hurst, MAI Bakersfield, CA 93309
Christine Johnson, Appraiser (661) 832-0322
(661) 832-3417 FAX
May 13, 2025
City of Lancaster Re: File No. 15030
44933 Fern Avenue Appraisal Report – Antelope Valley Lancaster, California 93534 Adjudicated Water Rights Attn: Patti Garibay, Held by Calandri Farms, Inc.
Director – Community Development Los Angeles County, California
Dear Ms. Garibay:
In response to your request, we have prepared this Appraisal Report in connection with the adjudicated water rights referred to above which ar e described in greater detail elsewhere in this report.
PURPOSE OF THE APPRAISAL:
The purpose of this appraisal is to provide the appraisers ’ estimate of the market value of the adjudicated water rights described herein as of May 8, 2025. Market value is defined by the federal financial institutions regulatory agencies as follows:
Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
(1) buyer and seller are typically motivated;
(2) both parties are well informed or well advised, and acting in what they consider their own best interests;
(3) a reasonable time is allowed for exposure in the open market;
(4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and
(5) the price represents the normal consideration for the property sold unaffected by special or creative financial or sales concessions granted by anyone associated with the sale.
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Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs that are normally paid by the sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparison to financing terms offered by a third party institution lender that is not already involved in the property trans action. The dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraisers’ judgment.
(Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42 Definitions [h].)
INTENDED USE OF REPORT: The intended use of this report is to negotiate a purchase of water rights.
INTENDED USER: This report has been prepared for the exclusive use by the client, City of Lancaster, c/o Patti Garibay , Director – Community Development , and her designees. The appraisal is not to be utilized by any other user than those identified.
SCOPE OF THE APPRAISAL:
The scope of this appraisal involves compiling and analyzing market data relevant to the valuation of the subject water rights. The data utilized in this appraisal has been gathered from various sources of information to include public records, the Antelope Valley Watermaster, and interviews with real estate brokers, buyers, and sellers in the marketplace. The sources of the data are considered to be reliable. Data believed unreliable was not included in the report nor used as a basis for the value conclusions. In preparing this appraisal, the appraisers;
(1) Provided sufficient information to legally and physically identify the underlying groundwater right interest that is subject to this appraisal;
(2) Relied on information taken from Santa Clara Court Case No. 1 -05-CV-049053, which pertains to the adjudicated water rights described herein, as well as the restrictions and potential uses;
(3) Gathered information on area/neighborhood and comparable sales characteristics as well as lease/rental data pertaining to water right sale/lease transactions in the area described as the Antelope Valley Groundwater Basin;
(4) Confirmed and analyzed the data and applied the Sales Comparison Approach to value.
A discussion of the approaches to value and their applicability is shown in the Summary of Analysis and Valuation section of this report.
Completion of this assignment includes preparation of an Appraisal Report that is in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). - 3 -
ASSUMPTIONS AND LIMITING CONDITIONS:
1. This is an Appraisal Report which is intended to comply with the reporting requirements set forth under Standard Rule 2 -2(a) of the Uniform Standards of Professional Appraisal Practice for a n Appraisal Report. As such, it includes summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraisers’ opinion of value. Supporting documentation concerning the data, reasoning, and analyses is summarized in this report. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser s are not responsible for unauthorized use of this report.
2. No responsibility is assumed for legal or title considerations. Title to the water rights are assumed to be good and marketable unless otherwise stated in this report.
3. The water rights are appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report.
4. Responsible ownership and competent property management are assumed unless otherwise stated in this report.
5. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property.
6. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report.
7. It is assumed that all applicable use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.
8. It is assumed that all required licenses, certificates of occupancy, or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use o n which the value opinions contained in this report are based.
9. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report.
10. This appraisal is to be used only in its entirety and no part is to be separated from the whole report. All conclusions and opinions concerning the analysis as set forth in the report were prepared by the appraiser whose signature appear s on the appraisal report. No change of any item in the report shall be made by anyone other than the appraiser and/or officer of the firm. The appraiser and firm shall have no responsibility if any such unauthorized change is made. Neither all nor any part of the contents of this report shall be conveyed to any person or entity, other than the appraiser ’s or firm's client, through advertising, solicitation materials, public relations, news, sales, or other media without the written consent and approval of the authors, particularly as to valuation conclusions, the identity of the appraiser or firm with whi ch the appraiser is connected, or any reference to the Appraisal Institute or the American Society of Farm Managers and Rural Appraisers.
Further, the appraiser or firm assume no obligation, liability, or accountability to any third party. If this report is placed in the hands of anyone but the client, client shall make such party aware of all the assumptions and limiting conditions of the assignment.
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DESCRIPTION OF PROPERTY RIGHTS APPRAISED: The property rights are briefly described as follows:
Adjudicated Water Rights within the Antelope Valley
Groundwater Basin Stipulated by Santa Clara Case No. 1-05-CV-049053, Judicial Council Coordination Proceeding No. 4408.
Per agreement referenced above, Calandri Farms, Inc. is entitled to 500 acre feet (post ramp-down) overlying production rights to groundwater within the area commonly known as the Antelope Valley Groundwater Basin, Los Angeles County, California. At the time of the court proceedings, Calandri Farms Inc. was identified as John Calandri, B.J. Calandri, Sunrise Farms.
A summary of the overlying production rights for all water users in the Antelope Valley Basin is identified by Santa Clara Case No. 1-05-CV-049053, Exhibit 4, a copy of which is included in the Addenda of this report.
OWNER OF RECORD/SALES HISTORY: According to information provided by the client, the owner of record for the water rights appraised is Calandri Farms, Incorporated. Public records identifies the mailing address as 41228 12th St W #D, Palmdale, California 93551. The Calandri family has had the overlying right to pump groundwater from the Antelope Valley Groundwater Basin since the time they began farming in the mid 1950’s. In November 2015, a court settlement resulted in an adjudication of the water rights for the Antelope Valley Basin. Calandri Farms has owned the water rights that are the subject of this appraisal since this time. There has been no arms’ length transfer of the water rights during the past three years. Information provided by the client indicates that t here is a pending agreement to purchase the water rights at an agreed upon price of $10,000 per acre foot. The buyer (City of Lancaster) is a municipal water agency looking to acquire additional water rights for future development purposes. The agreement is further analyzed in the Sales Comparison Approach section of this report.
INTEREST VALUED: 100% fee interest, adjudicated rights only, subject to reservations of record and Assumptions and Limiting Conditions shown herein. A Preliminary Title Report was not furnished to the appraisers.
EFFECTIVE DATE OF VALUE: May 8, 2025
DATE OF REPORT: May 13, 2025
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LOCATION MAP
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ANTELOPE VALLEY REGIONAL ANALYSIS:
Location – The Antelope Valley, often referred to as “High Desert” region lies 70 miles northeast of Los Angeles in the northeastern most portion of Los Angeles County. Kern County lies immediately to the north, Ventura County to the west and San Bernardino Count y to the east.
Within the greater Antelope Valley area there are many communities, the largest are the cities of Lancaster and Palmdale, with smaller towns and communities such as Quartz Hill, Rosamond, Lake Elizabeth and Lake Hughes, Pearblossom, Little Rock and Leona Valley. By most recent estimates the greater Antelope Valley has a total estimated population of 542,000. The most recent population estimate for Lancaster indicates a total of 166,236 residents, and in Palmdale there are 161,404 residents.
As noted previously, the Antelope Valley is referred to as the high desert, sitting at approximately 2,500 feet above sea level. The air is usually dry, often windy, and typically experiences 300 sunny days per year. Highs in the summer reach the 90’s and 100’s, with lows in the winter often below freezing at night. The average annual high temperature is 98˚ Fahrenheit in the summer and 59˚ Fahrenheit in the winter. The San Gabriel Mountain Range forms the southern boundary of the Antelope Valley, and t he Tehachapi/Sierra Nevada Mountain Range forms the western boundaries. High desert areas extend to the north and east, including Mojave Desert located 30 to 40 miles to the northeast.
Access into the study area is classed good and provided by State Highways 14 and 138 which bisect the cities of Lancaster and Palmdale traveling north and south. Highway 14 connects with Highway 58 to the north and Interstate Freeway 5 to the southwest. Access to and from state highways is provided by surface roads, city and county maintained.
Transportation - The area is served by the Palmdale Airport, located in the City of Palmdale.
General William J. Fox Airfield is within a north portion of the Lancaster city limits. Alternate transportation is provided by the Antelope Valley Transportation Authority and the Southern Pacific Railway. Commuter transportation to the Los Angeles Basin is provided by the Metrolink.
Regional Economics – Over the years, the mainstay of the local economy has been directed towards the aerospace industries at Air Force Plant No. 42 within the boundaries of the Palmdale Airport and Edwards Air Force Base to the north in Kern County. China Lake Naval Weapon s Base, located in Kern County to the north is also another major employer. There are also employment opportunities throughout the area which include the Antelope Valley Hospital Medical Center, Lancaster Business Park, US Borax and Chemical Company, Ante lope Valley Union High School District, and several others. There is also substantial agricultural activity taking place in, and around the Palmdale and Lancaster areas. The sandy soil conditions in this location are well suited for a wide variety of vegetable crops, many of which are grown organically.
There has been active solar energy development, most notably in the northern and western portions of the Antelope Valley.
Trend – The overall trend in the study area is classed as static to gradually upwards and relates to the gradually expanding population that is relocating from the Southern California Basin, which is resulting in demand for additional services and housing to se rve the expanding population.
Employment opportunities at Air Force Plant No. 42 and Edwards Air Force Base continue to be the mainstay of the local economy. Substantial employment is also generated by some of the larger aerospace contractors to include Northrop Grumman Corporation and Lockheed Martin Company. - 7 -
There has also been a substantial upward trend in recent years toward renewable energy development including solar and wind energy, most of which is taking place in the northern and western areas of the Antelope Valley, and surrounding mountain ranges. On e publication notes that the Antelope Valley is currently on the precipice of becoming the “Renewable Energy Center” providing solar and wind energy generated power sources, green technologies, and renewable energy for many Southern California residents. It is also interesting to note that a substantial portion of the local work force in the Antelope Valley commutes to the Los Angeles Basin for employment on a daily basis. The average daily commute time for Lancaster and Palmdale workers is 89 minutes and 67 minutes, respectively.
Both the economy and real estate markets in Palmdale and Lancaster tend to parallel market activity in the Southern California Basin. Substantial upward trends in growth were evident during the early to mid -2000’s. This was most notable within the housin g market. Subsequent to 2005/2006 the housing market became oversupplied and was being dominated by foreclosures.
During this time there were numerous blocks of land that were in various stages of development, including subdivisions with fully finished lots as well as partially developed subdivisions. In many cases development and new construction activity came to a complete halt. More recent trends have seen increased demand in the new housing market. New tract style residential construction activity is taking place on a gradual basis, mostly within infill locations of both Palmdale and Lancaster. There are some cases where subdivision entitlements are being placed on land where the prior mapping entitlements have expired. There has also been some new sales and development activity within both the commercial and industrial markets, however, prices being paid for both these type land classes and developed properties have been relatively static. Trends noted in the study area, in our opinion, are expected to continue into the foreseeable future, with the real estate market continuing to show gradual increases, paralleling trends in the economy.
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SUBJECT MAP
Kern County
Los Angeles County San Bernardino County
Central Antelope
Valley Subarea
South East
Subarea
Rogers Lake
SubareaWest Antelope
Subarea
Willow
Springs
Subarea
(
"N
0 8
Scale in Miles
Legend
Antelope Valley Adjudicated Area
Management Subareas
Antelope Valley Groundwater Basin
! ! California Aqueduct
Figure 1
Antelope Valley
Adjudication Area and
Management Subareas
May 2023
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AREA ANALYSIS:
Location – The subject water rights held by Calandri Farms Inc. are within the Antelope Valley Basin, specifically the Central Antelope Valley Subarea , as shown by the referenced map on th e facing page. This area encompasses the southeastern area of Kern County and the northeastern area of Los Angeles County.
Access into the area is provided by surface roads that are both city and county maintained. Major freeway systems include Highway 14 that extends through both Lancaster and Palmdale in a north/south direction. Highway 14 continues to the south and west to the city of Los Angeles, approximately 70 miles to the southwest.
Surrounding Land Use – Municipalities within this subarea of the Antelope Valley include the cities of Palmdale and Lancaster . A wide variety of regional and local commercial services are available to both these cities, as well as tract style residential neighborhoods and lands that are designated for industrial use. The 2023 population estimate for Lancaster is approximately 166,236 residents, which is a slight decline compared to a peak of 170,150 residents in 2021. Palmdale has an estimated 2023 population of 161,404, which is also a slight decline from 165,761 residents in 2021. As noted previously in this report, the mainstay of the local economy for both these communities is dire cted towards the aerospace industries at Air Force Plant No. 42 within the boundaries of the Palmdale Airport and Edwards Air Force Base to the north in Kern County.
There are also substantial agricultural activities taking place in, and around the Palmdal e and Lancaster areas. Grimmway Farms and Bolthouse Farms, two of the largest organic grown vegetable farming operations, farm large blocks of land that are located to the east of Palmdale and Lancaster.
Trend - Overall, area trends are considered stable to gradually upward. There has been some limited new development and sales activity within the light industrial and commercial land markets within both these cities. The agricultural market has been static to gradually upward for several years. Very few farm properties have been bought and sold, which is in part due to the pattern of land ownership that includes several large-scale farming entities that own and farm the majority of the acreage. Limited sales activity also relates to litigation over the adjudication of water rights which was ongoing for several years, before a settlement agreement was negotiated in late 2015.
The agreement quantified the available water in the basin and assigned specific water rights to those water users that participated in the lawsuit. Subsequently, and in today’s marketplace, most agriculture related sales involve the permanent and temporary transfer of adjudicated water rights, excluding land.
Economic trends in the area directed toward real estate in the past have been cyclical with periods of very strong demand and construction, followed by downward trends due to increasing interest rates, employment trends, and an oversupply of housing in con sideration of weakening demand.
As of the date of valuation, overall growth trends in the area are classed as being gradually upward.
Demand for all types of real estate is being influenced by the housing market, which has transitioned from oversupplied conditions in recent years, to a market where new home construction is taking place at a gradual pace. Demand for agricultural use properties has been static during the past several years, which is partially due to changes in the market that are the result of the adjudication of wate r rights. As a result of the adjudication, restrictions placed on groundwater pumping reduced the amount of irrigation water available to farmland located in the basin. There has also been a trend toward acquisition of land parcel s for wind and solar energy development. The majority of the wind energy development has taken place to the northwest of the Antelope Valley between the communities of Rosamond and Tehachapi. Most of the energy that is being produced by the solar farms is being utilized in the Los Angeles Basin.
In conclusion, trends noted in the study area are expected to continue into the foreseeable future. - 10 -
HIGHEST AND BEST USE:
Highest and best use as taken from the A ppraisal Institute publication The Dictionary of Real Estate Appraisal - Sixth Edition, “is the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value." The four criteria the highest and best use must meet are:
1. Legally permissible
2. Physically possible
3. Financially feasible
4. Maximum productivity
The highest and best use of the adjudicated groundwater rights described herein directly relates to those uses described by the Antelope Valley Groundwater Adjudication Case No. 1 -05-CV- 049053. The judgement, which was signed December 23, 2015, assigned sp ecific water rights to overlying producers that participated in the lawsuit, and also set forth parameters for achieving a sustainable groundwater management program for the Antelope Valley Groundwater Basin, which encompasses approximately 1,580 square miles. Those land owners who did not participate in the adjudication settlement had two years to cease all ground water pumping. Prior to the adjudication agreement, the basin was identified as being in a state of overdraft, which was causing subsidence in some areas.
The highest and best use of the water rights described herein are subject to the specific terms for water use in the basin, set forth by the adjudication judgement. In order to maintain a “safe yield”, both municipal and agriculture water users in the basin we re required to reduce their pumping activity during a seven year “ramp-down” period that began in 2016. At this time, a five member Watermaster board was established under the direction of the court judgement. A water engineering firm was also hired to provide hydrogeological and technical analysis, and to guide administrative functions to fulfill the judgement.
In general, the overlying production rights assigned to each water user were reduced on a gradual basis during this time frame, by as much as 65%, when compared to pre -ramp down pumping rights. A summary of the pre-ramp-down and post-ramp-down production rights for the individual producers is shown by Exhibit 4 of Santa Clara Court Case No. 1-05-CV-049053, a copy of which is included in the Addenda of this report. The adjudicated water right owned by Calandri Farms, Inc. (originally identified as John Calandri, B.J. Calandri, Sunrise Farms) was 3,803 acre feet pre ramp-down; and 1,776 acre feet post ramp-down. Historically, the water available to the Calandri family was utilized in conjunction with their farming operation for the production of onions.
The adjudication judgement established a market for water rights, independent of the real estate asset. In some cases, sellers refuse to transfer the water rights, without the land, given the fact that the land has very limited utility without the water right. Per adjudication agreement, the water right holder can permanently transfer (sell) or temporarily transfer (lease) any, or all of their assigned water rights. The adjudication judgement stipulates that the overlying production rights to pump groundwater may not be transferred out of the basin, which somewhat limits the potential uses and market for the asset. It is also important to note that the judgement allows for the overlying - 11 -
producer to carry over unused water rights from year to year, which can be rented on a year-to- year basis. Any permanent, or temporary water transfers are subject to approval by the watermaster.
In the current marketplace, the highest and best use of the Calandri Farms adjudicated water rights directly relates to demand. The majority of the adjudicated water rights in the Antelope Valley Basin are assigned to municipal and regional water agencies . Water rights are also held by both small and large agricultural operations. These entities represent the most likely users of the water rights, as available for sale or lease in the marketplace. The value of the water right, for sale or lease, directly relates to the intended use of the water. In general, municipal and regional wa ter agencies can pay more for water that is utilized for domestic purposes; however, most agencies are state regulated, which impacts the amount that can be charged to the consumer. The financial feasibility to acquire water by public agencies is also influenced by the substantial cost associated with pumping, transporting, and water treatment. Agriculture is also a viable use for groundwater in the Antelope Valley Basin, which is evident by the substantial amount of cultivated agricultural acreage in the area. Climate and soil conditions in the Antelope Valley are most conducive to growing row crops that include alfa lfa, grain and in some cases organically grown vegetables.
Water requirements for these type crops are substantial, and can range between 3 - 4 AF per acre annually. In the current marketplace, substantial increases in the cost of fuel and labor are having an impact on the cost to grow all types of crops. In order to maintain a reasonable profit on crops that are grown in this area, the cost of water available for irrigation is a key factor. Furthermore, the restriction against transferring the water rights out of the Antelope Valley Basin has an impact on prices, which relates to a limited market.
In conclusion, most municipal and regional water agencies in the Antelope Valley Basin were involved in the adjudication of water rights and have sufficient water to serve their existing consumer base. It is important to note , however, that future expansion of the population base in the area will likely stimulate demand for new housing which will create a need for these agencies to acquire additional water rights. At this time, demand for water available from municipal uses is considered to be relatively static, given the fact that the population base in both the cities of Lancaster and Palmdale has shown only small increases in recent years. It is important to note that future expansion of the population in the basin will result in increased demand for water available for municipal uses, and will likely stimulate a sell off of water rights held by land owners or farming entities that are located in the basin. A substantial amount of the adjudicated water rights in the basin are held by long standing farming entities, which have had to reduce the amount of acreage being farmed. Compliance with the ramp-down of water use mandated by the adjudication judgement has resulted in a reduction of irrigated farmland in the basin . It is highly unlikely that there will be an expansion of land utilized for agriculture production in the basin in the foreseeable future, given that the cost to acquire water in today’s marketplace has a direct impact on the financial feasibility of farming.
In the current marketplace there has been increasing interest for temporary transfers of overlying production and carry over water rights on a year-to-year basis. This has provided the opportunity for both municipal and agriculture land users to fulfil their water needs on a short term basis.
Prices for temporary and carryover water rights have been subject to substantial annual increases, which is impacting the financial feasibility to continue fulfilling a water user’s needs in this - 12 -
manner. Under the terms of the adjudication agreement, carryover water transfers will be allowed to take place on a free market basis for a period of 10 years before the water right holder will be required to enter into a storage agreement with the watermaster , and the water will no longer be available for exchange on the open market. Carryover water exchanges will be controlled by the watermaster and will be subject to administrative fees to accommodate the transfer. In the current marketplace, most prope rty owners that have adjudicated water rights that they are not fully utilizing are taking advantage of the ability to profit from free market temporary exchanges of water rights, which has resulted in limited motivation to sell water rights on a permanent basis. In some cases, parties have entered the market for investment purposes. Recent sales of permanent water rights have been very limited, and typically invol ve smaller transfers of less than 100 acre feet. Sales activity with respect to permanent water right transfers is anticipated to increase over the next several years as the cost to acquire temporary carryover water rights increases.
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SUMMARY OF ANALYSIS AND VALUATION:
In this study, the Cost, Income, and Sales Comparison Approaches to value have been considered.
Each is defined as follows:
Cost Approach - That approach in appraisal analysis which is based on the proposition that the informed purchaser would pay no more than the cost of produc ing a substitute property with the same utility as the subject property. It is particularly applicable when the property being appraised involves relative ly new improvements which represent the highest and best use of the land or when relatively unique or specialized improvements are located on the site and for which there exist no comparable properties on the market.
Income Approach - That procedure in appraisal analysis which converts anticipated benefits (dollar income or amenities) to be derived from the owner ship of property into a value opinion. The Income Approach is widely applied in appraising income -producing properties. Anticipated future income and/or reversions are discounted to a present worth figure through the capitalization process.
Sales Comparison Approach - That approach in appraisal analysis which is based on the proposition that an informed purchaser would pay no more for a property than the cost of acquiring an existing property with the same utility. This approach is applicable when an active market p rovides sufficient quantities of reliable data which can be verified from authoritative sources. The Sales Comparison Approach is relatively unreli able in an inactive market or in estimating the value of properties for which no real comparable sales data are available. It is also questionable when sales data cannot be verified with principals to the transac tion. This is a lso referred to as the Market Comparison or Market Data Approach.
Due to the characteristics of the interest valued in this appraisal, the Cost and Income Approaches were not applicable and were not utilized. The omission of th ese approaches to value do es not affect the reliability of the conclusion derived herein.
The market for permanent sales or temporary transfers of adjudicated water rights in the Antelope Valley is in its early stages of establishing itself, subsequent to the adjudication judgement in late 2015. A detailed discussion of the Sales Comparison Approach and the market data utilized in support of establishing a fair market value of the subject water rights is shown on the following pages.
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Sales Comparison Approach – Market data with respect to permanent water right transfers have been investigated and analyzed. A summary of the market data, analysis, and discussion is as follows:
Summary of Market Data - Water Rights Sales
Sale
No.
Sale
Date
Grantor/
Grantee
Document No./
Resolution No.
Location/
Assessor’s Parcel No.
Size
(Acres)
Sales
Price
Price/Acre
Adjudicated
Water
Right
(Acre Feet)
Price/
Acre Ft
Adjudicated
Water
Right
1 03/08/16 Red Dawn Suntower,
LLC/ Rosamond
Community Services
#281380
20301 W. Avenue B8
Lancaster, CA
3256-006-012, 013 & 019
210.0 $975,000
$4,643
150 AF $6,500/AF
(Included
Land)
2 9/27/17 FS Land Holding
Co. LLC/ Diamond
Farming Co.
#132232
N/A
Antelope Valley Basin
(Water rights only)
N/A $1,627,500
N/A*
217 AF $7,500/AF
3 9/27/17 FS Land Holding
Co. LLC/
Grimmway
Enterprises
#132231
N/A
Antelope Valley Basin
(Water rights only)
N/A $1,447,500
N/A*
193 AF $7,500/AF
4 9/27/17 FS Land Holding
Co. LLC/ Crystal
Organic Farms LLC
#132230
N/A
Antelope Valley Basin
(Water rights only)
N/A $1,425,000
N/A*
190 AF $7,500/AF
5 04/13/21 Nebeker/
W.D.S. California II
LLC #69682
N/A
Antelope Valley Basin
(Water rights only)
N/A $11,000,000
N/A*
1,775 AF $6,197/AF
6 01/04/22 Mojave Public
Utility District/
City of Tehachapi
#98892
N/A
Tehachapi Basin
(Water rights only)
N/A $562,500
N/A*
75 AF $7,500/AF
7 02/23/22 Van Dam/
Rosamond CSD
#R-22-13
N/A
Antelope Valley Basin
(Water rights only)
N/A $3,150,000
N/A*
350 AF $9,000
8 03/21/22
Healey Enterprises
Inc/Antelope Valley
East Kern Water
Agency
#338581
Healy Farms
16700 Lancaster Road
Lancaster, CA
(43 APN’s)
2,227
Acres
$11,000,000
$4,939
700 AF
Permanent
4,200 AF
Carryover
$13,194 AF
(Permanent
Allocation
includes
land)
9 05/04/22 Miner/
Rosamond CSD
#R-22-03
N/A
Antelope Valley Basin
(Water rights only)
N/A $11,932,000
N/A*
999 AF
Permanent
5,084 AF
Carryover
$9,907/AF
(Permanent
Allocation)
10 06/02/22 Radcast Investments/
Rosamond CSD
#675636
West line 60th Street,
just north of Avenue E
Los Angeles County
3201-003-005 & 006;
3201-004-007
274.84
Acres
$2,470,000
$8,987
232.56 AF
Permanent
1,395.36 AF
Carryover
$8,112 AF
(Permanent
Allocation
includes
land)
- 15 -
Summary of Market Data - Water Rights Sales
Sale
No.
Sale
Date
Grantor/
Grantee
Document No./
Resolution No.
Location/
Assessor’s Parcel No.
Size
(Acres)
Sales
Price
Price/Acre
Adjudicated
Water
Right
(Acre Feet)
Price/
Acre Ft
Adjudicated
Water
Right
11 04/14/23 R & M Ranch, Inc./
RTS Orchards LLC/
#275248
11367 E Avenue J, Lancaster,
CA, Los Angeles County
3368-001-026
233.93 $5,402,050
$23,093
686 AF $7,875
(Permanent
Allocation
includes
land)
12 05/01/24 Co. Sanitation
District No. 14 of
Los Angeles/ City of
Lancaster
#R-24-24
N/A
Antelope Valley Basin
(Water rights only)
N/A $375,000
N/A*
50 AF $7,500/AF
13 07/18/24 Jovadi/Silvestre II
Assoc LLC
#563055
SW corner E. Avenue J and
150th St East
Los Angeles County
3361-001-058
77.68 $600,000
$7,724
22.0 AF $27,272/AF
(Permanent
Allocation
includes
land)
14 12/10/24 Van Dam/Calandri
Farms
#R-24-60
N/A
Antelope Valley Basin
(Water rights only)
N/A $1,297,500±
N/A*
86.5 AF $15,000±
15 12/10/24 Van Dam/California
Compaction Corp.
#R-24-61
N/A
Antelope Valley Basin
(Water rights only)
N/A $1,200,000±
N/A*
80.0 AF $15,000±
*No real estate transferred, water right only
Market data with respect to sales or listings of permanent water right transfers in the Antelope Valley Basin has been limited, given the fact that the adjudication agreement has only been in place for nine years. Most water right holders in the basin that are interested in selling their water rights have had a “wait and see” attitude as far as allowing the market to establish itself, before considering to sell. Those water right holders that are not fully utilizing their water rights have been able to profit through temporary water right transfers, which generally includes a lease of their water rights on an annual basi s. While the process to oversee and accommodate water transfers by the Watermaster was not finalized until April 25 th of 2018, Sales 1 through 4 took place subsequent to adjudication, and prior to this time frame. No other permanent water transfers took place in the basin until April of 2021, shown as Sale 5. The water rights were offered on the market for almost four years at an asking price of $10,000 per acre foot, with very little interest.
The April 2021 sale represents a purchase by an investor who has other water rights in the basin.
Both buyer and seller were considered to be knowledgeable parties in the transaction. Sale 9 was also advertised on the market for over three years, including both the land and water rights. The underlying land sold in September of 2020 to a solar developer. A sale of the water rights was consummated in May of 2022. The buyer is a municipal water agency that is located in a northern portion of the Antelope Valley Basin, also acquiring water right Sales 1, 7 and 10. Subsequent to adjudication the municipal water agency (Rosamond Community Services District) was left without sufficient permanent water rights to serve their constituents, and their obligation to fulfill the district’s water needs was a motivating factor in each of these purchase transactions.
Sale 8 was also acquired by a large-scale local water agency who has substantial adjudicated water rights in the basin, in addition to contracts to receive water through the State Water Project. The - 16 -
buyer, Antelope Valley East Kern Water Agency, has a pipeline that extends through the sale property and has future plans to create a water bank, utilizing both the land and acquired water rights. This was a motivating factor to purchase the property, along with the water rights. Sale 12 was acquired by a municipal agency for use at their public soccer complex. The seller is a local sanitation district that owns a substantial amount of water rights in the basin.
Sales 11 – 15 represent recent purchases of permanent water rights in the basin. The higher price paid per acre foot for Sale 13 included the transfer of the real estate, which had been utilized as a nursery in the past and included an older residential structure. Sale 11 also included the transfer of real estate, but the water rights were applied to a nearby pistachio orchard owned by the buyer.
The land had previously been utilized to farm row crops, and included several older farmstead buildings, which was attributed little to no value. The price paid for the permanent water rights included in Sales 14 and 15 was reported by the seller at around $15,000/AF. In each case, the price paid was influenced upward by the small amount of water rights that were transferred.
The sales took place during the time frame of March 2016 through December 2024. Based on the market data analyzed, and consideration given to the motivation of the buyers and sellers, there is insufficient information to recognize any change, or support for a time adjustment during the time frame in which the sales took place.
Financing can be an influencing factor on the price paid for all types of real estate and/or water interests. Each of the sales investigated included all cash to the seller. No special financing or seller concessions were reported.
Analysis of the market data is based on the price per acre foot of adjudicated water right transferred, or available. It is apparent that there is a wide range in price per acre foot, when comparing the consummated price for the sales. It is important to note that the market for all types of real estate, as well as intangible assets such as water rights , is driven by supply and demand.
The adjudication judgement allows for water right holders that have excess or unused water rights to be transferred (leased) on a temporary, year to year basis. This has provided the opportunity for both municipal and agricultural land users to fulfil their water needs on a short term basis. Under the terms of the adjudication agreement, carryover water transfers will be allowed to take place on a free market basis for a period of ten years. At this time th e producer will be required to enter into a storage agreement with the watermaster, and temporary water exchanges will be subject to additional fees. In the current market place, most property owners that have water rights which they are not fully utilizing, are taking advantage of the ability to profit from free market temporary exchanges of water rights . This has resulted in the limited motivation to sell water rights on a permanent basis.
Most of the sales that have taken place during the past few years have been influenced by highly motivated buyers, including the Rosamond Community Services District who was the Grantee for Sales 1, 7, 9 and 10. As noted previously, subsequent to the adjudication judgement, the agency was left with insufficient water to service their existing customer base. During the past six years the district has utilized temporary water purchases to fulfil their water needs. With the ramp down period ending, the dist rict became highly motivated to fulfil their water right needs through purchases of permanent water rights, reflected by Sales 7, 9 and 10. Sales 9 and 10 included carry over or temporary water rights that were in addition to the permanent water rights acquired. The temporary, or carry over water rights in these sales were allocated at a rate of $418/AF, which equates to 80% of the 2022 replacement cost charged by the watermaster. The allocated price per acre foot for the permanent water rights for these sales range from $8,112 per acre foot to $9,907 per acre foot. In each case the sellers were aware of the buyer’s immediate, or near term needs to acquire these water rights, and the allocated prices paid for the permanent water purchase were highly influenced by the buyer’s motivation to complete these transactions. - 17 -
Buyer motivation was also an influencing factor for Sale 8, which included the purchase of the underlying land, in addition to both permanent and carry over water rights. The buyer, Antelope Valley East Kern Water Agency, has substantial water interests in the basin, including contracts for S tate Water, delivered into the area through the California Aqueduct. The district has an existing pipeline that connects to the sale property, and intends to develop the land to a ground water banking facility in the future.
Given the limited market data with respect to sales of adjudicated groundwater rights in the Antelope Valley Basin, market data has been considered with respect to sales of permanent groundwater rights in other nearby adjudicated basins. Sale 6 includes a permanent water right purchase in the Tehachapi Basin, approximately 25 miles to the northwest. The water right transfer represents a negotiated sale between two municipal water districts. The seller, Mojave Public Utility District acquired the water ri ght through their land ownership, upon adjudication of the Tehachapi Basin. Like the Antelope Valley Basin, the water cannot be transferred out of the Tehachapi Basin, and the water right had no benefit to the Mojave Utility District, which is located 15 to 20 miles to the east. The sale represents a negotiated purchase of the water rights between the two public agencies. The price paid per acre foot is competitive with other smaller water right transfers in the Tehachapi Basin and is considered to be reflective of a fair market value.
Other market data considered for this analysis includes sales of permanent ground water rights in the Mojave Basin, located to the east of Antelope Valley Basin. The water rights in the Mojave Basin were adjudicated in the 1990’s, and similar to the Antelope Valley Basin, the area is served by surface water available from the State Water Project. Information available from public record indicates that there were numerous temporary and permanent water transfers during the 2018 – 2020 water years, with prices paid per acre foot for permanent water rights ranging from a low of $500/AF to a high of $5,000/AF. Most of the lower prices paid per acre foot were for water rights that were acquired in rural areas of the basin, where the demand for groundwater is not as strong when compared to areas where there is a large urban influence. There were seven permanent water right transfers in the Alto sub basin, which encompasses urban areas of Adelanto, Hesperia and Victorville. The permanent wat er right transfers ranged from 10 AF to 200 AF. The prices paid per acre foot ranged from $4,750/AF to a high of $5,000/AF. An analysis of the water right sales indicate the p er acre foot prices in 2018 are competitive with more recent year transfers, which reflects the stability of the market in this area and the fact that the adjudication process took place over 20 years ago.
It is evident that the water market in the Antelope Valley Basin is in the early years of establishing itself, subsequent to adjudication in late 2015. It is also evident that the initial prices being paid for adjudicated water rights in Antelope Valley are significantly higher, when compared to those purchases that have taken place in the Mojave Basin. The most likely reason for the difference is the higher level of urbanization in the Antelope Valley, when compared to the Mojave Basin. In most cases prices paid per acre foot shown by the market data are at a level that severely limits the financial feasibility to acquire water rights for an agriculture use. This is reflected by the fact that there has been no new agricultural land development in the basin during recent years, and it is likely that there will be no new agricultural land development in this area in the foreseeable future.
Sales 1, 5, 7, 8 and 9 include water rights associated with land that was previously utilized for agriculture. In each case the water rights were acquired for an urban related use. Sales 11 and 13 sold with real estate in addition to the water rights. Both properties included building structures, including an older home, which appeared to contribute little to no value. The farmland comprising Sale 11 had previously been planted to row crops. The buyer purchased the water rights in order to transfer them to other farmland holdings. The buyer likely had no use for the land, but was obligated to purchase it along with the water rights, which may have influenced the price paid per acre foot downward. The higher price paid per acre foot for Sale 13 may have been influenced by the smaller parcel size and small amount of water rights. - 18 -
It is important to note that there is still a substantial amount of adjudicated water rights in the Antelope Valley Basin that are held by larger scale farming operations, which in most cases have no intentions of discontinuing this use in the near term. Sale 5 was acquired by a larger scale investor, and the seller appeared to be somewhat motivated, after marketing the property for several years. Sale 15 was acquired by a construction company. As noted, some of the recent sales of water rights shown in t he pr eceding table were acquired by public agencies, including the Rosamond Community Services District, wh o was highly motivated to fulfill their shortfall of water rights due to the basin adjudication. The buyer for Sale 12 was a public agency that acquired the water rights for use at a public soccer complex. The seller owns a substantial amount of water rights in the basin.
In an overall analysis of the market data, it is evident that the market for water rights in the Antelope Valley Basin is in the early years of establishing itself, with most of the permanent water right sales involving highly motivated buyers. It is appa rent that there is a substantial amount of permanent water rights that are not being fully utilized in the basin given the amount of temporary water right transfers that have taken place during the past few years. Continued increases in prices being paid for temporary water rights will likely have an influence on permanent water right transfers over the next several years. With the amount of water rights available in the basin, market conditions are anticipated to be competitive.
Consideration is given to the current agreement to purchase the subject water rights. The buyer (City of Lancaster) is a municipal water agency looking to acquire additional water rights (500 AF) for future development purposes as the population base increases in the coming years. The agreed upon purchase price is $10,000 per acre foot. While some of the recent water right sales have ranged as high as $15,000/AF, it is important to note that most of the transfers were less than 100 acre feet. There is market evidence that permanent transfers of larger quantities of water rights have been consummated at a significantly lower value per acre foot. Based on this analysis, t he price per acre foot is con sidered reasonable and supported by the range set forth by the sales, as well as marketing comments from the buyers, sellers and brokers that were involved in the transactions. In conclusion, after analysis and comparison of the market data, a comparative unit value of $10,000 per acre foot is considered reasonable for the 500 AF of adjudicated water rights that are held by Calandri Farms Inc. in the Antelope Valley Basin. The indicated value of the water right is calculated as follows:
500 AF @ $10,000/AF = $5,000,000
Value Indicated by the Sales Comparison Approach = $5,000,000
- 19 -
FAIR MARKET RENTAL VALUE:
As part of this assignment, the Client has requested that the appraiser provide a fair market rental value estimate for a temporary transfer of the water right asset described herein. As noted previously in this report, information available from the Antelope Valley Basin Water master indicates that adjudicated water rights held by the overlying producers in the basin are transferrable on a permanent or temporary basis. The temporary basis refers to a lease of the water right on an annual basis, which requires formal application and approval by the Water master Board of Directors. Guidelines for all water transfers in the basin were established in early 2018, and subsequent to this time there has been an active market with respect to temporary transfers of both overlying production and carryover water rights.
These type transfers must be renewed on a year to year basis. Temporary transfers provide the opportunity for both municipal and agricultural land users to fulfill their water needs on a short term basis. Under the terms of the adjudication judgement, overlying production right water and carryover temporary water transfers will be allowed to take place on a free market basis for a period of ten years. At this time the producer will be required to enter into a storage agreement with the Watermaster, in order to maintain their right to utilize the carry over water. In the current market place most property owners that have water rights that are not being fully utilized are taking advantage of the ability to profit from the free market temporary exchanges of water rights. As noted, all water right exchanges, temporary or permanent, must be approved by the Water master.
Information available through public indicate s that there have been multiple temporary water exchanges that have taken place thus far in the 2025 water year. A summary of these transactions is outlined in the following table.
Temporary Water Right Transfers
Transferor Transferee Transfer
Date
Type of
Transfer
Amount
Water
(AF)
Amount
$/AF
% of
Replacement
Water Cost
Selak RTS Orchards
LLC 03/26/25 Temporary
COW 75 $509 80%
Selak RTS Orchards
LLC 03/26/25 Temporary
COW 75 $509 80%
Gorridno
Resources
LLC
RTS Orchards
LLC 03/26/25 Temporary
COW 629 $509 80%
COW – Carryover water
Information pertaining to the amount of water transferred and the parties involved in each of these transactions was obtained through public record on the Water master’s website, however, the Watermaster is not required to disclose the agreed upon dollar amount of the water transfer, which is considered to be private information between the transferor and transferee. Information shown in the preceding table was confirmed with a party directly involved in each of these transactions.
In each case the negotiated per acre foot rental rate directly correlates with the annual cost associated with acquiring replacement water from the Antelope Valley Watermaster. It is - 20 -
important to note that the Watermaster acquires water from the Antelope Valley East Kern Water Agency (AVEK), which has a contract with the State Water Project.
Replacement water assessments are charged by the Watermaster to pay for the cost incurred to buy and recharge replacement water, and are set at the beginning of each year. The purpose of the replacement water assessment is to ensure that each party may fully exercise their production right while keeping the basin in hydrologic balance. The Watermaster shall impose a replacement water assessment on any producer whose production of ground water is more than the sum of the producer’s rights to pump ground water during any given calendar year. A production right water that has not been utilized within the calendar year then becomes carryover water. As noted, replacement water costs are based on the cost for the Antelope Valley East Kern Water Agency to acquire water that is imported into the basin from the State Water Project and is subject to annual fluctuations, shown in the following table.
Replacement Water Rate
Year Cost Per Acre Foot
2016 - 2018 $415
2019 $451
2020 $486
2021 $498
2022 $523
2023 $563
2024 $607
2025 $636
Interviews with local participants in the marketplace indicate that the going rate for private temporary water transfers (annual leases) are typically negotiated based on a 20 percent discount from the current year replacement water rate set forth by the Water master, which coincides with the temporary water transfers shown in the preceding table.
As the water market in the Antelope Valley Basin continues to establish itself, it is anticipated that there will be a gradual increase in demand for temporary water transfers, or leases of ground water rights. It is likely that there will continue to be a direct correlation between market prices paid for temporary water purchases and the annual cost of replacement water available through the Watermaster. However, it is possible that continued increases in replacement water costs could result in a higher discount in market negotiated water transfer rates in order to maintain the cost effectiveness to the end user, especially those that are acquiring water for agriculture related uses.
In conclusion, it is our opinion, based on the market data analyzed, that the fair market lease rate for a temporary transfer of all, or portions, of the subject adjudicated water production rights is $509/AF on an annual basis.
Based on the information available at this time, it is reasonable to assume that the fair market lease rate for private temporary water transfers will continue to be negotiated based on a 20 percent discount from the replacement water rate. Annual increases for replacement water are expected to continue in the foreseeable future . As the replacement water rate continues to increase, the fair market lease rate for temporary water rights is expected to increase as well, commensurate with the market established 20% discount.
- 21 -
Conclusion and Final Opinion of Value -
Value Indicated by the Cost Approach N/A
Value Indicated by the Income Approach N/A
Value Indicated by the Sales Comparison Approach $5,000,000
A Sales Comparison Approach can provide a reliable indication of value when there is adequate market data available in support of the interest being value d. In this case, the interest is an adjudicated water right that can be bought and sold in the marketplace. It is important to note that the market for this asset in the Antelope Valley Basin is slowly establishing itself, subsequent to the adjudication judgement in late 2015. While the market data analyzed in support of a value conclusion is somewhat limited, it is considered to be reflective of demand in the marketplace at this time.
In conclusion and after careful consideration of the data outlined in this report, it is our opinion that the market value of the water right appraised in its present condition, as of May 8, 2025 is the sum of:
FIVE MILLION DOLLARS
($5,000,000)
Based on the market data analyzed in this report, and consideration given to the concluded value derived herein, it is our opinion that a reasonable market exposure time for a permanent sale of the subject water rights, would fall within a range of 12 to 24 months.
MERRIMAN HURST
& A S S O C I A T E S I N C.
Real Estate Appraisers & Consultants
Randy K. Merriman, MAI, SRA 140 S. Montclair St., Suite C David E. Hurst, MAI Bakersfield, CA 93309
Christine Johnson, Appraiser (661) 832-0322
(661) 832-3417 FAX
CURRICULUM VITAE for
RANDY K. MERRIMAN
Real Estate Appraiser, January of 2010 to Present.
President of Merriman Hurst & Associates, Inc., Real Estate Appraisers and Consultants, Bakersfield, California.
Real Estate Appraiser, August of 2009 - December 2009.
President of Karpe Merriman Inc., Real Estate Appraisers and Consultants, Bakersfield, California.
Real Estate Appraiser, March of 1986 - July of 2009.
Vice President of Karpe Fisher Merriman Inc., Real Estate Appraisers and Consultants, Bakersfield, California.
STATE OF CALIFORNIA
OFFICE OF REAL ESTATE APPRAISERS
"Certified General Real Estate Appraiser", OREA Appraiser I.D. Number AG006809. Expires December 21, 20 26.
PROFESSIONAL AFFILIATIONS
Awarded MAI designation, April 1997 - Appraisal Institute.
Awarded Senior Residential Appraiser Designation (SRA), September, 1992 - Appraisal Institute.
Candidate for ARA, Accredited Rural Appraiser Designation - American Society Farm Managers and Rural Appraisers.
Past President, Bakersfield Chapter of the Appraisal Institute, 1993 and 2003.
EDUCATIONAL ACTIVITIES
College Courses:
Real Estate Appraisal, Bakersfield Community College, Bakersfield, California.
Advanced Real Estate Appraisal, Bakersfield Community College, Bakersfield, California.
Appraisal Institute:
Appraisal Curriculum Overview Course, Bakersfield, October 21-22, 2010 Advanced Applications, Course 550, Montrose, California, July 16 - 22, 1995 Advanced Income Capitalization, Course 510, Fresno, California, February 24 - 27 and March 4 - 6, 1993 Capitalization Theory and Technique, Part A, San Jose, California, July 5 - 11, 1992
Society of Real Estate Appraisers:
Course 102 - Applied Residential Property Valuation, Los Angeles, California, April 22 - May 2, 1987 Course 101 - Introduction to Appraising Real Property, Challenge Examination, Bakersfield, California, October 17, 1987
2 American Society of Farm Managers and Rural Appraisers:
Course A-15 - Appraisal Report Writing, Modesto, California, May 2 - 4, 1996 Course A-25 - Eminent Domain, Shell Beach, California, October 5 - 7, 1993 Course A-30 - Advanced Rural Appraisal, Fresno, California, July 9 - 15, 1989 Course A-20 - Principles of Rural Appraisal, Phoenix, Arizona, June 19 - 25, 1988
Seminars:
Uniform Standards of Professional Appraisal Practice, (USPAP 2024-2025), McKissock
Laws and Regulations for California Appraisers, November 20, 2024
Best in Business Ethics ASFMRA, California Chapter, September 18, 2023
Appraising Agriculture Lands in Transition, ASFMRA, September 9, 2022
Appraisal of Water Rights, ASFMRA, September 8, 2022
Business Practice & Ethics, AI Course, September 7, 2022
Complex Litigation Case Studies, Appraisal Institute, June 11-12, 2018
Appraisal of Self Storage Facilities, October 30, 2016
Valuation of Detrimental Conditions, AI Central California Chapter, April 7, 2009
Scope of Work, AI Central California Chapter, January 22, 2007
Federal Land Acquisitions (Yellow Book Seminar), AI, Sacramento Sierra Chapter, October 10-11, 2002
Highest & Best Use Applications, AI, Bakersfield Chapter, June 6, 2002
Cold storage Facility Valuation, ASFMRA, California Chapter, April 15-16, 2002
Conservation Easement Seminar, ASFMRA, October 3-4, 2000
Appraisal of Non-Conforming Uses, AI, Bakersfield Chapter, May 5, 2000
The Appraisal of Vineyards & Wineries Seminar, AI, S. California Chapter No. 5, August 12, 1998
Real Estate Appraiser Expert Witness Seminar, AI, Bakersfield Chapter No. 75, June 26, 1998
Federal and State Laws and Regulations Workshop, AI, Bakersfield, Chapter No. 75, October 10, 1997
Easement Valuation, AIREA, Los Angeles Chapter, No. 5, January 16, 1990
Litigation Seminar, AIREA, Los Angeles Chapter, No. 5, December 8, 1989
COURT QUALIFICATIONS
Testified as an expert witness in:
Superior Court of Kern County, California.
3 SCOPE OF EXPERIENCE
Type of Properties Appraised (Partial List):
Agriculture: Precision row crops, rangeland, citrus groves, orchards, vineyards and cold storage/packing facilities
Commercial: Retail store buildings, motels, general and professional office buildings, service stations, and drive-ins
Eminent Domain: Full and partial acquisitions, sewer line right -of-ways, highway right -of-ways, and street widening matters
Industrial: Warehousing and manufacturing facilities
Residential: Single family dwellings, condominiums, and multi-family projects
Special Purpose: Nursing and convalescent homes
Vacant Land: Residential and commercial lots, subdivision acreage, desert, and mountain acreage.
Appraised Property in:
Fresno County Merced County
Inyo County Mono County
Kern County San Luis Obispo County
Kings County Santa Barbara County
Los Angeles County Tulare County
Ventura County
APPRAISALS COMPLETED FOR PUBLIC AGENCIES
U.S. Government: County of Kern:
Department of Navy Public Works Department, Roads
Federal Deposit Insurance Corporation Housing Authority USDA Farm Service Kern High School District
Bureau of Land Management Kern Economic Development Dept.
Kern County General Services
Kern County Superintendent of Schools
State:
California Department of Fish & Game
California Department of Transportation (CalTrans)
California Department of Parks & Recreation
California Department of Education
Municipalities: Lending Institutions:
City of Bakersfield Bank of America
City of Delano Bank of the West
City of Los Angeles Bank of the Sierra
City of McFarland California Bank and Trust
City of Shafter California Federal Bank
City of Wasco Citizens Business Bank
Glendale Federal Bank
Manulife Ag Investments
Imperial Bank
Met Life Ag Investments
Mission Bank
Rabobank
Tri Counties Bank
United Security Bank
Wells Fargo Bank
West America Bank
Zion First National Bank
MERRIMAN HURST
& A S S O C I A T E S I N C.
Real Estate Appraisers & Consultants
Randy K. Merriman, MAI, SRA 140 S. Montclair St., Suite C David E. Hurst, MAI Bakersfield, CA 93309
Christine Johnson, Appraiser (661) 832-0322
(661) 832-3417 FAX
CURRICULUM VITAE for
CHRISTINE L. JOHNSON
Real Estate Appraiser, 2019 to present, Merriman Hurst & Associates, Inc., Real Estate Appraisers and Consultants, Bakersfield, California.
Administrative Assistant, 2015 – 2019, Merriman Hurst & Associates, Inc., Real Estate Appraisers and Consultants, Bakersfield, California.
STATE OF CALIFORNIA
BUREAU OF REAL ESTATE APPRAISERS
Certified General Real Estate Appraiser, BREA Appraiser I.D. Number AG3011207. Expires April 6, 2027.
PROFESSIONAL AFFILIATIONS
Associate Member, American Society of Farm Managers and Rural Appraisers Chair, Kern County Chapter of the California Young Farmers & Ranchers, 2024 Executive Committee Member, Kern County Chapter of the California Young Farmers & Ranchers, 2022 - 2025
EDUCATION
College
Bachelor of Science Degree, Business Administration, The Master’s University, Santa Clarita, CA – Graduated 2014 Bakersfield College, Bakersfield, CA, 2010-2011
Appraisal Institute
Basic Appraisal Principles, 2018
Basic Appraisal Procedures, 2019
General Appraiser Cost Approach, 2020
General Appraiser Income Approach Parts 1 & 2, 2019, 2020 General Appraiser Market Analysis and Highest and Best Use, 2022 General Appraiser Report Writing and Case Studies, 2022 General Appraiser Sales Comparison Approach, 2020
Statistics, Modeling and Finance, 2021
Uniform Standards of Professional Appraisal Practice 15 Hours (USPAP), 2019
American Society of Farm Managers & Rural Appraisers
Farmer Mac Appraisal Requirements, February, 2024
Integrated Approaches to Value, August, 2024
McKissock
Laws and Regulations for California Appraisers, 2022
Uniform Standards of Professional Appraisal Practice, 7 Hour Update (USPAP), 2025
The International Right of Way Association
The Valuation of Partial Acquisitions Course 421, September, 2023
Seminars
American Society of Farm Managers & Rural Appraisers Spring Outlook Conference, 2021, 2022, 2023, 2024 American Society of Farm Managers & Rural Appraisers, Appraisal of Water Rights Webinar, 2020 American Society of Farm Managers & Rural Appraisers, Ag Trade & China Webinar, 2020 Multifamily Market Update, Appraisal Institute Bakersfield Chapter, 2019, 2020 Water Association of Kern County, “Water, Fire, Power” Seminar, 2019 Women’s Initiative Committee, Appraisal Institute Northern CA Chapter, Various Webinars, 2021 - 2024
SCOPE OF EXPERIENCE
Types of Properties Appraised (Partial List):
Agriculture: Precision row crops, almond and pistachio orchards, citrus groves and vineyards
Eminent Domain: Full and partial acquisitions , road widening projects, sewer pipeline projects
Residential: Single family dwellings
Vacant Land: Residential, industrial and commercial lots
Appraised Property in:
Kern County
Tulare County