GOVERNMENT CODE SECTION 7267.2 OFFER TO PURCHASE
Pursuant to Government Code sections 7267.1 and 7267.2
The City of San Marcos (City) is proposing to construct public improvements included in the University District Specific Plan, including North City Drive and Street “A” right-of-way, and related public improvements (the “project”). Your property, located on Shubin Lane (no street number), San Marcos (also identified by the San Diego County Assessor as Parcel No. 221-100- 09-00) is within the project area.
In compliance with the Eminent Domain Law of the St ate of California, an estimate of just compensation in the amount of ONE MILLION, NINE HUNDRED SIXTY-SEVEN THOUSAND DOLLARS ($1,967,000.00) has been made for the required fee simple absolute interests in your entire property, including the appurtenant access easement along Shubin Lane. City hereby offers this amount for the specified fee simple absolute property interests to be acquired. This offer is based upon an approved MAI appraisal and is not less than the appraiser's opinion of the fair market value of the fee simple interest proposed to be acquired in your property.
Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the California Relocation Assistance and Real Property Acquisition Guidelines require that each owner from whom the City purchases real property or an interest therein or each tenant owning improvements on said property be provided with a summary of the appraisal of the real property or interest therein, as well as the following information:
1. You are entitled to receive full payment prior to vacating the real property being purchased, if such vacation is required, unless you have heretofore waived such entitlement. You are not required to pay recording fees, transfer taxes, or the pro rated portion of real property taxes that are allocable to any period subsequent to the passage of title or possession.
2. The City will offer to purchase any remnant(s) considered by you and the City to be an uneconomic unit(s) which is/(are) owned by you or, if applicable, occupied by you as tenant and which is/(are) contiguous to the portion of land being conveyed. [ Note: This sentence regarding purchase of any remnant is not applicable to City’s proposed purchase of the entire parcel, including the appurtenant access easement along Shubin Lane.]
3. All buildings, structures, and other improvements, if any, affixed to the land described in the attached document(s) covering this offer and owned by the grantor(s) herein or, if applicable, owned by you are being conveyed unless other disposition of these improvements has been made. The interest to be acquired in your property consist of:
SEE LEGAL DESCRIPTION AND MAP ATTACHED HERETO AND BY
REFERENCE MADE A PART HEREOF.
City of San Marcos Government Code Section 7267.2 Offer to Purchase Property Property located on Shubin Lane (no street number), San Marcos, CA 92078 Assessor's Parcel No. 221-100-09-00
4. The market value of the property interests being purchased is based upon a market value appraisal that is summarized on the attached summary statements and such amount:
a. Represents the full amount of the appraisal of just compensation for the property to be purchased;
b. Is not less than the approved appraisal of the fair market value of the property; c. Disregards any decrease or increase in the fair market value of the real property to be acquired prior to the date of valuation caused by the public improvement for which the property is to be acquired or by the likelihood that the property would be acquired for such public improvement, other than that due to physical deterioration within the reasonable control of the owner or occupant; and d. Does not reflect any consideration of or allowance for any relocation assistance and payments or other benefits, if applicable, which the owner may be entitled to receive under an agreement with the City.
5. Pursuant to Code of Civil Procedure Section 1263.025 should you elect to obtain an independent appraisal, the City will pay for the actual reasonable cost up to five thousand dollars ($5,000) subject to the following conditions:
a. You, not the City, must order the appraisal. Should you enter into a contract with the selected appraiser, the City will not be a party to the contract; b. The selected appraiser must be appropriately licensed with the Office of Real Estate Appraisers (OREA);
c. Request for appraisal cost reimbursement must be in writing and submitted to the City of San Marcos, 1 Civic Center Drive, San Marcos CA 92069, Attention:
Stephanie Kellar, Principal Engineer. Requests should be made within ninety (90) days of the earliest of the following dates: (1) the date the selected appraiser requests payment from you for the appraisal; or (2) the date upon which you, or someone on your behalf, remitted full payment to the selected appraiser for the appraisal. Copies of the contract (if a contract was made), appraisal report, and the invoice for the completed work by the appraiser should be provided to the City concurrent with submission of an Appraisal Cost Reimbursement Agreement. The costs must be reasonable and justifiable.
City of San Marcos Government Code Section 7267.2 Offer to Purchase Property Property located on Shubin Lane (no street number), San Marcos, CA 92078 Assessor's Parcel No. 221-100-09-00
6. The owner of a business conducted on a property to be acquired, or conducted on the remaining property that will be affected by the purchase of the required property for public use, may be entitled to compensation for loss of goodwill, if any.
Entitlement is contingent upon the business operator/owner's ability to prove such loss in accordance with the provisions of Sections 1263.510 and 1263.520 of the Code of Civil Procedure.
7. If you ultimately elect to reject the City's offer for the specified interests in your property, you are entitled to have the amount of compensation determined by a court of law in accordance with the laws of the State of California.
City of San Marcos Government Code Section 7267.2 Offer to Purchase Property Property located on Shubin Lane (no street number), San Marcos, CA 92078 Assessor's Parcel No. 221-100-09-00
EXHIBIT “A” LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
PARCEL 1:
THAT PORTION OF LOT 18 IN BLOCK 63 OF THE SUBDIVISION OF RANCHO LOS VALLECITOS DE
SAN MARCOS, IN THE CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 806, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, DECEMBER 21, 1895, DESCRIBED AS FOLLOWS; COMMENCING AT THE SOUTHEAST CORNER OF LOT 1 IN SAID BLOCK 63; THENCE NORTH 9°20' EAST ALONG THE EASTERLY LINE OF SAID LOT 1 AND THE EASTERLY LINE OF LOT 21 IN SAID BLOCK 63 A DISTANCE OF 923.28 FEET; THENCE; SOUTH 73°38'30" WEST PARALLEL WITH THE SOUTHEASTERLY LINE OF LOTS 1, 2 AND 3 IN SAID BLOCK 63 A DISTANCE OF 916.95 FEET TO
THE TRUE POINT OF BEGINNING, BEING THE SOUTHWEST CORNER OF LAND DESCRIBED IN DEED TO MELVIN M. DE PUE, ET UX, RECORDED JANUARY 23, 1970 AS FILE/PAGE NO. 13014 OF OFFICIAL RECORDS; THENCE CONTINUING SOUTH 73°38'30" WEST 209.70 FEET TO THE WESTERLY LINE OF SAID LOT 18; THENCE NORTH 16°13'10" WEST ALONG SAID WESTERLY LINE 208.00 FEET; THENCE NORTH 73°38’30" EAST A DISTANCE OF 209.70 FEET TO THE NORTHWEST CORNER OF SAID DE PUE'S LAND; THENCE ALONG THE WESTERLY LINE OF SAID DE PUE'S LAND; SOUTH 16°26'20" EAST 208.00 FEET TO THE TRUE POINT OF BEGINNING. EXCEPT
THEREFROM THAT PORTION, IF ANY, THAT LIES WITHIN A PARCEL OF LAND DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 18; THENCE NORTH 73°34’ EAST ALONG THE NORTHERLY LINE OF SAID LOTS 18 AND 19, A DISTANCE OF 412.78 FEET; THENCE SOUTH 9°20’ WEST 456.97 FEET; THENCE SOUTH 73°38'30" WEST 215.78 FEET MORE OR LESS TO THE WESTERLY LINE OF SAID LOT 18; THENCE NORTH 16°13'10" WEST ALONG SAID WESTERLY LINE 411.51 FEET TO THE POINT OF BEGINNING.
PARCEL 2:
AN EASEMENT FOR ROAD AND PUBLIC UTILITY PURPOSES OVER, UNDER, ALONG AND ACROSS THOSE PORTIONS OF LOTS 18 AND 19 IN BLOCK 63 OF THE SUBDIVISION OF RANCHO
LOS VALLECITOS DE SAN MARCOS, IN THE CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 806, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, DECEMBER 21, 1895, LYING WITHIN A STRIP OF LAND 20.00 FEET IN WIDTH, THE SOUTHERLY LINE OF WHICH IS DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHEASTERLY CORNER OF LOT 1 IN SAID BLOCK 63; THENCE ALONG THE EASTERLY LINE OF SAID LOT 1 AND THE EASTERLY LINE OF SAID LOT 21; NORTH 09°20’ WEST 923.28 FEET; THENCE PARALLEL WITH THE SOUTHEASTERLY LINE OF LOTS 1, 2 AND 3 IN BLOCK 63; SOUTH 73° 38'30" WEST, 552.66 FEET TO THE TRUE POINT OF BEGINNING OF THE HEREIN DESCRIBED LINE BEING A POINT ON THE EASTERLY LINE OF LOT 19 OF SAID BLOCK 63; THENCE CONTINUING SOUTH 73°38’30" WEST 364.29 FEET TO THE SOUTHWESTERLY CORNER OF LAND DESCRIBED IN PARCEL 1 IN DEED TO WILLIAM F. SHUBIN, ET AL, RECORDED JANUARY 30, 1959 IN BOOK 7472, PAGE 203 OF OFFICIAL RECORDS, City of San Marcos Government Code Section 7267.2 Offer to Purchase Property Property located on Shubin Lane (no street number), San Marcos, CA 92078 Assessor's Parcel No. 221-100-09-00
EXHIBIT “A” LEGAL DESCRIPTION (Continued)
PARCEL 3:
AN EASEMENT AND RIGHT OF WAY FOR ROAD AND PUBLIC UTILITY PURPOSES OVER, UNDER, ALONG AND ACROSS A STRIP OF LAND 20.00 FEET WIDE LYING LOTS 20 AND 21 IN BLOCK 63
OF THE SUBDIVISION OF RANCHO LOS VALLECITOS DE SAN MARCOS, IN THE CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 806, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, DECEMBER 21, 1895, THE SOUTHERLY LINE OF SAID 20.00 FOOT STRIP BEING DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHEAST CORNER OF LOT 1 IN SAID BLOCK 63; THENCE NORTH 9°20' EAST ALONG THE EASTERLY LINE OF SAID LOT 1 AND LOT 21 OF SAID BLOCK A DISTANCE OF 923.28 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 73°38’30" WEST PARALLEL WITH THE SOUTHEASTERLY LINE OF LOTS 1, 2 AND 3 IN SAID BLOCK 63 OF DISTANCE OF 552.66 FEET, MORE OR LESS TO THE EASTERLY LINE OF LOT 19 OF SAID BLOCK 63. SAID 20.00 FOOT STRIP BEGINS IN THE EASTERLY LINE OF SAID LOT 21 AND ENDS IN THE EASTERLY LINE OF LOT 19.
APN 221-100-09-00
City of San Marcos Government Code Section 7267.2 Offer to Purchase Property Property located on Shubin Lane (no street number), San Marcos, CA 92078 Assessor's Parcel No. 221-100-09-00
EXHIBIT “B” MAP
FIRST UPDATED SUMMARY OF THE BASIS FOR THE AMOUNT
ESTABLISHED AS JUST COMPENSATION
(Government Code §7267.2)
Appraisal Summary Statement
(Code of Civil Procedure §1255.010)
Following is a summary of the basis for the amount established as just compensation which was derived from an appraisal performed by an independent MAI-designated appraiser. The appraisal was made in accordance with accepted appraisal principles consistent with California valuation law.
Project Description North City Drive & Street “A” Right of Way – University District Specific Plan Area
Assessor Parcel Number 221-100-09-00
Ownership
Name Lin Sulu Pastrana, Trustee of AC One Land Trust
Lin Sulu Pastrana, Trustee of AC Two Land Trust
Address 2237 Winsome Place
Escondido, CA 92029
Property Identification Shubin Lane, San Marcos, CA 92078 (no street address) Legal Description Portion of Lot 18 in Block 63 of the Subdivision of Rancho Los Vallecitos de San Marcos, Map No. 806, City of San
Marcos, County of San Diego, State of California.
Land Area (Larger Parcel) 43,700 square feet (source: Stevens-Cresto Engineering) Improvements None of value (slab remnant, dilapidated fencing) Zone/General Plan General Plan: SPA, Specific Plan Area Zoning: SPA, Specific Plan Area
UDSP: Street Right-of-way, Residential &
Mixed-Use Center
Highest & Best Use Assemblage with adjoining land for master-planned development consistent with the University District
Specific Plan (UDSP).
Area Proposed to be Acquired Total acquisition of the whole property.
Fair Market Value $1,967,000
Effective Date of Value May 15, 2023
BASIS FOR AMOUNT OF JUST COMPENSATION
The just compensation for the fee simple interest of the whole property is based on an appraisal performed by an independent MAI-designated appraiser in accordance with accepted appraisal principles and procedures. The amount of just compensation is the appraised fair market value of the real property. Because whole acquisition of the property is proposed, the issues of damages and benefits to the Remainder do not apply.
DEFINITIONS
Fair Market Value
Fair Market Value is defined by California law as the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obligated to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.
Highest and Best Use
Highest and Best Use is defined as the reasonably probable and legal use of vacant land or an improved property this is legally permissible, physically possible, appropriately supported, financially feasible, and results in the highest value. Highest and Best Use analysis is used in the appraisal process to identify comparable properties and, where applicable, to determine whether the existing improvements should be retained, renovated, or demolished.
The Subject is identified in the UDSP at the approximate future intersection of North City Drive and Street “A” between areas designated for Residential and Mixed Use Center land uses.
The Subject has legal access on Shubin Lane, a private 20-foot-wide easement road that historically supported numerous single-family houses. However, Shubin Lane is insufficient to support stand-alone development of the Subject parcel in a manner that would be consistent with the permitted land uses, densities and intensities of the UDSP. The highest and best use of the Subject parcel, therefore, is assemblage with the surrounding land for master-planned development consistent with the UDSP.
Methods for Calculation of Value
There are three conventional methods that can be used to estimate value of real property. These are the sales comparison approach, the cost approach, and the income approach. Not all appraisals require use of all three approaches. The most commonly used method is the sales comparison (or market data) approach. The appraisal used the Sales Comparison approach exclusively.
Valuation
Based on the UDSP street plan, the Subject will likely be largely needed for use as public right- of-way for North City Drive and Street “A” with a minimal amount of remaining land potentially available to support Residential and Mixed Use Center development (most likely as part of an assemblage with adjoining lands due to small remnant sizes and lack of access). The UDSP envisions 2-story to 4-story multi-family residential buildings west of Street “A” and south of North City Drive (Lot 4 of TSM 19-0002 proposes development of about 12 DU/AC adjacent to the Subject). The UDSP envisions 3-story to 12-story mixed-use buildings in the Mixed Use Center district east of Street “A” and south of North City Drive.
For valuation of the whole Subject Property, the future alignments of North City Drive and Street “A” were ignored, and the Subject parcel was treated as no more or less impacted than the larger land assemblage by the need to dedicate right-of-way for internal streets to support the adjacent Residential and Mixed Use Center development. It was estimated that about 17% of the land assemblage for the adjacent Residential and Mixed Use Center areas would be needed as right- of-way (notwithstanding that a majority of the Subject will likely be needed as right-of-way). For valuation purposes, the Subject was estimated to have a proportional street dedication requirement of 17% as part of a larger land assemblage.
Because the Subject Property straddles the Residential and Mixed Use Center land areas, a search was made for recent sales of similar low-medium density residential and high-density mixed-use land.
The Subject Property was appraised using two sets of market data: 1) sales within the University District Specific Plan area and 2) sales in inland north county outside the UDSP area. The market data used in the appraisal is summarized in Exhibits A1 & A2 attached hereto.
The sales ranged in price from $20.14 to $106.52 per square foot of land area. After analysis, these sales supported a value conclusion of $45 per gross square foot, or $1,967,000 for the Subject Property as of May 15, 2023. The value calculation was 43,700 SF x $45 = $1,966,500; rounded to $1,967,000.
EXHIBIT A1 – UNIVERSITY DISTRICT MARKET DATA SUMMARY
UNIVERSITY DISTRICT SALES SUMMARY
Sale
No. Address/(APN)
Sale Price
Sale Date
Price/SF
Land Area
Price/SF
Bldg.
Land
Size Bldg. SF
Univ. Dist.
Zoning
1 157 Shubin Lane
(221-100-47)
$625,000
Oct. 2017
$31.19 $399.11 20,038 SF 1,566 SF Mixed-Use
2 128 Bolotin Lane
(221-100-38)
$450,000
April 2017
$41.32 $321.43 10,890 SF ≈1,400 SF Mixed-Use
3 197-199 S. Twin
Oaks Valley Rd
(221-110-71, 72, 73,
74)
$1,650,000
July 2019
$49.40 $398.74 33,403 SF 4,138 SF Mixed-Use
4 292 E. Barham Dr
(220-202-31, 34)
$7,000,000
Sept. 2021
$92.36 $544.83 75,794 SF 12,848 SF Student
Housing
5 160 Industrial St
(220-202-15, 16)
$5,400,000
Jan. 2022
$72.07 $293.48 74,923 SF 18,400 SF Office/
Commercial
A 263-285 E. Carmel St
(220-202-13, 14)
$5,800,000
Dec. 2022
$106.52 $406.73 54,450 SF 14,260 SF Office/
Commercial
EXHIBIT A2 – NORTH COUNTY INLAND MARKET DATA SUMMARY
NORTH COUNTY INLAND SALES SUMMARY
Sale
No. Address/(APN) Sale Price Sale Date Price/SF Land Size No. Units
/Density
6 2200-2224 S. Escondido
Blvd, Escondido
(236-390-02, 03, 52, 53, 54)
$3,410,000 June 2021 $32.75 104,108 SF
Net Usable
62 DU
26 DU/AC
7 2402 S. Escondido Blvd,
Escondido
(238-141-18)
$2,300,000 June 2021 $35.20 65,340 SF 44 DU
29 DU/AC
8 1108 Sycamore Avenue,
Vista
(217-210-38, 39, 73, 74)
$13,556,623 July 2021 $39.34 344,560 SF 103 DU
13 DU/AC
9 1860-96 S. Escondido Blvd,
Escondido
(236-260-34, 35, 36, 37)
$1,800,000 April 2022 $37.57 47,916 SF 33 DU
30 DU/AC
10 206 Cedar Road,
Vista
(166-051-05)
$3,675,000 May 2022 $55.01 66,802 SF
Net Usable
35 DU
22 DU/AC
11 555 W. Grand Avenue,
Escondido
(233-032-01, 02, 21, 23)
$1,400,000 March 2021 $70.90 19,746 SF 32 DU
80 DU/AC
12 550 W. Third Avenue,
Escondido
(233-032-07, 08, 10, 11, 12,
13, 14, 17, 18, 19, 21)
$6,960,000 April 2022 $67.57 101,495 SF 120 DU
52 DU/AC
13 661 Leora Lane,
San Marcos
(228-370-01, 02, 03, 04, 38)
$2,400,000 Sept 2021 $40.54 59,200+ SF N/A
(Hotel)
14 1100 W. San Marcos Blvd.
San Marcos
(219-200-47)
$4,600,000 Sept 2021 $39.63 116,083 SF
Net Usable
82 DU
31 DU/AC
15 961 W. San Marcos Blvd.
San Marcos
(221-061-57)
$1,100,000 July 2022 $31.36 35,082 SF
Net Usable
TBD
16 943 E. Barham Drive,
San Marcos
(228-310-01)
$9,600,000 June 2022 $20.14 476,546 SF 151 DU
14 DU/AC
17 562 Grand Avenue,
Escondido
(229-401-14 & 15)
$2,700,000 Nov 2022 $96.43 28,000 SF 52 DU
81 DU/AC
18 1401-1447 S. Escondido Bl,
Escondido
(236-172-14 & 15)
$2,250,000 Nov 2022 $44.12 51,000 SF 54 DU
46 DU/AC
19 1600 S. Escondido Blvd,
Escondido
(236-460-16)
$2,790,000 Dec 2022 $59.86 46,609 SF 48 DU
45 DU/AC