“Our mission is to maintain the character of our “small town” community while striking an appropriate balance between economic development and preservation of our quality of life. We help create a dynamic and vital City by providing quality, cost-effective municipalservices and by forming partnerships with residents and organizations in the constant pursuit of excellence.”
Page Item STANDING AGENDA ITEMS
1. Call to Order and Flag Salute
2. Roll call
3. Special Presentation: None
4. Public Comment:
This time is set aside for citizens to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an agenda item noted on the regular agenda, please address the Council when that item is open for public comment.
Each speaker is allocated three (3) minutes to speak. Speakers may not cede their time. Comments should be limited to matters within the jurisdiction of the City. Council discussion or action cannot be taken on items not listed on the agenda other than to receive comments. If you have documents to present to members of Council, please provide a minimum of seven (7) copies to the Deputy City Clerk. Email Comments may be submitted to the City Clerk’s Office ([email protected]). Items received no later than 12:00 pm on the day of the meeting will be provided to the City Council prior to the meeting. These items will NOT be read into the record.
5. Council and Staff Comments
6. Committee Updates:
a) Downtown Enhancement Advisory Committee
b) Library Tax Advisory Committee
c) Beautification Committee
d) Active Transportation Committee
Mt. Shasta City Council Regular Meeting Agenda
Monday, October 28, 2024, 5:30 p.m.
Mt. Shasta City Park Upper Lodge, 1315 Nixon Rd. Mt. Shasta, CA The meeting can also be viewed online at the
following link:
MountShasta.22Ave.tv
For the safety of our staff, the council, and public, we are no longer allowing members of the audience to carry large bags, backpacks, or other items outside of small personal items such as purses or satchels. Only service animals are allowed inside council chambers; nonservice pets are not allowed under any circumstances. Violators will be asked to remove the bag and/or animal, and refusal to do so will be cause for removal from the meeting.
Mt. Shasta City Council Regular Meeting October 28, 2024 1 Mt. Shasta Regular City Council Meeting Agenda
Monday, October 28, 2024
CITY COUNCIL BUSINESS
All Resolutions and Ordinances on this agenda, or added hereto, shall be introduced or adopted, as applicable, by title only, and the full reading thereof is hereby waived. a. Approval of Minutes: October 14, 2024
b. Approval of Disbursements: Accounts Payable:10/17/2024; Total Gross Payroll and Taxes: For Period Ending 10/13/2024
c. Monthly Investment Report
to Clarify Provisions Related to Sidewalk Dining
Background: Council will consider an Ordinance amending Mt Shasta Municipal Code Chapter 12.34 to clarify provisions related to sidewalk dining.
Report By: Ken Kellogg, Public Works Director
Recommended Council Action: Approve Ordinance CCO-24-XX by title only, waiving its reading, finding that the action does not meet the definition of a “project” under the California Environmental Quality Act (CEQA), and moving it to a second reading and adoption.
Chestnut
Background: The City was asked by Council to consider the potential of purchasing the parcels for overflow parking. These parking lots would be part of the proposal to daylight Castle Creek and the reconfiguration of Chestnut and N. Mt Shasta Boulevard to one-way streets. A commercial appraisal was completed showing the value of the parcels. Taking into account that the two parcels are contaminated and the estimated clean-up cost is $500,000, the appraisal for the parcels is $0. However, Council has asked that staff convey the results of the appraisal to the owner and see what they are willing to sell the properties for or the minimum consideration for a long-term lease. After numerous discussions, the owner is unwilling to sell the parcels for less than $80,000 despite the evidence that this amount is well in excess of its value. In terms of leasing the property, he is unwilling to consider leasing to the City unless it’s for a minimum term of ten years at the rate of $900 with a 2% escalator per year. Council will discuss and determine a course of action.
Report By: Todd Juhasz, City Manager
Recommended Council Action: Consider whether to purchase, lease, or forgo the use of two unpaved parcels located at 415 N. Chestnut.
10. Discussion and Possible Action: Process of and Cost Recovery for Snow Removal in the Downtown Background: Council will discuss snow removal alternatives as well as methods for cost recovery for sidewalk snow removal in the downtown.
Report By: Ken Kellogg, Public Works Director
Recommended Council Action: Approve a resolution seeking to capture the true cost of snow removal within the Downtown Business District.
Mt. Shasta City Council Regular Meeting October 28, 2024 2 4-21
22-25
26-178
Page
179-181
Mt. Shasta Regular City Council Meeting Agenda
Monday, October 28, 2024
CITY COUNCIL/STAFF REPORTING PERIOD
11. Reports on Outside Meetings
12. Future Agenda Items and Meetings (Appearing on the agenda within 60-90 days):
a. Adoption of the Enhanced Infrastructure Financing District – 11/12/2024 b. Objective Design Standards – 11/12/2024
c. Certification of Election Results and Swearing in of Councilmembers – 12/9/2024 d. Beautification Committee Presentation to Council – TBD e. Survey of Washington Avenue – TBD
f. Discussion and Possible Action: Rental, Lease, or Purchase of Lot Located at the northwest corner of Alma and N. Mt. Shasta Blvd – TBD
Future Agenda Items Over 90 Days:
13. Adjourn
I, Kathryn Joyce, declare under penalty of perjury that this agenda has been posted at least 72 hours in advance at the Mt.
Shasta City Hall, 305 N. Mt. Shasta Blvd, Mt. Shasta, CA, in the glass case and on the City website at www.mtshastaca.gov.
Agendas and packets shall be made available at least 72 hours in advance of regular meetings and 24 hours in advance of special meetings on the City’s web site. Any writings or documents pertaining to an open session item provided to a majority of the City Council less than 72 hours prior to the meeting shall be made available on the City’s web site www.mtshastaca.gov.
Availability of Public Records: All public records related to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at City Hall located at 305 North Mt. Shasta Blvd.
The City of Mt. Shasta does not discriminate on the basis of race, color, national origin, sex, religion, age or disability in employment or provision of services. In compliance with the Americans with Disabilities Act, if you need special assistance, a disability-related modification or accommodation, agenda materials in an alternative format, or auxiliary aids to participate in this meeting, please contact the Office of the City Clerk at 530-326-7516 or [email protected] as soon as possible.
Providing at least 72 hours’ notice will help ensure that reasonable arrangements can be made.
Mt. Shasta City Council Regular Meeting October 28, 2024 3 Mt. Shasta City Council Regular Meeting DRAFT Minutes
Monday, October 14, 2024; 5:30 p.m.
City Park Upper Lodge, 1315 Nixon Road, Mt. Shasta
“Our mission is to maintain the character of our “small town” community while striking an appropriate balance between economic development and preservation of our quality of life. We help create a dynamic and vital City by providing quality, cost-effective municipal services and by forming partnerships with residents and organizations in the constant pursuit of excellence.”
STANDING AGENDA ITEMS
1. Call to Order and Flag Salute: At the hour of 5:30 p.m. Mayor Pro Tem Redmond called the meeting to order and led the audience in the flag salute.
2. Roll Call:
Council Members Present: Clure, Collings, Redmond, Stearns Council Members Absent: Stackfleth
3. Special Presentation: None
4. Public Comment: No public comment.
5. Council and Staff Comments:
Todd Juhasz, City Manager – Update on the Chestnut properties, the Landing, the Housing Element, upcoming objective design standards, outdoor dining ordinance, and an update on the old hospital property.
Clarifying questions from Council.
Ken Kellogg, Public Works Director – Update on the wastewater treatment plant.
6. Committee Updates: No committee updates.
a) Downtown Enhancement Advisory Committee
b) Library Tax Advisory Committee
c) Beautification Committee
d) Active Transportation Committee
CITY COUNCIL BUSINESS
Mt. Shasta City Council Regular Meeting October 28, 2024 4 City of Mt. Shasta Regular City Council Meeting Minutes Monday, October 14, 2024
7. Consent Agenda:
COUNCIL ACTION: Approved the following Consent Agenda items. All Resolutions and Ordinances on this agenda, or added hereto, shall be introduced or adopted, as applicable, by title only, and the full reading thereof is hereby waived.
a. Approval of Minutes: September 23, 2024
b. Approval of Disbursements: Accounts Payable: 9/20, 9/23, 9/26, and 10/7/2024; Total Gross Payroll and Taxes: For Periods Ending 9/15 and 9/29/2024
c. Authorizing the Director of Finance to Certify to the County Auditor the City’s Maintenance of Effort for Proposition 172 Public Safety Funds
d. Subrecipient Agreement Between The City Of Mt. Shasta And the Jefferson Economic Development Institute (JEDI) For City Of Mt. Shasta Community Development Block Grant 2024 Economic Development Program
e. Resolution CCR-24-30, A Resolution in Support of Proposition 36, the Homelessness, Drug Addiction, and Theft Reduction Act
f. Community Development Block Grant Mt. Shasta 2024 Economic Development Program Memorandum Of Understanding
g. Police Department Monthly Report September 2024
COUNCIL ACTION: Approve items a-g with an amendment to item d, modifying the execution date of the JEDI agreement to October 14, 2024
MOTION TO APPROVE: Clure
SECOND: Stearns
AYES: Collings, Stearns, Clure, Redmond
NOES: None
ABSENT: Stackfleth
ABSTAIN: None
8. Visit Mt. Shasta Revised Proposals
Todd Juhasz, City Manager – Review of staff report, previous presentations and attempts to contact presenters.
Clarifying questions from Council.
No public comment.
COUNCIL ACTION: Approve the proposed scope of work option at $3200 per month to Josh Thomas for a oneyear period of time.
MOTION: Stearns
SECOND: Collings
AYES: Redmond, Collings, Stearns, Clure
NOES: None
ABSENT: Stackfleth
ABSTAIN: None
Mt. Shasta City Council Regular Meeting October 28, 2024 5 City of Mt. Shasta Regular City Council Meeting Minutes Monday, October 14, 2024
9. Discussion and Possible Action: Process of and Cost Recovery for Snow Removal in the Downtown Todd Juhasz, City Manager – Review of staff report, current cost of sidewalk snow removal, ongoing Municipal Code review by the City Attorney.
Clarifying questions from Council and discussion with staff.
No public comment.
COUNCIL ACTION: Table the item to a future date.
MOTION: Collings
SECOND: Clure
AYES: Redmond, Collings, Stearns, Clure
NOES: None
ABSENT: Stackfleth
ABSTAIN: None
10. Discussion and Possible Action: Hiring of a Labor Relations Consultant to Review Memorandums of Understanding and Conduct Negotiations with the Four Union Shops Todd Juhasz, City Manager – Review of staff report, previous union negotiation discussions, California labor law, and the need for a professional to review irregularities in existing MOU’s.
No public comment.
Council and staff discussion.
COUNCIL ACTION: Staff authorized to proceed via Council consensus, changing the date of the agreement to October 14, 2024.
11. Reports on Outside Meetings: None
12. Future Agenda Items (Appearing on the agenda within 60-90 days):
COUNCIL ACTION: Reviewed items a through g. No changes or additions. a. Discussion of Potential Purchase of Unpaved Parcels at 415 N. Chestnut – 10/2024 b. Objective Design Standards Presentation/Discussion – 10/28/2024 c. Ordinance Amendment: Encroachments onto City Property – 10/28/2024 d. Adoption of the Enhanced Infrastructure Financing District – 11/12/2024 e. Beautification Committee Presentation to Council – TBD f. Survey of Washington Avenue – TBD
g. Discussion and Possible Action: Rental, Lease, or Purchase of Lot Located at the northwest corner of Alma and N. Mt. Shasta Blvd – TBD
Future Agenda Items Over 90 Days:
13. Adjourn: There being no further business, the meeting was adjourned at 6:20 p.m.
Respectfully Submitted By: Kathryn M. Joyce, Administrative Assistant/Deputy City Clerk Mt. Shasta City Council Regular Meeting October 28, 2024 6 City Council Agenda Item #7b
Staff Report
Meeting Date: October 28, 2024
To: Mayor and City Council
From: Malisa Dodd, Finance Director
Subject: Approval of Warrants and Payroll
Recommendation:
Staff requests the Mayor and City Council Approve warrants paid including payroll benefits and withholding, and payroll distribution, in the amount of $268,722.11.
Background & Summary:
Approval of Check Numbers 52950-52984 $ 111,037.52
Total Payroll Distribution $ 88,503.40
Total EFTPS – CalPERS, Nationwide, child support $ 27,823.67 Total Payroll EFTPS Taxes $ 41357.52
$ 268,722.11
Financial Impact:
Expenditures are consistent with the Budget that the City Council has adopted.
Attachments:
1.) Check Registers – 10/17/2024
2.) ACH Payroll Distribution – 10/17/2024
3.) EFTPS Reports – Payroll/CalPERS – 10/17/2024
Regular
x Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting October 28, 2024 7 Accounts Payable
User:
Printed:
[email protected]
10/22/2024 7:32 AM
Checks by Date - Summary by Check Number
Check No Vendor No Vendor Name Check Date Check Amount
52950 300131 AceK9 10/17/2024 931.24
52951 10338 APEX TECHNOLOGY MANAGEMENT 10/17/2024 1,887.18 52952 10404 AT&T 10/17/2024 543.29
52953 11042 TROY BAINBRIDGE 10/17/2024 450.00
52954 11156 YOLANDE DIEDRE BELL 10/17/2024 160.40
52955 300134 Buzy Bee Paving Company 10/17/2024 750.00
52956 12152 CALIFORNIA BUILDING STANDARDS COMMISSION 10/17/2024 80.00 52957 12200 CALIFORNIA SAFETY COMPANY 10/17/2024 225.00 52958 300133 Capital Meeting Planning, Inc. 10/17/2024 350.00 52959 12842 CROWN MOTORS 10/17/2024 156.16
52960 13180 DEPT OF CONSERVATION 10/17/2024 199.15
52961 13251 DEVELOPMENT COMPLIANCE SOLUTIONS 10/17/2024 7,440.00 52962 13198 DIVISION OF THE STATE ARCHITECT 10/17/2024 198.00 52963 14140 DON ERICKSON OIL INC 10/17/2024 399.53
52964 15030 FERGUSON ENTERPRISES, INC. #1423 10/17/2024 316.16 52965 15031 FERGUSON WATERWORKS FEI #3011 10/17/2024 370.94 52966 15221 FRIENDS OF THE MT SHASTA LIBRARY10/17/2024 16,548.00 52967 300132 Green DOT Transportation Solutions 10/17/2024 1,123.25 52968 18063 INTERSTATE BATTERY 10/17/2024 553.01
52969 22140 KENNY & NORINE 10/17/2024 351.05
52970 22059 MERCY MEDICAL CENTER - CASHIER 10/17/2024 39.00 52971 22200 MT. SHASTA CHAMBER OF COMMERCE10/17/2024 16,250.00 52972 23023 NATIVE GROUNDS NURSERY AND LANDSCAPE INC 10/17/2024 275.00 52973 24000 OFFICE DEPOT 10/17/2024 59.26
52974 24033 OREILLY AUTOMOTIVE INC 10/17/2024 21.48
52975 11140 PACE ANALYTICAL SERVICES LLC 10/17/2024 10,328.14 52976 25020 PACE ENGINEERING INC 10/17/2024 28,202.15
52977 25080 PACIFIC POWER & LIGHT 10/17/2024 163.58
52978 25126 PETERSON MACHINERY CO 10/17/2024 55.39
52979 28372 SISKIYOU COUNTY ECONOMIC DEVELOPMENT COUNCIL 10/17/2024 3,000.00 52980 28686 MICHAEL STASZEL DO 10/17/2024 125.00
52981 30069 US BANK CORPORATE PAYMENT SYS 10/17/2024 10,296.44 52982 31023 VALLEY PACIFIC PETROLEUM 10/17/2024 8,373.87 52983 31031 VESTIS 10/17/2024 537.86
52984 300117 Westesco 10/17/2024 277.99
Report Total (35 checks): 111,037.52
AP Checks by Date - Summary by Check Number (10/22/2024 7:32 AM) Page 1 Mt. Shasta City Council Regular Meeting October 28, 2024 8 Mt. Shasta City Council Regular Meeting October 28, 2024 9 Mt. Shasta City Council Regular Meeting October 28, 2024 10 Mt. Shasta City Council Regular Meeting October 28, 2024 11 Mt. Shasta City Council Regular Meeting October 28, 2024 12 Mt. Shasta City Council Regular Meeting October 28, 2024 13 Mt. Shasta City Council Regular Meeting October 28, 2024 14 City Council Agenda Item # 7c
Staff Report
Meeting Date: October 28, 2024
To: Mayor and City Council
From: Malisa Dodd, Director of Finance
Subject: Revenue Status Update, Monthly Investment and Financial Report for the Period Ending September 30, 2024
Recommendation:
Staff respectfully requests the City Council review the provided information regarding the City’s revenue and investments.
Background & Summary:
Revenues:
Revenue for this report has been updated to recognize the collections for July and August 2024.
Property Tax Revenue:
The City has not received property tax revenue as of this report for FY24-25.
Sales Tax Revenue:
The City has received $283,932 through August 3,1 2024 in sales tax for fiscal year 2024-2025.
The budgeted amount was $1,760,000 for the fiscal year. The actual result is about $9,400 less than what was budgeted for this reporting period. The prior year balance was $1,631,309.
Transient Occupancy Tax:
The city has begun to receive a small portion transient occupancy tax for the quarter as of this reporting period.
As of September 30, 2023, the combined funds the City of Mt. Shasta had invested in the Local Agency Investment Fund (L.A.I.F.) totaled $259,782.64. The August 2024 LAIF statement is attached, along with the performance data as of October 16, 2024. Most surplus funds over which the City has control are currently invested in ProEquities. The balance of the City’s cash funds are held in the pooled checking account with Tri Counties Bank and LAIF.
Regular
X Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting October 28, 2024 15 2 Current investment rates are:
L.A.I.F. September 30, 2024 4.575%
Treasury Note – 3 month September 30, 2024 5.12%
Treasury Note – 2 Yr. September 30, 2024 3.92%
Treasury Note – 5 Yr. September 30, 2024 3.70%
Treasury Note – 10 Yr. September 30, 2024 3.90%
Treasury Note – 30 Yr. September 30, 2024 4.20%
Bloomberg as reported by Chandler Asset Management
The LAIF average decreased slightly from last month, all notes decreased slightly as well. We continue to anticipate the LAIF rate slowly increasing staying just above 4%. The LAIF rate remains the best available rate that meets the City’s requirement for liquidity and safety.
Financial Impact:
The investments are in compliance with the City’s investment policy and provides for meeting the City’s cash flow needs for the next month and 6 month periods.
Compliance with 2014-17 City Council Strategic Plan:
The City Council’s leadership efforts to ensure adherence to the best possible financial practices and overall transparency falls under Strategic Focus IV – Grow Mt. Shasta Pride and Quality and the Municipal Responsibilities of Progressive Leadership and Financial Health and Economic Opportunity.
Attachments:
• LAIF Monthly Statement
• LAIF Performance Report
• LAIF Monthly Balances
2024 Chandler Asset Management September 2024
Mt. Shasta City Council Regular Meeting October 28, 2024 16
!
"
# $#%&%'("(
# )*+,-./0010203 456789:;
<=655>;?@A;=9BCDEFGH;EIJ KLMN)OPMQRSQMS TLUVKM)U)OOLWSWKV X2YW)UMRPMQRSQMSZ[\T PMQRSQMS1KS]^2^_ `aabcdefcghijk]lm3_mY_0 Q.n+.o-./0203Q+p+.o.q+ rsturvwxyxz{u{|{}u~ `aabcdecggj M,+pT.n,+ 222Z.qqqZppq*.
0Y]1_l0^3 M,+p+/pp
222 VqqZppq*.
0Y]1_l0^3
Mt. Shasta City Council Regular Meeting October 28, 2024 17 Carrying Cost Plus
Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest United States Treasury:
Bills 37,219,132,119.94 $ 37,611,761,722.45 $ 37,649,874,730.00 $ NA Notes 52,438,209,673.44 $ 52,431,249,843.99 $ 52,628,447,237.50 $ 338,916,414.00 $ Federal Agency:
SBA 234,789,566.25 $ $ 234,789,566.25 $ 239,688,922.19 $ 1,137,293.83 MBS-REMICs $ 1,343,330.39 $ 1,343,330.39 $ 1,333,133.17 $ 5,860.17 Debentures $ 8,551,295,296.41 $ 8,550,807,275.58 $ 8,572,162,650.00 $ 88,174,874.00 Debentures FR $ - $ - $ - $ -
Debentures CL $ 1,900,000,000.00 $ 1,900,000,000.00 $ 1,915,595,500.00 $ 23,839,290.00 Discount Notes $ 27,802,855,756.89 $ 28,183,541,083.32 $ 28,201,570,100.00 NA Supranational Debentures $ 3,045,579,031.00 $ 3,045,427,121.27 $ 3,058,954,350.00 $ 30,087,194.50 Supranational Debentures FR $ - $ - $ - $ -
CDs and YCDs FR $ - $ - $ - $ -
Bank Notes $ - $ - $ -
CDs and YCDs $ 14,150,000,000.00 $ 14,150,000,000.00 $ 14,167,238,042.50 $ 234,857,430.54 Commercial Paper $ 9,817,309,625.04 $ 9,932,313,000.02 $ 9,943,126,375.07 NA Corporate:
Bonds FR $ - $ - $ - $ -
Bonds $ 841,781,179.90 $ 841,450,311.84 $ 839,516,915.00 $ 7,674,799.03 Repurchase Agreements $ - $ - $ - $ -
Reverse Repurchase $ - $ - $ - $ -
Time Deposits $ 5,149,000,000.00 $ 5,149,000,000.00 $ 5,149,000,000.00 NA PMIA & GF Loans $ 419,106,000.00 $ 419,106,000.00 $ 419,106,000.00 NA TOTAL $ 161,570,401,579.26 $ 162,450,789,255.11 $ 162,785,613,955.43 $ 724,693,156.07 Fair Value Including Accrued Interest $ 163,510,307,111.50 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
The value of each participating dollar equals the fair value divided by the amortized cost (1.002061084).
As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $20,041,221.68 or $20,000,000.00 x 1.002061084.
State of California
Pooled Money Investment Account
Market Valuation
9/30/2024
Mt. Shasta City Council Regular Meeting October 28, 2024 18 September 4.575
August 4.579
July 4.516
June 4.480
May 4.332
April 4.272
LAIF Apportionment Rate(2): 4.71
LAIF Earnings Ratio(2): 0.00012912073474208
LAIF Administrative Cost(1)*: TBD
PMIA Average Life(1): 231
LAIF Fair Value Factor(1): 1.002061084
PMIA Daily(1): 4.58
PMIA Quarter to Date(1): 4.56
Treasuries
55.49%
Agencies
25.71%
Certificates of
Deposit/Bank Notes
8.76%
Time
Deposits
3.19%
Commercial
Paper
6.08%
Corporate
Bonds
0.51%
Loans
0.26%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.
Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 10/16/24
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 09/30/24
Chart does not include $1,343,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.
Pooled Money Investment Account
Monthly Portfolio Composition (1)
9/30/24
$161.6 billion
Mt. Shasta City Council Regular Meeting October 28, 2024 19 DAX
FTSE (UK)
Nikkei
S&P 500
NASDAQ
Hang Seng
DOW JONES
World Stock Market Indices
Recent economic data suggests positive but slower growth this year fueled by consumer spending. While the consumer has been resilient, declining savings rates, growing credit card debt, higher delinquencies, and a moderating labor market pose potential headwinds to future economic growth. Inflationary trends are subsiding, but core levels remain above the Fed’s target. The labor market is showing signs of cooling, reflecting an improved balance between supply and demand for workers. Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will begin lowering interest rates at upcoming meetings with pace and magnitude determined by the incoming data.
At the July meeting, the Federal Open Market Committee (FOMC) voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%. Although this was the eighth straight meeting the committee left the overnight rate unchanged, they noted that risks to achieving their employment and inflation goals are moving “into better balance”. In addition, the FOMC adjusted their evaluation of the labor market pointing out that job gains have moderated.
The market is now pricing in more aggressive easing in the coming months.
The US Treasury yield curve shifted significantly lower in August as economic data continued to moderate. The 2-year Treasury yield fell 34 basis points to 3.92%, the 5-year Treasury dropped 21 basis points to 3.70%, and the 10-year Treasury yield declined 13 basis points to 3.90%. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -2 basis points at August month-end versus -23 basis points at July month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -75 basis points. The inversion between 3-month and 10-year Treasuries ended the month of August at -121 basis points.
In August, the downward trend in yields observed in the bond market over the past three months continued. Treasury yields declined across the yield curve as the first interest rate cut in the federal funds rate by the Federal Reserve in 2024 is widely anticipated to be announced at the September FOMC meeting. Chair Jerome Powell’s remarks following the 2024 Economic Policy Symposium in Jackson Hole, Wyoming were perceived as particularly dovish as he chose not to counter market expectations for near-term rate cuts. This sentiment is supported by continued cooling of inflation and normalization of the labor market, which has brought inflationary pressures and labor market risks into closer alignment. Investors are now factoring in a 0.25-0.50% rate cut at the September FOMC meeting, with further reductions expected through early 2025. Despite the prevailing dovishness in the market, Chair Powell reiterated that rate cuts will depend on incoming economic data, stating, “the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks.”
Market Summary
BOND MARKET REVIEW
A M o n t h l y R e v i e w o f F i x e d I n c o m e M a r k e t s September 2024
(Japan)
(Germany)
(Hong Kong)
TREASURY YIELDS Trend 8/30/24 7/31/24 Change
Chandler Asset Management | 800.317.4747 | chandlerasset.com | Page 1 5,648.40
8,376.63
17,713.62
41,563.08
18,906.92
17,989.07
126.10
8.65 644.47
114.22
398.27
720.29
data as of 08/30/2024
Change
(7/31/2024)
2.28%
0.10%
2.15%
Source: Bloomberg. Please see
descriptions of indices on Page 2.
1.76%
0.65%
%CHG
3.72%
3-Month
2-Year
3-Year
5-Year
7-Year
10-Year
30-Year
5.12 3.92
3.78 3.70
3.80 3.90
4.20 -0.17
-0.34
-0.28
-0.21
-0.15
-0.13
-0.11
Source: Bloomberg
Market Data
Toll Free: 800.317.4747
[email protected]
chandlerasset.com
Source: Bloomberg
(▲/▼)
▼
TREASURY YIELDS FELL IN AUGUST
38,647.75 (454.07) -1.16%
5.29 4.26
4.06 3.91
3.95 4.03
4.30 ▼
▼
▼
▼
▼
▼
Mt. Shasta City Council Regular Meeting October 28, 2024 20 Economic Roundup
Retail Sales
Labor Market
Housing Starts
Consumer Prices
Crude Oil prices Fell in August
Credit spreads where unchanged in August
ECONOMIC INDICATOR
Trade Balance
Gross Domestic Product
Unemployment Rate
Prime Rate
Refinitiv/CoreCommodity CRB Index
Oil (West Texas Int.)
Consumer Price Index (y/o/y)
Producer Price Index (y/o/y)
Euro/Dollar
CREDIT SPREADS
3-month top rated commercial paper
2-year A corporate note
5-year A corporate note
5-year Agency note
Spread to Treasuries
(%) 5.24
0.48 0.65
0.11 One Month Ago
(%) 5.34
0.46 0.66
0.09 Change
(0.10)
0.02 (0.01)
0.02 Chandler Asset Management | 800.317.4747 | chandlerasset.com | Page 2 Housing starts were down 6.8% month-over-month in July to 1.238 million units, with the decline attributable to weak single-family home starts. Total starts were down 16.0% year-over-year. The Freddie Mac average rate for a 30-year fixed mortgage edged down to 6.35% in August from 6.85% in July. According to the Case-Shiller 20-City Home Price Index, housing prices rose 6.5% year-over-year in June, decelerating from 6.9% reported in the previous month. Tight inventories and higher mortgage rates continue to impact affordability.
The U.S. economy added 142,000 jobs in August, below expectations of 165,000. The three-month moving average and six-month moving average payrolls continued to trend weaker to 116,000 and 163,000 respectively. The unemployment rate increased to 4.2% in August, and the labor participation rate remained at 62.7%, remaining below the pre-pandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, rose to 7.9% from 7.8%. Average hourly earnings rose 3.8% year-over-year in August. The labor markets continue to show signs of cooling, in line with the Federal Reserve’s view that there has been “substantial” progress toward better balance in the labor market between demand and supply for workers.
Retail Sales grew more than expected month-over-month in July at 1.0% after a downwardly revised -0.2% in June. On a year-over-year basis, Retail Sales growth increased to 2.7% in July from 2.0% in June. Auto sales bounced back sharply after a cyberattack on dealerships caused a sizable decline in June. Control-group sales, which are used to calculate gross domestic product, rose 0.3% in July, down from June’s 0.9% increase. The Conference Board’s Consumer Confidence Index rose to 103.3 in August, up from July’s upwardly revised 101.9 reading. Both the present situation index and expectations index improved. While the consumer has been resilient, consumption has begun to moderate in the face of declining savings rates, growing credit card debt, higher delinquencies, and a moderating labor market.
In August, the Consumer Price Index (CPI) rose 0.2% month-over-month and 2.5% year-over-year, down from 2.9% in July, largely due to a drop in gasoline prices. The Core CPI, which excludes volatile food and energy components, rose more than expected in August by 0.3% month-over-month and 3.2% year-over-year. The Personal Consumption Expenditures (PCE) Index rose 0.2% from the previous month and
2.5% year-over-year in July. The Core PCE deflator (the Fed’s preferred gauge) increased 0.2% month-over-month and 2.6% over the past year, still above the Fed’s 2% inflation target. Much of the lingering inflation has been driven by shelter costs and demand for services, but recent data provide confirmation that inflation is moderating.
BOND MARKET REVIEW
World Stock Market Index Descriptions
S&P 500–The S&P 500 is a market value-weighted index of 500 large-capitalization stocks. The 500 companies included in the index capture approximately 80% of available US market capitalization.
NASDAQ–The NASDAQ Composite Index is the market capitalization-weighted index of over 3.300 common stocks listed on the NASDAQ stock exchange. Dow Jones–The Dow Jones Industrial Average is an index that tracks 30 large, publicly-owned companies trading on the New York Stock Exchange and the NASDAQ. The Financial Times Stock Exchange Group (FTSE)–The FTSE is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization. DAX–The Deutscher Aktienindex (DAX) is a blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. Hang Seng–The Hang Seng Index is a freefloat-adjusted market-capitalization- weighted stock market index in Hong Kong.
It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of overall market performance in Hong Kong. Nikkei–Japan's Nikkei 225 Stock Average is a price-weighted index composed of Japan's top 225 blue-chip companies traded on the Tokyo Stock Exchange. © 2024 Chandler Asset Management, Inc. An Independent Registered Investment Adviser. Data source: Bloomberg, Federal Reserve, and the US Department of Labor. This report is provided for informational purposes only and should not be construed as specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as an indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation, or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest rate, credit, and market risk. Interest rate risk: The value of fixed income investments will decline as interest rates rise.
Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low-rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk.
Market risk: the bond market, in general, could decline due to economic conditions, especially during periods of rising interest rates. The S&P Corelogic Case-Shiller home price index tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the nation.
Source: Bloomberg
Source: Bloomberg.
Data as of 08/30/2024
Since 1988, Chandler
Asset Management
has specialized in
providing fixed
income investment
solutions to risk-averse
public agencies and
institutions. Chandler’s
mission is to provide
fully customizable
client-centered portfolio
management that
preserves principal,
mitigates risk, and
generates income in
our clients’ portfolios.
Current Release
(64.61) $B ln JULY 31
2.10% JUNE 30
3.80% AUG. 31
8.50% AUG. 31
281.91 AUG. 31
$83.63 AUG. 31
3.70% AUG. 31
2.10% AUG. 31
1.08 AUG. 31
(73.02) $B ln JUNE 30
3.00% JUNE 30
4.30% JULY 31
8.50% JULY 31
278.12 JULY 31
$77.91 JULY 31
2.90% JULY 31
1.80% JULY 31
1.08 JULY 31
Prior Release
(78.79) $B ln JULY 31
3.00% JUNE 30
4.20% AUG. 31
8.50% AUG. 30
277.03 AUG. 30
$73.55 AUG. 30
2.50% AUG. 31
0.20% AUG. 31
1.10 AUG. 30
One Year Ago
Mt. Shasta City Council Regular Meeting October 28, 2024 21 CITY OF MT. SHASTA
STAFF REPORT
TO: City Council
FROM: Ken Kellogg, Public Works Director
DATE: October 28, 2024
SUBJECT: First Reading
Amendment - Mt Shasta Municipal Code Chapter 12.34
DESCRIPTION
Consideration of an Ordinance (Attachment A) amending Mt Shasta Municipal Code Chapter
12.34 to clarify provisions related to sidewalk dining.
RECOMMENDATION
Conduct a Public Hearing and introduce the attached draft Ordinance and waive its reading, finding that the action does not meet the definition of a “project” under the California Environmental Quality Act (CEQA), adding item (J) to Section 12.34.030 as follows:
Section 12.34.030 Administrative Permits. The following encroachment permits may be issued by the Director of Public Works, according to standards and procedures to be specified by him or her, and on such terms and conditions as he or she may deem appropriate for the protection of the public safety and convenience:
(J) Temporary encroachments requested by owners of food establishments for the placement of movable chairs and tables along establishment frontage only for sidewalk dining maintaining a minimum 4' clear path, subject to approval by the Director of Public Works.
A minimum distance of not less than four feet wide pedestrian travel aisle shall be maintained in the public right-of-way at all times. Additionally, all sidewalk dining areas shall be set back a minimum of five and one-half feet from the edge of the curb or as approved by the Public Works Director, where parking is available adjacent to said curb, and any fixed sidewalk obstruction including, without limitation, curb lines, tree wells, street trees, fire hydrants, light poles, utility equipment boxes, newspaper racks and benches.
Sidewalk dining areas shall not intrude on pedestrian “clear zones” at corners, and thus shall be set back a minimum of 10 feet from any crosswalk, driveway or alley. Sidewalk dining areas shall not interfere with curbs, ramps or driveways, as determined by the Public Works Director.
Mt. Shasta City Council Regular Meeting October 28, 2024 22
ENVIRONMENTAL REVIEW
The action fails to meet the two-part test for a “project” under CEQA. Though a discretionary act, adoption of the ordinance to permit tables and chairs on sidewalks as regulated constitutes activity not capable of causing a direct or reasonably foreseeable indirect physical change in the environment as the ordinance does not concentrate, nor shift property uses within the City of Mt Shasta.
ATTACHMENTS:
A. Ordinance CCO-24-XX
Mt. Shasta City Council Regular Meeting October 28, 2024 23 ORDINANCE CCO-24-XX
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF MT SHASTA
AMENDING MUNICIPAL CODE CHAPTER 12.34
WHEREAS, in 1996, the City Council adopted Ordinance CCO-96-03 regulating encroachments onto public property; and
WHEREAS, since that time, the City has experienced an increase in restaurant demand for additional outdoor seating; and
WHEREAS, the existing provisions in Chapter 12.34 lack specificity and clarity related to outdoor dining regulations; and
WHEREAS, this amendment explicitly conveys permission for outdoor dining while complying with accessibility law; and
WHEREAS, the draft amendments were released to the public for review on the City’s website and published in the Mt Shasta Herald on October 16, 2024; and WHEREAS, on October 28, 2024, the City Council discussed amendments to the Encroachments onto City Property Ordinance; and
WHEREAS, during its review, the City Council considered the public record, including the staff report, findings, and any written materials and testimony presented by the public during the hearing; and WHEREAS, to ensure public health and safety, the City Council does desire to enact the following regulations related to mobile food vending; and
WHEREAS, the action fails to meet the two-part test for a “project” under CEQA. Though a discretionary act, adoption of the ordinance to permit tables and chairs on sidewalks as regulated constitutes activity not capable of causing a direct or reasonably foreseeable indirect physical change in the environment as the ordinance does not concentrate, nor shift property uses within the City of Mt Shasta.
NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of Mt. Shasta does amend the Mt. Shasta Municipal Code Section 12.34.030 to read as follows:
Section 12.34.030 Administrative permits
(J) Temporary encroachments requested by owners of food establishments for the placement of movable chairs and tables along establishment frontage only for sidewalk dining maintaining a minimum 4' clear path, subject to approval by the Director of Public Works.
A minimum distance of not less than four feet wide pedestrian travel aisle shall be maintained in the public right-of-way at all times. Additionally, all sidewalk dining areas shall be set back a minimum of five and onehalf feet from the edge of the curb or as approved by the Public Works Director, where parking is available adjacent to said curb, and any fixed sidewalk obstruction including, without limitation, curb lines, tree wells, street trees, fire hydrants, light poles, utility equipment boxes, newspaper racks and benches.
Sidewalk dining areas shall not intrude on pedestrian “clear zones” at corners, and thus shall be set back a minimum of 10 feet from any crosswalk, driveway or alley. Sidewalk dining areas shall not interfere with curbs, ramps or driveways, as determined by the Public Works Director.The foregoing Ordinance was adopted at the regular meeting of the City Council of Mt Shasta held on this 28th day of October 2024 by the following vote:
AYES:
NOES:
ABSENT:
Mt. Shasta City Council Regular Meeting October 28, 2024 24 ABSTAIN:
DATED:
ATTEST: CITY OF MT SHASTA
Kathryn M Joyce, Deputy City Clerk John Stackfleth, Mayor FORM APPROVED:
John Sullivan Kenny, City Attorney
CERTIFICATION
I HEREBY CERTIFY that the foregoing Ordinance CCO-24-XX was introduced at a regular meeting of the Mt Shasta City Council on the 28th day of October 2024, and was adopted at a regular meeting of said Council on the ___ day of _____ 2024.
Kathryn M Joyce, Deputy City Clerk
Mt. Shasta City Council Regular Meeting October 28, 2024 25 City Council Agenda Item #9
Staff Report
Meeting Date: 10/28/2024
To: Mayor and City Council
From: Todd Juhasz, City Manager
Subject: Consider whether to purchase or lease two parcels at 415 N. Chestnut Recommended Action: Consider whether to purchase, lease, or forgo the use of two unpaved parcels located at 415 N. Chestnut.
Background:
In February of 2024, Council directed staff to sub-lease three parcels located at 415 N. Chestnut Street to perform commercial appraisals on the parcels as well as to complete a Phase I Environmental investigation. Two of the parcels are undeveloped and unpaved (057-191-180, 157- 191-150). The third parcel, numbered 057-191-170, has a structure that housed an automotive repair business.
The Phase 1 Environmental report indicated that the former auto repair shop (APN-191-170) has significant environmental issues. Estimates for the clean-up of the property would cost approximately $500,000 with the potential that the costs might climb once excavation and remediation was started. It was also determined that the property had a negative assessed value.
In June, Council voted not to purchase the structure.
The two unpaved parcels located at 415 N. Chestnut Street (APNs 191-150 and 191-180) were previously used as a parking lot to store vehicles in varying states of repair. These lots were also evaluated as part of the Phase 1 report and it was determined that petroleum-based hydrocarbons were found in the soil, consistent with many other unpaved parking lots.
The City was asked by Council to consider the potential of purchasing the parcels for overflow parking. These parking lots would be part of the proposal to daylight Castle Creek and the reconfiguration of Chestnut and N. Mt Shasta Boulevard to one-way streets. Purchasing the parcels to use for parking does not pose environmental liability for the City, but it was suggested by the engineering firm, Enplan, to conduct a Ground Penetrating Radar study that no underground storage tanks are present. Taking ground water samples to establish whether petroleum-based hydrocarbons were present was also suggested. Ground penetrating radar was conducted and no tanks were found. Borings for ground water sampling was done on August 14th and the City completed ground water testing and it was found that it was free from contamination.
X Regular
Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting October 28, 2024 26 The original sub-lease expired at the end of August of 2024. At Council’s direction, the sub-lease was extended for another six months in order to complete a commercial appraisal for the property for another six months.
The commercial appraisal is complete showing the value of the parcels with or without contamination. If the parcels were not contaminated and could be used at their highest and best use under applicable zoning, the two parcels are valued at $100,000. Taking into account that the two parcels are contaminated, and the estimated clean-up cost is $500,000, the MAI appraisal for the parcels is $0. However, Council has asked that staff convey the results of the appraisal to the owner and see what they are willing to sell the properties for or the minimum consideration for a long-term lease.
After numerous discussions, the owner is unwilling to sell the parcels for less than $80,000 despite the evidence that this amount is well in excess of its value. In terms of leasing the property, he is unwilling to consider leasing to the City unless it’s for a minimum term of ten years at the rate of $900 with a 2% escalator per year.
The decision at hand is how important is it for the City to have site control of these properties in the face of a sale price and lease fee that is well in excess of the value of the two properties?
Mt. Shasta City Council Regular Meeting October 28, 2024 27
APPRAISAL REPORT
MT. SHASTA BROWNELL CONTAMINATED VACANT PARCELS
057-191-150 AND 057-191-180,
MT. SHASTA, CALIFORNIA
SUBMITTED TO:
CITY OF MOUNT SHASTA, C/O TODD JUHASZ (CITY
MANAGER)
305 N. MT. SHASTA BLVD,
MT. SHASTA, CA 96067
PREPARED BY:
RYAN VALUATION SERVICES
PO BOX 994226
REDDING, CALIFORNIA
(530) 224-6744
Mt. Shasta City Council Regular Meeting October 28, 2024 28 October 11st, 2024
City of Mt Shasta, c/o Todd Juhasz (City Manager)
305 N. Mt. Shasta Blvd,
Mt Shasta, CA 96067
Re: Mt. Shasta Brownell Vacant Parcels
057-191-150 and 057-191-180
Mount Shasta, California
RVS Reference: 24-010 – 057-191-150 and 057-191-180
Brownell Vacant Parcels, Mt. Shasta
Dear Todd Juhasz:
As requested, we have prepared an appraisal report of the subject property referenced above. We have inspected the subject and analyzed the market conditions in the subject’s market area of Mount Shasta, California. The client has requested an opinion of the market value of the fee simple interest in the subject property in the as-is condition. The subject consists of two adjacent properties with a total of 7,509 SF (0.17 acres) vacant parcels. One parcel APN 057-191-150 consists of 2,505 SF and the other APN 057- 191-180 consists of 5,004 SF. The subject is currently owned by Alan Eugene Brownell.
The subject consists of two adjacent commercial vacant parcels. Phase I environmental report was provided by the client and there is hazardous material contamination on the subject property and the improved property adjacent to the subject. According to the environmental analysis, there was a 300- gallon waste oil aboveground storage tank (AST) installed adjacent to the southwestern end of the building on the improved parcel around 1982. A 550-gallon stove oil underground storage tank (UST) was also closed in place and filled with sand slurry in January 1988. In addition, a 550-gallon waste oil UST was closed in place and filled with concrete slurry in November 1988. The subject property soil was also contaminated by the hazardous material. According to the client, a percolation test was conducted for the underground water resource, and the soil was not affected by the contamination. The analyses and value opinion in the appraisal are based on the data available to the appraiser at the time of the assignment and apply only as of the effective date indicated. An estimated cleanup cost of $100,000 for the subject parcels was provided by the client from a certified company, Terra Tactix, Inc. We have made the extraordinary assumption in our value assessment that the estimated cost to clean-up the environmental contamination provided by the client is accurate. We have also made the extraordinary assumption that the environmental contamination will not impose any stigmatization after the cleanup is completed. Use of this assumption may have affected the assignment results. If these assumptions are found to be false, the value conclusion could change.
Mt. Shasta City Council Regular Meeting October 28, 2024 29 Based on our analysis, it is our opinion that the market value of the fee simple interest of the subject property as of 10/1/2024 is:
Opinion of Market Value, As Is Condition, 10/1/2024
$0
This appraisal report is completed in accordance with the 2024 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Furthermore, this report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an appraisal report. The opinion of market value is premised upon the Assumptions and Limiting Conditions contained within this report.
Documentation concerning the data, reasoning, and analysis is maintained in the appraiser’s files. The depth of discussion contained in this report is specific to the intended use of the client. The appraiser is not responsible for unauthorized use of this report. The intended use and user of the report is specifically identified in the report as agreed on in the engagement contract for appraisal services. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to non-client, non-intended users does not extend reliance to any other party and Ryan Valuation Services will not be responsible for unauthorized use of the report, its conclusions or contents used partially or in its entirety.
We have not performed any appraisal assignments involving the subject for three years prior to the date of value. Charles W. Ryan, MAI and Fei Du have completed the requirements under the continuing education program of the Appraisal Institute.
Sincerely,
Charles W. Ryan, MAI Fei Du
CA Cert. No. AG 006156 CA License No.: TA3009834
Expiration: June 25, 2024 Expiration: March 16, 2026
Mt. Shasta City Council Regular Meeting October 28, 2024 30
TABLE OF CONTENTS
24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[4]
CERTIFICATION STATEMENT ...............................................................................................................6 CERTIFICATION STATEMENT...............................................................................................................7 SUMMARY OF FACTS AND CONCLUSIONS...........................................................................................8 SCOPE OF WORK................................................................................................................................9 SUBJECT OF THE APPRAISAL.................................................................................................................... 9 CLIENTS .............................................................................................................................................. 9 INTENDED USE OF THE APPRAISAL ........................................................................................................... 9 INTENDED USER OF THE APPRAISAL ......................................................................................................... 9 APPRAISAL PROBLEM ............................................................................................................................ 9 DEFINITION OF MARKET VALUE ............................................................................................................10 CASH EQUIVALENCY............................................................................................................................11 PROPERTY RIGHTS APPRAISED ..............................................................................................................11 PERTINENT DATES ..............................................................................................................................11 LEGAL DESCRIPTION............................................................................................................................11 OWNERSHIP ......................................................................................................................................11 SALE HISTORY OF SUBJECT PROPERTY ....................................................................................................12 PRIOR APPRAISALS..............................................................................................................................12 EXPOSURE TIME ................................................................................................................................. 12 SUBJECT INFORMATION...................................................................................................................13 SUBJECT DESCRIPTION.........................................................................................................................13 SUBJECT LOCATION.............................................................................................................................13 GENERAL PLAN & ZONING ...................................................................................................................14 ASSESSOR PARCEL MAP, LAND SIZE, & CONFIGURATION ..........................................................................14 TAXES AND ASSESSMENTS....................................................................................................................15 TOPOGRAPHY & DRAINAGE..................................................................................................................17 FLOOD ZONE .....................................................................................................................................17 EASEMENTS AND ENCUMBRANCES ........................................................................................................18 UTILITIES...........................................................................................................................................18 ACCESS .............................................................................................................................................18 SOIL & SUBSOIL ................................................................................................................................. 18 EARTHQUAKE FAULT-RUPTURE HAZARD AND SEISMIC HAZARD ZONES........................................................18 HAZARDOUS WASTE ...........................................................................................................................18 PERSONAL PROPERTY ..........................................................................................................................19 AMERICANS WITH DISABILITIES ACT.......................................................................................................19 MARKET AREA ANALYSIS .....................................................................................................................20 NEIGHBORHOOD ANALYSIS ..................................................................................................................21 HIGHEST AND BEST USE .................................................................................................................23 SALES COMPARISON APPROACH ......................................................................................................24 COMPARABLE SALES DISCUSSION..........................................................................................................28 PROPERTY RIGHTS, FINANCIAL TERMS AND CONDITIONS OF SALE ...............................................................29 MARKET CONDITIONS .........................................................................................................................29 PHYSICAL ELEMENTS OF COMPARISON...................................................................................................30 Mt. Shasta City Council Regular Meeting October 28, 2024 31
TABLE OF CONTENTS
24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[5]
OVERALL COMPARABLES RANKING ..................................................................................................30 ADDENDA ........................................................................................................................................32 SUBJECT PHOTOS ...............................................................................................................................33 ENGAGEMENT LETTER .........................................................................................................................34 GREENWAY PROJECT PRELIMINARY ANALYSIS..........................................................................................36 ENVIRONMENTAL I ANALYSIS................................................................................................................58 SISKIYOU COUNTY ZONING MAP...........................................................................................................81 UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS..........................................................................82 QUALIFICATIONS OF CHARLES W. RYAN, MAI................................................................................84 APPRAISER LICENSE ............................................................................................................................85 QUALIFICATIONS OF FEI DU ...........................................................................................................86 APPRAISER LICENSE.............................................................................................................................87 Mt. Shasta City Council Regular Meeting October 28, 2024 32 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[6]
CERTIFICATION STATEMENT
I certify that, to the best of my knowledge and belief:
▪ The statements of fact contained in this report are true and correct. ▪ The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
▪ I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. ▪ I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within a three-year period immediately preceding acceptance of this assignment.
▪ I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment.
▪ My engagement in this assignment was not contingent upon developing or reporting predetermined results.
▪ My 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 consulting assignment. ▪ The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.
▪ The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
▪ I have made a personal inspection of the property that is the subject of this report. ▪ Fei Du provided significant real property appraisal assistance to the person signing this certification.
▪ As of the date of this report, I Charles W. Ryan, MAI have completed the continuing education program of the Appraisal Institute.
_________________________ Date: 10/11/2024
Charles W. Ryan MAI
CA License No.: AG006156
Expiration: June 25, 2024
Mt. Shasta City Council Regular Meeting October 28, 2024 33 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[7]
CERTIFICATION STATEMENT
I certify that, to the best of my knowledge and belief:
▪ The statements of fact contained in this report are true and correct. ▪ The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
▪ I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. ▪ I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within a three-year period immediately preceding acceptance of this assignment.
▪ I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment.
▪ My engagement in this assignment was not contingent upon developing or reporting predetermined results.
▪ My 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 consulting assignment. ▪ The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.
▪ I have made a personal inspection of the property that is the subject of this report. ▪ I assisted with general market analysis, data collection, neighborhood analysis, subject analysis, highest and best use, sales comparison approach for the property and the land (property data search, data analysis, ranking and adjustment grids, inspection of the subject and the comparable properties), and reconciliation of value with the assistance and direct supervision of Charles Ryan.
_________________________ Date: 10/11/2024
Fei Du
CA License No.: TA3009834
Expiration: March 16, 2026
Mt. Shasta City Council Regular Meeting October 28, 2024 34 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[8]
SUMMARY OF FACTS AND CONCLUSIONS
Assignment: Contaminated Commercial Vacant Land
Location: 057-191-150 and 057-191-180
Mt Shasta, California 96067
Interest Appraised: Fee Simple Interest
Highest and Best use (As if Vacant): Owner/user development of commercial space Highest and Best use (As Improved): N/A
VALUATION SUMMARY
Sales Comparison Approach: As-Is $0
OPINION OF MARKET VALUE: AS-IS CONDITION, 10/2/2024 $0
Land Description
ECT PHOTOGRAPHS
Assessor’s Parcel Number: 057-191-150 and 057-191-180
Site Area: Total Site Area: 7,509 SF (0.17 acres), 2,505 SF and 5,004 SF Zoning: C-1, Downtown Commercial District
Flood Zone: Zone X, Other Flood Areas “areas outside of the 0.2% annual chance flood”, as shown on FEMA FIRM Flood Panel No.:
06093C 3025D dated January 19, 2011.
Improvement Description (As-Is)
Property Type: Commercial Vacant Land
Improvements will be discussed in greater detail later in this report.
Extraordinary Assumptions
The subject consists of two adjacent commercial vacant parcels. We were provided with an Environmental I Analysis report for the subject parcels and the improved parcel adjacent to the subject. According to the Environmental Analysis report, there are both known and unknown hazardous material contaminants present in the soil at the subject property and the property adjacent to the subject. The estimated cost of remediation of the subject parcel is in the $100,000 range, according to the information provided by the client from a certified provider, Terra Tactix, Inc. We have made the extraordinary assumption in our value assessment that the estimated cost to clean-up the environmental contamination provided by the client is accurate.
We have also made the extraordinary assumption that the environmental contamination will not impose any stigmatization after the cleanup is completed. Use of this assumption may have affected the assignment results. If these assumptions are found to be false, the value conclusion could change.
Hypothetical Conditions
None.
Mt. Shasta City Council Regular Meeting October 28, 2024 35 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[9]
SCOPE OF WORK
SUBJECT OF THE APPRAISAL
The subject is two adjacent commercial vacant parcelsin the downtown commercial zoned district located in the north of the incorporated city limits of Mt. Shasta, Siskiyou County, California. The common street addresses are 057-191-150 and 057-191-180, Mt. Shasta, CA 96067.
CLIENTS
The City of Mount Shasta, C/O Todd Juhasz (City Manager) 305 N. Mt. Shasta Blvd,
Mt Shasta, CA 96067
INTENDED USE OF THE APPRAISAL
Provide an opinion of the market value of the subject property as of 10/1/2024 for subject acquisition.
INTENDED USER OF THE APPRAISAL
The intended user of the report is the client, the City staff via Todd Juhasz, John Kenney (City Attorney), Tom Hesseldenz (Consulting landscape Architect), and City Councial and Committee members, John Stackfleth (Mayor) and Tessa Clure.
APPRAISAL PROBLEM
The client has requested an appraisal report. Supporting documentation is retained in the Ryan Valuation Services work file. The client is the potential developer of the subject property. The purpose of the appraisal is to provide an opinion of the market value of the subject property in the “As-Is” condition. The appraiser’s performed the following:
• Inspection of the subject site and collection of necessary data; • Gathering information by inspecting the subject’s neighborhood; • Reconciling the estimated highest and best use of the subject; • Selection of sales and leases of comparable properties and verifying pertinent information;
• Analyzing all information collected through application of the sales comparison to arrive at an opinion of market value;
• And set forth the conclusions in an appraisal report format for the client’s particular needs.
The subject was inspected on 10/1/2024. Physical measurements were provided by the Siskiyou County Assessor. The level of inspection was limited to walking around the property and observing and measuring the site. The nature of the inspection is to collect information about the physical characteristics of the property. The inspection is not meant to certify the condition of any of the improvements or functionality of any of the mechanical systems. All measurements were taken in the field and matched data from the Siskiyou County Assessor.
The subject is currently vacant with plans for development that involves and impacts the property by Siskiyou County. The subject consists of two adjacent parcels with a total area of 7,509 SF (0.17 acres). The site is zoned C-1, Downtown Commercial district. The City has detailed plans for the Mt. Shasta City Council Regular Meeting October 28, 2024 36 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[10]
development that involves and impacts the properties, including the subject, along the Shasta Creek. The plan details are attached in the Greenway Project Preliminary Analysis, which can be found in the addendum section of this report. The local market would not rely upon cost approach and income approach for valuation purposes. These were not considered applicable approaches and were not developed. The only applicable approach to value the vacant subject property is the sales comparison approach. The client requested a fee simple analysis.
Data was sufficient to limit data searches to the Mt Shasta and Redding areas. Comparable data was gathered from Siskiyou County MLS, Shasta County MLS, Loopnet, ParcelQuest, local area brokers, and buyers/sellers involved in the transactions.
For the sales comparison approach we identified similar properties in the market area that have transferred ownership. Ideally, properties that have a similar highest and best use and share similar physical characteristics have sold and can be discovered. These properties are analyzed and compared to the subject property. All were inspected in the field and by pictures from MLS where available. When exact comparable properties cannot be located, sale properties are adjusted for inferior and superior characteristics to assist in estimating a value for the subject property. Sufficient data was found in the local market to arrive at a credible indication of value through the sales comparison approach.
This appraisal report is completed in accordance with the 2024 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Furthermore, this report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an appraisal report and is in accordance with the requirement of Title IX of the Financial Institution Reform, Recovery and Enforcement Act (FIRREA) and the Interagency Appraisal and Evaluation Guidelines (effective December 10, 2010) and any supplemental requirements of Cornerstone Community Bank. The opinion of market value is premised upon the Assumptions and Limiting Conditions contained within this report.
Documentation concerning the data, reasoning, and analysis is maintained in the appraiser’s files.
The depth of discussion contained in this report is specific to the intended use of the client. The appraiser is not responsible for unauthorized use of this report. The intended use and user of the report is specifically identified in the report as agreed on in the engagement contract for appraisal services. No other use or user of the report is permitted by any other party for any other purpose.
Dissemination of this report by any party to non-client, non-intended users does not extend reliance to any other party and Ryan Valuation Services will not be responsible for unauthorized use of the report, its conclusions or contents used partially or in its entirety.
DEFINITION OF MARKET VALUE
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:
Mt. Shasta City Council Regular Meeting October 28, 2024 37 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[11]
• Buyer and seller are typically motivated;
• Both parties are well informed or well advised, and acting in what they consider their best interests;
• A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
• The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.” (12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, August 9, 1994) As is market value is defined by the Appraisal Institute as follows:
The estimate of market value of real property in its current physical condition, use and zoning as the appraisal date.
CASH EQUIVALENCY
The market value of the subject property is reported in many ways: (1) cash, (2) terms of financial arrangement equivalent to cash, or (3) other precisely defined terms. Our value estimate assumes terms of financial arrangements equivalent to cash. Adjusting for odd financing varying from cash equivalency is completed when necessary. Cash equivalency analysis is: “A price expressed in terms of cash, as distinguished from a price expressed totally or partly in terms of the face amounts of notes or other securities that cannot be sold at their face amounts. Calculating the cashequivalent price requires an appraiser to compare transactions involving atypical financing to transactions involving comparable properties financed at typical market terms.”
PROPERTY RIGHTS APPRAISED
We appraised the fee simple interest in the subject property. The Dictionary of Real Estate Appraisal, 7th Edition defines fee simple estate as: “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.”
PERTINENT DATES
Date of Inspection: 10/1/2024
Date of Value: 10/1/2024
Date of Report: 10/11/2024
LEGAL DESCRIPTION
No preliminary title report was provided. For purposes analysis, the subject is identified by Siskiyou County Assessor Parcel Number 057-191-150 and 057-191-180.
OWNERSHIP
The subject land is currently owned by Alan Eugene Brownell, according to the Officials at the Assessor Records of Siskiyou County, California.
Mt. Shasta City Council Regular Meeting October 28, 2024 38 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[12]
SALE HISTORY OF SUBJECT PROPERTY
There have been no listings or sales transactions involving the subject for the prior three years from the date of this report.
PRIOR APPRAISALS
Fei Du and Charles Ryan performed an appraisal for the subject property on 3/26/2024 under the extraordinary assumptions of the parcel were free and clear from any hazardous contamination.
We have performed no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within a three-year period immediately preceding acceptance of this assignment.
EXPOSURE TIME
The Appraisal Institute defines exposure time as:
"The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market."
Current market conditions indicate that the subject’s hypothetical exposure time would be in the 1 to 3 years range.
Mt. Shasta City Council Regular Meeting October 28, 2024 39 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[13]
SUBJECT INFORMATION
SUBJECT DESCRIPTION
The subject property is located just east of downtown in the incorporated city limits of Mount Shasta, Siskiyou County, California. The property has Parcel Numbers of 057-191-150 and 057- 191-180 and addresses of 057-191-150 and 057-191-180, Mt. Shasta, CA 96067. The two parcels are contiguous. The subject is surrounded by retail services, offices, and restaurants, with single family homes and apartments further east. The subject is just east of the N. Mt. Shasta Boulevard corridor and north of the E. Lake Street corridor.
APN Land Area
057-191-150 2,505 SF
057-191-180 5,004 SF
Total SF 7,509 SF
Total AC 0.17 Acre
SUBJECT LOCATION
The subject location is shown on the following map.
Mt. Shasta City Council Regular Meeting October 28, 2024 40 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[14]
GENERAL PLAN & ZONING
The general plan dictates general land uses in an area with zoning further restricting allowable uses. Zoning further defines uses, such as exact permitted uses and development requirements.
The general plan land use for the subject property is Commercial Center and the subject area is zoned C-1, Downtown Commercial District. Mt. Shasta City Zoning Map is attached in the addendum section. The City of Mt. Shasta describes the C-1 district as follows:
The purpose of the Downtown Commercial zoning district is to serve the commercial land use within the downtown of the city. The C-1 zone achieves multiple land use goals for the business community allowing the most flexibility in design and land use. Understanding that the downtown is the most urban area in this rural community, this district allows for the most intense land use coverage. Parking, the current use, is an outright permitted use in this district.
ASSESSOR PARCEL MAP, LAND SIZE, & CONFIGURATION
We have relied upon data reported by the Siskiyou County Assessor’ Office. The subject is identified as Parcel 057-191-150 and 057-191-180 and is approximately 7,509 SF (0.17 acres) with one parcel consists of 2,505 SF and the other 5,004 SF. The overall site is rectangular in shape as shown on the Assessor Parcel Map.
Mt. Shasta City Council Regular Meeting October 28, 2024 41 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[15]
TAXES AND ASSESSMENTS
In 1978, California voters passed Proposition 13. All parcels were effectively reappraised to 1975 base year market values. If the property is transferred to a new owner or substantially altered through remodeling or addition, it is reappraised at market value. Otherwise, the original 1975 market values can be increased only approximately two percent per year. The basic tax rate is 1% of market value plus special assessments. Bonds bring the tax rate to 1.08% of market value.
Mt. Shasta City Council Regular Meeting October 28, 2024 42 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[16]
Mt. Shasta City Council Regular Meeting October 28, 2024 43 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[17]
TOPOGRAPHY & DRAINAGE
The parcel is generally flat in topography and graded to divert storm water away from improvements into storm drains on the site which connected to City of Mount Shasta drains.
FLOOD ZONE
The subject is located in FEMA designated flood Zone X, Other Flood Areas “areas outside of the
0.2% annual chance flood”, as shown on FEMA FIRM Flood Panel No.: 06093C 3025D dated January 19, 2011. Flood insurance does not appear to be needed. Given the physical limitations of the Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps (FIRM), the flood zone determination of this report may vary from that identified by way of a formal survey produced by an engineering firm with expertise in the field.
Mt. Shasta City Council Regular Meeting October 28, 2024 44 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[18]
EASEMENTS AND ENCUMBRANCES
No preliminary title report was provided. Typical public utility easements are assumed to be in place. The property being appraised is assumed to be unencumbered from any negative liens or other restrictions.
UTILITIES
All public utilities are available on the site. Water, Sewer, and garbage services are provided by the City of Mt. Shasta at the lot line. Pacific Power provides electrical services. Phone and cable services are provided by AT&T.
ACCESS
The subject parcels shared a curb cut on Chestnut Street with an adjacent improved parcel. The frontage area along Chestnut Street is fully improved with curbs, gutters and sidewalks that extend to the intersection of E. Castle Street to the south and the intersection of E. Alma Street to the north. Both, E. Castle Street and E Alma Street, are publicly maintained asphalt roadways.
Access is adequate for most commercial related users.
SOIL & SUBSOIL
Phase I environmental report was provided by the client indicating that there is soil contamination present on the subject property. Environmental I Analysis details are addressed in the following hazardous waste section, which would affect valuation of the property. We assume no responsibility for such conditions or for engineering required to discover such factors. We assume the load bearing qualities of the soil are adequate for the subject's use. Neither the individuals completing this report nor Ryan Valuation Services have any liability for the identification of environmental concerns except as defined in applicable industry standards.
EARTHQUAKE FAULT-RUPTURE HAZARD AND SEISMIC HAZARD ZONES The Alquist-Priolo Earthquake Fault Zoning Act (1972) and the Seismic Hazards Mapping Act (1990) direct the California State Geologist to delineate regulatory “Zones of Required Investigation” to reduce the threat of to public health and safety and to minimize the loss of life and property posed by earthquake-triggered ground failures. Based on information published by the State of California Department of Conservation the subject is not located in either hazard area.
HAZARDOUS WASTE
Phase I environmental report was provided by the client and there is hazardous material contamination on the subject property and the improved property adjacent to the subject.
According to the environmental analysis, there was a 300-gallon waste oil above ground storage tank (AST) installed adjacent to the southwestern end of the building on the improved parcel around 1982. A 550-gallon stove oil underground storage tank (UST) was also closed in place and filled with sand slurry in January 1988. In addition, a 550-gallon waste oil UST was closed in place and filled with concrete slurry in November 1988. The subject property soil was also contaminated by the hazardous material. According to the client, a percolation test was conducted for the underground water resource, and the soil was not affected by the contamination. The analyses and value opinion in the appraisal are based on the data available to the appraiser at the time of the assignment and apply only as of the effective date indicated.
A estimated cleanup cost of $100,000 for the subject parcels was provided by the client from a Mt. Shasta City Council Regular Meeting October 28, 2024 45 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[19]
certified company, Terra Tactix, Inc. We have made the extraordinary assumption in our value assessment that the estimated cost to clean-up the environmental contamination provided by the client is accurate. We have also made the extraordinary assumption that the environmental contamination will not impose any stigmatization after the cleanup is completed. Use of this assumption may have affected the assignment results. If these assumptions are found to be false, the value conclusion could change.
PERSONAL PROPERTY
No personal property is included in the opinion of value rendered in this report.
AMERICANS WITH DISABILITIES ACT
The Americans with Disabilities Act (ADA) became effective January 26, 1992. Ryan Valuation Services has not made a specific compliance survey and analysis of this property to determine whether it is in conformance with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of ADA could reveal that the property is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative effect on the value of the subject property. We have no direct evidence relating to this issue, nor are we qualified to make such as assessment. The effect of any possible non-compliance with the requirements of the ADA was not considered in our opinion of value of the subject.
Mt. Shasta City Council Regular Meeting October 28, 2024 46 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[20]
MARKET AREA ANALYSIS
The subject property is located in the city of Mt. Shasta in Siskiyou County, California. The city is a mountain community that primarily serves the local population and relies heavily upon seasonal tourism and travelers navigating Interstate 5 for economic activities. The City has detailed plans for the development that involves and impacts the properties, including the subject, along the Shasta Creek. The plan details are attached in the Greenway Project Preliminary Analysis, which can be found in the addendum section of this report.
The following table identifies population trends in Siskiyou County and all incorporated cities from 1/1/2014 through 1/1/2024.
COUNTY/CITY 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 1/1/2024 Siskiyou County
Dorris 961 967 967 966 988 994 859 859 843 839 836
Dunsmuir 1,623 1,626 1,621 1,612 1,652 1,653 1,705 1,704 1,672 1,663 1,651 Etna 733 737 735 733 744 744 684 684 671 668 665
Fort Jones 710 712 710 710 678 674 694 694 681 678 674
Montague 1,446 1,447 1,446 1,441 1,366 1,359 1,230 1,231 1,208 1,203 1,199 Mount Shasta 3,365 3,370 3,362 3,355 3,397 3,407 3,244 3,245 3,188 3,215 3,203 Tulelake 1,006 1,009 1,007 1,002 921 911 901 899 882 878 870 Weed 2,952 2,700 2,759 2,805 2,724 2,748 2,902 2,825 2,815 2,693 2,710 Yreka 7,797 7,815 7,811 7,777 7,795 7,795 7,781 7,772 7,732 7,825 7,805 Balance Of County 24,216 24,347 24,304 24,287 24,330 24,304 24,076 24,018 23,948 23,886 23,796 Incorporated 20,593 20,383 20,418 20,401 20,265 20,285 20,000 19,913 19,692 19,662 19,613 County Total 44,809 44,730 44,722 44,688 44,595 44,589 44,076 43,931 43,640 43,548 43,409
POPULATION TRENDS, SISKIYOU COUNTY
Population countywide had been stagnant between 2014 to 2019 and decreased slightly since 2020 due to the Covid-19 Pandemic over the next three years and recovered slightly starting 2023.
Population growth in Mt. Shasta followed a similar pattern as the county. Population growth is anticipated to recover to the pre-Covid Pandemic population.
From the State of California EDD: “The unemployment rate in the Siskiyou County was 6.1 percent in November 2023. It is much below the estimate of 10.7 percent in the beginning of 2021. This compares with an unadjusted unemployment rate of 4.6 percent for Siskiyou County, California.” The spike in the unemployment rate is a result of the shutdowns of many businesses by the State of California in March 2020 as a result of COVID-19. The current employment in Siskiyou County is trending just above the state and the US average for unemployment. The unemployment rate has fallen after COVID-19. The unemployment rate for Siskiyou County was at 6.6 percent as of current 2024.
Mt. Shasta City Council Regular Meeting October 28, 2024 47 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[21]
In the winter of 2022/2023 and 2023/2024, the Mt. Shasta Ski Park received enough snow to open and reportedly had very good years. Because of this, motels, restaurants and retailers also had their good years and promoted Mt. Shasta economy recovery since Covid-19.
NEIGHBORHOOD ANALYSIS
The subject is located on Chestnut Street, half mile east of Interstate 5. This is the primary exit for Mt. Shasta, with a four-way interchange on I-5. It is also just west of North Mt. Shasta Boulevard, which extends into the central town of Mt. Shasta. The south of the subject is the Lake Street corridor, there are three convenience stores with nationally branded fuel, Burger King, and the Black Bear Diner. Off West Lake Street on Morgan Way is a neighborhood shopping Center anchored by Rays Grocery store and the Best Western Tree House Hotel.
The neighborhood is considered to be the major retail corridor on or near this interchange. Along Mount Shasta Boulevard, the strip mall is anchored by several major retailers along with numerous local businesses, restaurants, and other services. The subject is neighboring retailspaces to the north and south side and restaurants / food services to the east and west side.
The Mount Shasta Boulevard corridor is one of the busiest in the City of Mount Shasta. The corridor is mostly developed with no significant vacant lots remaining for development. Due to I-5 influence, there are many national retailers and restaurant users in the immediate area of the subject. The subject has been rented by long-term tenants.
Through inspections and observations of the local area, the area has very few rental units available, supporting the conclusion of the estimated local retail vacancy rate of 2 to 3 percent standard market vacancy turnover rate. The market supplies an efficient number of sales that are comparable to the subject in the immediate surrounding area, which indicates similar units in the area have quick absorption rates and an average market sales time of six months to one year. The downtown area is mostly developed with very few opportunities for new development and no immediate development is expected to occur for the immediate area in the near future.
Mt. Shasta City Council Regular Meeting October 28, 2024 48 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[22]
Retail space in this prime location typically commands either triple net lease terms or gross lease with tenants paying for utilities and interior maintenance. Rent concessions have been less common as the market has strengthened.
In conclusion the overall local market has improved, but the economy of Mt. Shasta City is heavily dependent on seasonal tourism. The strength of the subject is the North Mt. Shasta Boulevard corridor, East / West Lake Street corridor, and neighboring commercial businesses targeting travelers.
This trend should continue for the foreseeable future.
Mt. Shasta City Council Regular Meeting October 28, 2024 49 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[23]
HIGHEST AND BEST USE
“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 legal permissibility, physical possibility, financial feasibility, and maximum productivity.” Highest and Best Use as if Vacant
The subject is zoned C-1, Downtown Commercial district. The C-1 district is a flexible commercial district with a multitude of commercial and industrial uses allowed. The subject is located near a major corridor of retail/commercial properties to the east and west side of the North Mount Shasta Boulevard. Properties in the immediate neighborhood have been developed to multiple uses, which include retail, retail / pharmacy, office, and service-related uses.
The subject comprises approximately 7,509 square feet of developable land. All public and private utilities are available to the site. Good transportation linkages provide physical access to the site.
The physical characteristics and size of the parcel is sufficient for many of the legally permissible uses in the C-1 zoning district.
The local market is improving with increased tourism because of favorable weather conditions.
The local economy depends heavily on seasonal tourism in addition to the local population. The Siskiyou County population has steadied since the recovery from the Covid-19 pandemic. In addition, Northern California has recently experienced several significant wildfires, which caused the increased demand for additional residential and commercial spaces in this region. With this increasing demand, many developers have interest in and development plans for the region, including Siskiyou County. The subject is located in a robust commercial corridor, which attracts significant freeway travelers. Given the current economic conditions and increasing demand for vacant commercial land, a range of projects are likely to be financially feasible. However, the subject has hazardous contamination, which could incur high remediation cost, in addition to the uncertainty that may arise from the contamination stigma, and as a result, few projects would likely be financially feasible. The property is currently used as a parking lot and the City of Mt Shasta also has plans to improve the parking area to benefit the city.
The area around the subject is fully developed. The maximally productive use of the land is for some form of legally permitted retail / commercial / service either for an owner user or as a build to suit project for a tenant use, under the condition that the subject undergoes remediation and with the assumption that the contamination will not leave any lingering stigma after the cleanup.
Limited supply of similar properties for rent and the quick absorption rate for the sales of similar properties are direct market evidence of financial feasibility. However, under the current subject condition, the maximally productive use of the land is for some form of legally permitted parking for public use or for low density downtown commercial uses. Timing for parking lot development is immediate. The highest and best use as if vacant in current subject condition is speculative for legally permitted parking or low density downtown commercial uses.
Mt. Shasta City Council Regular Meeting October 28, 2024 50 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[24]
SALES COMPARISON APPROACH
The Sales Comparison Approach is utilized to arrive at an opinion of market value by comparing other similar properties to the subject that have recently transferred in the same marketplace. We have narrowed the selection to comparable sales that we conclude form the best supported bracketed range of price per unit indicators around the subject. # APN Address/Location City Recording
Date Sale Price Zoning Utilities Land Area SF
Land
Area AC
Price Per
Lot
# 057-191-150, 180 057-191-150, 180 Mt Shasta C-1 All public 7,509 0.17 1 057-272-160 Parcel A Berry St Mt Shasta 12/18/2023 $65,000 C/R Public water and electric, Sewer 8,276 0.19 $65,000.00
2 116-170-005 11080 Rhyolite Dr Redding 4/28/2023 $48,000 GC All utilities availble at the lotline 9,360 0.21 $48,000.00
3 057-311-180 803 S Mt Shasta Blvd Mt Shasta 12/4/2023 $334,000 C-2 Public water and electric, Sewer 165,528 3.80 $334,000.00
4 037-420-070 Lot 7 Gateway Park Mt Shasta 6/26/2022 $110,000 C1 Electricity at the lotline 45,302 1.04 $110,000.00
5 070-290-079 3371 Bechelli Ln Redding 5/9/2023 $47,000 GC All utilities availble at the lotline 13,939 0.32 $47,000.00
COMPARABLE SALES SUMMARY
Mt. Shasta City Council Regular Meeting October 28, 2024 51 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[25]
SALES COMPARABLE LOCATION MAP
Mt. Shasta City Council Regular Meeting October 28, 2024 52 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[26]
Mt. Shasta City Council Regular Meeting October 28, 2024 53 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[27]
1 Comparable Sale No. 1 Comparable Sale No. 2
Comparable Sale No. 3 Comparable Sale No. 4
Comparable Sale No. 5
Mt. Shasta City Council Regular Meeting October 28, 2024 54 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[28]
COMPARABLE SALES DISCUSSION
Comparable one (APN 057-272-160, Doc # 2023-8914; Buyer: Wylie Clifton R Living Trust; Seller:
Myers Family Trust) is a 8,391 SF site located just west of Mt. Shasta Boulevard and just south of West Lake Street. This property consists of vacant land with a small creek, partial wood fencing, and no frontage improvements. The site had been mostly cleared with the exception of a few selected trees at the time of the sale, and is zoned for commercial and high-density residential use. It also mostly has gentle topography with all utilities available to the site. This was a cash transaction.
Comparable two (APN 116-170-005, Doc # 2023-8731; Buyer: Ingdom Properties LLC; Seller:
Randall W. Smith) is a 9,148 SF of vacant lot with full frontage improvements, including curb and sidewalk. The site is located just south of Highway 299 and west of I-5 in north Redding. The site is zoned GC, General Commercial, and this area is generally recognized as a commercial area in north Redding with publicly maintained roads. The site has partial chain link fencing and gentle topography with heavy vegetation and trees. All utilities are available to the site. This was an all cash to seller transaction with a $48,000 Private loan.
Comparable three (APN 057-311-180, Doc # 2023-8647; Buyer: Shasta Grove LLC; Seller: James L.
Tolosano) is a 3.80 acres site consisting of vacant land with full frontage improvements. The site is located on the west side of Mt. Shasta Blvd and Ream Ave intersection. The property is zoned C-2, General Commercial outside of the downtown area district. The site has flat topography with few trees and vegetation on the north side, partial metal pole and wire fencing, and with all utilities available to the site at the lot line. According to the selling agent, there were several improvement structures, including a 1,800 SF single-family home and two storage buildings, in obsolete condition on the parcel at the time of the sale and all were demolished immediately after the purchase by the buyer for a cost of approximately $30,000. This was a cash transaction.
Comparable four (APN 037-420-070, Doc # 2022-5094; Buyer: Chad T. Lanier and Elaine M. Lanier; Seller: Enloe Donald 2014 Living Trust) is a 1.04 acre of vacant land with curb improvement. The site is located just south of Highway-89 and east of the I-5 and Highway-89 junction. The property is zoned C1, General Commercial district. The neighborhood is consisted of residential homes, offices, and warehouses. The site has mostly gentle topography with some large boulders at the north of the property line. The site also has a view of Mt. Shasta. The property has electricity available to the lot line but requires well and septic. This was a cash transaction.
Comparable five (APN 070-290-079-000, Doc # 2023-9572; Buyer: Mauricio V. Borges and Ariane Fleiderman; Seller: Aalfs Family Trust) is a 13,939 SF site located on the west side of I-5 and south of Hartnell Aveune. The site is zoned GC, General Commercial district and the general neighborhood consists of business services, restaurants, schools, and offices. There are also several residential areas to the east of the property. The site has partial fencing at the east side of the property line and full frontage improvements. The west side of the property has gentle topography with a small patch of graveled area and rolling hill topography with heavy vegetation and trees at the east side of the property. All utilities are available at the property line. This was an all cash to seller transaction with a $7,000 Private loan.
Mt. Shasta City Council Regular Meeting October 28, 2024 55 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[29]
SUBJECT Sale 1 Sale 2 Sale 3 Sale 4 Sale 5
057-191-150,
180 Parcel A Berry St 11080 Rhyolite
Dr
803 S Mt Shasta
Blvd
Lot 7 Gateway
Park 3371 Bechelli Ln
Sale Price $65,000 $48,000 $334,000 $110,000 $47,000
Lot Area 7,509 8,276 9,360 165,528 45,302 13,939
Sale Date 12/18/2023 4/28/2023 12/4/2023 6/26/2022 5/9/2023 Sale Price/ Lot $65,000.00 $48,000.00 $334,000.00 $110,000.00 $47,000.00 Property Rights Fee Simple Similar Similar Similar Similar Similar Financing Cash Equiv. Similar Similar Similar Similar Similar Conditions of
Sale Arm's Length Similar Similar Similar Similar Similar Adjustment $0 $0 -$30,000 $0 $0
Market
Conditions 3/26/2024 Similar Similar Similar Similar Similar Location Mt Shasta Slightly Inferior Similar Similar Slightly Inferior Similar Orientation Similar Similar Similar Similar Similar
View Average Similar Similar Similar Superior Similar
Creek No Superior Similar Similar Similar Similar
Utilities All Public Similar Similar Similar Slightly Inferior Similar Fencing Partial Fencing Similar Slightly Inferior Similar Slightly Inferior Similar Visibility Good Similar Slightly Inferior Similar Slightly Inferior Similar Curb Side
Improvements Yes Inferior Similar Similar Slightly Inferior Similar Topography Flat Slightly Inferior Slightly Inferior Similar Similar Inferior Vegetation and
Trees None Inferior Slightly Inferior Slightly Inferior Similar Inferior Lot size Similar Similar Superior Slightly Superior Similar Overall
comparsion Inferior Inferior Superior Slightly Superior Inferior Adjusted Sale
Price $65,000 $48,000 $304,000 $110,000 $47,000
RANKING AND ADJUSTMENT GRID
PROPERTY RIGHTS, FINANCIAL TERMS AND CONDITIONS OF SALE All of the comparables have similar property rights, fee simple or leased fee, compared to the subject. Since the property rights can be easily converted from leased fee to fee simple in this case, there are no adjustments required for property rights for any of the sales. All were cash equivalent sales and all were arm’s length transactions. None of the sales required adjustments for conditions of sale.
MARKET CONDITIONS
The subject is a vacant commercial parcel. Comparables used are found in immediate neighborhood and near by city of Redding to keep the comparables in a similar demographic compared to the subject. The closed comparable sales transferred ownership between 6/26/2022 and 12/18/23. The type of property similar to the subject showed limited fluctuation in sales price during this time frame; therefore, there are no adjustments required for market conditions for any of the sales.
Mt. Shasta City Council Regular Meeting October 28, 2024 56 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[30]
PHYSICAL ELEMENTS OF COMPARISON
The subject is located just east of Interstate 5 in west Mt. Shasta with frontage on Chestnut Street.
Vacant properties similar to the subject in the immediate neighborhood are somewhat limited due to the small size town and the lack of small parcels in the downtown area similar to the subject. However, all the comparables selected are located either in the immediate neighborhood or in nearby cities with similar property sales market and property usage to the subject property.
All criteria were qualitatively compared to the subject. Comparables one, three, and four are located in the City of Mt. Shasta with comparable three in the closest proximity to the subject.
Comparables one and four are in less populated areas of Mt. Shasta, closer to the outskirts of the city, and are ranked slightly inferior in this criterion compared to the subject. Comparable one also has slightly inferior topography with heavy vegetation and trees that would need to be cleared before development. It has similar utilities availability, fencing, visibility, and lot size compared to the subject. Though it includes a seasonal running creek on the property, comparable one is on balance ranked inferior to the subject overall. Comparable two has similar location, orientation, views, utilities availability at the site, lot size, and curb improvements compared to the subject, but with slightly inferior visibility and topography including some vegetation and trees that need to be cleared before development, it is ranked slightly inferior overall compared to the subject. Comparable three is the most similar in location compared to the subject, along with similarities in most of the characteristics of the subject parcel. However, it has a much larger lot size, which is significantly superior compared to the subject; therefore, it is ranked superior overall. Comparable four is located at the border of South Mt. Shasta. The area has much lower population density and traffic compared to the downtown area where the subject is located. In addition to a slightly inferior location, it also has slightly inferior visibility, fencing, and curbside improvements, with no fencing on site and only curb improvements for this parcel. Comparable four is also ranked inferior in utilities, as it needed septic and well. However, with a superior view of the Mountain Shasta and larger lot size, comparable four ranked slightly superior overall compared to the subject. Comparable five is located in southeast Redding at a major business district on Bechelli Lane, which has similar visibility and a similar local economy compared to the subject. It is ranked similarly in location, orientation, view, lot size, and curb improvements compared to the subject. It has inferior topography and vegetation and trees criteria compared to the subject; therefore, it is ranked overall inferior to the subject.
OVERALL COMPARABLES RANKING
The adjusted comparable sales are shown in the table below.
Mt. Shasta City Council Regular Meeting October 28, 2024 57 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[31]
# APN Address/Locati
on City Recording Date
Sale
Price Zoning Utilities Land Area
SF
Land Area
AC
Price Per
Lot
3 057-311-180 803 S Mt Shasta
Blvd Mt Shasta 12/4/2023 $334,000 C-2 Public water and electric, Sewer 165,528 3.80 $304,000 4 037-420-070 Lot 7 Gateway
Park Mt Shasta 6/26/2022 $110,000 C1 Electricity at the lotline 45,302 1.04 $110,000
057-191-150,
180
057-191-150,
180 Mt Shasta C-1 All public 7,509 0.17
1 057-272-160 Parcel A Berry St Mt Shasta 12/18/2023 $65,000 C/R Public water and electric, Sewer 8,276 0.19 $65,000
2 116-170-005 11080 Rhyolite Dr Redding 4/28/2023 $48,000 GC All utilities availble at the lotline 9,360 0.21 $48,000
5 070-290-079 3371 Bechelli Ln Redding 5/9/2023 $47,000 GC All utilities availble at the lotline 13,939 0.32 $47,000
RANKING COMPARABLE SALES SUMMARY
Comparable three set the high end of the range. It is included in the analysis due to its proximity to the subject, but the high overall price per lot is reflective of its large parcel size. No weight was given to this sale. Adjusted comparables one, two, four and five are reflective of commercial vacant land with characteristics similar to the subject, including similar characteristics, zoning district, and land use. All comparables characteristics that influence the assessment of value were qualitatively compared to the subject. The sales had a wide range overall from $47,000 to $304,000 per lot, but the subject was adequately bracketed in between comparable one and four within a much tighter range, from $65,000 to $110,000 per lot. Comparable four were given primary weight since it is the most similar to the subject. A value in the $100,000 per lot range is supported by this analysis.
According to the environmental analysis, there are both known and unknown hazardous material contaminants present in the soil at the subject property. Detailed analysis is provided in the prior Hazadous Waste section of the report. The estimated cost of remediation ranged from $500,000 to $600,000 for both of the subject vacant parcel and the improved parcel adjacent to the subject, according to the information provided to us by the client from a certified provider, Terra Tactix, Inc. According to the same provider, the estimated cleanup cost of the improved parcel alone is ranged between $400,000 and $500,000. Therefore, we estimated the cleanup cost of the subject by taking the difference between the two quotes, and a cost of $100,000 is used to determine the value of the subject. Under the extraordinary assumption detailed in our value assessment that the estimated cost to clean-up the environmental contamination provided by the client is accurate and that the environmental contamination will not impose any stigmatization after the cleanup is complete, our opinion of the indicated property value is calculated as follows:
$100,000 - $100,000 = $0
The subject value as of 10/1/2024 is supported by all comparables and adequately bracketed by comparables one and four. A value of $0 is supported for the subject in as is condition.
Value Indicated by the Sales Comparison Approach: $0
Mt. Shasta City Council Regular Meeting October 28, 2024 58 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[32]
ADDENDA
Mt. Shasta City Council Regular Meeting October 28, 2024 59 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[33]
SUBJECT PHOTOS
Front view 1 Front view 2
Entrance Reception area
Mt. Shasta City Council Regular Meeting October 28, 2024 60 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[34]
ENGAGEMENT LETTER
Mt. Shasta City Council Regular Meeting October 28, 2024 61 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[35]
Mt. Shasta City Council Regular Meeting October 28, 2024 62 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[36]
GREENWAY PROJECT PRELIMINARY ANALYSIS
Mt. Shasta City Council Regular Meeting October 28, 2024 63 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[37]
Mt. Shasta City Council Regular Meeting October 28, 2024 64 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[38]
Mt. Shasta City Council Regular Meeting October 28, 2024 65 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[39]
Mt. Shasta City Council Regular Meeting October 28, 2024 66 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[40]
Mt. Shasta City Council Regular Meeting October 28, 2024 67 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[41]
Mt. Shasta City Council Regular Meeting October 28, 2024 68 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[42]
Mt. Shasta City Council Regular Meeting October 28, 2024 69 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[43]
Mt. Shasta City Council Regular Meeting October 28, 2024 70 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[44]
Mt. Shasta City Council Regular Meeting October 28, 2024 71 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[45]
Mt. Shasta City Council Regular Meeting October 28, 2024 72 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[46]
Mt. Shasta City Council Regular Meeting October 28, 2024 73 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[47]
Mt. Shasta City Council Regular Meeting October 28, 2024 74 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[48]
Mt. Shasta City Council Regular Meeting October 28, 2024 75 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[49]
Mt. Shasta City Council Regular Meeting October 28, 2024 76 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[50]
Mt. Shasta City Council Regular Meeting October 28, 2024 77 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[51]
Mt. Shasta City Council Regular Meeting October 28, 2024 78 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[52]
Mt. Shasta City Council Regular Meeting October 28, 2024 79 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[53]
Mt. Shasta City Council Regular Meeting October 28, 2024 80 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[54]
Mt. Shasta City Council Regular Meeting October 28, 2024 81 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[55]
Mt. Shasta City Council Regular Meeting October 28, 2024 82 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[56]
Mt. Shasta City Council Regular Meeting October 28, 2024 83 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[57]
Mt. Shasta City Council Regular Meeting October 28, 2024 84 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[58]
ENVIRONMENTAL I ANALYSIS
Mt. Shasta City Council Regular Meeting October 28, 2024 85 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[59]
Mt. Shasta City Council Regular Meeting October 28, 2024 86 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[60]
Mt. Shasta City Council Regular Meeting October 28, 2024 87 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[61]
Mt. Shasta City Council Regular Meeting October 28, 2024 88 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[62]
Mt. Shasta City Council Regular Meeting October 28, 2024 89 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[63]
Mt. Shasta City Council Regular Meeting October 28, 2024 90 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[64]
Mt. Shasta City Council Regular Meeting October 28, 2024 91 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[65]
Mt. Shasta City Council Regular Meeting October 28, 2024 92 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[66]
Mt. Shasta City Council Regular Meeting October 28, 2024 93 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[67]
Mt. Shasta City Council Regular Meeting October 28, 2024 94 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[68]
Mt. Shasta City Council Regular Meeting October 28, 2024 95 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[69]
Mt. Shasta City Council Regular Meeting October 28, 2024 96 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[70]
Mt. Shasta City Council Regular Meeting October 28, 2024 97 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[71]
Mt. Shasta City Council Regular Meeting October 28, 2024 98 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[72]
Mt. Shasta City Council Regular Meeting October 28, 2024 99 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[73]
Mt. Shasta City Council Regular Meeting October 28, 2024 100 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[74]
Mt. Shasta City Council Regular Meeting October 28, 2024 101 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[75]
Mt. Shasta City Council Regular Meeting October 28, 2024 102 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[76]
Mt. Shasta City Council Regular Meeting October 28, 2024 103 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[77]
Mt. Shasta City Council Regular Meeting October 28, 2024 104 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[78]
Mt. Shasta City Council Regular Meeting October 28, 2024 105 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[79]
Mt. Shasta City Council Regular Meeting October 28, 2024 106 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[80]
Mt. Shasta City Council Regular Meeting October 28, 2024 107 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[81]
SISKIYOU COUNTY ZONING MAP
Mt. Shasta City Council Regular Meeting October 28, 2024 108 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[82]
UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS
1. This appraisal report 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 an appraisal report. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser’s file. 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 is not responsible for unauthorized use of this report.
2. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report.
3. The property is appraised free and clear of any and 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. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.
6. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader is visualizing the property.
7. 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 arranging for engineering studies that may be required to discover them.
8. 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.
9. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.
10. 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 on which the value estimates contained in this report are based.
11. 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 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.
12. It is assumed that the utilization of the land and improvements are within the boundaries or property lines of the property described, and that there is no encroachment or trespass unless otherwise stated in this report.
13. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde, foam insulation, or other potentially hazardous materials may affect the value of the property. The appraiser’s value estimate is predicated on the assumption that there are no such materials on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser’s descriptions and resulting comments are the result of the routine observations made during the appraisal process.
14. Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural Mt. Shasta City Council Regular Meeting October 28, 2024 109 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[83]
in nature that would restrict access by disabled individuals may adversely affect the property’s value, marketability, or utility.
15. Any proposed improvements are assumed to be completed in good workmanlike manner in accordance with the submitted plans and specifications.
16. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.
17. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only properly written qualification and only in its entirety.
18. 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) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.
Mt. Shasta City Council Regular Meeting October 28, 2024 110 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[84]
QUALIFICATIONS OF CHARLES W. RYAN, MAI
BREA Appraiser Identification Number AG 006156
PROFESSIONAL EXPERIENCE
Crocker Citizens National Bank
Sacramento, CA
1962-1964
As a staff appraiser for the bank, my duties consisted of the appraisal of urban properties in metropolitan Sacramento and Lake Tahoe region.
Duties also included training of new appraisers and administrative trainees.
State Board of Equalization –
Division of Intercounty Equalization
1964-1968
Staff duties included the appraisal of farms, ranches, and commercial and industrial properties throughout the State of California.
Office of Appraisal Appeals
(State Board of Equalization)
1968-1976
As a Senior Appraiser, duties involved the review of both appraisals prepared by board staff and county personnel and ultimate re-appraisal.
Professional territory was the entire State of California and Bay area counties, plus rural and recreational properties in the central and northern counties.
Independent Fee Appraiser
1976 - Present
As an independent fee appraiser, I have completed appraisal assignments for financial institutions, attorneys, corporations, public agencies and individuals on all property types.
OTHER EXPERIENCES
■ Past President (1988) Sierra Nevada Chapter – Appraisal Institute ■ Past Chairman, Shasta County Assessment Appeals Board ■ Former Faculty, Appraisal Institute
■ Past Chairman Board of Trustees – Mercy Foundation North ■ Past President (1997-1998) Rotary Club of Redding
■ Past Board Chair – Board of Directors – Turtle Bay Exploration Park and Museum ■ Past Board Chair – Shasta Family YMCA
■ Past Board of Directors, Habitat for Humanity
■ Past Vice Chair – Shasta Mosquito and Vector Control District ■ Board of Directors, Shasta Senior Nutrition & Golden Umbrella
QUALIFIED AS EXPERT WITNESS
Superior Courts of Shasta, Tehama, Trinity, Lassen, Siskiyou, Humboldt, Los Angeles, Sacramento, Santa Clara, Orange and Riverside Counties.
EDUCATION
■ California State Polytechnic University Bachelor of Science Degree, Agriculture ■ American Institute of Real Estate Appraisers Completed Courses I, II, III, IV & Litigation Courses.
State Board of Equalization Courses
CONTINUING EDUCATION
“The Appraisal Institute conducts a voluntary program of continuing education for its designated members. MAI’s and RM’s who meet the minimum standards of this program are awarded periodic education certification.” I am certified under this program.
Mt. Shasta City Council Regular Meeting October 28, 2024 111 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[85]
APPRAISER LICENSE
Mt. Shasta City Council Regular Meeting October 28, 2024 112 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[86]
QUALIFICATIONS OF FEI DU
BREA Appraiser Identification Number TA 3063734
PROFESSIONAL EXPERIENCE:
Ryan Valuation Services March 2022 – Current
Assist in the preparation of appraisals for commercial and industrial properties under the direct supervision of General Appraisers Kent E. Hume and Charles Ryan. Emphasis on multi-family land, office, retail, eminent domain and special purpose properties in Shasta, Butte, Trinity, Tehama, Humboldt, and Siskiyou Counties.
Vista Real Estate Jan 2022 – Current
Next Home Cedar Street Realty – May 2019 – Jan 2022
Present, promote, and sell residential real estate. Establish, develop and maintain business and customer relationships. Represent clients, negotiate contract terms, and finalize contract agreements as needed. Monitor and gather current marketplace information on pricing, housing trends, new developments, and current rules and regulations to best serve the clientele.
Monsanto - Woodland, CA, Kannapolis, NC Oct 2007 - Feb 2012 Research Associate Supervision and leadership for projects, including strategic planning and organizing, delegating responsibilities, and supervising contractors to ensure efficient and timely completion of projects. Project coordination across a matrix organization as a core member of interdisciplinary project teams. Serve as safety coordinator and safety inspector for the laboratory, including safety training for new employees, performing laboratory inspections, writing Job Safety Analysis (JSAs), and performing Instrumentation Reviews for all laboratory equipment. Development and implementation of methods to identify and quantify nutritional contents. Extensive experience creating Standard Operational Procedure (SOP) / Best Laboratory Practices (BLP) documents.
PROFESSIONAL CREDENTIALS:
State of California Trainee Appraiser, TA 3063734
State of California Real Estate Salesperson License, 02093217 EDUCATION:
M.S. in Chemistry; 2008 Sacramento State University, Sacramento B. S. in Chemistry and Minor in English; 2005 University of California - Davis, Davis Basic Appraisal Principles
Basic Appraisal Procedures
2020-2021 15-hr National USPAP Course
Supervisor-Trainee Course for California
Residential Market Analysis and Highest &
Best Use
Residential Appraiser Site Valuation and
Cost Approach
Residential Sales Comparison and Income
Approaches
Residential Report Writing and Case
Studies
Law and Regulations for California
Appraisers
Statistics, Modeling, and Finance
Advanced Residential Application and Case
Study
Appraisal Subject Matter Electives
General Appraiser Market Analysis Highest and
Best Use
General Appraiser Site Valuation and Cost
Approach
General Appraiser Sales Comparison Approach
General Appraiser Income Approach
General Report Writing & Case Studies
Commercial Appraisal Review – Subject Matter
Elective
Mt. Shasta City Council Regular Meeting October 28, 2024 113 24-010 RVS
Brownell Vacant Contaminated
Parcels, Mt. Shasta
RYAN VALUATION SERVICES
[87]
APPRAISER LICENSE
Mt. Shasta City Council Regular Meeting October 28, 2024 114
APPRAISAL REPORT
MT. SHASTA BROWNELL VACANT PARCELS
057-191-150 AND 057-191-180,
MT. SHASTA, CALIFORNIA
SUBMITTED TO:
CITY OF MOUNT SHASTA, C/O TODD JUHASZ (CITY
MANAGER)
305 N. MT. SHASTA BLVD,
MT. SHASTA, CA 96067
PREPARED BY:
RYAN VALUATION SERVICES
PO BOX 994226
REDDING, CALIFORNIA
(530) 224-6744
Mt. Shasta City Council Regular Meeting October 28, 2024 115 March 28th, 2024
City of Mt Shasta, c/o Todd Juhasz (City Manager)
305 N. Mt. Shasta Blvd,
Mt Shasta, CA 96067
Re: Mt. Shasta Brownell Vacant Parcels
057-191-150 and 057-191-180
Mount Shasta, California
RVS Reference: 24-003 – 057-191-150 and 057-191-180
Brownell Vacant Parcels, Mt. Shasta
Dear Todd Juhasz and Tom Hesseldenz:
As requested, we have prepared an appraisal report of the subject property referenced above. We have inspected the subject and analyzed the market conditions in the subject’s market area of Mount Shasta, California. The client has requested an opinion of the market value of the fee simple interest in the subject property in the as-is condition. The subject consists of two adjacent properties with a total of 7,509 SF (0.17 acres) vacant parcels. One parcel APN 057-191-150 consists of 2,505 SF and the other APN 057- 191-180 consists of 5,004 SF. The subject is currently owned by Alan Eugene Brownell.
The subject consists of two adjacent commercial vacant parcels. We were not provided with environmental reports. We have made the extraordinary assumption that the subject is free and clear of any type of environmental contamination. Use of this assumption may have affected the assignment results. If this assumption is found to be false, the value conclusion could change. The analyses and value opinion in the appraisal are based on the data available to the appraiser at the time of the assignment and apply only as of the effective date indicated.
Based on our analysis, it is our opinion that the market value of the leased fee interest of the subject property as of 3/26/2024 is:
Opinion of Market Value, As Is Condition, 3/26/2024
$100,000
This appraisal report is completed in accordance with the 2024 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Furthermore, this report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Mt. Shasta City Council Regular Meeting October 28, 2024 116 Appraisal Practice for an appraisal report. The opinion of market value is premised upon the Assumptions and Limiting Conditions contained within this report.
Documentation concerning the data, reasoning, and analysis is maintained in the appraiser’s files. The depth of discussion contained in this report is specific to the intended use of the client. The appraiser is not responsible for unauthorized use of this report. The intended use and user of the report is specifically identified in the report as agreed on in the engagement contract for appraisal services. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to non-client, non-intended users does not extend reliance to any other party and Ryan Valuation Services will not be responsible for unauthorized use of the report, its conclusions or contents used partially or in its entirety.
We have not performed any appraisal assignments involving the subject for three years prior to the date of value. Charles W. Ryan, MAI and Fei Du have completed the requirements under the continuing education program of the Appraisal Institute.
Sincerely,
Charles W. Ryan, MAI Fei Du
CA Cert. No. AG 006156 CA License No.: TA3009834
Expiration: June 25, 2024 Expiration: March 16, 2026
Mt. Shasta City Council Regular Meeting October 28, 2024 117
TABLE OF CONTENTS
24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[4]
CERTIFICATION STATEMENT...............................................................................................................6 CERTIFICATION STATEMENT...............................................................................................................7 SUMMARY OF FACTS AND CONCLUSIONS...........................................................................................8 SCOPE OF WORK................................................................................................................................9 SUBJECT OF THE APPRAISAL.................................................................................................................... 9 CLIENTS .............................................................................................................................................. 9 INTENDED USE OF THE APPRAISAL ........................................................................................................... 9 INTENDED USER OF THE APPRAISAL ......................................................................................................... 9 APPRAISAL PROBLEM ............................................................................................................................ 9 DEFINITION OF MARKET VALUE ............................................................................................................10 CASH EQUIVALENCY............................................................................................................................11 PROPERTY RIGHTS APPRAISED ..............................................................................................................11 PERTINENT DATES ..............................................................................................................................11 LEGAL DESCRIPTION............................................................................................................................11 OWNERSHIP ......................................................................................................................................11 SALE HISTORY OF SUBJECT PROPERTY ....................................................................................................12 PRIOR APPRAISALS..............................................................................................................................12 EXPOSURE TIME ................................................................................................................................. 12 SUBJECT INFORMATION...................................................................................................................13 SUBJECT DESCRIPTION.........................................................................................................................13 SUBJECT LOCATION.............................................................................................................................13 GENERAL PLAN & ZONING ...................................................................................................................14 ASSESSOR PARCEL MAP, LAND SIZE, & CONFIGURATION ..........................................................................14 TAXES AND ASSESSMENTS....................................................................................................................15 TOPOGRAPHY & DRAINAGE..................................................................................................................17 FLOOD ZONE .....................................................................................................................................17 EASEMENTS AND ENCUMBRANCES ........................................................................................................18 UTILITIES...........................................................................................................................................18 ACCESS .............................................................................................................................................18 SOIL & SUBSOIL ................................................................................................................................. 18 EARTHQUAKE FAULT-RUPTURE HAZARD AND SEISMIC HAZARD ZONES........................................................18 HAZARDOUS WASTE ...........................................................................................................................18 PERSONAL PROPERTY ..........................................................................................................................18 AMERICANS WITH DISABILITIES ACT.......................................................................................................18 MARKET AREA ANALYSIS .....................................................................................................................20 NEIGHBORHOOD ANALYSIS ..................................................................................................................21 HIGHEST AND BEST USE .................................................................................................................23 SALES COMPARISON APPROACH ......................................................................................................24 COMPARABLE SALES DISCUSSION..........................................................................................................28 PROPERTY RIGHTS, FINANCIAL TERMS AND CONDITIONS OF SALE ...............................................................29 MARKET CONDITIONS .........................................................................................................................29 PHYSICAL ELEMENTS OF COMPARISON...................................................................................................29 Mt. Shasta City Council Regular Meeting October 28, 2024 118
TABLE OF CONTENTS
24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[5]
OVERALL COMPARABLES RANKING ..................................................................................................30 ADDENDA ........................................................................................................................................32 SUBJECT PHOTOS ...............................................................................................................................33 ENGAGEMENT LETTER .........................................................................................................................34 GREENWAY PROJECT PRELIMINARY ANALYSIS..........................................................................................36 SISKIYOU COUNTY ZONING MAP...........................................................................................................58 UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS..........................................................................59 QUALIFICATIONS OF CHARLES W. RYAN, MAI................................................................................61 APPRAISER LICENSE ............................................................................................................................62 QUALIFICATIONS OF FEI DU ...........................................................................................................63 APPRAISER LICENSE.............................................................................................................................64 Mt. Shasta City Council Regular Meeting October 28, 2024 119 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[6]
CERTIFICATION STATEMENT
I certify that, to the best of my knowledge and belief:
▪ The statements of fact contained in this report are true and correct. ▪ The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
▪ I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. ▪ I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within a three-year period immediately preceding acceptance of this assignment.
▪ I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment.
▪ My engagement in this assignment was not contingent upon developing or reporting predetermined results.
▪ My 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 consulting assignment. ▪ The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.
▪ The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
▪ I have made a personal inspection of the property that is the subject of this report. ▪ Fei Du provided significant real property appraisal assistance to the person signing this certification.
▪ As of the date of this report, I Charles W. Ryan, MAI have completed the continuing education program of the Appraisal Institute.
_________________________ Date: 3/28/2024
Charles W. Ryan MAI
CA License No.: AG006156
Expiration: June 25, 2024
Mt. Shasta City Council Regular Meeting October 28, 2024 120 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[7]
CERTIFICATION STATEMENT
I certify that, to the best of my knowledge and belief:
▪ The statements of fact contained in this report are true and correct. ▪ The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
▪ I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. ▪ I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within a three-year period immediately preceding acceptance of this assignment.
▪ I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment.
▪ My engagement in this assignment was not contingent upon developing or reporting predetermined results.
▪ My 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 consulting assignment. ▪ The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.
▪ I have made a personal inspection of the property that is the subject of this report. ▪ I assisted with general market analysis, data collection, neighborhood analysis, subject analysis, highest and best use, sales comparison approach for the property and the land (property data search, data analysis, ranking and adjustment grids, inspection of the subject and the comparable properties), and reconciliation of value with the assistance and direct supervision of Charles Ryan.
_________________________ Date: 3/28/2024
Fei Du
CA License No.: TA3009834
Expiration: March 16, 2026
Mt. Shasta City Council Regular Meeting October 28, 2024 121 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[8]
SUMMARY OF FACTS AND CONCLUSIONS
Assignment: Commercial Vacant Land
Location: 057-191-150 and 057-191-180
Mt Shasta, California 96067
Interest Appraised: Fee Simple Interest
Highest and Best use (As if Vacant): Owner/user development of commercial space Highest and Best use (As Improved): N/A
VALUATION SUMMARY
Sales Comparison Approach: As-Is $100,000
OPINION OF MARKET VALUE: AS-IS CONDITION, 1/14/2024 $100,000 Land Description ECT PHOTOGRAPHS
Assessor’s Parcel Number: 057-191-150 and 057-191-180
Site Area: Total Site Area: 7,509 SF (0.17 acres), 2,505 SF and 5,004 SF Zoning: C-1, Downtown Commercial District
Flood Zone: Zone X, Other Flood Areas “areas outside of the 0.2% annual chance flood”, as shown on FEMA FIRM Flood Panel No.:
06093C 3025D dated January 19, 2011.
Improvement Description (As-Is)
Property Type: Commercial Vacant Land
Improvements will be discussed in greater detail later in this report.
Extraordinary Assumptions
The subject consists of two adjacent commercial vacant parcels. We were not provided with environmental reports. We have made the extraordinary assumption that the subject is free and clear of any type of environmental contamination. Use of this assumption may have affected the assignment results. If this assumption is found to be false, the value conclusion could change.
Hypothetical Conditions
None.
Mt. Shasta City Council Regular Meeting October 28, 2024 122 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[9]
SCOPE OF WORK
SUBJECT OF THE APPRAISAL
The subject is two adjacent commercial vacant parcels in a downtown commercial zoned district located in the north of the incorporated city limits of Mt. Shasta, Siskiyou County, California. The common street addresses are 057-191-150 and 057-191-180, Mt. Shasta, CA 96067.
CLIENTS
The City of Mount Shasta, C/O Todd Juhasz (City Manager) 305 N. Mt. Shasta Blvd,
Mt Shasta, CA 96067
INTENDED USE OF THE APPRAISAL
Provide an opinion of the market value of the subject property as of 3/26/2024 for subject acquisition.
INTENDED USER OF THE APPRAISAL
The intended user of the report is the client, the City staff via Todd Juhasz, John Kenney (City Attorney), Tom Hesseldenz (Consulting landscape Architect), and City Councial and Committee members, John Stackfleth (Mayor) and Tessa Clure.
APPRAISAL PROBLEM
The client has requested an appraisal report. Supporting documentation is retained in the Ryan Valuation Services work file. The client is the potential developer of the subject property. The purpose of the appraisal is to provide an opinion of the market value of the subject property in the “As-Is” condition. The appraiser’s performed the following:
• Inspection of the subject site and collection of necessary data; • Gathering information by inspecting the subject’s neighborhood; • Reconciling the estimated highest and best use of the subject; • Selection of sales and leases of comparable properties and verifying pertinent information;
• Analyzing all information collected through application of the sales comparison and income approach to arrive at an opinion of market value; • And set forth the conclusions in an appraisal report format for the client’s particular needs.
The subject was inspected on 2/13/2024 and 3/26/2024. Physical measurements were provided by the Siskiyou County Assessor. The level of inspection was limited to walking around the property and observing and measuring the site. The nature of the inspection is to collect information about the physical characteristics of the property. The inspection is not meant to certify the condition of any of the improvements or functionality of any of the mechanical systems. All measurements were taken in the field and matched data from the Siskiyou County Assessor.
The subject is currently vacant with plans for development that involves and impactsthe property by Siskiyou County. The subject consists of two adjacent parcels with a total area of 7,509 SF (0.17 Mt. Shasta City Council Regular Meeting October 28, 2024 123 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[10]
acres). The site is zoned C-1, General Commercial district. The City has detailed plans for the development that involves and impacts the properties, including the subject, along the Shasta Creek. The plan details are attached in the Greenway Project Preliminary Analysis, which can be found in the addendum section of this report. The local market would not rely upon cost approach and income approach for valuation purposes. These were not considered applicable approaches and were not developed. The only applicable approach to value the vacant subject property is the sales comparison approach. The client requested a fee simple analysis.
Data was sufficient to limit data searches to the Anderson and Redding areas. Comparable data was gathered from Siskiyou County MLS, Shasta County MLS, Loopnet, ParcelQuest, local area brokers, and buyers/sellers involved in the transactions.
For the sales comparison approach we identified similar properties in the market area that have transferred ownership. Ideally, properties that have a similar highest and best use and share similar physical characteristics have sold and can be discovered. These properties are analyzed and compared to the subject property. All were inspected in the field and by pictures from MLS where available. When exact comparable properties cannot be located, sale properties are adjusted for inferior and superior characteristics to assist in estimating a value for the subject property. Sufficient data was found in the local market to arrive at a credible indication of value through the sales comparison approach.
This appraisal report is completed in accordance with the 2024 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Furthermore, this report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an appraisal report and is in accordance with the requirement of Title IX of the Financial Institution Reform, Recovery and Enforcement Act (FIRREA) and the Interagency Appraisal and Evaluation Guidelines (effective December 10, 2010) and any supplemental requirements of Cornerstone Community Bank. The opinion of market value is premised upon the Assumptions and Limiting Conditions contained within this report.
Documentation concerning the data, reasoning, and analysis is maintained in the appraiser’s files.
The depth of discussion contained in this report is specific to the intended use of the client. The appraiser is not responsible for unauthorized use of this report. The intended use and user of the report is specifically identified in the report as agreed on in the engagement contract for appraisal services. No other use or user of the report is permitted by any other party for any other purpose.
Dissemination of this report by any party to non-client, non-intended users does not extend reliance to any other party and Ryan Valuation Services will not be responsible for unauthorized use of the report, its conclusions or contents used partially or in its entirety.
DEFINITION OF MARKET VALUE
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:
Mt. Shasta City Council Regular Meeting October 28, 2024 124 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[11]
• Buyer and seller are typically motivated;
• Both parties are well informed or well advised, and acting in what they consider their best interests;
• A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
• The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.” (12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, August 9, 1994) As is market value is defined by the Appraisal Institute as follows:
The estimate of market value of real property in its current physical condition, use and zoning as the appraisal date.
CASH EQUIVALENCY
The market value of the subject property is reported in many ways: (1) cash, (2) terms of financial arrangement equivalent to cash, or (3) other precisely defined terms. Our value estimate assumes terms of financial arrangements equivalent to cash. Adjusting for odd financing varying from cash equivalency is completed when necessary. Cash equivalency analysis is: “A price expressed in terms of cash, as distinguished from a price expressed totally or partly in terms of the face amounts of notes or other securities that cannot be sold at their face amounts. Calculating the cashequivalent price requires an appraiser to compare transactions involving atypical financing to transactions involving comparable properties financed at typical market terms.”
PROPERTY RIGHTS APPRAISED
We appraised the fee simple interest in the subject property. The Dictionary of Real Estate Appraisal, 7th Edition defines fee simple estate as: “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.”
PERTINENT DATES
Date of Inspection: 2/13/2024 and 3/26/2024
Date of Value: 3/26/2024
Date of Report: 3/28/2024
LEGAL DESCRIPTION
No preliminary title report was provided. For purposes analysis, the subject is identified by Siskiyou County Assessor Parcel Number 057-191-150 and 057-191-180.
OWNERSHIP
The subject land is currently owned by Alan Eugene Brownell, according to the Officials at the Assessor Records of Siskiyou County, California.
Mt. Shasta City Council Regular Meeting October 28, 2024 125 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[12]
SALE HISTORY OF SUBJECT PROPERTY
There have been no listings or sales transactions involving the subject for the prior three years from the date of this report.
PRIOR APPRAISALS
We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within a three-year period immediately preceding acceptance of this assignment.
EXPOSURE TIME
The Appraisal Institute defines exposure time as:
"The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market."
Current market conditions indicate that the subject’s hypothetical exposure time would be in the 6 to 12 month range.
Mt. Shasta City Council Regular Meeting October 28, 2024 126 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[13]
SUBJECT INFORMATION
SUBJECT DESCRIPTION
The subject property is located just west of downtown in the incorporated city limits of Mount Shasta, Siskiyou County, California. The property has Parcel Numbers of 057-191-150 and 057- 191-180 and addresses of 057-191-150 and 057-191-180, Mt. Shasta, CA 96067. The two parcels are contiguous. The subject is surrounded by retail services, offices, and restaurants, with single family homes and apartments further east. The subject is just east of the N. Mt. Shasta Boulevard corridor and north of the E. Lake Street corridor.
APN Land Area
057-191-150 2,505 SF
057-191-180 5,004 SF
Total SF 7,509 SF
Total AC 0.17 Acre
SUBJECT LOCATION
The subject location is shown on the following map.
Mt. Shasta City Council Regular Meeting October 28, 2024 127 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[14]
GENERAL PLAN & ZONING
The general plan dictates general land uses in an area with zoning further restricting allowable uses. Zoning further defines uses, such as exact permitted uses and development requirements.
The general plan land use for the subject property is Commercial Center and the subject area is zoned C-1, Downtown Commercial District. Mt. Shasta City Zoning Map is attached in the addendum section. The City of Mt. Shasta describes the C-1 district as follows:
The purpose of the Downtown Commercial zoning district is to serve the commercial land use within the downtown of the city. The C-1 zone achieves multiple land use goals for the business community allowing the most flexibility in design and land use. Understanding that the downtown is the most urban area in this rural community, this district allows for the most intense land use coverage. Retail, currently use, is an outright permitted use in this district.
ASSESSOR PARCEL MAP, LAND SIZE, & CONFIGURATION
We have relied upon data reported by the Siskiyou County Assessor’ Office. The subject is identified as Parcel 057-191-150 and 057-191-180 and is approximately 7,509 SF (0.17 acres) with one parcel consists of 2,505 SF and the other 5,004 SF. The overall site is rectangular in shape as shown on the Assessor Parcel Map.
Mt. Shasta City Council Regular Meeting October 28, 2024 128 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[15]
TAXES AND ASSESSMENTS
In 1978, California voters passed Proposition 13. All parcels were effectively reappraised to 1975 base year market values. If the property is transferred to a new owner or substantially altered through remodeling or addition, it is reappraised at market value. Otherwise, the original 1975 market values can be increased only approximately two percent per year. The basic tax rate is 1% of market value plus special assessments. Bonds bring the tax rate to 1.08% of market value.
Mt. Shasta City Council Regular Meeting October 28, 2024 129 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[16]
Mt. Shasta City Council Regular Meeting October 28, 2024 130 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[17]
TOPOGRAPHY & DRAINAGE
The parcel is generally flat in topography and graded to divert storm water away from improvements into storm drains on the site which connected to City of Mount Shasta drains.
FLOOD ZONE
The subject is located in FEMA designated flood Zone X, Other Flood Areas “areas outside of the
0.2% annual chance flood”, as shown on FEMA FIRM Flood Panel No.: 06093C 3025D dated January 19, 2011. Flood insurance does not appear to be needed. Given the physical limitations of the Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps (FIRM), the flood zone determination of this report may vary from that identified by way of a formal survey produced by an engineering firm with expertise in the field.
Mt. Shasta City Council Regular Meeting October 28, 2024 131 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[18]
EASEMENTS AND ENCUMBRANCES
No preliminary title report was provided. Typical public utility easements are assumed to be in place. The property being appraised is assumed to be unencumbered from any negative liens or other restrictions.
UTILITIES
All public utilities are available on the site. Water, Sewer, and garbage services are provided by the City of Mt. Shasta. Pacific Power provides electrical services. PG&E provided gas services.
Phone and cable services are provided by AT&T.
ACCESS
The subject parcels shared a curb cut on Chestnut Street with an adjacent improved parcel. The frontage area along Chestnut Street is fully improved with curbs, gutters and sidewalks that extend to the intersection of E. Castle Street to the south and the intersection of E. Alma Street to the north. Both, E. Castle Street and E Alma Street, are publicly maintained asphalt roadways.
Access is adequate for most commercial related users.
SOIL & SUBSOIL
We were not provided soil reports. We assume that there are no hidden conditions of the soil or subsoil, which would affect valuation of the property. We assume no responsibility for such conditions or for engineering required to discover such factors. We assume the load bearing qualities of the soil are adequate for the subject's use. Neither the individuals completing this report nor Ryan Valuation Services have any liability for the identification of environmental concerns except as defined in applicable industry standards.
EARTHQUAKE FAULT-RUPTURE HAZARD AND SEISMIC HAZARD ZONES The Alquist-Priolo Earthquake Fault Zoning Act (1972) and the Seismic Hazards Mapping Act (1990) direct the California State Geologist to delineate regulatory “Zones of Required Investigation” to reduce the threat of to public health and safety and to minimize the loss of life and property posed by earthquake-triggered ground failures. Based on information published by the State of California Department of Conservation the subject is not located in either hazard area.
HAZARDOUS WASTE
No environmental assessment was provided, but according to the client, an environmental one assessment will be conducted. No below-ground storage tanks or hazardous storage containers were present on the property during the inspection. This appraisal assumes there are no stigmas or lingering negative environmental effects on surrounding adjoining properties as a result of past or present activities on the subject property or surrounding adjoining properties.
PERSONAL PROPERTY
No personal property is included in the opinion of value rendered in this report.
AMERICANS WITH DISABILITIES ACT
The Americans with Disabilities Act (ADA) became effective January 26, 1992. Ryan Valuation Services has not made a specific compliance survey and analysis of this property to determine whether it is in conformance with the various detailed requirements of the ADA. It is possible that Mt. Shasta City Council Regular Meeting October 28, 2024 132 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[19]
a compliance survey of the property together with a detailed analysis of the requirements of ADA could reveal that the property is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative effect on the value of the subject property. We have no direct evidence relating to this issue, nor are we qualified to make such as assessment. The effect of any possible non-compliance with the requirements of the ADA was not considered in our opinion of value of the subject.
Mt. Shasta City Council Regular Meeting October 28, 2024 133 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[20]
MARKET AREA ANALYSIS
The subject property is located in the city of Mt. Shasta in Siskiyou County, California. The city is a mountain community that primarily serves the local population and relies heavily upon seasonal tourism and travelers navigating Interstate 5 for economic activities. The City has detailed plans for the development that involves and impacts the properties, including the subject, along the Shasta Creek. The plan details are attached in the Greenway Project Preliminary Analysis, which can be found in the addendum section of this report.
The following table identifies population trends in Siskiyou County and all incorporated cities from 1/1/2014 through 1/1/2023.
COUNTY/CITY 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 Siskiyou County
Dorris 961 967 967 966 988 994 859 859 843 839
Dunsmuir 1,623 1,626 1,621 1,612 1,652 1,653 1,705 1,704 1,672 1,663 Etna 733 737 735 733 744 744 684 684 671 668
Fort Jones 710 712 710 710 678 674 694 694 681 678
Montague 1,446 1,447 1,446 1,441 1,366 1,359 1,230 1,231 1,208 1,203 Mount Shasta 3,365 3,370 3,362 3,355 3,397 3,407 3,244 3,245 3,188 3,215 Tulelake 1,006 1,009 1,007 1,002 921 911 901 899 882 878 Weed 2,952 2,700 2,759 2,805 2,724 2,748 2,902 2,825 2,815 2,693 Yreka 7,797 7,815 7,811 7,777 7,795 7,795 7,781 7,772 7,732 7,825 Balance Of County 24,216 24,347 24,304 24,287 24,330 24,304 24,076 24,018 23,948 23,886 Incorporated 20,593 20,383 20,418 20,401 20,265 20,285 20,000 19,913 19,692 19,662 County Total 44,809 44,730 44,722 44,688 44,595 44,589 44,076 43,931 43,640 43,548
POPULATION TRENDS, SISKIYOU COUNTY
Population countywide had been stagnant between 2014 to 2019 and decreased slightly since 2020 due to the Covid-19 Pandemic over the next three years and recovered slightly starting 2023.
Population growth in Mt. Shasta followed a similar pattern as the county. Population growth is anticipated to recover to the pre-Covid Pandemic population.
From the State of California EDD: “The unemployment rate in the Siskiyou County was 6.1 percent in November 2023. It is much below the estimate of 10.7 percent in the beginning of 2021. This compares with an unadjusted unemployment rate of 4.6 percent for Siskiyou County, California.” The spike in the unemployment rate is a result of the shutdowns of many businesses by the State of California in March 2020 as a result of COVID-19. The current employment in Siskiyou County is trending just above the state and the US average for unemployment. The unemployment rate has fallen after COVID-19. The unemployment rate for Siskiyou County was at 6.1 percent as of November 2023.
Mt. Shasta City Council Regular Meeting October 28, 2024 134 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[21]
In the winter of 2022/2023 and 2023/2024, the Mt. Shasta Ski Park received enough snow to open and reportedly had very good years. Because of this, motels, restaurants and retailers also had their good years and promoted Mt. Shasta economy recovery since Covid-19.
NEIGHBORHOOD ANALYSIS
The subject is located on Chestnut Street, half mile west of Interstate 5. This is the primary exit for Mt. Shasta, with a four-way interchange on I-5. It is also just west of North Mt. Shasta Boulevard, which extends into the central town of Mt. Shasta. To the south of the subject, it is the Lake Street corridor, there are three convenience stores with nationally branded fuel, Burger King, Taco Bell, KFC, and the Black Bear Diner. Off West Lake Street on Morgan Way is a neighborhood shopping Center anchored by Rays Grocery store and the Best Western Tree House Hotel.
The neighborhood is considered to be the major retail corridor on or near this interchange. Along Mount Shasta Boulevard, the strip mall is anchored by several major retailers along with numerous local businesses, restaurants, and other services. The subject is neighboring retailspaces to the north and south side and restaurants / food services to the east and west side.
The Mount Shasta Boulevard corridor is one of the busiest in the City of Mount Shasta. The corridor is mostly developed with no significant vacant lots remaining for development. Due to I-5 influence, there are many national retailers and restaurant users in the immediate area of the subject. The subject has been rented by long-term tenants.
Through inspections and observations of the local area, the area has very few to none rental units available, supporting the conclusion of the estimated local retail vacancy rate of 2 to 3 percent standard market vacancy turnover rate. The market supplies an efficient number of sales that are comparable to the subject in the immediate surrounding area, which indicates similar units in the area have quick absorption rates and an average market sales time of six months to one year. The downtown area is mostly developed with very few opportunities for new development and no immediate development is expected to occur for the immediate area in the near future.
Mt. Shasta City Council Regular Meeting October 28, 2024 135 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[22]
Retail space in this prime location typically commands either triple net lease terms or gross lease with tenants paying for utilities and interior maintenance. Rent concessions have been less common as the market has strengthened.
In conclusion the overall local market has improved, but the economy of Mt. Shasta City is heavily dependent on seasonal tourism. The strength of the subject is the North Mt. Shasta Boulevard corridor, East / West Lake Street corridor, and neighboring commercial businesses targeting travelers.
This trend should continue for the foreseeable future.
Mt. Shasta City Council Regular Meeting October 28, 2024 136 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[23]
HIGHEST AND BEST USE
“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 legal permissibility, physical possibility, financial feasibility, and maximum productivity.” Highest and Best Use as if Vacant
The subject is zoned C-1, Downtown Commercial district. The C-1 district is a flexible commercial district with a multitude of commercial and industrial uses allowed. The subject is located near a major corridor of retail/commercial properties to the east and west side of the North Mount Shasta Boulevard. Properties in the immediate neighborhood have been developed to multiple uses, which include retail, retail / pharmacy, office, and service-related uses.
The subject comprises approximately 7,509 square feet of developable land. All public and private utilities are available to the site. Good transportation linkages provide physical access to the site.
The physical characteristics and the physical size of the parcel is sufficient for many of the legally permissible uses in the C-1 zoning district.
The local market is improving with increased tourism because of favorable weather conditions.
The local economy depends heavily on seasonal tourism. Despite improved economic conditions and cautiously optimistic sentiment, there continues to be weak demand for vacant commercial land. Although located in a strong commercial corridor, this area primarily attracts freeway travelers. Given the current economic conditions, the weak demand for vacant commercial land, stagnant rent levels, the cost of operating expenses, including property taxes, site acquisition costs, cost to secure all entitlements, architecture and engineering fees, site development costs, and construction costs, few projects would likely be financially feasible.
The area around the subject is fully developed. The maximally productive use of the land is for some form of legally permitted retail / commercial / service use, either for an owner user or as a build to suit project for a tenant. Limited supply of similar properties for rent and the quick absorption rate for the sales of similar properties are direct market evidence of financial feasibility. Timing for retail development is immediate. The highest and best use as if vacant is speculative for legally permitted downtown commercial use.
Mt. Shasta City Council Regular Meeting October 28, 2024 137 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[24]
SALES COMPARISON APPROACH
The Sales Comparison Approach is utilized to arrive at an opinion of market value by comparing other similar properties to the subject that have recently transferred in the same marketplace. We have narrowed the selection to comparable sales that we conclude form the best supported bracketed range of price per unit indicators around the subject. # APN Address/Locatio
n City Recording Date Sale Price Zonin
g
Utilities
Land
Area
SF
Land
Area
AC
Price Per
Lot
# 057-191-150, 180 057-191-150, 180 Mt Shasta C-1 All public 7,509 0.17 1 057-272-160 Parcel A Berry St Mt Shasta 12/18/2023 $65,000 C/R Public water and electric, Sewer 8,276 0.19 $65,000.00
2 116-170-005 11080 Rhyolite Dr Redding 4/28/2023 $48,000 GC All utilities availble at the lotline 9,360 0.21 $48,000.00
3 057-311-180 803 S Mt Shasta Blvd Mt Shasta 12/4/2023 $334,000 C-2 Public water and electric, Sewer 165,528 3.80 $334,000.00
4 037-420-070 Lot 7 Gateway Park Mt Shasta 6/26/2022 $110,000 C1 Electricity at the lotline 45,302 1.04 $110,000.00
5 070-290-079 3371 Bechelli Ln Redding 5/9/2023 $47,000 GC All utilities availble at the lotline 13,939 0.32 $47,000.00
COMPARABLE SALES SUMMARY
Mt. Shasta City Council Regular Meeting October 28, 2024 138 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[25]
SALES COMPARABLE LOCATION MAP
Mt. Shasta City Council Regular Meeting October 28, 2024 139 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[26]
Mt. Shasta City Council Regular Meeting October 28, 2024 140 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[27]
1 Comparable Sale No. 1 Comparable Sale No. 2
Comparable Sale No. 3 Comparable Sale No. 4
Comparable Sale No. 5
Mt. Shasta City Council Regular Meeting October 28, 2024 141 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[28]
COMPARABLE SALES DISCUSSION
Comparable one (APN 057-272-160, Doc # 2023-8914; Buyer: Wylie Clifton R Living Trust; Seller:
Myers Family Trust) is a 8,391 SF site located just west of Mt. Shasta Boulevard and just south of West Lake Street. This property consists of vacant land with a small creek, partial wood fencing, and no frontage improvements. The site had been mostly cleared with the exception of a few selected trees at the time of the sale, and is zoned for commercial and high-density residential use. It also mostly has gentle topography with all utilities available to the site. This was a cash transaction.
Comparable two (APN 116-170-005, Doc # 2023-8731; Buyer: Ingdom Properties LLC; Seller:
Randall W. Smith) is a 9,148 SF of vacant lot with full frontage improvements, including curb and sidewalk. The site is located just south of Highway 299 and west of I-5 in north Redding. The site is zoned GC, General Commercial, and this area is generally recognized as a commercial area in north Redding with publicly maintained roads. The site has partial chain link fencing and gentle topography with heavy vegetation and trees. All utilities are available to the site. This was an all cash to seller transaction with a $48,000 Private loan.
Comparable three (APN 057-311-180, Doc # 2023-8647; Buyer: Shasta Grove LLC; Seller: James L.
Tolosano) is a 3.80 acres site consisting of vacant land with full frontage improvements. The site is located on the west side of Mt. Shasta Blvd and Ream Ave intersection. The property is zoned C2, General Commercial outside of the downtown area district. The site has flat topography with few trees and vegetation, partial metal pole and wire fencing, and all utilities are available to the site. This was a cash transaction.
Comparable four (APN 037-420-070, Doc # 2022-5094; Buyer: Chad T. Lanier and Elaine M. Lanier; Seller: Enloe Donald 2014 Living Trust) is a 1.04 acre of vacant land with curb improvement. The site is located just south of Highway-89 and east of the I-5 and Highway-89 junction. The property is zoned C1, General Commercial district. The neighborhood is consisted of residential homes, offices, and warehouses. The site has mostly gentle topography with some large boulders at the north of the property line. The site also has a view of Mt. Shasta. The property has electricity available to the lot line but requires well and septic. This was a cash transaction.
Comparable five (APN 070-290-079-000, Doc # 2023-9572; Buyer: Mauricio V. Borges and Ariane Fleiderman; Seller: Aalfs Family Trust) is a 13,939 SF site located on the west side of I-5 and south of Hartnell Aveune. The site is zoned GC, General Commercial district and the general neighborhood consists of business services, restaurants, schools, and offices. There are also several residential areas to the east of the property. The site has partial fencing at the east side of the property line and full frontage improvements. The west side of the property has gentle topography with a small patch of graveled area and rolling hill topography with heavy vegetation and trees at the east side of the property. All utilities are available at the property line. This was an all cash to seller transaction with a $7,000 Private loan.
Mt. Shasta City Council Regular Meeting October 28, 2024 142 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[29]
SUBJECT Sale 1 Sale 2 Sale 3 Sale 4 Sale 5
057-191-150,
180 Parcel A Berry St 11080 Rhyolite Dr
803 S Mt Shasta
Blvd
Lot 7 Gateway
Park 3371 Bechelli Ln
Sale Price $65,000 $48,000 $334,000 $110,000 $47,000
Lot Area 7,509 8,276 9,360 165,528 45,302 13,939
Sale Date 12/18/2023 4/28/2023 12/4/2023 6/26/2022 5/9/2023 Sale Price/ Lot $65,000.00 $48,000.00 $334,000.00 $110,000.00 $47,000.00 Property Rights Fee Simple Similar Similar Similar Similar Similar Financing Cash Equiv. Similar Similar Similar Similar Similar Conditions of
Sale Arm's Length Similar Similar Similar Similar Similar Market
Conditions 3/26/2024 Similar Similar Similar Similar Similar Location Mt Shasta Slightly Inferior Similar Similar Slightly Inferior Similar Orientation Similar Similar Similar Similar Similar
View Average Similar Similar Similar Superior Similar
Creek No Superior Similar Similar Similar Similar
Utilities All Public Similar Similar Similar Slightly Inferior Similar Fencing Partial Fencing Similar Slightly Inferior Similar Slightly Inferior Similar Visibility Good Similar Slightly Inferior Similar Slightly Inferior Similar Curb Side
Improvements Yes Inferior Similar Similar Slightly Inferior Similar Topography Flat Slightly Inferior Slightly Inferior Similar Similar Inferior Vegetation and
Trees None Inferior Slightly Inferior Slightly Inferior Similar Inferior Lot size Similar Similar Superior Slightly Superior Similar Overall
comparsion Inferior Inferior Superior Slightly Superior Inferior Adjusted Sale
Price $65,000.00 $48,000.00 $334,000.00 $110,000.00 $47,000.00
RANKING AND ADJUSTMENT GRID
PROPERTY RIGHTS, FINANCIAL TERMS AND CONDITIONS OF SALE All of the comparables have similar property rights, fee simple or leased fee, compared to the subject. Since the property rights can be easily converted from leased fee to fee simple in this case, there are no adjustments required for property rights for any of the sales. All were cash equivalent sales and all were arm’s length transactions. None of the sales required adjustments for conditions of sale.
MARKET CONDITIONS
The subject is a vacant commercial parcel. Comparables used are found in immediate neighborhood and near by city of Redding to keep the comparables in a similar demographic compared to the subject. The closed comparable sales transferred ownership between 6/26/2022 and 12/18/23. The type of property similar to the subject showed limited fluctuation in sales price during this time frame; therefore, there are no adjustments required for market conditions for any of the sales.
PHYSICAL ELEMENTS OF COMPARISON
The subject is located just east of Interstate 5 in west Mt. Shasta with frontage on Chestnut Street.
Vacant properties similar to the subject in the immediate neighborhood are somewhat limited Mt. Shasta City Council Regular Meeting October 28, 2024 143 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[30]
due to the small size town and the lack of small parcels in the downtown area similar to the subject. However, all the comparables selected are located either in the immediate neighborhood or in nearby cities with similar property sales market and property usage to the subject property.
All criteria were qualitatively compared to the subject. Comparables one, three, and four are located in the City of Mt. Shasta with comparable three in the closest proximity to the subject.
Comparables one and four are in less populated areas of Mt. Shasta, closer to the outskirts of the city, and are ranked slightly inferior in this criterion compared to the subject. Comparable one also has slightly inferior topography with heavy vegetation and trees that would need to be cleared before development. It has similar utilities availability, fencing, visibility, and lot size compared to the subject. Though it includes a seasonal running creek on the property, comparable one is on balance ranked inferior to the subject overall. Comparable two has similar location, orientation, views, utilities availability at the site, lot size, and curb improvements compared to the subject, but with slightly inferior visibility and topography including some vegetation and trees that need to be cleared before development, it is ranked slightly inferior overall compared to the subject. Comparable three is the most similar in location compared to the subject, along with similarities in most of the characteristics of the subject parcel. However, it has a much larger lot size, which is significantly superior compared to the subject; therefore, it is ranked superior overall. Comparable four is located at the border of South Mt. Shasta. The area has much lower population density and traffic compared to the downtown area where the subject is located. In addition to a slightly inferior location, it also has slightly inferior visibility, fencing, and curbside improvements, with no fencing on site and only curb improvements for this parcel. Comparable four is also ranked inferior in utilities, as it needed septic and well. However, with a superior view of the Mountain Shasta and larger lot size, comparable four ranked slightly superior overall compared to the subject. Comparable five is located in southeast Redding at a major business district on Bechelli Lane, which has similar visibility and a similar local economy compared to the subject. It is ranked similarly in location, orientation, view, lot size, and curb improvements compared to the subject. It has inferior topography and vegetation and trees criteria compared to the subject; therefore, it is ranked overall inferior to the subject.
OVERALL COMPARABLES RANKING
The adjusted comparable sales are shown in the table below. # APN Address/Locati
on City Recording
Date
Sale
Price Zoning Utilities Land Area SF
Land Area
AC
Price Per
Lot
3 057-311-180 803 S Mt Shasta
Blvd Mt Shasta 12/4/2023 $334,000 C-2 Public water and electric, Sewer 165,528 3.80 $334,000.00 4 037-420-070 Lot 7 Gateway
Park Mt Shasta 6/26/2022 $110,000 C1 Electricity at the lotline 45,302 1.04 $110,000.00
057-191-150,
180
057-191-150,
180 Mt Shasta C-1 All public 7,509 0.17
1 057-272-160 Parcel A Berry St Mt Shasta 12/18/2023 $65,000 C/R Public water and electric, Sewer 8,276 0.19 $65,000.00
2 116-170-005 11080 Rhyolite Dr Redding 4/28/2023 $48,000 GC All utilities availble at the lotline 9,360 0.21 $48,000.00
5 070-290-079 3371 Bechelli Ln Redding 5/9/2023 $47,000 GC All utilities availble at the lotline 13,939 0.32 $47,000.00
RANKING COMPARABLE SALES SUMMARY
Mt. Shasta City Council Regular Meeting October 28, 2024 144 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[31]
Comparable three set the high end of the range. It is included in the analysis due to its proximity to the subject, but the high overall price per lot are reflective of its large parcel size. No weight was given to this sale. Adjusted comparables one, two, four and five are reflective of commercial vacant land with characteristics similar to the subject, including similar characteristics, zoning district, and land use. All comparables characteristics that influence the assessment of value were qualitatively compared to the subject. The sales had a wide range overall from $47,000 to $334,000 per lot, but the subject was adequately bracketed in between comparable one and four within a much tighter range, from $65,000 to $110,000 per lot. Comparable four were given primary weight since it is the most similar to the subject. A value in the $100,000 per lot range is supported by this analysis.
The subject value as of 3/26/2024 is supported by all comparables and adequately bracketed by comparables one and three. A value of $100,000 is supported for the subject in as is condition.
Value Indicated by the Sales Comparison Approach: $100,000 Mt. Shasta City Council Regular Meeting October 28, 2024 145 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[32]
ADDENDA
Mt. Shasta City Council Regular Meeting October 28, 2024 146 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[33]
SUBJECT PHOTOS
Front view Reception area
Entrance
Mt. Shasta City Council Regular Meeting October 28, 2024 147 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[34]
ENGAGEMENT LETTER
Mt. Shasta City Council Regular Meeting October 28, 2024 148 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[35]
Mt. Shasta City Council Regular Meeting October 28, 2024 149 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[36]
GREENWAY PROJECT PRELIMINARY ANALYSIS
Mt. Shasta City Council Regular Meeting October 28, 2024 150 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[37]
Mt. Shasta City Council Regular Meeting October 28, 2024 151 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[38]
Mt. Shasta City Council Regular Meeting October 28, 2024 152 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[39]
Mt. Shasta City Council Regular Meeting October 28, 2024 153 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[40]
Mt. Shasta City Council Regular Meeting October 28, 2024 154 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[41]
Mt. Shasta City Council Regular Meeting October 28, 2024 155 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[42]
Mt. Shasta City Council Regular Meeting October 28, 2024 156 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[43]
Mt. Shasta City Council Regular Meeting October 28, 2024 157 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[44]
Mt. Shasta City Council Regular Meeting October 28, 2024 158 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[45]
Mt. Shasta City Council Regular Meeting October 28, 2024 159 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[46]
Mt. Shasta City Council Regular Meeting October 28, 2024 160 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[47]
Mt. Shasta City Council Regular Meeting October 28, 2024 161 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[48]
Mt. Shasta City Council Regular Meeting October 28, 2024 162 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[49]
Mt. Shasta City Council Regular Meeting October 28, 2024 163 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[50]
Mt. Shasta City Council Regular Meeting October 28, 2024 164 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[51]
Mt. Shasta City Council Regular Meeting October 28, 2024 165 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[52]
Mt. Shasta City Council Regular Meeting October 28, 2024 166 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[53]
Mt. Shasta City Council Regular Meeting October 28, 2024 167 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[54]
Mt. Shasta City Council Regular Meeting October 28, 2024 168 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[55]
Mt. Shasta City Council Regular Meeting October 28, 2024 169 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[56]
Mt. Shasta City Council Regular Meeting October 28, 2024 170 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[57]
Mt. Shasta City Council Regular Meeting October 28, 2024 171 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[58]
SISKIYOU COUNTY ZONING MAP
Mt. Shasta City Council Regular Meeting October 28, 2024 172 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[59]
UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS
1. This appraisal report 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 an appraisal report. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser’s file. 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 is not responsible for unauthorized use of this report.
2. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report.
3. The property is appraised free and clear of any and 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. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.
6. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader is visualizing the property.
7. 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 arranging for engineering studies that may be required to discover them.
8. 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.
9. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.
10. 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 on which the value estimates contained in this report are based.
11. 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 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.
12. It is assumed that the utilization of the land and improvements are within the boundaries or property lines of the property described, and that there is no encroachment or trespass unless otherwise stated in this report.
13. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde, foam insulation, or other potentially hazardous materials may affect the value of the property. The appraiser’s value estimate is predicated on the assumption that there are no such materials on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser’s descriptions and resulting comments are the result of the routine observations made during the appraisal process.
14. Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural Mt. Shasta City Council Regular Meeting October 28, 2024 173 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[60]
in nature that would restrict access by disabled individuals may adversely affect the property’s value, marketability, or utility.
15. Any proposed improvements are assumed to be completed in good workmanlike manner in accordance with the submitted plans and specifications.
16. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.
17. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only properly written qualification and only in its entirety.
18. 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) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.
Mt. Shasta City Council Regular Meeting October 28, 2024 174 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[61]
QUALIFICATIONS OF CHARLES W. RYAN, MAI
BREA Appraiser Identification Number AG 006156
PROFESSIONAL EXPERIENCE
Crocker Citizens National Bank
Sacramento, CA
1962-1964
As a staff appraiser for the bank, my duties consisted of the appraisal of urban properties in metropolitan Sacramento and Lake Tahoe region.
Duties also included training of new appraisers and administrative trainees.
State Board of Equalization –
Division of Intercounty Equalization
1964-1968
Staff duties included the appraisal of farms, ranches, and commercial and industrial properties throughout the State of California.
Office of Appraisal Appeals
(State Board of Equalization)
1968-1976
As a Senior Appraiser, duties involved the review of both appraisals prepared by board staff and county personnel and ultimate re-appraisal.
Professional territory was the entire State of California and Bay area counties, plus rural and recreational properties in the central and northern counties.
Independent Fee Appraiser
1976 - Present
As an independent fee appraiser, I have completed appraisal assignments for financial institutions, attorneys, corporations, public agencies and individuals on all property types.
OTHER EXPERIENCES
■ Past President (1988) Sierra Nevada Chapter – Appraisal Institute ■ Past Chairman, Shasta County Assessment Appeals Board ■ Former Faculty, Appraisal Institute
■ Past Chairman Board of Trustees – Mercy Foundation North ■ Past President (1997-1998) Rotary Club of Redding
■ Past Board Chair – Board of Directors – Turtle Bay Exploration Park and Museum ■ Past Board Chair – Shasta Family YMCA
■ Past Board of Directors, Habitat for Humanity
■ Past Vice Chair – Shasta Mosquito and Vector Control District ■ Board of Directors, Shasta Senior Nutrition & Golden Umbrella
QUALIFIED AS EXPERT WITNESS
Superior Courts of Shasta, Tehama, Trinity, Lassen, Siskiyou, Humboldt, Los Angeles, Sacramento, Santa Clara, Orange and Riverside Counties.
EDUCATION
■ California State Polytechnic University Bachelor of Science Degree, Agriculture ■ American Institute of Real Estate Appraisers Completed Courses I, II, III, IV & Litigation Courses.
State Board of Equalization Courses
CONTINUING EDUCATION
“The Appraisal Institute conducts a voluntary program of continuing education for its designated members. MAI’s and RM’s who meet the minimum standards of this program are awarded periodic education certification.” I am certified under this program.
Mt. Shasta City Council Regular Meeting October 28, 2024 175 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[62]
APPRAISER LICENSE
Mt. Shasta City Council Regular Meeting October 28, 2024 176 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[63]
QUALIFICATIONS OF FEI DU
BREA Appraiser Identification Number TA 3063734
PROFESSIONAL EXPERIENCE:
Ryan Valuation Services March 2022 – Current
Assist in the preparation of appraisals for commercial and industrial properties under the direct supervision of General Appraisers Kent E. Hume and Charles Ryan. Emphasis on multi-family land, office, retail, eminent domain and special purpose properties in Shasta, Butte, Trinity, Tehama, Humboldt, and Siskiyou Counties.
Vista Real Estate Jan 2022 – Current
Next Home Cedar Street Realty – May 2019 – Jan 2022
Present, promote, and sell residential real estate. Establish, develop and maintain business and customer relationships. Represent clients, negotiate contract terms, and finalize contract agreements as needed. Monitor and gather current marketplace information on pricing, housing trends, new developments, and current rules and regulations to best serve the clientele.
Monsanto - Woodland, CA, Kannapolis, NC Oct 2007 - Feb 2012 Research Associate Supervision and leadership for projects, including strategic planning and organizing, delegating responsibilities, and supervising contractors to ensure efficient and timely completion of projects. Project coordination across a matrix organization as a core member of interdisciplinary project teams. Serve as safety coordinator and safety inspector for the laboratory, including safety training for new employees, performing laboratory inspections, writing Job Safety Analysis (JSAs), and performing Instrumentation Reviews for all laboratory equipment. Development and implementation of methods to identify and quantify nutritional contents. Extensive experience creating Standard Operational Procedure (SOP) / Best Laboratory Practices (BLP) documents.
PROFESSIONAL CREDENTIALS:
State of California Trainee Appraiser, TA 3063734
State of California Real Estate Salesperson License, 02093217 EDUCATION:
M.S. in Chemistry; 2008 Sacramento State University, Sacramento B. S. in Chemistry and Minor in English; 2005 University of California - Davis, Davis Basic Appraisal Principles
Basic Appraisal Procedures
2020-2021 15-hr National USPAP Course
Supervisor-Trainee Course for California
Residential Market Analysis and Highest &
Best Use
Residential Appraiser Site Valuation and
Cost Approach
Residential Sales Comparison and Income
Approaches
Residential Report Writing and Case
Studies
Law and Regulations for California
Appraisers
Statistics, Modeling, and Finance
Advanced Residential Application and Case
Study
Appraisal Subject Matter Electives
General Appraiser Market Analysis Highest and
Best Use
General Appraiser Site Valuation and Cost
Approach
General Appraiser Sales Comparison Approach
General Appraiser Income Approach
General Report Writing & Case Studies
Commercial Appraisal Review – Subject Matter
Elective
Mt. Shasta City Council Regular Meeting October 28, 2024 177 24-003 RVS
Brownell Vacant Parcels
Mt. Shasta
RYAN VALUATION SERVICES
[64]
APPRAISER LICENSE
Mt. Shasta City Council Regular Meeting October 28, 2024 178 City Council Agenda Item # 10
Staff Report
Meeting Date: 10/28/2024
To: Mayor and City Council
From: Todd Juhasz, City Manager
Subject: Snow Removal Resolution
Recommended Action: Approve a resolution seeking to capture the true cost of snow removal within the Downtown Business District.
Background:
Currently the City does not charge residential and commercial accounts for “plowing” the streets.
The City does charge accounts for clearing sidewalks and for wheel loader and dump truck snow removal services from the center of the streets.
Under this proposal:
• the City would minimize center plowing/loader removal and sidewalk clearing services as it needs to clear the streets in a timely manner to reduce the possibility of hazardous conditions and to restrict expenditures for contracting heavy equipment and operators. • All billing charges to customers getting City snow removal services would be finalized by June 30 of the end of winter year. Then customers would be charged via their business license fees with the cost divided equally over the following twelve months.
The City will:
• Center plow, remove snow from medians, and clear sidewalks on Chestnut and Mt Shasta Blvd. from Alma to Water Street including all cross streets. Snow would be cleared on both sides of Chestnut from Lake to Alma. Then, snow would be removed from the median and sidewalks would be cleared.
• The Northside of Mt Shasta Blvd from Alma to E. Jessie would be plowed to the Westside of the street consistent with current practices. No snow removal or sidewalk clearing services would be available from the City.
• It appears that the most equitable way to allocate charges is to base it on building square footage. Residential properties shall not be charged as this is an additional service to benefit commercial businesses.
• To enable sidewalk clearing on existing sections as narrow as four (4’) feet, an additional piece of snow removal equipment will be purchased with the cost being depreciated over a ten-year period.
X Regular
Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting October 28, 2024 179 RESOLUTION CCR-24-XX
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MT. SHASTA
ADOPTING THE DESIGNATED BUSINESS DISTRICT
SNOW REMOVAL AREA MAP AND ESTABLISHING
USER FEES TO BE PAID IN ACCORDANCE
WITH MT. SHASTA MUNICIPAL CODE CHAPTER 12.24
WHEREAS, Mt. Shasta Municipal Code chapter 12.24 sets forth the conditions for snow removal in the City of Mt. Shasta; and
WHEREAS, section 12.24.075 designates mandatory sidewalk snow removal in the ‘downtown shopping areas’; and
WHEREAS, the City of Mt. Shasta shall by resolution designate the mandatory sidewalk areas in which the owners or occupants of properties abutting said sidewalk areas shall be responsible for the removal of snow accumulated on said sidewalk; and WHEREAS, the cost accumulated by the City for clearing sidewalks of snow in mandatory areas as set forth in section 12.24.070 shall be paid to the City on an annual basis by the property occupant or owner; and
WHEREAS, the cost of sidewalk snow removal was last set in 1982 at $12 per property; and WHEREAS, the City Council wishes to recoup the actual cost of snow removal in a fair and equitable manner to business and property owners.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Mt. Shasta hereby resolves the following:
1. The map of designated mandatory sidewalk snow removal areas is attached as ‘Exhibit A’.
2. Commercial property occupant or business owner shall reimburse the City on an annual basis for the actual cost of snow removal during the prior winter season.
3. Billing shall be prorated on the basis of commercial space square footage.
The foregoing Resolution was approved this 28th day of October, 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
DATED: October 28, 2024
ATTEST: CITY OF MT. SHASTA
______________________________ ______________________________ Kathryn M. Joyce, Deputy City Clerk John Stackfleth, Mayor Mt. Shasta City Council Regular Meeting October 28, 2024 180 Mt. Shasta City Council Regular Meeting October 28, 2024 181