Agenda packet, regular meeting — Madera City Council, June 5, 2024 (part 2 of 2)

Valuation
Value Before Taking: $569,825.80
Value of Part Taken (As Part of Whole): – $221,075.80
Remainder Value Before Taking: = $348,750.00
Remainder Value After Taking: – $348,750.00
Damages to Remainder: = $0.00
Benefits to Remainder: – $0.00
Net Damage to Remainder = $0.00
Value of Part Taken (As Part of Whole): + $221,075.80
Total Difference (Just Compensation): = $221,075.80
Rounded: $222,000.00
THIS LETTER MUST REMAIN ATTACHED TO THE REPORT, WHICH CONTAINS 44 PAGES

PLUS RELATED EXHIBITS, IN ORDER FOR THE VALUE OPINIONS SET FORTH ABOVE TO BE CONSIDERED VALID.

The report was prepared for and our professional fee billed to City of Madera Engineering Department. It is intended only for the use of the intended users specified in this report. It may not be distributed to or relied upon by other persons or entities without our written permission.

Sincerely yours,

REAL PROPERTY ANALYSTS
Kelly P. Stevens, SRA
CA #AG020683
Expires April 7, 2024
Tiffany K.V. Mach, MAI
CA #AG025952
Expires August 28, 2025
APPRAISAL REPORT 1
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Title Page
Letter of Transmittal
Table of Contents .......................................................................................................... 1 Certification .................................................................................................................. 3 Property Inspection Certificate .................................................................................... 5 Summary of Important Conclusions ............................................................................. 6 Reporting Option ........................................................................................................... 8 Client ............................................................................................................................. 8 Intended Users .............................................................................................................. 8 Intended Use of the Appraisal ...................................................................................... 8 Identification of the Subject Property .......................................................................... 8 Property Rights Appraised ........................................................................................... 8 Fair Market Value Definition ....................................................................................... 9 Other Pertinent Definitions .......................................................................................... 9 USPAP Compliance .....................................................................................................12 Applicable Dates in This Appraisal .............................................................................12 Extraordinary Assumptions ........................................................................................12 Hypothetical Conditions ..............................................................................................13 General Assumptions and Limiting Conditions ..........................................................14 Scope of Work ...............................................................................................................16 Current Ownership ......................................................................................................18 Property History ..........................................................................................................18 Legal Description of the Whole Property ....................................................................18 Legal Description of the Taking ..................................................................................18 Assessed Valuation and Taxes ....................................................................................19 Area Description ..........................................................................................................20 Market Conditions .......................................................................................................23 Description of the Project.............................................................................................25 Description of the Whole Property ..............................................................................26 Description of the Taking ............................................................................................29 Description of the Remainder ......................................................................................29 Highest and Best Use Before Taking ..........................................................................30 Highest and Best Use of Land or Site as Though Vacant .......................................30 Highest and Best Use as Currently Improved .........................................................31 Highest and Best Use After Taking ............................................................................31 Valuation Methodology ................................................................................................32 Value Before Taking ....................................................................................................33 Procedure ..................................................................................................................33 Definitions ................................................................................................................34 Comparable Market Data ........................................................................................34 Comparable Sales Analysis – Land Sales ................................................................35 Comparable Sales Map – Land Sales.......................................................................36 Comparison of Sales to Subject and Value Conclusion ...........................................38 APPRAISAL REPORT 2
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Opinion of Value – Site Improvements ....................................................................40 Value of Part Taken (As Part of Whole) ......................................................................41 Remainder Value Before Taking .................................................................................41 Remainder Value After Taking ...................................................................................41 Damages to Remainder ................................................................................................42 Benefits to Remainder .................................................................................................42 Net Damage To Remainder .........................................................................................42 Total Difference (Just Compensation) .........................................................................42 Appraisal Summary Sheet ...........................................................................................43 Valuation ......................................................................................................................44 Addenda
Subject Photographs
Maps & Other Exhibits
Comparable Sale Data Sheets
Qualifications of the Appraiser(s)
APPRAISAL REPORT 3
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I, Kelly P. Stevens, certify that:
 I have made a personal inspection of the property that is the subject of this report, and have considered all of the pertinent facts affecting the value thereof.  As of the date of this report, I have completed the continuing education program of the Appraisal Institute.

I, Tiffany K. V. Mach, certify
 I did personally inspect the exterior of the property and have reviewed the analyses, conclusions and opinions concerning the real estate contained in this appraisal report and fully concur with the final estimates herein expressed.  As of the date of this report, I have completed the continuing education program of the Appraisal Institute.

We, Kelly P. Stevens and Tiffany K. V. Mach, certify:
 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 interest in the property that is the subject of this report, and no personal interest or bias with respect to the parties involved.  We have performed appraisal services, as an appraiser, regarding the property that is the subject of this report within the three-year period immediately preceding agreement to perform acceptance of this assignment.  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 opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

APPRAISAL REPORT 4
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 Our analyses, opinions and conclusions were developed, and this report has been prepared, in accordance with the Uniform Standards of Professional Appraisal Practice.
 No one provided significant real property appraisal assistance to the person signing this certification.
 That, to the best of our knowledge and belief, our analyses, opinions and conclusions were developed, and this report complies with, the Code of Professional Ethics and Standards of Valuation 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.  The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

Kelly P. Stevens, SRA
CA #AG020683
Expires April 7, 2024
Tiffany K.V. Mach, MAI
CA #AG025952
Expires August 28, 2025
Dated at Fresno, California
September 27, 2023
APPRAISAL REPORT 5
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A Notice of Decision to Appraise (NODA) was sent to the property owner previously on September 8, 2022 requesting the owner contact the appraiser for an appointment to inspect the subject property. Francisco Holguin and Suzie Velardi met with Tiffany K. V. Mach and Kelly P. Stevens, the appraisers, at the subject property on September 16, 2022 for an inspection and discussion of the subject property and proposed right of way acquisition.

Another Notice of Decision to Appraise was sent to the property owner September 12, 2023 requesting the owner contact the appraiser for an appointment to inspect the subject property. No one contacted the appraisers and the property was inspected September 25, 2023.

Kelly P. Stevens, SRA
CA #AG020683
Expires April 7, 2024
Tiffany K.V. Mach, MAI
CA #AG025952
Expires August 28, 2025
APPRAISAL REPORT 6
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Client
Name: Matt Bullis, P.E.

Title: Senior Engineer
Firm Name: City of Madera Engineering Department
Address: 428 East Yosemite Avenue
City, State, Zip: Madera, CA 93637
Telephone No.: 559-661-4913
Email Address: [email protected]
General Information
USPAP Report Option: Appraisal Report
Appraiser(s): Kelly P. Stevens, SRA
Tiffany K.V. Mach, MAI
Property Rights: Fee Simple
Intended Users: Client and authorized employees of the City of Madera Intended Use: To assist the client in acquiring a portion of the subject parcel Existing Use of Property: Rural Residential
Use Reflected in Appraisal Rural Residential
Date of Inspection: September 25, 2023
Date of Value: September 25, 2023
Date of Report: September 27, 2023
General Property Information
Property Type: Rural Residential
Owner of Record: Francisco Holguin and Antonia Holguin
Property Name: Holguin Property
Address: 16564 North Lake Street
City, State, Zip: Madera, CA 93638
GPS Coordinates: Latitude 36.98999; Longitude -120.05714 Census Tract No.: 5.07
Assessor’s Parcel No(s).: 038-030-028
County: Madera
Current Tax Year: 2023-2024
Assessed Value: $77,308
FEMA Flood Zone: X (Unshaded)
FEMA Map Page: 06039C1160E
Effective/Revised Date: September 26, 2008
ISO Seismic Zone: 3
Alquist Priolo Zone: The property is not within an Alquist Priolo zone Wetlands Considerations: No
APPRAISAL REPORT 7
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SUMMARY OF IMPORTANT CONCLUSIONS (CONT.)
Site Information
Land Area (Acres): 7.54
Land Area (SF): 328,442
Shape: Rectangular
Topography: Rough Level
Configuration: Interior or Mid-Block
Frontage: Approximately 701 feet to North Lake Street
Access: Lake Street
Visibility of Site: Average
Utility of Site: Average
Offsite Improvements: Asphalt Paved Street
Zoning: AR-5
Zoning Authority: City of Madera
Current Use Conforming?: Current use conforms to current zoning General Plan: Madera General Plan
Planning Authority: City of Madera
Planned Use: Low Density Residential
Sewer: Private Septic System
Water: Private Well
Natural Gas: Pacific Gas & Electric Company
Electricity: Pacific Gas & Electric Company
Telephone: AT&T
Highest and Best Use
As Currently Vacant: Hold for Development
As Currently Improved Hold for Development
Valuation
Value Before Taking: $569,825.80
Value of Part Taken (As Part of Whole): – $221,075.80
Remainder Value Before Taking: = $348,750.00
Remainder Value After Taking: – $348,750.00
Damages to Remainder: = $0.00
Benefits to Remainder: – $0.00
Net Damage to Remainder = $0.00
Value of Part Taken (As Part of Whole): + $221,075.80
Total Difference (Just Compensation): = $221,075.80
Rounded: $222,000.00
APPRAISAL REPORT 8
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The following Appraisal Report is intended to comply with the reporting requirements as set forth under Standards Rule 2 of the 2020-2022 edition of USPAP.

This report is prepared for the sole use and benefit of the client and intended users and is based, in part, upon documents, writings, and information owned and possessed by he/she/them. Neither this report, nor any of the information contained herein shall be used or relied upon for any purpose by any person or entity other than the client and intended users.

Name: Matt Bullis, P.E.

To assist the client in acquiring a portion of the subject parcel.

Property Type: Rural Residential
Property Name: Holguin Property
Address: 16564 North Lake Street
City, State, Zip: Madera, CA 93638
Assessor’s Parcel No(s).: 038-030-028
County: Madera
Fee Simple Estate.

APPRAISAL REPORT 9
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This appraisal has been prepared in accordance with the following market value definition:
(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 market is its value on the date of valuation as determined by any method of valuation that is just and equitable. (State of California Code of Civil Procedure, Section 1263.320) In this appraisal, several terms will be used that may be unfamiliar to the reader of this report. These terms are defined as follows:

Appraisal
(noun) the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services. (comment) an appraisal is numerically expressed as a specific amount, as a range of numbers, or as a relationship (e.g., not more than, not less than) to a previous value opinion or numerical benchmark (e.g, assessed value, collateral value). (USPAP, Appraisal Foundation, 2020-2022 Edition, pg. 3).

Assignment
A valuation service that is provided by an appraiser as a consequence of an agreement with a client. (USPAP, Appraisal Foundation, 2020-2022 Edition, pg. 3).

Benefit to the Remainder
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. (Code of Civil Procedure, State of California, Section 1263.430) Cost to Cure
An expenditure to fix or restore an item to its pre-take utility. A cost-to-cure analysis involves the identification of the item that is considered for a cure, the cost to effect the cure, and the damage to the remainder should the cure not be made. (Principles of Right of Way, International Right of Way Association, Chapter 10, page 7) APPRAISAL REPORT 10
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Damage to the Remainder
Damage to the remainder is the damage, if any, caused to the remainder by 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.” (Code of Civil Procedure, State of California, Section 1263.420)
Easement
The right to use another’s land for a stated purpose. (The Dictionary of Real Estate Appraisal, , 7th Edition, Chicago: Appraisal Institute, 2022, page 58) Damages
In condemnation, the loss in value to the remainder in a partial taking of property.

Generally, the difference between the value of the whole property before the taking and the value of the remainder after the taking is the measure of the value of the part taken and the damages to the remainder. Note that different regions of the country and different courts may use terms such as consequential damages and severance damages differently. (The Dictionary of Real Estate Appraisal 7th Edition, Chicago: Appraisal Institute, 2022, page 48)
Fee Simple Estate
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. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, page 73)
Just Compensation
Article I, Section 19 of the California Constitution states that “private property may be taken or damaged for public use only when just compensation, ascertained by a jury unless waived, has first been paid to, or into court for, the owner.” Compensation shall be awarded for the property taken. The measure of this compensation is the fair market value of the property taken. (Code of Civil Procedure, State of California, Section 1263.310).
(a) Where the property acquired is part of a larger parcel, in addition to the compensation awarded 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, such excess shall not be deducted from the compensation required to be awarded for the property taken. (Code of Civil Procedure, State of California, Section 1263.410).

APPRAISAL REPORT 11
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Larger Parcel
In governmental land acquisitions and in valuation of charitable donations of partial interests in property such as easements, the tract or tracts of land that are under beneficial control of a single individual or entity and have the same, or an integrated, highest and best use. Elements for consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use.

In most states, unity of ownership, contiguity, and unity of use are the three conditions that establish the larger parcel for the consideration of severance damages.

In federal and some state cases, however, contiguity is sometimes subordinated to unitary use. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, page 105)
Leased Fee Estate
The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, page 115) Leasehold Estate
The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, page 115)
Partial Taking
The taking of any part of a property for public use under the power of eminent domain; requires the payment of compensation. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, page 140) Personal Inspection
A physical observation performed to assist in identifying relevant property characteristics in a valuation service. (comment) An appraiser’s inspection is typically limited to those things readily observable without the use of special testing or equipment. Appraisals of some types of property, such as gems and jewelry, may require the use of specialized equipment. An inspection by an appraiser is not the equivalent of an inspection by an inspection professional (e.g., a structural engineer, home inspector, or art conservator). (USPAP, Appraisal Foundation, 2020-22 Edition, pg. 5).

Personal Property
Any tangible or intangible article that is subject to ownership and not classified as real property, including identifiable objects that are considered by the general public as being “personal” such as furnishings, artwork antiques, gems and jewelry, collectibles, machinery and equipment; and intangible property that is created and stored electronically such as plans for installation art, choreography, emails, or designs for digital tokens. (USPAP, Appraisal Foundation, 2020-22 Edition, pg. 5).

APPRAISAL REPORT 12
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Real Estate and Real Property
Real estate is an identified parcel or tract of land, including improvements, if any.

Real property is the interests, benefits, and rights inherent in the ownership of real estate. (USPAP, Appraisal Foundation, 2020-2022Edition, pg. 5).

Report
Any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client or party authorized by the client upon completion of an assignment. (USPAP, Appraisal Foundation, 2020-22 Edition, pg. 5).

An appraisal report is further known as a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion as to the market value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. (OCC: 12 CFR Part 34, subpart C; FRB: 12 CFR 208.18 and 12 CFR 225, subpart G; FDIC: 12 CFR 323; OTS: 12 CFR Part 564; NCUA:
12 CFR 722).

Temporary Easement
An easement granted for a specific purpose and applicable for a specific time period.

A construction easement, for example, is terminated after the construction of the improvement and the unencumbered fee interest in the land reverts to the owner. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, pages 189-190) This appraisal is prepared in compliance with the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP).

Date of Inspection: September 25, 2023
Date of Value: September 25, 2023
Date of Report: September 27, 2023
An extraordinary assumption is “an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions” (Uniform Standards of Professional Appraisal Practice, 2020-22 Edition, Appraisal Standards Board of the Appraisal Foundation, 2022, page 4)
Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if:

APPRAISAL REPORT 13
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 It is required to properly develop credible opinions and conclusions;  The appraiser has a reasonable basis for the extraordinary assumption;  Use of the extraordinary assumption results in a credible analysis; and  The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions.

The following extraordinary assumptions were necessary in the assignment:
1) The definition of fair market value that applies to this appraisal indicates that the subject property is to be valued as though there is not any increase or decrease in value that is attributable to: (a) the project for which the property is taken; (b) the eminent domain proceeding in which the property is taken; or (c) any preliminary actions of the plaintiff relating to the taking of the property. (California Code of Civil Procedure, Section 1263.330). Therefore, this appraisal is based on the extraordinary assumption that none of these factors is influencing the value of the subject property.

A hypothetical condition is “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.” (Uniform Standards of Professional Appraisal Practice, 2020-2022 Edition, Appraisal Standards Board of the Appraisal Foundation, 2022, page 4)
Hypothetical conditions are 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.

A hypothetical condition may be used in an assignment only if:
 Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison;  Use of the hypothetical condition results in a credible analysis; and  The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions.

The following hypothetical conditions were necessary in the assignment:
1) The valuation of the subject remainder property in its after condition is based on the hypothetical condition that the part being taken has been severed from the larger parcel and the project has been constructed and is in use in the manner proposed as of the effective date of value for this appraisal.

APPRAISAL REPORT 14
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This appraisal report has been made with the following general assumptions:
 No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated.
 The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated.
 Responsible ownership and competent property management are assumed.  The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.
 All engineering studies are assumed to be correct. The plot plans and illustrative material in this report are included only to help the reader visualize the property.  It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them.
 It is assumed that the property is in full compliance with all applicable federal, state and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report.  It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless a non-conformity has been identified, described and considered in the appraisal.
 It is assumed that all required licenses, certificates of occupancy, consents and other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in this report is based.  It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in this report.
 Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser.

The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation and APPRAISAL REPORT 15
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other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for such conditions or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired.
 A legal description was furnished, however, a survey was not, so the appraiser used the county tax plat to ascertain the physical dimensions and acreage of the property. Should a survey prove this information to be inaccurate, it may be necessary for this appraisal to be adjusted.
 The forecasts, projections, or operating estimates contained herein are based on current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes with future conditions.

This report has been made with the following general limiting conditions:
 Possession of this report, or a copy thereof, does not carry with it the right of publication.
 The appraiser, by reason of this appraisal, is not required to give further consultation or testimony or to be in attendance in court with reference to the property in question unless arrangements have been previously made. The fee for this appraisal does not include payment for pretrial conferences or the taking of expert testimony at depositions or at trial.
 Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected or any reference to the Appraisal Institute, or to the MAI or SRA designations.) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser.
 This report and all information contained herein was prepared for the sole and exclusive benefit of the client, as specified herein, and is intended for his use only.

No one except the client specified herein may rely on this report for any purpose.

Any person or entity who obtained or reads this report, or a copy thereof, other than the client specified herein, expressly assumes all risk of damages to himself or third persons arising out of reliance thereon or use thereof and waives the right to bring any action based on the appraisal, directly or indirectly, and the appraiser shall have no liability to any such person or entity.
 The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

APPRAISAL REPORT 16
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 Use of or reliance on this appraisal or appraisal report, regardless of whether such use or reliance is known or authorized by the appraiser, constitutes acknowledgement and acceptance of these general assumptions and limiting conditions, any extraordinary assumptions or hypothetical conditions, and any other terms and conditions stated in this report.

The scope of work for this appraisal assignment is defined in five steps that generally follow the method used by analysts in various fields to solve a variety of problems. 1) Define the problem.
2) Determine the nature of the property to be appraised. 3) Collect the data needed to perform a credible appraisal. 4) Analyze the data collected.
5) Reach a conclusion of value.

Define the Problem
The client in this appraisal has requested the following value conclusions for the subject property, to be presented in a narrative Appraisal Report.  As-is value of the fee simple interest of the take area for the purposes of just compensation.

Determine the Nature of the Property to be Appraised
The subject property was improved land on the date of inspection. The portion of the site affected by the proposed acquisition was inspected by Kelly P. Stevens, SRA on September 25, 2023.

The appraisal problem did not warrant an intensive highest and best use study. Given the nature of the subject real estate, our conclusion of highest and best use was based on logic and observed evidence.

Collect the Data Needed to Perform a Credible Appraisal In addition to the information on the subject property obtained through the inspection process, additional information was obtained from various Madera County agencies, including the assessor, recorder and tax collector. Information was also obtained from the City of Madera development department (zoning and general plan information). Other governmental sources consulted include FEMA (flood zone data), the U.S. Census Bureau (census tract data), and the State of California (demographic data and information related to Fault Rupture Hazard (Alquist Priolo Special Studies) Zones.

APPRAISAL REPORT 17
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The title report prepared by Orange Coast Title Company on September 1, 2022 was relied upon for information regarding easements, covenants, restrictions, and/or other encumbrances. We did not research the presence of such items independently.

The property was leased at the time of sale, however, copies of the lease(s) were not provided or analyzed by the appraisers. The dwellings are not affected by the proposed acquisition area. The appraisers have developed an opinion of value regarding the fee simple interest in the proposed acquisition area.

In order to produce a credible appraisal, it was determined that only the sales comparison approach was necessary. As such, only this one approach was used to opine the value of the subject property. The cost approach was developed in order to determine an estimate of the site improvements located within the proposed acquisition area. The income approach was not included because properties that compete with the subject property are rarely purchased for annual income streams.

As such, there is little market data to develop the income approach in a manner in which it would yield credible assignment results.

Comparable market data were researched using one or more public data subscription services, including DataTree, Costar, Loopnet, and one or more multiple listing services. Also consulted were commercial real estate brokers and salespersons active in the market in which the subject is located. Where possible, comparable data was verified by persons with knowledge of the data in question – typically the buyer, seller or broker involved in the transaction.

Analyze the Data Collected
The sales comparison approach required the assemblage of land sales for comparison.

Comparables were selected based on physical and locational characteristics. After selecting the sales, a comparative analysis of relevant factors that influence value was undertaken to adjust them to the subject property based upon the actions and preferences demonstrated by the participants in the marketplace.

In developing a value indication for the site improvements by the cost approach, the replacement cost method was used. The replacement costs for the improvements were estimated via the cost-estimating service technique using the Marshall Valuation Service, adjusted for local costs. The appraisers also estimated costs based on their experience on other right-of-way jobs and bids from local contractors or professionals.

Reach a Conclusion of Value
Once the value indications by appropriate approaches were derived, they were reconciled into a final indication of value. The quantity and quality of the data available under each approach was considered, along with the advantages and/or the disadvantages of each, and the relevance of each to the subject property and the appraisal problem. Based upon this analysis, the final value conclusion was reached.

APPRAISAL REPORT 18
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Official Records of Madera County show title to the subject to be vested in the name of Francisco Holguin and Antonia Holguin.

The subject property has not sold in the prior 5 years.

The subject property has not been listed on the Fresno Multiple Listing Service in the prior 5 years. The appraiser is unaware of any options or escrows.

The land referred to in this report is situated in the City of Madera, County of Madera, State of California and is described as follows:

All that portion of the NE ¼ of Section 12, Township 11 South, Range 17 East, M.C.B & M., according to the official plat thereof, bounded and described as follows:

Beginning at a point which bears South 0°03’ East 1941.45 feet and North 89°42’ West 39 feet from the Northeast corner of said Section 12; thence South 0°03’ East 702.45 feet, thence North 89°42’ West 478.42 feet; thence North 0°03 ½ West 702.2 feet; thence South 89°42’ East 478.42 feet, more or less, to the point of beginning.

Excepting therefrom the West 10 feet of the East 40 feet of the above described property as conveyed to the County of Madera in Deed dated December 13, 1967 and recorded January 18, 1968 in Book 1002, at Page 85, Madera County Records and Deed dated January 12, 1968 and recorded January 25, 1968 in Book 1002, Page 457 of Official Records.

Assessor’s Parcel Number(s): 038-030-028
A legal description of the taking is located in the addenda of this report along with a map of the proposed take area.

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For the purpose of taxation, the property under appraisal has been assessed as follows:

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City of Madera
The City of Madera was incorporated in 1906 and is located 240 miles north of Los Angeles and 166 miles southeast of San Francisco. It is 22 miles north of Fresno on State Highway 99.

In January 1, 2023, the City’s population was 65,540. Historical population figures are shown in the following chart:

POPULATION STATISTICS
City of Madera
Study Date Population Increase
April 1, 1970* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,044 ------- April 1, 1980* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,732 35.45% April 1, 1990* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,800 32.52% April 1, 2000* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,205 50.02% April 1, 2010* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,416 42.15% January 1, 2011** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,616 0.33% January 1, 2012** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,377 1.24% January 1, 2013** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,809 0.69% January 1, 2014** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,853 0.07% January 1, 2015** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,067 1.93% January 1, 2016** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,418 0.55% January 1, 2017** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,944 0.82% January 1, 2018** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,671 1.12% January 1, 2019** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,419 1.14% January 1, 2020** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,666 -1.13% January 1, 2021** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,299 0.96% January 1, 2022** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,582 -1.08% January 1, 2023** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,540 -0.06% *Source: United States Census
**Source: State of California, Department of Finance
Transportation facilities available to the City of Madera include rail, truck, air, bus, water and highway transportation. Rail service is provided by the Union Pacific Railroad and Amtrak, while truck service is furnished by 100 common carriers and ten general haulers. Overnight delivery is available to Los Angeles, Sacramento, San Diego and San Francisco. A local municipal airport allows for private air traffic, while commercial and freight transportation is available from the Fresno Air Terminal, located 29 miles to the south. Water transportation is available at the Port of Stockton approximately 99 miles to the north. Highways within the vicinity of Madera include State Freeway 99 and State Route 145. Interstate 5 is 53 miles to the west via State Route 152.

Water is supplied to the residents by the City of Madera. There is a maximum pumping capacity of 35.48 million gallons per day and average consumption is at

9.045 million gallons per day. Sewer service is also provided by the City of Madera.

Natural gas is supplied to the area by the Pacific Gas and Electric Company and electric power is from the same source. AT&T and Comcast supply the telephone service.

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The major manufacturing and non-manufacturing employers in the City are:

Employer Industry
Ardagh Group Glass Containers (Mfrs)
Baltimore Aircoil Refrigeration Equipment-Truck (Mfrs)
Cherokee Freight Lines. Trucking-Motor Freight
EVAPCO Inc. Evaporative Coolers Mfg. & Wholesale
Georgia Pacific Corp Madera Paper-Manufacturers
Home Depot Home Centers
Lamanuzzi & Pantaleo Cold Storage Fruits & Vegetables-Growers/Shippers Lion Brothers Farm-Newstone Farming Service
Lowes Home Improvement Wrhse-Mdr Home Centers
Madera City Hall Government Office-City
Madera Community Hospital Hospitals
Madera County Mental Health Government Offices-County
Madera High School Schools
Madera Rehab Ctr Senior Citizens Service
Madera South High School Schools
Millview School Schools
San Joaquin Wine Co. Wineries
Span Construction Contractors-Equip/Supls-Dlrs/S (Whls) Valley Children’s Hospital Hospitals
Walmart Department Stores
Warnock Food Products Food Products & Manufacturers
Source: California Employment Development Department
Community facilities available to the residents of the City of Madera include 75 physicians and surgeons, 25 dentists, 6 optometrists, 14 chiropractors, 2 convalescent hospitals with 240 beds, 1 health center, 1 outpatient surgery center and 1 ambulance service. The Madera Community Hospital closed in January of 2023, however, there are efforts to reopen the facility. Valley Children's Hospital moved entirely from Fresno to Madera in 1998. Cultural and recreational facilities available include 56 churches, 1 library, 2 newspapers, 2 radio stations, 8 television channels received direct, 1 TV cable system, 6 banks, 9 parks, and 6 theater screens. Other recreational facilities include bowling alleys, tennis courts, an auto racetrack, golf course, 3 nearby lakes, Yosemite National Park, a community theater, art association, and the annual fair and rodeo.

Educational facilities include 13 kindergartens through sixth grade schools, 3 kindergartens through eighth grade schools, 3 middle schools, 1 high school (with 2 campuses), 4 parochial schools and 2 alternative education schools. There is a community college campus located on the north side of Avenue 12, just east of Highway 99. The nearest 4-year college is California State University-Fresno.

Housing starts have been tracked using building permit statistics that were obtained from the Housing and Urban Development (HUD) database. As shown, new residential construction peaked in 2005, and has dropped off significantly since then.

Vicinity
The subject property is located in a suburban neighborhood north of the City of Madera. This neighborhood is predominately developed with residential ranchettes APPRAISAL REPORT 22
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on parcels predominately ranging in size from 1 to 10 acres. Larger parcels are typically utilized for agricultural production. Permanent plantings range from almonds, vineyards, olives or pistachios. Madera Acres, is a suburban neighborhood to the northwest. This neighborhood is developed with predominately ranch designed homes on parcels ranging in size from a quarter-acre to one acre.

New construction in this neighborhood is predominately private owner builds or speculative homes by local investors. Growth is classified a slow.

The Matilda Torres High School, Jack G. Desmond Middle School and the Nishimoto Elementary School are located on the south side of Martin Street between D Street and Road 26. The John J. Pershing Elementary School is located on the north side of Ellis Street, west of Chapin Street.

The Burlington North Railroad is located on the east side of the neighborhood. North and east of this rail line land uses are predominately agricultural with permanent plantings giving way to grazing.

Lake Street, D Street and Road 26 are two-lane roads in the neighborhood that provide access to the northern portion of the City of Madera.

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The subject property belongs to the residential segment of the real estate market. The appraiser has utilized the Fresno Multiple Listing Service to research market conditions in the Madera Marketing area.

Existing Homes
Existing home sales data was tracked using data obtained from the Fresno Association of Realtors and their Multiple Listing Service for the City of Madera.

Existing homes in the 93637 and 93638 zip codes were researched. A summary of that data is presented in the table below.

The median sales price has been increasing over the past five years. This increase is typical of other central valley cities. It is also one of the factors that makes new home construction feasible.

Brokers indicate low inventory of available housing in the existing home market. This factor has contributed to strong demand from home buyers, resulting in upward Madera City # of Sales Median Sales Price
Q1 2017 144 $200,000
Q2 2017 138 $215,000
Q3 2017 140 $217,475
Q4 2017 118 $222,750
Q1 2018 109 $220,000
Q2 2018 189 $237,900
Q3 2018 145 $240,000
Q4 2018 149 $249,900
Q1 2019 144 $238,500
Q2 2019 172 $248,225
Q3 2019 138 $237,450
Q4 2019 145 $245,000
Q1 2020 103 $249,000
Q2 2020 138 $254,500
Q3 2020 172 $273,950
Q4 2020 143 $285,000
Q1 2021 111 $300,000
Q2 2021 118 $283,500
Q3 2021 112 $317,500
Q4 2021 118 $313,250
Q1 2022 100 $348,750
Q2 2022 118 $341,500
Q3 2022 123 $381,500
Q4 2022 79 $362,000
Q1 2023 77 $334,950
Q2 2023 109 $390,000
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pressure on home prices. The market has started to see a slow down within the past year due to the increase of interest rates in the 30-year mortgage market.

New Subdivisions
There are several subdivisions currently marketing in the City of Madera.

Development has been occurring within the past several years by national, regional and local builders. According to market participants there is limited potential subdivision land available within the City. This has been increasing the potential subdivision land prices in the past few years. Additionally, land that has been mapped for a tentative subdivision is desirable to developers as there are number of low income/subsidized programs available to help with building/selling of the homes. This type of property that is currently listed has a lot of interest with pending or signed letters of intent.

The most proximate new subdivision is located at the southwest corner of Ellis Street and D Street. This is a 61-lot subdivision with five floor plans. The floor plans range from 1,523 square feet to 2,222 square feet. Base prices range from $379,990 to $471,580.

Housing Starts
Housing starts have been tracked using building permit statistics The following table was compiled with information from the Housing and Urban Development (HUD) SOCDS Building Permits Database.

SFR
Year Units
2010 53
2011 50
2012 68
2013 144
2014 156
2015 145
2016 185
2017 133
2018 178
2019 171
2020 126
2021 260
2022 203
City of Madera
New Units Added
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The City of Madera is expanding water storage in northeast Madera. The subject parcel is one of several locations being considered for water storage tank placement.

The city proposes to acquire a 2.89-acre portion of the parcel for water tank storage.

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General Location: The west side of North Lake Street, approximately 755 feet north of Ellis Street.

Property Address: 16564 North Lake Street
Madera, CA 93638
Surrounding Land
Uses: North: Rural Residential
South: Rural Residential
East: Rural Residential
West: Rural Residential
Assessor's Parcel No.: 038-030-028
Madera County
Census Tract No.: Census Tract No. 5.07, as delineated in the 2020 Federal Census.

GPS Coordinates: Latitude 36.98999; Longitude -120.05714.

Size and Shape: The site is Rectangular in shape and contains approximately 328,442 square feet, or 7.54 acres.

Ingress and Egress: Access to the site is available from Lake Street.

Offsite Improvements: Asphalt Paved Street. This offsite improvement is publicly maintained.

Utilities: Municipal utilities available to the property include:

Electricity: Pacific Gas & Electric Company
Gas: Pacific Gas & Electric Company
Telephone: AT&T
Water: Private Well
Sewer: Private Septic System
Solid Waste: Various Providers
Police: Madera Sheriff’s Department
Fire: Madera County Fire Department
Topography, Drainage
and Soils: The property has a generally rough level topography at street grade. There are two mounds of dirt in the
northern portion of the proposed acquisition area. These mounds are minor in nature and do not adversely affect
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the market value or marketability of the property. No
soils report was furnished. Accordingly, the load bearing capabilities of the soil could not be verified, but are assumed to be adequate. Drainage is also assumed to be
adequate.

Easements or
Encroachments: A title report prepared by Orange Coast Title Company on September 20, 2022 was provided to the appraiser. A
review of this document revealed no easements or
encroachments detrimental to the value of the subject
property.

Zoning: The subject property is zoned AR-5, an agricultural district, as regulated by the City of Madera This district is intended to provide for all types of agricultural uses on a smaller scale. Minimum parcel size is four and one-half acres and traditionally allows for a single-family dwelling and agricultural uses.

Among the permitted uses are: accessory dwelling unit
(subject to parcel size requirements and development
standards); agricultural uses; guest house; one single
family dwelling (permanent structure or manufactured
home); residential care facility, small and roadside
stands. The subject property, as currently used,
conforms to the AR-5 zoning designation.

General Plan: Madera General Plan, as regulated by City of Madera.

Planned Use: Low Density Residential
Flood Zone: The subject property is situated in Flood Zone X (Unshaded). This is an area of minimal flood hazard,
usually depicted on FIRMs as above the 500-year flood
level.

This information was obtained from the Federal
Emergency Management Agency's Flood Insurance Rate
Map, Community Panel No. 06039C1160E, with an
effective date of September 26, 2008.

Seismic Zone: Seismic zones have been delineated by two entities -- the International Seismic Organization and the
Alquist-Priolo Special Studies Zones Act. According to
International Seismic Organization Earthquake Zone
Maps dated 1981, the subject property is located within APPRAISAL REPORT 28
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Seismic Zone 3, delineated as an area of Moderate
Damage.

The Alquist-Priolo Special Studies Zone Act is designed to mitigate the hazard of earthquake fault rupture by
regulating and prohibiting the development of most
structures for human occupancy near active fault lines.

Cities and counties affected by Special Studies Zones
must regulate certain development projects within the
zones, and must withhold development permits until
geologic investigations reveal that sites are not
threatened by surface displacement due to earthquake
faults. According to the 1997 revision of Special
Publication 42 "Fault-Rupture Hazard Zones in
California", the subject property is not within a Special Studies Zone. Therefore, no restrictions are placed on the property regarding this act.

Wetlands: There are no wetlands considerations affecting the subject property.

Hazardous Waste: Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on
the property, was not observed by the appraiser. The
appraiser has no knowledge of the existence of such
materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea–formaldehyde foam
insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such
material on or in the property that would cause a loss in value. No responsibility is assumed for any such
conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

Building Improvements: The subject contains a masonry constructed single family residence and a mobile home. These structures were not
inspected, and neither are located in or affected by the proposed acquisition.

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The proposed acquisition area is a 468.42 feet by 269 feet rectangular shaped parcel located in the southern portion of the subject parcel. This equates to a parcel containing 126,004.98 square feet or 2.89 acres. This take area extends the width of the parcel.

Included in the proposed take area is metal post and wire fencing with 5-strand barb wire. There is 269 linear feet on the west side of the parcel, 269 linear feet on the east side of the parcel and 468 linear feet on the south side of the parcel. Thus, the total amount of post and wire fencing located in the proposed take area is 1,006 linear feet.

The remainder will contain a total of 202,437.02 square feet or 4.64 acres and will have a rectangular shape. The remainder is still accessible from Lake Street.

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In the valuation of the subject property, consideration has been given to its highest and best use. Highest and best use may be defined as:

Highest and Best Use
The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, page 88) Highest and Best Use of Land or Site as Though Vacant
It is important to note that highest and best use is not determined through subjective analysis by the property owner, the developer, or the appraiser. It is shaped by the competitive forces of the market in which it is located. The four criteria of legal permissibility, physical possibility, financial feasibility, and maximal productivity are always considered in that order, for it makes no difference that a property is maximally productive or even financially feasible for a given use if it is legally prohibitive or physically impossible to develop the property to that use.  Legal Permissibility: The subject property is zoned AR-5, an agricultural zoning. It allows for agricultural uses. It also allows for one single family dwelling and an accessory dwelling unit. The property is outside of the City of Madera but within its sphere of influence. It currently has a planned land use designation for low density residential. Low density residential allows for 2.1 to 7 units per acre with a Target Density of 5.25 units per acre. There are no known private restrictions. Any of the legally permissible uses under the zoning ordinance would be allowed.
 Physical Possibility: The subject parcel is a rectangular shaped parcel containing 7.54 acres or 328,442 square feet. It has approximately 701 feet of frontage to Lake Street. Electricity and gas are available to the parcel from Pacific Gas and Electricity. There is a private domestic well on the property and each dwelling has its own private septic system. There are no off-site improvements such as curb, gutter or sidewalk. The property is accessed from a paved road. It is not located in a federally identified flood hazard, nor is it located in an Alquist Priolo special studies zone. There are no known environmental restrictions such as wetlands. Any of the legally permissible uses would be physically possible.  Financial Feasibility: The residential segment of the real estate market has been performing well over the past several years. Investors and local builders have been purchasing vacant rural residential homesites to develop speculative homes to sell. New subdivisions are noted primarily within the city at the fringes.

Demand for new housing is still strong and demand for suitable tract home development is still strong. The subject property is not located in the city and there are numerous vacant parcels in the area that are likely to be developed APPRAISAL REPORT 31
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before the subject. The appraisers believe that development of the larger parcel to low density residential is likely feasible in the future.  Maximum Productivity: The appraisers believe that development of the subject property is likely maximally productive in the future.
 Conclusion of Highest and Best Use As Though Vacant: The highest and best use of the property in its currently vacant condition would be to hold for development to low density residential.

Highest and Best Use as Currently Improved
The analysis of highest and best use as improved considers what should be done with the existing improvements. Generally, there are three possible courses of action; 1) demolish the existing improvements to allow for development under the highest and best use as if vacant; 2) renovate the current improvements to produce a greater return, or 3) leave the improvements as is.

With respect to demolition, the improvements would only be removed if the value of the land as if vacant is greater than or equal to the value of the land as improved. As supported in the Valuation section of this report, the property as improved is greater than the value of the property as if vacant. Thus, the improvements should not be demolished.

Regarding renovating the current improvements to produce a greater return, the current marketplace would not support any major renovation, as the cost of such renovation would be greater than the increment of value gained upon completion.

Since the property should not be demolished, nor is renovation financially feasible, the highest and best use as improved is as currently developed.

With regards to the subject property in the after condition, the highest and best use of the property as if vacant and the property as improved are the same as before the taking.

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The just compensation estimated in this appraisal was opined using the State Rule.

There are nine procedural steps in the application of this rule:
1) Value before taking $_________
2) Value of part taken (as part of whole) - _________
3) Remainder value before taking = $_________
4) Remainder value after taking - _________
5) Damages to remainder = $_________
6) Benefits to remainder - _________
7) Net damage to remainder = $_________
8) Value of part taken (as part of whole) + _________
9) Total difference (just compensation) = $_________
The results of the computations made in Step 5 (damages) and Step 7 (net damages) cannot be less than zero. It should be noted that Steps 3, 5, 7 and 9 are not estimates of value; they are merely intermediate mathematical calculations.

Step 1 is the property value with no consideration given to the proposed taking. In Step 2, the contributory value of the property within the taking is estimated.

Step 4 estimates the value of the remainder property considering damages and special benefits to the remainder by reason of the taking and construction of the public improvement. Step 6 is an estimate of the benefits accruing to the remainder property due to the taking and construction of the public improvement.

Step 8 is merely a carry-down; a repetition of the estimate made in Step 2.

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The value before the taking was valued using the sales comparison approach. In valuing the property by this approach, the appraiser develops an opinion of value by analyzing closed sales, listings or pending sales of vacant properties that are similar to the subject property as to its site characteristics. A major premise of this approach is that an opinion of fair market value can be supported by studying the market’s reaction to comparable and competitive properties.

Procedure
To apply the sales comparison approach, appraisers follow a systematic procedure, as follows:
1) Research the competitive market for information on properties that are similar to the subject property and that have recently sold, are listed for sale, or are under contract. Information on agreements of sale, options, listings, and bona fide offers may also be collected. The characteristics of the properties such as property type, date of sale, size, physical condition, location and land use constraints should be considered. The goal is to find a set of comparable sales or other evidence such as property listings or contracts as similar as possible to the subject property to ensure they reflect the actions of similar buyers.

Market analysis and highest and best use analysis set the stage for the selection of appropriate comparable sales.
2) Verify the information by confirming that the data obtained is factually accurate and that the transactions reflect arm’s length market considerations.

Verification should elicit additional information about the property such as buyer motivation, economic characteristics (if the property is incomeproducing), value component allocations, and other significant factors as well as information about the market to ensure that comparisons are credible. 3) Select the most relevant units of comparison used by participants in the market (e.g., price per acre, price per square foot, price per front foot, price per dwelling unit) and develop a comparative analysis for each unit. The appraiser’s goal is to define and identify a unit of comparison that explains market behavior.
4) Look for differences between the comparable sale properties and the subject property using all appropriate elements of comparison. Then adjust the price of each sale property, reflecting how it differs, to equate it to the subject property or eliminate that property as a comparable. This step typically involves using the most similar sale properties and then adjusting for any remaining differences. If a transaction does not reflect the actions of a buyer who would also be attracted to the subject property, the appraiser should be concerned about comparability.

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5) Reconcile the various value indications produced from the analysis of comparables into a single value conclusion. A value opinion can be expressed as a single point estimate, as a range of values, or in terms of a relationship (e.g., more or less than a given amount).

Source: The Appraisal of Real Estate, 14th Edition, Chicago: Appraisal Institute, 2013, pages 381-381
Definitions
In order to properly understand this approach, it is necessary to define some of the terminology that will be used.

Sales Comparison Approach
The process of deriving a value indication for the subject property by comparing sales of similar properties to the property being appraised, identifying the appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant when an adequate supply of comparable sales is available. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, page 170) Qualitative Adjustment
An indication that one property is superior, inferior, or the same as another property. Note that the common usage of the term is a misnomer in that an adjustment to the sale price of a comparable property is not made. Rather, the indication of a property’s superiority or inferiority to another is used in relative comparison analysis, bracketing, and other forms of qualitative analysis. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, page 152) Quantitative Adjustment
In the application of the sales comparison and income capitalization approaches, a numerical (dollar or percentage) adjustment to the sales price, rent, or expense amount of a comparable property to account for the effect on value of a difference between each comparable property and the subject property. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, page 152) Comparable Market Data
The comparable market data used in this approach to value are summarized in Schedule 1, and are described in the following paragraphs:

Sale 1 is located at 26166 Eddy Way, east of Road 26 and north of Avenue 17. This rectangular 5-acre parcel sold in February 2022 for $435,000. This parcel is accessed from a paved road. The parcel has a 1980’s built metal shop. The shop is 3,000 square APPRAISAL REPORT 35
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Comparable Sales Analysis – Land Sales
Sale Location Deed Sales Size Price/ Price/ Planned Offsite Rec. Date SellerNo. APN Date Price (Acres) Acre Sq.Ft. Zoning Land Use Utilities Imp. Access Doc. No. Buyer Ref. No.1 26166 Eddy Way 2/15/22 $375,000 4.59 $81,717 $1.88 AR-5 LDR Electricty None Paved 3/10/22 Todd & Carol Reardon RPA1-7612 036-140-025 (adjusted) Well/Septic 22-006768 Arturo Wilfrido Cristobal Torres 2 16227 N D Street 12/3/21 $390,000 5.00 $78,000 $1.79 RRS LDR Electricity None Paved 12/7/21 Robert L. Pythress, etal. RPA1-7610 038-090-010 Water/Sewer 21-037865 Nadeem Ahmad
3 16735 N D Street 7/20/23 $600,000 10.48 $57,252 $1.31 AR-5 LDR Electricity None Paved 8/2/23 Elise Thompson Snyder Baach, Etal RPA1-7724 038-020-012 23-014638 Ly Nguyen & Minh Thai
4 17375 Road 27 7/29/22 $250,000 2.98 $83,893 $1.93 AR-5 LDR Electricity None Dirt 8/16/22 Salvador & Beatriz Garcia RPA1-7725 037-010-016 22-021355 Luis Gerardo Reyes Lopez & Sarahi Reyes Schedule 1
C
O
MPA
R
A

BLE SALES ANALYSIS

RESIDENTIAL LAND SALES M
A
DER
A
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Comparable Sales Map – Land Sales
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feet and contains a restroom and kitchenette, both are in fair condition. The appraiser estimates the contributory value of the shop at $60,000. Subtracting the contributory value of the shop from the contract price of $435,000, leaves a sales price of $375,000, attributable to the land. This equates to a sales price of $81,717 per acre or $1.88 per square foot. The parcel has perimeter post and wire fencing and several fenced pastures. it is zoned AR-5 and planned land use for low density residential. The property had electricity and gas from Pacific Gas and Electric. It had a private septic system and private well. The broker indicated water was also supplied from Madera Valley Water Company. The broker indicated the buyer purchased the property to store farming equipment and had plans to construct a home in the future.

Sale 2 is located at the northeast corner of Adell Street and North D Street. This 5-acre parcel sold in December 2021 for $390,000, which equates to $78,000 per acre or $1.79 per square foot. The property is located adjacent to the Madera city limits to the south and the west. The property was zoned RRS, a residential rural single-family zoning per Madera County. It has the planned land use for low density residential.

LDR allows for residential development at a density of 2.1 to 7 units per acre with a target density of 5.25 units per acre. This is the predominate land use category of the City’s residential areas. There are no off-site improvements such as curb, gutter or sidewalks. Electricity is available to the parcel. Water is available along the D Street frontage as well as the intersection of Adell Street and D Street. Sewer is located at the intersection of Adell Street and D Street.

Sale 3 is located at 16735 North D Street, on the east side of D Street, north of Martin Street. This 10.48-acre parcel sold in July 2023 for $600,000 which equates to $57,252 per acre or $1.31 per square foot. The property is located north of the city limits. The property was zoned AR-5 and has a planned land use for low density residential. LDR allows for residential development at a density of 2.1 to 7 units per acre with a target density of 5.25 units per acre. There are no off-site improvements such as curb, gutter or sidewalks. The property is accessed from a paved road. Electricity is noted along the road frontage. Water and sewer is located at the intersection of Martin and D street, however, these services are not available to the property until annexation into the city.

Sale 4 is located at 17375 Road 27, north of Avenue 17. The parcel is accessible from a dirt road, approximately 500 feet from Road 27. The parcel has a flag shape, rough level topography and contains 2.98 acres. It sold in July 2022 for $250,000 which equates to $83,893 per acre or $1.93 per square foot. The seller financed $125,000 of the price. The seller financing did not affect the sales price. The property is fenced.

A new well has been drilled, but a pump is needed. Electricity is available to the parcel. The parcel is north of the city limits. It is zoned AR-5 at time of sale and has a planned land use for low density residential.

APPRAISAL REPORT 38
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Comparison of Sales to Subject
and Value Conclusion
Any factor can affect value. Those considered in this valuation included, yet are not limited to, date of sale, prominence of location, size, shape, utilities, offsites, etc.

Numerous sales were reviewed; however, only those deemed most comparable have been selected for analysis. All conveyed on an “arm’s length” basis except if specifically noted otherwise.

Property Rights: The valuation of the subject pertains to the fee simple interest in the property. Sales 1 through 4 involved the transfer of the fee simple interest and are similar to the subject.

Financing: Sales 1 and 4 were purchased with private financing. According to the brokers, the financing did not affect the sales price. Sales 2 and 3 were cash sales.

Conditions of Sale: Sales 1 through 4 transferred under normal conditions of sale, rather than any distress or abnormal conditions of sale. As such, they are considered similar to the subject.

Date of Sale (Market Conditions): Sales 1 through 4 occurred between December 2021 and July 2023. The residential land market segment during this time frame is similar as the effective date of this report.

Structure Allocation: Sale 1 sold with a shop structure. The estimated value of that structure is $60,000. The structure value was subtracted from the sales price to arrive at a sales price allocation to the land.

General Location: The subject property is located in northeast Madera, north of the City Limits and within the Sphere of Influence. Sales 1 through 4 have similar general locations as the subject.

Proximity to City Limits: The subject parcel is located one-third mile north of the Madera City limits (on the west side of Lake Street). Sale 2 is located across the street from the city limits and are superior compared to the subject. Sales 1 and 4 are approximately one mile north of the city limits and are inferior compared to the subject. Sale 3 is a similar distance as the subject to the city limits.

Size: Economies of scale, suggest that smaller parcels typically sell at higher prices per acre than larger parcels. Sales 1, 2 and 3 are smaller than the subject and are considered superior to the subject when compared at the price per acre level. Sale 3 is larger than the subject and considered inferior to the subject when compared at the price per acre level.

Access: The subject is accessible from an asphalt paved road. Sales 1 through 3 are also accessible from paved roads. Sale 4 is accessible from a dirt road, inferior compared to the subject.

APPRAISAL REPORT 39
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Shape: The subject has a rectangular shape. Rectangular shapes are preferred in the market. Sales 1 through 3 have rectangular shapes and are similar to the subject.

Sale 4 has an flag shape which is considered inferior compared to the subject’s rectangular shape.

Topography: The subject has a generally rough level topography. Sales 1 through 4 have similar topography.

Sale Sale Sale Sale
Item Subject 1 2 3 4
Address 16564 N Lake St 26166 Eddy Way 16227 N D St 16735 N D St 17375 Road 27 City Madera Madera Madera Madera Madera
Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Financing Assume Cash Eq Private Cash Cash Private
Conditions of Sale Assume Normal Normal Normal Normal Normal Date of Sale 09/16/2022 (DOV) Feb-22 Dec-21 Jul-23 Jul-22 Physical Characteristics
General Location NE Madera NE Madera NE Madera NE Madera NE Madera Proximity to City Limits Proximate Inferior Superior Similar Inferior Land Size (Acres) 7.54 4.59 5.00 10.48 2.98
Access Paved Road Paved Road Paved Road Paved Road Dirt Road Shape Rectangular Rectangular Rectangular Rectangular Flag Shape Topography Rough Level Rough Level Rough Level Rough Level Rough Level Municipal Utilities E,G E,G,W W,S,E E E
Private Utilities Well, Septic Well,Septic None None Well Offsite Improvements None None None None None
Zoning AR-5 AR-5 RRS AR-5 AR-5
Planned Land Use LDR LDR LDR LDR LDR

TRANSACTIONAL ADJUSTMENTS
Sales Price $435,000 $390,000 $600,000 $250,000
Property Rights Adjustment $0 $0 $0 $0
_________ _________ _________ _________
Sales Price Adjusted for Property Rights $435,000 $390,000 $600,000 $250,000 Financing Adjustment $0 $0 $0 $0
_________ _________ _________ _________
Sales Price Further Adjusted for Financing $435,000 $390,000 $600,000 $250,000 Conditions of Sale Adjustment $0 $0 $0 $0
_________ _________ _________ _________
Sales Price Further Adjusted for Conditions $435,000 $390,000 $600,000 $250,000 Market Conditions (Date of Sale) Adjustment $0 $0 $0 $0 _________ _________ _________ _________
Sales Price Further Adjusted for Market Conditions $435,000 $390,000 $600,000 $250,000 Structure Allocation -$60,000 $0 $0 $0
_________ _________ _________ _________
Sales Price Adjusted for Structure Allocation $375,000 $390,000 $600,000 $250,000 Total Land Acres 4.59 5.00 10.48 2.98
Adjusted Price per Acre $81,717 $78,000 $57,252 $83,893

LOCATION & PHYSICAL COMPARISONS
General Location Similar Similar Similar Similar
Proximity to City Limits Inferior Superior Similar Inferior Land Size Superior Superior Inferior Superior
Access Similar Similar Similar Inferior
Shape Similar Similar Similar Inferior
Topography Similar Similar Similar Similar
Municipal Utilities Superior Superior Inferior Inferior Private Utilities Similar Inferior Inferior Inferior
Offsite Improvements Similar Similar Similar Similar
Zoning Similar Similar Similar Similar
Planned Land Use Similar Similar Similar Similar
________ ________ ________ ________
Overall Comparison To Subject Similar Superior Inferior Superior Below Below Above Below
Final Adjusted Sales Price per Acre $81,717 $78,000 $57,252 $83,893

SALES COMPARISON WORKSHEET
APPRAISAL REPORT 40
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Municipal Utilities: The subject property has electricity and gas available, however, water and sewer are not available to the parcel. At the time of sale, Sales 1 and 2 are superior in available municipal utilities. Sales 3 and 4 have only electricity available and are inferior in available municipal utilities.

Private Utilities: The subject private well and septic systems. Sale 1 has similar private utilities. Sales 2 and 3 lack private utilities and are inferior compared to the subject. Sale 4 has a new well but lacks private septic. It is also inferior in private utilities.

Offsites: The subject has no off-site improvements such as curb, gutter or sidewalk.

Sales 1 through 4 also lack off-site improvements.

Zoning: The subject parcel is zoned AR-5 an agricultural zoning allowing for onedwelling and accessory unit (residential uses). Sales 1, 3 and 4 have the same zoning.

Sale 2 has similar zoning.

Planned Land Use: The subject parcel has a planned land use for low density residential. Sales 1 through 4 have the same planned land use.

The land sales transacted between December 2021 and July 2023. They have adjusted sales prices that range from $57,252 to $83,893 per acre. Some units of comparison carry more weight than others. The sales are ranked in the chart below.

The appraisers have also considered the value of the subject property based on the definition of market value with regards to eminent domain and the highest price on the date of valuation that would be agreed to by buyer and seller. The appraisers have valued the subject’s residential land at $75,000 per acre.

Opinion of Value – Site Improvements
The in-place depreciated value of the site improvements that will be affected by the taking are also calculated. Approximately 1,006 linear feet of post and wire fencing is affected. The following chart is a summary of an estimation of the depreciated value that site improvement.

Sale Comparison Price
No. to Subject /Acre
4 Below $83,893
1 Below $81,717
2 Below $78,000
Subject Value $75,000
4 Above $57,252

RANKING OF SALES
APPRAISAL REPORT 41
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The Value Before Taking is calculated as follows:

The part taken consists of 2.89 acres of fee simple land.

There are no building improvements affected by the proposed acquisition. There is post and wire fencing located within the proposed acquisition area on both the west and east side of the property. This fencing total 1,006 linear feet. The value of the part taken is calculated as follows:

The remainder value before the taking is calculated by subtracting the value of the part taken (as part of the whole) from the value before the taking. This calculation is as follows:

After the taking, the remainder parcel will have the same highest and best use as before the taking; therefore, the $75,000 per acre unit price also applies to the

4.65-acre remainder. There are no items to cure in the remainder. Therefore, the remainder value after the taking is calculated as follows:

Cost Unit of Section Base Cost Local Cost Estimated Depreciated Item: Source: Measure: & Page: Cost: Multiplier: Multiplier: New: Depreciation: Cost: Rounded:

Metal post 5 strand barb wire Marshall Valuation Linear Foot 66/5 $ 6.00 1.15 1.24 $ 8.56 50.00% $ 4.28 $ 4.30 Quantity Summary
Value Before Taking:

Land (Fee Simple) 7.54 AC @ $75,000.00 /AC = $565,500.00 Site Improvements Within Acquisition Area (Depreciated):
post and wire fencing 1006 LF @ $4.30 /LF = $4,325.80
________
Value of the Whole Property Before Taking: >>>>>>> = $569,825.80 Value of Part Taken (As Part of Whole):

Land (Fee Simple) 2.89 AC @ $75,000.00 /SF = $216,750.00 Site Improvements Within Acquisition Area (Depreciated):
post and wire fencing 1006 LF @ $4.30 /LF = $4,325.80
________
Value of Part Taken (as Part of Whole): >>>>>>> $221,075.80 Value Before Taking: $569,825.80
Value of Part Taken (As Part of Whole): $221,075.80
Remainder Value Before Taking: $348,750.00
Remainder Value After Taking:

Land (Fee Simple) 4.65 AC @ $75,000.00 /AC = $348,750
Less Costs to Cure None $0
Total Remainder Value After Taking >>>>>>> = $348,750.00 APPRAISAL REPORT 42
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Damages to the remainder are calculated by subtracting the remainder value after the taking from the remainder value before the taking. This calculation is shown on the below:

Benefits are advantageous factors that arise from a public improvement for which private property has been taken. In our opinion the remainder property will not be benefitted as a result of the taking.

Net damage to the remainder is calculated by subtracting benefits to the remainder from the damages to the remainder. The net damage is $0, as shown in the following calculation:

The final opinion of just compensation is calculated by adding the value of the part taken (as part of the whole) to the net damage to the remainder. As shown, the estimated just compensation is $222,000 (rounded).

Remainder Value Before Taking: $348,750.00
Remainder Value After Taking: $348,750.00
Damages to Remainder: $0.00
Benefits to Remainder: $0.00
Benefits to Remainder: $0.00
Damages to Remainder: $0.00
Net Damage to Remainder: $0.00
Net Damage to Remainder: = $0.00
Value of Part Taken (as Part of Whole): + $221,075.80
________
Total Difference (Total Award) = $221,075.80
Rounded $222,000.00
APPRAISAL REPORT 43
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Parcel No. Project Madera Water Storage Project
Owner Property Address 16564 N Lake Street
APN Size 7.54 Zoning AR-5
Present Use Highest & Best Use Hold for development
Date of Value Federal Project No. Not Applicable
Net Area
Site Size (Acre) 7.54 Acre
Site Size (SF) 328,442.00 SF
Fee Simple Acquisition 126,004.98 SF
Remainder (Acre) 4.65 Acre
Remainder (SF) 202,437.02 SF
Value Before Taking:

Land (Fee Simple) 2.89 AC @ $75,000.00 /SF = $216,750.00 Site Improvements Within Acquisition Area (Depreciated):
post and wire fencing 1006 LF @ $4.30 /LF = $4,325.80
________
Value of Part Taken (as Part of Whole): >>>>>>> - $221,075.80 ________
Remainder Value Before Taking: = $348,750.00
Remainder Value After Taking:

Land (Fee Simple) 4.65 AC @ $75,000.00 /AC = $348,750
Less Costs to Cure None $0
Total Remainder Value After Taking >>>>>>> = $348,750.00 ________
Damages to Remainder: $0.00
Less Benefits: - $0.00
________
Net Damage to Remainder: = $0.00
Value of Part Taken (as Part of Whole): + $221,075.80
________
Total Difference (Total Award) = $221,075.80
Rounded $222,000.00

APPRAISAL SUMMARY SHEET
5 Holguin
038-030-028
Rural Residential
9/25/2023
APPRAISAL REPORT 44
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After carefully considering all of the data and pertinent information regarding to the property under appraisal, it is our opinion that the market value as of the effective date of appraisal, September 25, 2023, is as follows:

Definition of Fair Market Value
This appraisal has been prepared in accordance with the following fair market value definition:
(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 market is its value on the date of valuation as determined by any method of valuation that is just and equitable. (State of California Code of Civil Procedure, Section 1263.320) Definition of Fee Simple Estate
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. (The Dictionary of Real Estate Appraisal, 7th Edition, Chicago: Appraisal Institute, 2022, page 73)